How to register Sale and Purchase Agreements (SPA) with DLD
A Sale and Purchase Agreement (SPA) is a legally binding contract that outlines the terms and conditions of a property transaction between a buyer and a seller. It is a crucial document that governs the sale of a property and is designed to protect the interests of both parties involved in the transaction. Here’s how to register SPA with DLD (Dubai Land Department).
ABOUT SALE AND PURCHASE AGREEMENT (SPA)
SPA is a registration of land plots or off-plan units a real estate developer has sold. DLD requires registration of only those properties whose value has not been paid at the provisional register.
It is a legally binding document that outlines the terms and conditions of the property sale. It typically covers details such as the property description, purchase price, payment terms and any other specific terms agreed upon by the buyer and seller.
To initiate the SPA registration process with DLD, the following rules and regulations apply:
- The sale or purchase contract must be signed by the purchaser and the developer.
- If the purchaser is a minor, the contract is to be signed by a guardian (in this case, you are required to attach a copy of guardian’s passport or ID).
- The contract is to be registered in the provisional register within 90 days from the date of signing the contract.
- If the purchaser is a decree holder, he/she needs to present a valid letter to To Whom It May Concern issued by the Federal Authority for Identity and UAE Citizenship.
PROCESS TO REGISTER SPA WITH DLD
STEP-BY-STEP PROCEDURE
Let’s take a detailed look at the SPA registration process:
- Login to Oqood portal and select provisional sale registration service
- Select a property
- Fill in your details
- Attached the required documents
- Select the payment method
- Send the application online
- Receive your receipt of the output via email
DOCUMENTS REQUIRED TO REGISTER SPA WITH DLD
Different documents are required for individuals and companies who wish to register SPA with DLD.
Documents for Individuals
- Copy of the sale and purchase contract
- Copy of valid UAE ID
- Copy of valid passport for non-residents
Documents for Sole Proprietorship Companies
- Copy of valid trade license
- Copy of the UAE ID or passport of the license holder
- Power of attorney (if any)
Documents for Limited Liability Companies
- Copy of a valid trade license
- Copy of the UAE ID passport of the license holder
- Power of attorney (if any)
- Copy of translated company’s Memorandum of Association and the annexes thereof (it should be legally translated into Arabic language)
- Copy of the shareholder certificate
Documents for a Foreign Company
- Copy of valid trade license
- Copy of national ID or passport of the license holder
- Power of attorney (if any)
- Copy of translated company’s Memorandum of Association and the annexes thereof (it should be legally translated into Arabic language and ratified by the Ministry of Foreign Affairs)
- An NOC (no objection letter) from the free zones
- Copy of the shareholder certificate
Please note that to register SPA with DLD for a foreign company, the names of shareholders should be prescribed.
Documents for GCC Company
- Copy of a valid trade license
- Copy of the national ID or passport of the license holder
- Power of attorney (if any)
- A copy of translated company’s Memorandum of Association and the annezes thereof (it should be legally translated into Arabic language and ratified by the Ministry of Foreign Affairs)
- Copy of the shareholder certificate
REGISTRATION FEES
The SPA registration fees with DLD is as follows:
- 2% of the total sale value for seller and purchaser
- AED 10 for knowledge fees
- AED 10 for innovation fees
- AED 1,000 for self-registration for developers
FAQS ABOUT SPA REGISTRATION PROCESS
WHAT ARE THE SERVICE CHANNELS FOR SPA REGISTRATION?
The official service channel for SPA registration is DLD’s Real Estate Developers Portal also known as Oqood.
HOW LONG DOES IT TAKE FOR THE REGISTRATION TO PROCESS?
It takes one business day to complete the registration process.
HOW LONG AN NOC FROM THE FREE ZONES IS VALID FOR?
For a purchase contract, an NOC is valid for a year.
WHICH ARE THE TOP REAL ESTATE DEVELOPERS IN DUBAI?
Top real estate developers in Dubai are Azizi Developments, Binghatti Developers, DAMAC Properties and Danube Properties.
And with that, we wrap our guide. Please note that it is crucial for both buyers and sellers to thoroughly review and understand the terms of the SPA before registering it DLD. Legal advice is often recommended to ensure that the agreement aligns with their interests and complies with relevant regulations.
If you want to know how to invest in Dubai real estate, our guide might come in handy.
You can also consider these high ROI areas in Dubai which are likely to bring you amazing yields on both villas and apartments.
