The Dubai real estate market is ever-evolving, offering residents a wide range of property ownership models, including the popular lease-to-own option. But what happens when a lessee wants to terminate such a contract? Whether you’re switching financing options, selling the property or simply changing your mind, you’ll need to go through the lease-to-own release application in Dubai.
Here’s a complete breakdown of what this service entails, what documents you’ll need and what to expect during the process.
What Is a Lease-to-Own Release Application?
Dubai’s lease-to-own program allows for the official termination of a lease-to-own contract between a lessee (tenant) and financing banks in Dubai. It applies to various types of contracts, including:
- Termination of a standard lease-to-own agreement
- Cancellation of a provisional lease contract
- Removal of a usufruct right lease-to-own contract
- Termination of a provisional registration lease-to-own contract
This legal process ensures that the property is released from the lease agreement and is officially returned to the rightful owner or made available for a new transaction.
Required Documents
To complete your application, make sure you have the following documents:
- The Release Letter from the Financing Bank must be in Arabic. It should clearly state the release of the lease-to-own agreement
- Identification Proof
- UAE nationals: Emirates ID (no copy required)
- Non-resident foreigners: A copy of their passport
Service Fees
Here’s a breakdown of the standard fees involved in the release process:
- Removal of lease-to-own: AED 1,000
- Certificate of Title / Title Deed / Usufruct Right: AED 250
- Land plot map (if outside Dubai Municipality authority): AED 100
- Unified land plot map (if under Dubai Municipality: AED 225
- Map fee for villas and apartments: AED 250
- Knowledge fee: AED 10
- Innovation fee: AED 10
- Standard service partner fee: AED 300 + VAT
Note: All outputs are delivered digitally and there’s no need for physical pickups.
Step-by-Step Lease-to-Own Application Process
The lease-to-own release application is handled at Real Estate Registration Trustee. This is what the process looks like:
- Visit a Service Centre: Head to any Real Estate Registration Trustee Centre in Dubai.
- Submit Documents: The department will verify that all documents are in place and upload them via a secure digital system.
- System Entry and Audit: The transaction is recorded and reviewed internally for accuracy.
- Fee Payment: You’ll receive a payment slip and complete the transaction.
- Receive Your Documents: Once processed, your updated documents will be sent to your email.
What Documents Will You Receive?
Once your lease-to-own release is processed, you’ll be issued the following, depending on your case:
- Certificate of Title / Title Deed / Usufruct Title Deed
- Statement Certificate
- Provisional Sale Registration Certificate (Oqoodi)
- Updated Map
- Fee Balance Report
All documents are issued electronically for convenience. Also, the entire process takes just 10 to 15 minutes, provided you have all the documents in order.
Payment Methods
The following payment options are available:
- ePay
- Sadad Dubai Platform
- Noqodi
- Manager’s Cheque (issued to the Dubai Land Department)
FAQs
What is the lease-to-own Program in Dubai?
The lease-to-own Dubai program allows tenants to lease a property while gradually paying towards its ownership. A portion of the rent contributes to the purchase price, enabling tenants to become homeowners over time.
Can I lease-to-own a car in Dubai?
Yes, you can lease-to-own a car in Dubai through various dealerships and financing companies. The process is similar, where monthly payments contribute towards eventual ownership.
What payment methods are accepted to apply for a lease-to-own release application in Dubai?
You can pay via ePay, Sadad Dubai Platform, Noqodi or a Manager’s Cheque.
Whether you’re concluding your lease-to-own journey or transitioning to another ownership structure, the lease-to-own release application in Dubai is designed to be efficient, transparent and secure.
Be sure to gather your required documents and budget for the fees involved and you’ll be on your way to completing the process in no time. Explore these properties for sale in Dubai and take the first step toward securing your future home.
Also, the registration of lease-to-own applications in Dubai is hassle-free, ensuring a seamless experience from start to finish. For tenants who find renting more suitable, rent-to-own properties in Dubai provide the advantage of flexible payment plans and a convenient route to eventual homeownership.
Stay tuned to dubizzle’s property blog for more insights on the legal procedures and processes in Dubai.
