The real estate market of Dubai is reputed for offering lucrative investment opportunities. Buyers from across the globe prefer Dubai for real estate investments. That said, to cater to this increasing influx, the government has implied multiple rules and regulations such as the Sales Purchase Agreement.
The SPA or initial contract is an agreement signed between both parties to confirm the sale of a unit. The SPA safeguards the rights of both the pirates and avoids any future hassle. The seller is responsible to get SPA signed and register with Dubai Land Department (DLD) to legalise the process.
Here we have mentioned the detailed process to register SPA with DLD and other formalities involved in the process.
Registering SPA with DLD
SPA is legal proof that you have sealed the purchase deal of a property unit. Therefore, it is one of the most significant pieces of documentation for both parties.
The following steps elaborate further on how to register SPA with DLD.
Steps to Register Sales & Purchase Agreement (SPA) with DLD
The registration process for SPA with DLD is simple and can be completed in just four steps.
- Step 1: Log in to the Oqood Portal and select ‘Initial Sale Registration Service’.
- Step 2: Select ‘Property’, fill in the required information, attach documents and select ‘Payment Method.
- Step 3: Submit the duly filled application.
- Step 4: A confirmation document will be sent to the buyer’s email.
Now that you are aware of all the steps involved in registering SPA with DLD, let’s move towards the documents required for registration.
Documents Required
Different sets of documents are required by DLD from individuals and companies.
Individuals
- SPA contract (Copy)
- Emirates ID/Passport (Copy)
Individual Foundation Companies
- Commercial Licence (Copy)
- Licence owner’s Emirates ID/Passport (Copy)
- Power of attorney (if required)
Limited Liability Companies
- Commercial Licence (Copy)
- Licence owner’s Emirates ID/Passport (Copy)
- Power of attorney (if required)
- Company’s articles of association and its appendices translated into Arabic (Copy)
- Shareholders’ certificate (Copy)
Companies Operating Outside UAE
- Commercial Licence (Copy)
- Licence owner’s National ID/Passport (Copy)
- Power of attorney (if required)
- Company’s articles of incorporation and its appendices translated into Arabic (Copy)
- Certificate by Ministry of Foreign Affairs
- Shareholders’ certificate (Copy)
- In case of purchase, a No-Objection Letter from the free zone.
Companies Located in GCC
- Commercial Licence (Copy)
- Licence owner’s National ID/Passport (Copy)
- Power of attorney (if required)
- Company’s articles of incorporation and its appendices translated into Arabic (Copy)
- Certificate by Ministry of Foreign Affairs
- Shareholders’ certificate (Copy)
How Much Does It Cost to Register SPA with DLD
To register SPA with DLD both buyers and sellers are required to pay the following amount.
- 2% of the total sales value will be charged to the buyer
- 2% of the total sales value will be charged to the seller
- AED 10 Knowledge fees on each value
- AED 10 Innovation fee on each value
- For the initial sales, AED 1,000 will be charged as a self-registration fee from the developer.
SPA Registration Terms and Conditions
Mentioned below are the terms and conditions that must be catered to register SPA.
- The SPA must be signed by both the parties buyer(s) and developer(s).
- The agreement should be registered within 90 days of signing the contract.
- If the buyer(s) is under legal age, the guardian will sign the agreement and a copy of the guardian’s national ID or passport will be attached.
- If the buyer is a decree-holder, a letter from the Federal Authority for Identity and Citizenship should be attached.
- It is necessary for the companies to register with Dubai Multi Commodities Centre Authority (DMCC) or Jebel Ali Free Zone Authority (JAFZa) if they are not from the UAE.
These are all the steps to register SPA with DLD. The registration of the initial sales contract makes sure that the rights of both buyers and sellers are safeguarded. That said, investing in Dubai’s real estate is secure and hassle-free. If you are interested in availing real estate investment opportunities, browse through these properties for sale in Dubai and choose an ideal property unit for investment.
If you are confused about the type of real estate you should invest in, read our blog on investing in commercial real estate vs residential real estate.
Stay tuned to dubizzle’s property blog for more information on Sales & Purchase agreements.
