Real estate fund companies in Dubai can register through the Privilege Register, an electronic database managed by the Dubai Land Department (DLD). This register was established to support transparency and protect investors’ rights. Registering allows investors to avail of special benefits, as outlined in Decree No. 22 of 2022.
Let’s take a look at the steps, requirements and benefits of this process.
Step-by-Step Guide for Real Estate Fund Companies Registration in Dubai
The process to apply for registration in the Privilege Register is as follows:
- Step 1: Visit ‘Real Estate Services Registration Trustees Centre’
- Step 2: Submit the required documents for registration
- Step 3: Wait for the employee to enter and verify transaction data
- Step 4: Pay the fees and receive the payment receipt electronically
- Step 5: Receive the Real Estate Ownership Certificate via email
- Step 6: Get the document with the registration number in the real estate concession register
Documents Required For Registration In The Privilege Register
To complete the registration of real estate fund companies in Dubai’s Privilege Register, the following documents are required:
- Commercial Licence: Issued by the competent authorities as per Decree No. 22 of 2022, with the founders’ names matching the owners of real estate assets at the time of incorporation
- Real Estate Assets: Valued at no less than AED 180M, with a recent valuation certificate
- Founder Identification: Emirates ID cards or passports of the fund’s founders
- Authorisation Document: Power of attorney or an approved board resolution for the authorised representative
- Fund Manager Approval: Approved by the Dubai Financial Services Authority (DFSA)
- Fund Incorporation Contract: Detailing the number of founders and their respective shares
Fees For Registration In The Privilege Register
The details for applicable fees during registration in the Privilege Register are as follows:
- AED 10,000: Registration fee for entry in the Real Estate Funds Privilege Register
- AED 50,000: Flat fee for each real estate project added during the fund’s incorporation
- 2% Fee: Charged when the fund purchases real estate under its name during its activity period
- 4% Fee: Collected based on the market value of the property when the fund sells any of its properties within the real estate portfolio
- 2% Fee: Applied when registering a usufruct or long-term lease right on real estate
- 4% Fee: Collected when the fund waives the right of usufruct or the right of long-term lease on its properties
Payment Methods
Payments for registration can be made through the following methods:
- Manager’s Check: In the name of the DLD
- Credit Card: Accepted for payment
- M69ePay Smart Payment: Alternative payment method available
The payment can be made through the following channels:
- Real Estate Registration Trustees Centres
Issued Documents After Registration
The following documents are issued upon successful registration:
- E-Ownership in the Name of the Real Estate Fund: Confirmation of ownership will be issued electronically to the real estate fund
- Receipt for Fees: An electronic receipt for the paid fees will be issued
FAQs
What is the Register of Privileges for Real Estate Funds in Dubai?
The Register of Privileges is an electronic list by the Dubai Land Department for real estate funds to access special benefits and rights.
What could lead to a fund being removed from the register?
A fund can be removed from the Real Estate Funds Privilege Register if it loses any incorporation conditions, declares bankruptcy, liquidates its assets or is restricted by a final court ruling.
What is the REIT Privileges Registry?
The REIT Privileges Registry is the official electronic register maintained by the Dubai Land Department. Eligible real estate investment trusts (REITs) and funds register to access exclusive benefits and rights in Dubai’s property market.
How long does the registration process take?
The registration process usually takes around 25 to 30 minutes once all documents and fees are submitted.
This is the complete process for the registration of real estate fund companies in the Privilege Register. Following these steps ensures compliance with the regulations and allows funds to benefit from the advantages provided under Decree No. 22 of 2022. With the right preparation and understanding of the requirements, real estate funds can secure their position in the competitive Dubai market. This further reinforces the appeal of investing in the emirate’s real estate market. If you’re considering investing, explore these properties for sale in Dubai to find a unit that suits your goals.
If you are new to the market, here are some common questions about investing in Dubai that you might want answered.
Stay tuned to dubizzle’s property blog for more insights on real estate documents and processes.
