Dubai is a cosmopolitan city known for its modern architecture, luxurious lifestyle, and dynamic economy. It is no wonder that owning property in Dubai is a dream for many. However, the process of buying property in Dubai can be complicated, especially for first-time buyers. One of the essential documents you need to understand when buying property is the title deed in Dubai. In this article, we will take a comprehensive look at title deed in Dubai and everything you need to know about property ownership in the city.
What is a Title Deed?
A title deed is a legal document that proves ownership of a property. It contains essential details about the property, such as the name of the owner, location, and size. In Dubai, the title deed is issued by the Dubai Land Department (DLD). The DLD is the government body responsible for managing and overseeing all real estate transactions in Dubai.
Types of Title Deed in Dubai
There are two types of title deeds in Dubai:
Freehold Title Deed
A freehold title deed gives the owner full ownership of the property, including the land on which the property is built. It is issued for properties located in specific areas designated by the Dubai government for foreign ownership. This type of title deed is available to UAE citizens and foreign nationals. Foreigners are allowed to own property in specific areas called freehold areas. These areas include Dubai Marina, Jumeirah Lakes Towers, Downtown Dubai, and Dubai International Financial Centre (DIFC), among others.
Regular Title Deed
As a buyer, if you purchase a completed property directly from the developer, you will receive the regular title deed in your name right away.
Oqood
If you opt to purchase an off-plan property that is still in the planning or construction stage then you will receive an Oqood issued by RERA (Real Estate Regulatory Authority). This document assures that the property being constructed is registered in your name. Once the construction is finalized/completed, the Oqood is transformed into a title deed.
Fractional Title Deed
If you wish to purchase a fraction of a unit specifically either half or quarter then you will receive a fractional title deed. This document effectively divides the single unit into separate fractions, with each fraction having its own title deed.
Leasehold Title Deed
A leasehold title deed grants the owner the right to use the property for a specific period, usually 99 years. The owner of the property will have to pay rent to the landowner, who is usually the government or a private entity. Leasehold title deeds are issued for properties located in areas that are not designated for foreign ownership.
Understanding the Title Deed
To understand the title deed, you need to know what is included in the document. Here are some essential details you will find in a title deed in Dubai:
- Title deed issue date
- Mortgage status (whether property is mortgaged or not)
- Property type (Flat or Villa or Land etc.)
- Community name
- Plot number
- Municipality number
- Building number (if flat)
- Building name (if flat)
- Property number
- Parkings details
- Total Area
- Property owners name and their shares
- Seller name
- Registration number and date
- Purchase value
- QR Code
- Certificate number (i.e XXXX/YEAR)
The Process of Obtaining a Title Deed
The process of obtaining a title deed in Dubai can be lengthy and complicated. Here are the steps involved:
Step 1: Obtain a No Objection Certificate (NOC)
Before you can buy a property in Dubai, you need to obtain a No Objection Certificate (NOC) from the Dubai Land Department (DLD). The NOC confirms that the property is not mortgaged and that the seller has the right to sell the property.
Step 2: Pay the Deposit
Once you have obtained the NOC, you will need to pay a deposit of 10% of the property’s purchase price.
Step 3: Sign the Sale and Purchase Agreement
After paying the deposit, you will need to sign the Sale and Purchase Agreement (SPA) with the seller. The SPA outlines the terms and conditions of the sale.
Step 4: Obtain a Mortgage
If you are obtaining a mortgage to finance the purchase, you will need to obtain a mortgage from a bank or financial institution. The bank will require a copy of the NOC and the SPA before approving the mortgage.
Step 5: Register the Property
Once you have paid the full purchase price, the property will need to be registered with the Dubai Land Department (DLD). The DLD will issue the title deed in your name once the registration process is complete.
How to download Title Deed in Dubai
Currently in Dubai, the traditional method of issuing original Title Deed has been replaced. Instead, Title Deeds now come with a QR code and are stored on the blockchain. Therefore, the latest version of your Title Deed can be downloaded by using the Dubai Rest app.
Step 1 – Login to Dubai REST Application
Source : Dubai Land Department
Step 2 – Go to “My Property Wallet” and Select a specific property
Source : Dubai Land Department
Step 3 – Click on the Menu (3 dots located on bottom right) which will open all Property Services
Source : Dubai Land Department
Step 4 – Select Electronic Title Deed
Source : Dubai Land Department
Step 5 – Result will be displayed on the screen as below
Source : Dubai Land Department
How to Verify the Authenticity of a Title Deed
It is essential to ensure that the title deed you receive is authentic. Here are some steps to take to verify the authenticity of a title deed:
How to verify Title deed by using Dubai REST App
Step 1 – Login to Dubai REST App and From the “Services” Screen, select “Title Deed Verification”
Source : Dubai Land Department
Step 2 -You can either “Validate Property” or “Validate Owner & Property” by entering the required information given on the screen
Source : Dubai Land Department
Step 3 – Result will be displayed as below
Source : Dubai Land Department
How to verify Title deed through Dubai Land Department website
Step 1 – Visit Dubai Land Department website
Step 2 – Enter below information
- Title Deed No.
- Title Deed Year
- Property type
- Owner name (if you want to verify owner also)
Step 3 – Click on “Validate” and result will be displayed
FAQ’s
What is the difference between a freehold and a leasehold title deed?
A freehold title deed gives the owner full ownership of the property, including the land on which the property is built. A leasehold title deed grants the owner the right to use the property for a specific period, usually 99 years.
What is title deed number?
Certificate Number with Certificate Year (Can be found below the barcode or QR code of the title deed; Contract Number for Oqood).
What is difference between Oqood and Title deed? (Oqood vs Title Deed)
The proof of such registration is called Oqood. Once the property has been completed or if you buy a finished property, you will be entered as owner of the property in the Real Estate Register. Based on such entry, you will receive a title deed.
What is DLD fee?
DLD fee is 4% of the total price of the property. DLD fees in Dubai is legally divided between the buyer and seller which is 50% each. However, in most cases, it is entirely paid by the property buyer.
Conclusion
In conclusion, a title deed is an essential document that proves ownership of a property in Dubai. As a property buyer, it is crucial to understand the types of title deeds, the information included in the title deed, and the process of obtaining a title deed. By following the steps outlined in this guide, you can ensure that the title deed you receive is authentic and that you are the rightful owner of the property.