Whether buying or selling a property, real estate transactions in the UAE involve various crucial processes and documents. It is to ensure that every legal aspect is covered concerning the rights of both buyers and sellers. One of the vital legal documents required in this regard is the No Objection Certificate in real estate.
Here we’ll find out more about the No Objection Certificate (NOC), its importance and the process of obtaining it in the UAE.
What is a No Objection Certificate (NOC) in Real Estate?
A NOC is a legal document outlining the clauses and pointers on a particular transactional matter. It is issued by either an individual or an organisation removing any objections to the information contained in the document.
Real estate investors and home buyers in the UAE need NOC when dealing with property developers. NOC in the UAE real estate indicates that the developer has no objection to transferring the property to another individual or entity. Moreover, the document confirms that the transferor has cleared all charges, utilities and other dues related to the property.
Factors Indicating the Importance of No Objection Certificate in UAE Real Estate
Before learning about the procedure to apply for NOC in real estate, let’s walk through some aspects emphasising its importance. The presence of NOC is crucial as it facilitates property buyers and investors in the following matters.
Property Ownership Verification
The NOC plays a crucial role in the process of buying or selling property in the UAE. It is proof of the seller’s legal rights of possession for transferring property ownership in Dubai or other Emirates.
Furthermore, it ensures the intended real estate transaction entails no legal disputes or encumbrances. Similarly, real estate buyers can also verify the title deed through the REST app to confirm property ownership.
Legal Compliance
The purpose of a No Objection Certificate in real estate is also to ensure that the legal requirements are met. Its presence means the intended real estate transaction complies with all applicable UAE laws, regulations and policies.
No Outstanding Financial Liability or Debt
The issuance of a No Objection Certificate for real estate in the UAE means no outstanding financial liabilities. The document ensures the seller has paid for mortgages, loans, service fees and utility bills among other pending dues.
The NOC is also kind of a financial report for the intended property. It can protect the buyer from any unwanted financial liabilities. However, it is totally up to the buyer to choose between cash and mortgage and manage their real estate finances accordingly.
Prevention of Real Estate Scams
The NOC is a powerful tool for preventing both buying and rental property scams. By vetting the authenticity of real estate transactions, the NOC acts as a safeguard against any fraudulent activity. The document is an assurance that the granted piece of real estate is legitimate and legally recognised.
No Objection Certificate Application in Real Estate: Step-By-Step Process
Below is a general outline of the process of obtaining a NOC. The steps may slightly vary from Emirate to Emirate.
NOC Application Submission
The application for the NOC is submitted to the relevant authority, such as DLD in Dubai. The buyer or their authorised representative submitting the NOC application needs the following documents:
- Proof of property ownership
- Copies of IDs for both the buyer and seller
- Transaction details, including the purchase price and date of sale
Note that depending on the case, there may be additional documents required for No Objection Certificate in real estate.
Verification Process
Once the NOC application is received, the relevant authority starts the verification process. It vets the submitted documents, as well as examines the property’s legal and financial status. This includes background checks for any pending disputes, outstanding dues or violations of law associated with the property.
The authority also reviews the eligibility of investors and buyers to acquire property ownership and related rights. For further assistance on the matter, here’s a comprehensive list of FAQs for buying property in the UAE.
Issuance of No Objection Certificate in Real Estate
When the application is accurate and fulfils all the requirements, the concerned authority issues the NOC. However, the processing time of NOC in the UAE may take at least 3 to 5 working days. The time duration may also vary from case to case.
NOC Procedure Fees for Real Estate
The amount of NOC fee in UAE real estate depends on the developer and their project scope. Paid by the seller, NOC charges typically range from AED 500 to AED 5,000. The amount paid for the NOC application is included among the costs of selling property in Dubai and other Emirates.
No Objection Certificate in UAE for Real Estate: Online Application
Digitisation in UAE has brought many crucial real estate processes to the fingertips. For instance, those conducting real estate transactions in Dubai can apply for a NOC online.
They just have to download the REST App. Follow these steps for applying for eNOC in Dubai. There is no need to visit the desired developer’s office in person. Instead, all the documents can be submitted and processed online.
When authorising someone to conduct property transactions on your behalf, make sure they have the power of attorney.
This was everything to know about the NOC and its significance in UAE real estate. Similarly, documents like the Title Deed also hold great importance for buying and selling property. These are all the legal proofs of property ownership without which a real estate transaction is null and void.
If you are planning to buy or invest in real estate, start your journey by browsing these properties for sale in the UAE. Also, for those interested in investing in forth-coming real estate projects, our guide to buying off-plan property in the UAE will be resourceful.
Keep following dubizzle’s property blog for more informative real estate tips and guides.
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