Dubai has a rapidly growing real estate market, with many off-plan freehold properties. These properties are cheaper and allow the buyer to benefit from attractive payment plans that can reduce the financial outlay compared to ready-to-move properties in the secondary market. There are various top areas for off-plan investment in Dubai. However, knowing about the Oqood service before purchasing a property in the primary market is necessary. Let’s find out more about this with our comprehensive guide to the 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 (RERA) offer several services to assist buyers, there was a requirement for a centralised system to manage off-plan properties and streamline property sales in this segment. To reduce this gap Oqood certificate was developed.
The literal translation for Oqood is “contract” in Arabic. Oqood in Dubai is an online service that Emirates Real Estate Solutions or ERES provides. 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.
If you want to familiarise yourself with Dubai real estate terminologies, our guide will come in handy.
ADVANTAGES OF OQOOD FOR BUYERS AND DEVELOPERS
The 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 the Dubai Land Department.
Oqood also lets developers keep a full record of their customers and properties. It also easily generates legally valid contracts and payment vouchers against different transactions.
Similarly, Oqood protects buyers from fraudulent property transactions. Once a property is registered with the Oqood Dubai Land Department, the developer or the owner cannot resell the same unit or villa to multiple clients.
Additionally, suppose 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. In that case, the buyer must refuse to pay. A simple online search on the Oqood portal will give you the previous owner’s details, along with Oqood payment records.
DIFFERENT SECTIONS OF THE OQOOD PORTAL AND HOW TO USE THEM
Oqood is simple and easy to use in both English and Arabic. 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. You must add the name, address, contact information, and other personal details to add a new participant.
The properties management section of the 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 must also 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 the signatures of all the stakeholders and interested parties related to the off-plan properties. The user has the option to upload their 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 on the portal. The portal will generate a voucher in the payee’s name 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 subaccounts if required.
FAQS ABOUT OQOOD DUBAI
HOW MUCH IS THE OQOOD REGISTRATION FEE?
The Oqood registration fees equal 4% of the original property price. It does not apply to the selling price of the property. A buyer must pay the property developer the 4% Oqood fee in Dubai.
WHICH 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
WHAT ARE THE CONTACT DETAILS FOR OQOOD DUBAI?
If you have any queries, please get in touch with Oqood customer support at +971-800-4488.
WHICH AREAS IN DUBAI OFFER THE BEST OFF-PLAN PROJECTS?
Jumeirah Village Circle (JVC), Al Furjan and Arjan are some of the top areas with the best off-plan projects in Dubai.
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 purchasing an off-plan property.
You can also refer to our step-by-step guide to buying property in Dubai for a better understanding of laws, rules and regulations in the emirate.