Full Guide to Property Handover Process in Dubai – Procedure, Fees & More

Purchasing a property, whether it’s your first property or not is indeed a significant milestone in life and can be both exciting and overwhelming. If you are an overseas investor who purchased an off-plan property in Dubai, soon or later you will receive a project Completion Notice from your developer informing you that the property is ready and can be handed over to you. It is exciting news, isn’t it? At the same time, it can be worrisome if you are not familiar with the handover process or if you are overseas and can’t visit Dubai to take the handover. This article explains the property handover process in Dubai and what you need to do to get your property smoothly and in the best condition as you expected.

The process of property handover in Dubai typically involves several steps and procedures to ensure a smooth transition of ownership and possession from the developer to the buyer. This involves various steps, such as completion of legal documentation, inspections to ensure that the property is in excellent living condition, and payments.

Although the process is streamlined by the government, it requires the buyer a proper vigilance and caution. By following the right handover process diligently you can ensure that you get the property in the best condition as per the agreement and fulfill your final obligations as a buyer in front of the developer. This way you can avoid potential legal or financial issues in the future. In brief, the Property Handover process involves the following 5 steps:

• Completion Notice
• Property Inspection/Snagging
• Handover Notice
• Final Payment
• Handover and Ownership Transfer

We will discuss about each step in detail so you can be fully aware of the Handover steps and navigate the process efficiently.

• Completion Notice

Completion Notice is the first step in the Handover process. It is issued by the Developer to buyers informing them that the construction of the property is completed. Receiving a Completion Notice from the developer means that the property handover process is initiated. In the Completion Notice the Developer will notify you that you take handover within 30 days and fulfill contain prerequisite obligations set forth by the Developer prior to possessing your property physically. The Completion Notice is sent to your registered address and/or email address.  The Completion Notice also includes the Property Index Number – PIN, which is required for registering the property on Ejari system and with utility providers. Failure to complete the handover requirements within specified timelines can result in repercussions.

• Property Inspection / Snagging

The next step in the property handover process is to check the property thoroughly for any defects or shortcomings. This process is called property inspection or snagging. The snagging should be done accurately before signing any handover papers or accepting the keys, since any repairs or fit-out works in the property would need to be reported separately and it may involve a lot of follow-ups and can be time-consuming.

During the Snagging inspection, ensure to check all property parts thoroughly and write down each and every defect or issue that you observe, no matter whether the defect is small or major. Then forward the same to your Developer who will pass the list to the contractor for necessary repairs.

Normally, the developers give you an appointment date to carry out the snagging. It is worth noting that if you fail to inspect your property within the allotted timeframe given by your developer, this might result in losing the right to carry out the snagging and thus accept the property in “as is” condition. You may also consider appointing a professional snagging company, who would identify issues with specialist equipment, and provide one comprehensive Snag List for your developer to easily follow.

If you are not able to travel to Dubai to carry out the snagging inspection or perhaps prefer to leave it to professionals, you may always appoint a professional company like POA.ae to handle the handover and snagging formalities efficiently.

• Property Handover Notice

Once the contractor completes the defects rectification and repair works based on your provided Snag List, your Developer will send you a Handover Notice. Through the Handover Notice, the Developer informs you that the property is ready to be handed over and to make an appointment with the Developer’s Handover Team to receive and take handover of the key to your new property. This is the most exciting moment!

• Final Payment

Along with the Completion Notice, the buyer would also receive a handover pack, which also includes information regarding the outstanding payments to the Developer. It is crucial to thoroughly read the account statements. If you notice any discrepancy in the Developer’s account statement, you must raise it with the Developer immediately and get it resolved before signing any handover documentation.

Depending on the terms of the sales agreement, you will need to make payments according to the agreed-upon payment plan. This often involves a series of installments and final payment being at the time of the handover. Some real estate may have post-handover payment plan meaning that some part of the purchase price (usually 20-30%) can be settled after the handover. In any case, ensure that you are up to date with the payments to the developer.

Also, note that there will be some official fees and payments in relation to final property transfer. You might have paid some of the fees already to the Developer while purchasing the property at the initial stage.

Fees associated with the transfer:

1. Oqood: Oqood is the pre-registration of a property with the Dubai Land Department (DLD) and is required for all off-plan property sales. You will pay a fee of AED 1040, which covers administrative and knowledge fees.
2. Registration fees: Property owners must pay a registration fee equal to 4% of the purchase price, if it was not paid before, along with an AED 580 fee for the issuance of the title deed.
3. Service charges: Service charges are the responsibility of all property owners and are used to cover the maintenance and upkeep of the building’s amenities and facilities. These charges are regulated by RERA and are calculated based on the total area of the property. You must pay these charges in advance on a quarterly basis.
4. Administration fees: Some developers (but not all of them) may charge an administrative fee to cover the documentation costs for property ownership transfer. The fee amount varies but typically ranges from AED 500 to AED 1000.
5. Utility registration fees: As part of the handover process, you must register utilities with DEWA (AED 2,110, including AED 2000 refundable) and the district cooling provider. Proof of payment is required to complete the handover process.
6. Residence Visa (if applicable): If you are a foreign national and wish to obtain a residence visa based on property ownership in Dubai, you can apply for this through the relevant government authorities.  (Check out our article to know if you qualify for the Golden Visa through real estate investment.)

• Final Handover and Ownership Transfer

Once you satisfy all handover prerequisites and settle all payments, you will finally be eligible to take Handover of your property and receive the keys/access cards. The Developer will give you an appointment to sign the final paperwork to take possession of the property.

The buyer will need to be present personally to sign the Handover papers, or alternatively, they can appoint a legal representative through a notarized. You or the appointed legal representative with the POA must bring all relevant original documents (including passports or Emirates ID, sales & purchase agreements, utility receipts, payment receipts, etc) to the appointment. The Developer will prepare all of the paperwork and handover the Payment Clearance Certificate, Key Release Forms, keys/access cards, etc.

Also, upon settlement of all payments, the Dubai Land Department issues a new title deed in your name as the property owner. This is a crucial document that proves your ownership of the property.

Congratulations! The property is in your hands now. You can either move into, rent it out or perhaps re-sell it.

How POA.ae can help you with Property Handover in Dubai?

It’s advisable to work with a qualified team of experts like POA.ae while taking a handover of your property. We can guide you through the process and ensure compliance with all regulatory requirements in Dubai to ensure that you receive your property in the best condition. For more details, please get in touch with our consultants.

Disclaimer: The content on this page is for general information purposes only and does not constitute as legal advice nor should it be used as a basis for any specific action or decision. Nothing on this page is to be considered as creating a lawyer-client relationship or as rendering of legal advice or legal services for any specific matter. Users of this website are advised to seek specific legal advice from their lawyer or a legal counsel regarding any specific legal issues.