The UAE’s real estate continues to grow at a rapid pace. Dubai, in particular, remains on the global radar for its robust infrastructure and frequent developments. Additionally, leading authorities work relentlessly to ensure seamless processes for all including developers, investors and buyers. For developers, bank guarantee cancellation is a crucial part of the process. Fortunately, the entire cancellation process is smooth thanks to proper practices in place. We will go through the process to request for bank guarantee cancellation in Dubai for a better understanding.
Process to Request for Bank Guarantee Cancellation in Dubai
Dubai is home to a multitude of off-plan projects. Considering the numerous benefits of purchasing properties in Dubai, the emirate witnesses a large number of transactions every day. A bank guarantee plays a pivotal role in the real estate industry. The bank becomes a third-party guarantor in this case. Consequently, the guarantee protected both buyers and sellers.
Developers can file an application to cancel a bank guarantee in Dubai once the solvency of the project becomes available. Listed below is the entire bank guarantee cancellation procedure in Dubai.
REQUIRED DOCUMENTS
Applicants need to submit a copy of the bank guarantee.
SERVICE TERMS
- The project status must be active or completed at the time of application submission.
- The amount in the escrow account should cover the value of the pending construction work.
- As per a recent report by Dubai Land Department (not more than 4 months old), the construction progress must be 50%. Additionally, the absence of a red flag in the project’s last milestones is to be checked.
SERVICE FEES
The service to request for bank guarantee cancellation is free of charge.
SERVICE CHANNELS
Applicants can apply for the cancellation of the bank guarantee through the real estate developers portal ‘Oqood’ trust account system on the land department’s website.
SERVICE PROCEDURE
- Step 1 – Visit the DLD website and log in to the Oqood portal. Select the escrow account link and the service. Submit the application on the portal.
- Step 2 – The application will be forwarded to the account trustee.
- Step 3 – The account trustee checks the solvency. Afterwards, they forward the documents and application through the escrow system.
- Step 4 – The escrow account department examines the solvency and decides whether to accept or reject the application.
- Step 5 – If approved, the application is sent to the account trustee for further processing.
SERVICE TIME
- Waiting time – 26 business hours
- Service delivery time – 32 business hours
FAQs
Does the Developer Offer a Bank Guarantee in Dubai?
To tackle the off-plan property buying risks in Dubai, developers submit a select percentage as a bank guarantee. However, there are other options as well like amount submission in escrow amount and a select percentage completion before selling the property.
How to Cancel a Bank Guarantee in Dubai?
Real estate developers in Dubai can request for bank guarantee cancellation through the Oqood portal on the DLD website.
How to Find Off-Plan Properties in Dubai?
Carry out thorough research about the project. Additionally, check out the reviews for the developer. Besides these, there are other ways to find off-plan property areas in Dubai and other emirates.
This is everything about bank guarantee cancellation service fees, procedures and more. A bank guarantee serves as a shield for buyers and sellers. The aforementioned service allows developers to cancel the guarantee provided they fulfil all the requirements.
The authorities have initiatives for dealing with cancelled off-plan projects in Dubai or any similar issues to safeguard buyer interests. Such a robust system in place makes buying off-plan properties in the emirate more alluring. Explore these top areas for buying off-plan properties in Dubai and see the most sought-after neighbourhoods.
Moreover, check out these properties for sale in Dubai to explore a wide range of off-plan and ready projects available in the emirate.
Stay connected with dubizzle’s property blog to learn how to request for bank guarantee cancellation and other real estate processes.
