Dubai has a rapidly growing real estate market, with an abundance of off-plan freehold properties. These properties are not only cheaper but also give the buyer a chance to benefit from attractive payments plans that can reduce the financial outlay compared to a ready properties in the secondary market. There are various top areas for off-plan investment in Dubai, however, it is necessary to know about the Oqood service before purchasing a property in the primary market. Let’s find out more about this with our comprehensive guide to the Oqood service in Dubai.
WHAT IS OQOOD?
The off-plan property market has witnessed a tremendous surge in popularity, especially in Dubai. Although the Dubai Land Department and the Real Estate Regulatory Department or RERA offer several services to assist buyers, there was a requirement of a centralised system to manage off-plan properties and streamline property sales in this segment. To reduce this gap Oqood was developed.
The literal translation for Oqood is “contract” in Arabic. Oqood in Dubai is an online service provided by the Emirates Real Estate Solutions or ERES. that offers a convenient registration process for all types of real estate and property-related contracts between buyers and real estate developers in the off-plan market.
ADVANTAGES OF OQOOD FOR BUYERS AND DEVELOPERS
The Oqood service is useful for both developers and buyers. It aims to make off-plan property management simple and easy.
Oqood’s online services assist developers in streamlining off-plan sales transactions. Developers can sell off-plan properties in a transparent and regulated process following the guidelines of Dubai Land Department.
Oqood also allows developers to keep a full record of their customers and properties. It also generates legally valid contracts and payment vouchers against different transactions with ease.
Similarly, Oqood protects buyers from fraudulent property transactions. Once a property is registered with Oqood, the developer or the owner cannot resell the same unit or villa to multiple clients. Additionally, if you are purchasing an off-plan property and the developer claims that the previous owner has not paid Oqood on the property and attempts to charge the new owner, the buyer must refuse to pay. A simple online search on the Oqood portal will give you the details of the previous owner along with Oqood payment records.
DIFFERENT SECTIONS OF THE OQOOD PORTAL AND HOW TO USE THEM
Available in both English and Arabic, Oqood is simple and easy to use. You can access a complete Oqood user manual on the official Oqood website. Here are some of the sections available on the Oqood online portal that developers and owners can rely on:
Participants include all the parties and stakeholders involved in the off-plan property transactions. You can add or remove participants with ease using the online Oqood portal. To add a new participant, you need to add the name, address, contact information and other personal details.
The properties management section of Oqood registration portal makes adding new properties or managing the existing ones a breeze. It’s easy to edit property details, add payment plans and submit termination requests for sold properties. The property management section of the portal allows users to:
- Search for different types of properties including villas or buildings.
- Add/Edit details of off-plan villas
- Add/Edit units to your existing buildings
- Initiate Property Termination Request
- Set up payment plans
Oqood’s Procedures module is used to record and register any procedure associated with the sale of off-plan units. The certificates and contracts produced through this module will be considered officially valid after DLD’s approval.
All properties managed through the Procedures section must include a detailed payment plan. Users are also required to have sufficient balance in their prepaid account before carrying out Procedures on Oqood. The Procedures section of Oqood has these subsections:
- Procedures List
- Property Search
- Lease to Own
- Sell with Mortgage
Property owners in Dubai require a No Objection Certificate or NOC from the master developer. The owner cannot resell their properties without the NOC. The NOC is required on every re-sell procedure to transfer the property to the new owner.
Oqood generates different types of contracts for the procedures performed on the e-service portal. These contracts require signatures of all the stakeholders and interested parties related to the off-plan properties. The user has the option to upload their own contracts if available. Some of the contracts generated by Oqood include:
- Mortgage Contract
- Initial Sale Contract
- Lease Certificate
- Initial Sales Contract
- Dismortgage Certificate
All the involved parties in the Oqood system have to pay the necessary fees depending on their role in the procedure being performed on the portal. The portal will generate a voucher in the name of the payee as specified by the developer. Usually, the developer will perform this procedure and generate payment vouchers or payment receipts on behalf of the payee. These vouchers, including Oqood registration charges, are paid through the Dubai Land Department.
Oqood’s user management system allows you to add or manage other user accounts associated with your master account. These accounts are called sub-user accounts.
The sub user accounts have all the privileges of the main account and they can also create other sub accounts if required.
HOW MUCH IS THE OQOOD FEE?
The Oqood fee or Oqood registration charges are equal to 4% of the original property price. It is not applicable on the selling price of the property. A buyer is liable to pay the 4% Oqood fee in Dubai to the property developer.
DOCUMENTS REQUIRED FOR DEVELOPER REGISTRATION
These documents are required for Oqood service registration in Dubai:
- Copy of company trade licence
- Authorisation Letter (must be on company letterhead and signed and stamped by the authorised person)
- Power of attorney (If authorised signature not part of trade license)
- Passport/ Visa/ Emirates ID of the signatory person
- Passport Copy with visa page for the requested user
- Depending on the procedure other documents may also be needed as per the sales contract
OQOOD CONTACT INFORMATION
If you have any queries please reach out to Oqood customer support at +971-800-4488.
That’s all for our comprehensive guide to Oqood services in Dubai. This service allows hassle-free management and registration of different off-plan properties in Dubai.
If you’re new to off-plan property investment these expert tips on investing in off-plan properties in Dubai can help you navigate the process of purchasing an off-plan property.