Leasehold property registration with DLD in Dubai
In Dubai, leasehold property registration with DLD (Dubai Land Department) is a crucial step in establishing the legal status of the lease agreement. The process involves several steps. Hence, ensuring compliance with DLD regulations is important. This article provides you with in-depth details about the whole process.
LEASEHOLD PROPERTY REGISTRATION IN DUBAI – AN OVERVIEW
In April 2014, DLD passed an administrative resolution to facilitate leasehold property registration in Dubai. It stated that any lease for more than 10 years should be registered with DLD, and the lease under 10 years should be registered with Ejari, which the Real Estate Regulatory Authority (RERA) overlooks.
Registration with DLD application allows you to own contracts of all types. It includes the following:
- An application for registration of a lease-to-own contract for a provisional sale.
- An application for registration of a lease-to-own contract for a provisional sale registration.
- An application for registration of a lease to own contract for a usufruct right.
Furthermore, leasehold property registration with DLD allows usufruct rights between the seller, purchaser and the financing party of the property. This implies that payments are to be collected from the purchaser in favour of the financing party, ultimately making the purchaser the property owner.
LEASEHOLD PROPERTY REGISTRATION WITH DLD PROCESS
The steps for leasehold property registration with DLD are quite straightforward.
- Visit the DLD website
- Fill the provisional lease-to-own e-form
- Attach required documents
- Pay the fees
- Receive your document
Please note that if you are not registered with DLD, you must apply for a company registration first.
DOCUMENTS REQUIRED FOR REGISTRATION
Here’s a list of required documents for leasehold property registration with DLD.
- A No-Objection E-Certificate (E.NOC) from the developer in Dubai freehold areas (through the Dubai REST app)
- A lease letter from the bank indicating the rental amount, including the start and expiry dates.
- The UAE ID of the seller and purchaser (for identification only; no copy shall be submitted) or a valid passport for non-resident foreigners.
- A legal power of attorney if someone is acting on their behalf.
LEASEHOLD PROPERTY REGISTRATION FEES
For the seller and purchaser, the leasehold property registration fee is 2% of the total amount. For instance, if the sale value is equal to or more than AED 500,000, fees of AED 4,000 will be charged plus VAT for service partners fees.
However, if the sale price of a property is less than AED 500,000, fees of AED 2,000 plus VAT for the service partners fees.
A 0.25% fee for rental properties is charged on the total value. Other fees for different registrations under DLD are as follows:
- AED 250 for a Title Deed Issuance
- AED 100 for a land plot map for the lands outside the authority of Dubai Municipality
- AED 225 for the land plot map unified with Dubai Municipality
- AED 10 for Knowledge Fees for each drawing
- AED 10 for Innovation Fees for each drawing
FAQs ABOUT LEASEHOLD PROPERTY REGISTRATION
WHICH TYPES OF DOCUMENTS DOES DLD ISSUE UNDER LEASEHOLD PROPERTY REGISTRATION?
Certificate of Title, Title Deed in Dubai, Usufruct Title Deed, Statement Certificate and Provisional Sale Registration Certificate (Oqoodi) are issued by DLD under leasehold property registration. Read more about Oqood services in Dubai in this guide.
WHAT SERVICE CHANNELS ARE AVAILABLE FOR THE REGISTRATION PROCESS?
You can apply for registration via Real Estate Registration Trustee Centres across Dubai. These service centres operate from Monday to Thursday from 07:30 am to 03:30 pm. On Friday, you can visit between 07:30 am and 12:00 pm.
WHAT IS THE PROCESS FOR APPLYING VIA SERVICE CENTRE?
Here’s how you can initiate the registration process via service centres:
- Visit the Real Estate Registration Trustee Centre
- Submit the required documents to an employee
- The representative will enter your transaction details into the system
- Pay the fees
- Receive the payment receipt
- The required document will be emailed to you
WHAT IS THE PROCESSING TIME FOR LEASEHOLD PROPERTY REGISTRATION?
It takes approximately 15 minutes to complete the entire registration process.
WHAT ARE THE CONTACT DETAILS FOR DLD?
You can contact DLD at 800-4488 for non-technical queries. For technical inquiries, it is advised to email info@dubaiand.gov.ae
WHAT IS THE DIFFERENCE BETWEEN FREEHOLD AND LEASEHOLD PROPERTY OWNERSHIP?
Leasehold ownership means you get property rights for a fixed term, whereas freehold ownership means you have absolute ownership of the property and the land it’s built on. You can learn the difference between leasehold and freehold property ownership.
And on that note, we wrap up our guide to leasehold property registration in Dubai. The process is simple, as DLD provides effortless services to streamline various processes, making it easier for individuals and businesses to access and manage property-related transactions.
Curious about the distinction between usufruct and lease? Our comprehensive guide on usufruct vs lease offers a clear explanation of these two legal terms.
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