Dubai’s real estate sector is well-known for providing attractive investment options. Buyers from all over the world like to invest in real estate in Dubai. To accommodate this growing migration, the government has imposed several laws and restrictions, such as the Sales Purchase Agreement.
The SPA, also known as the original contract, is an agreement signed by both parties to ratify the sale of a property. The SPA protects both pirates’ rights and eliminates any future complications. To legalize the procedure, the seller must sign the SPA and register with the Dubai Land Department (DLD).
We have described in full how to register an SPA with DLD as well as the other procedures required in the process.
SPA REGISTRATION WITH DLD
The SPA serves as legal confirmation that you have completed the acquisition of a property unit. As a result, it is one of the most important documents for both parties.
The steps that follow go through how to register SPA with DLD in further detail.
STEPS FOR REGISTERING A SALES AND PURCHASE AGREEMENT (SPA) WITH DLD
The SPA registration process with DLD is straightforward and can be completed in just four stages.
- Step 1: Log in to the Oqood Portal and go to the ‘Initial Sale Registration Service’ section.
- Step 2: Select ‘Property’, fill in the relevant information, attach papers and select ‘Payment Method.
- Step 3: Submit the completed application.
- Step 4: A confirmation document will be emailed to the customer.
Now that you’re familiar with all of the stages involved in establishing an SPA with DLD, let’s look at the papers needed for registration.
DOCUMENTS ARE REQUIRED
DLD requires different sets of documentation from individuals and companies.
INDIVIDUALS
- SPA contract (Copy)
- Emirates ID/Passport (Copy)
INDIVIDUAL FOUNDATION COMPANIES
- Commercial Licence (Copy)
- Licence owner’s Emirates ID/Passport (Copy)
- Power of attorney (if required)
LIMITED LIABILITY COMPANIES
- Commercial Licence (Copy)
- Licence owner’s Emirates ID/Passport (Copy)
- Power of attorney (if required)
- Company’s articles of association and its appendices translated into Arabic (Copy)
- Shareholders’ certificate (Copy)
COMPANIES OPERATING OUTSIDE UAE
- Commercial Licence (Copy)
- Licence owner’s National ID/Passport (Copy)
- Power of attorney (if required)
- Company’s articles of incorporation and its appendices translated into Arabic (Copy)
- Certificate by Ministry of Foreign Affairs
- Shareholders’ certificate (Copy)
- In case of purchase, a No-Objection Letter from the free zone.
COMPANIES LOCATED IN GCC
- Commercial Licence (Copy)
- Licence owner’s National ID/Passport (Copy)
- Power of attorney (if required)
- Company’s articles of incorporation and its appendices translated into Arabic (Copy)
- Certificate by Ministry of Foreign Affairs
- Shareholders’ certificate (Copy)
WHAT IS THE COST TO REGISTER A SPA WITH DLD?
Both buyers and sellers must pay the following sum in order to register SPA with DLD.
- The buyer will be charged 2% of the total sales value.
- The seller will be charged 2% of the total sales value.
- AED 10 for each value’s knowledge fees
- AED 10 for each value that is innovative
- The developer will charge AED 1,000 as a self-registration fee for the initial sales.
TERMS AND CONDITIONS OF SPA REGISTRATION
The rules and conditions that must be met in order to register an SPA are listed below.
- Both the buyer(s) and the developer(s) must sign the SPA.
- The contract should be registered within 90 days of signing.
- If the buyer(s) is/are of legal age, the guardian will sign the agreement and attach a copy of the guardian’s national ID or passport.
- A letter from the Federal Authority for Identity and Citizenship should be attached if the buyer is a decree holder.
- If the company is not from the UAE, it must register with the Dubai Multi Commodities Centre Authority (DMCC) or the Jebel Ali Free Zone Authority (JAFZa).
These are the processes for registering an SPA with DLD. The registration of the original sales contract ensures that both purchasers’ and sellers’ rights are protected. Having said that, investing in Dubai real estate is safe and easy. If you are looking for real estate investment prospects, go through these properties for sale in Dubai and select an appropriate property unit for investment.
