In recent years, the demand for rent-to-own property in Dubai has been on the rise. A rent-to-own property is a feasible financing option for owners and buyers. It also saves you from the hassle of heavy down payments.
That said, the Dubai Land Department (DLD) provides a wide range of facilities and services when it comes to property matters in the Emirate. This also includes a rent-to-own property service which helps the developers to enlist the property in the initial registry.
To help you to register for rent-to-own property in Dubai, here are the details of the steps involved in the process.
How to Register For Rent-to-Own Properties (Initial) in Dubai
Through this service, the developer can register the rent-to-own property in Dubai to assist the tenant and the financier in the initial registry. Here are the complete details of the process and requirements to register for rent-to-own property in Dubai.
REQUIRED DOCUMENTS
The documents required for rent-to-own properties in Dubai registration include:
Documents required for Individuals
1. A copy of the sale and purchase contract
2. A copy of the Emirates ID
3. A copy of the passport (for non-residents)
For Companies /Individual Foundation
1. A copy of the commercial licence
2. A copy of the licence owner’s Emirates ID or passport
3. Power of attorney (optional)
For Limited Liability Companies
1. A copy of the commercial licence
2. A copy of the licence owner’s Emirates ID or passport
3. Power of attorney (optional)
4. A copy of the company’s articles of association and their details (legal translation required in Arabic)
5. A copy of a certificate for the shareholder
For a company outside the UAE (with names of the shareholders)
1. A copy of the commercial licence
2. A copy of the licence owner’s Emirates ID or passport
3. Power of attorney (optional)
4. A copy of the company’s articles of association and its details (legal translation required in Arabic). It must be certified by the Ministry of Foreign Affairs.
5. In case of a purchase, a no-objection letter from free zones is required with a one-year validity
6. A copy of a certificate for the shareholder
For a GCC company
1. A copy of the commercial licence
2. A copy of the licence owner’s Emirates ID or passport
3. Power of attorney (optional)
4. A copy of the company’s articles of association and its details (legal translation required in Arabic). It must be certified by the Ministry of Foreign Affairs.
5. A copy of a certificate for the shareholder
PROCEDURE
The registration procedure for rent-to-own Dubai property includes the following steps:
- Log into the Oqood Portal.
- Select ‘Registration of a rent-to-own property (initial)’ from the services menu.
- Enter financing details and upload the documents.
- Select your preferred payment method.
- Submit the application online.
- A document will be e-mailed to the tenant.
The service procedure is completed within six business days.
FEES
To register rent-to-own properties in Dubai, the service fees include:
- Tenant: 0.25% of the rental amount
- Buyer: 2% of the sale price
- Seller: 2% of the sale price
- AED 10 for the knowledge fee
- AED 10 for the innovation fee
For self-registration on the Oqood Portal, developers are required to pay AED 1,000.
PAYMENT METHODS
To register for rent-to-own properties in Dubai, the payment can be made through the following methods:
- Noqodi
- The applicant’s Trust account
TERMS AND CONDITIONS
1. Both the developer and the buyer are required to sign the sale and purchase agreement.
2. If the buyer is below the legal age, then the guardian is required to sign the sale and purchase agreement. The agreement must be attached to the guardian’s ID card or passport.
3. After the contract is signed, the sale and purchase agreement must be registered for the initial registry in 90 days.
4. A letter from the Federal Authority for Identity and Citizenship is required if the buyer is a decree-holder.
5. A letter from the bank about details of the lease (value and date) is required to register for a mortgage or finance.
These are the details about how you can register for rent-to-own properties in Dubai for the initial registry. The service will help you maintain a budget and helps build equity. You can sift through these properties for sale in Dubai if you want to purchase a property in the Emirate.
Stay tuned to UAE’s leading real estate blog for more information on property services and regulations.
