Leasing has become a viable way for companies to own cars and properties. In the real estate market, the UAE Government issued a law to regulate the financial leasing of assets. Speaking of regulations, the Dubai Land Department (DLD) offers a service for finance lease contract registration in Dubai.
Here’s an overview of the required documents, fees and process to register the finance lease contract in Dubai. But before that, let’s learn about finance lease contracts.
What is a Finance Lease Contract?
Finance lease contracts are used in commercial and business transactions. The Lessor (a kind of landlord) and the Lessee (a kind of tenant) agree to a certain time and lease amount to form a contract in the commercial areas.
In this finance lease contract, the lessee obtains the right to use the asset for a specific period in exchange for regular lease payments. It is mostly used in off-plan properties. The title deed remains in the lessor’s name. However, the lessee can choose to buy the property in Dubai by paying the premium and other fees.
Similar to the tenancy laws in Dubai, the lessor and lessee have the rights and responsibilities to each other. For instance, the lessee must maintain the property’s condition while residing in that house. Alongside property maintenance, both parties must ensure registration of the finance lease contract and pay the fees to DLD on time.
Here are all the required documentation, fee and process to register the finance lease contract in Dubai.
Required documents
Finance lease contract registration in Dubai allows customers to register their agreement with the bank. When registering, here are the required documents for the finance lease contract in Dubai:
- An individual must submit the following documents:
- Financier’s letter on the registration of the finance lease (It must state the start and end date and the lease amount)
- Property owner’s Emirates ID card or valid passport copy (If non-resident)
- Power of Attorney (in case a lawyer or someone else is attending on behalf of the individual)
- A sole proprietorship needs the following documents for the finance lease contract registration:
- Commercial licence’s copy of the business
- Emirates ID Card or valid passport copy for Non-residents
- Power of Attorney (PoA)
- If you have a Limited Liability Company (LLC), submit the following documents:
- Trade license
- Copy of the partners’ list and their equities
- Certificate of Incumbency
- Establishment contract, including appendices translated in Arabic (original and certified copy obtained from the Ministry of Foreign Affairs)
- A legal agency document (if any representative is present)
- A legally certified board of directors decision.
Service Fees
Here are the registration fees for the finance lease contract service in Dubai:
- 0.25% amount of the finance value
- Title deed issuance fee: AED 250
- Land Map Fees (not subject to the authority of Dubai Municipality): AED 100
- Land Map Fees (for the unified map): AED 325
- Fees for a villa or apartment: AED 250
- AED 10 each for innovation and knowledge fees
- Service Partners Fees: AED 4000 + Value Added Tax (VAT)
Payment Method
Customers can get the service from Real Estate Registration Trustees Offices. The payment method for the registration of a financial lease contract in Dubai:
- ePay
- Dubai Pay
- Noqodi
- Manager Cheque to Dubai Land Department
Procedure
Here’s the registration process for the finance lease contract in Dubai:
- Visit any of the Real Estate Registration Trustee offices
- Submit the required documents listed above to the DLD employee
- Ensure that documents are complete and uploaded via the DLD document vault
- Get the documents and transaction data entered into the system
- Make sure that the documents are verified
- Pay the fees using the various payment gateways available
After the process completion, the customer will receive the email with the following documents:
- Title Deed
- Fee Balances
- Map
That wraps up the complete registration procedure of the finance lease contract in Dubai alongside the required documents. Ensure that you follow the procedure for the finance lease contract registration. Since this contract relates to businesses, you can also find out details on leasing commercial property in Dubai.
Stay tuned to the dubizzle property blog and keep reading more laws and regulations in Dubai.
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