With Dubai’s real estate market witnessing tremendous growth, the city’s investment appeal has been continuously hosted worldwide. As the market comes to robust action, regulatory changes, and efficient measures become the ultimate need. This is where the Oqood system comes into play.
One of the essential regulatory frameworks, Oqood, is implemented to digitalize, regulate, and simplify property transactions in the city. Framed by the Dubai Land Department (DLD), this model is effective in off-plan properties.
Understanding Oqood is crucial, specifically to first-time buyers, to navigate Dubai real estate market with a seamless registration that complies with legal impositions.
What is Oqood?
Oqood is an Arabic term interpreted as a contracts. Given the rapid pace of Dubai real estate development, Oqood was developed to streamline off-property sales, rights, and management. The system has become effective through an official online portal developed by the Dubai Land Department and managed by Emirates Real Estate Solutions (ERES).
The system was launched to stimulate organization and transparency while easing the management of property sales pre-registration. The well-documentation and regulation of off-plan properties make Oqood a secure platform to safeguard developers’ and buyers’ rights alike.
Purpose of the Oqood Portal
Oqood provides extensive services within Dubai’s real estate sector. The system is designed to pre-register properties sold during or before completion. Besides this, Oqood Dubai also manages accounts, payments, and contracts for different users, including developers, investors, and affiliated parties.
Through Oqood's user-friendly portal, the account holder can also navigate the project’s progress and make sales transactions seamless. The system extends a reliable platform to ensure that registrations comply with legal requirements.
Additionally, investors can seek peace of mind knowing their legal rights as buyers are reserved and their investments are secured.
Furthermore, it ensures a verified record of transactions and keeps a real-time track of off-plan projects, helping to foster transparency and eliminate the likelihood of fraud. It also provides support to law enforcement concerning real estate in Dubai.
Main Features of Oqood System
1. Digital Registration Process
The Oqood system is a fully digitalized off-plan property management solution, allowing users simple and fast access. Developers can seamlessly log in to register sales transactions for off-plan properties. The registration is approved by the Dubai Land Department, while the portal keeps a detailed track of properties and clients.
2. A Seamless Management of Multiple Transactions
The portal allows developers to sell and manage diversified off-plans efficiently, making managing larger projects more effective. It also helps in simplifying the administrative workload.
3. Legal Protection for Developers and Buyers
Once the off-plan property is purchased, the stakeholders will hold a legal registration on Oqood, guaranteeing buyers’ rights. Additionally, both developers and buyers are protected by Dubai real estate law, including verified transaction information. Dubai Land Department keeps track of off-plan property sales and progress well-maintained.
Required Documents for Developers’ Registration on Oqood
The Oqood online system requires the following document to complete and activate the registration of developers;
- Company trade license (copy)
- Power of Attorney
- A copy of a passport
- Authorization Letter
- Emirates ID or visa
Oqood Fees – Understanding the Costs
Registering on Oqood to acquire an Oqood certificate involves specific fees crucial for buyers investing in off-plan projects. The cost is not specified but calculated as a percentage of property value;
- Percentage: The fee typically amounts to 4% of the property’s total sales value. Charges may vary depending on applicable promotions or the project type.
- Responsibility: The buyer usually pays this fee to developers alongside the property’s upfront cost.
- Payment Process: The developers often collect the Oqood fee and transfer it to the DLD upon registration. Buyers should double-check the exact amount with the developers to ensure all payments are secure.
How to Obtain an Oqood Certificate
Obtaining an Oqood certificate is pivotal to formalizing and legally documenting the pre-registration of the off-plan property sales transaction. It also preserves the ownership rights of the buyers. Here’s a detailed breakdown of the process;
Step 1 – Submit a Registration Request
Developers are bound to submit a registration request. To process the request, developers are required to provide various details, including;
- Name of the Developer
- Location of the Off-Plan Property
- Size of the Off-Plan Property
- Information about Ownership
- Handover Time of the Project
Step 2 – Make the Oqood Fee Payment
While the buyer arranges the Oqood fees, the developer is responsible for calculating, collecting, and submitting them to the Real Estate Registration Directorate of DLD. The fee is mandatory for completing the Oqood certificate process, binding the sale into legal records.
Step 3 – Issuance of the Oqood Certificate
Once the registration of off-plan property is verified and approved by the Dubai Land Department, the authority issues the Oqood Certificate. The document provides proof of ownership, marking the registration legal and giving buyers confidence in their purchase.
Core Divisions within the Oqood Portal
Oqood is a bilingual digital platform accessible to users in Arabic and English. The portal, however, has additional sections to simplify the usage and application interaction among the stakeholders and developers alike;
1. Properties
Oqood online portal includes a separate section for properties where new properties and their management in real-time are displayed. Users can leverage the property management module for different purposes;
- Include or edit new payment plans.
- Include or revise the number of units to existing off-plan developments.
- Browse other property types, including towers or villa projects.
- Include or revise details of under-construction villa projects.
- Request upper authorities for any property termination.
2. Participants
All the parties involved in the real estate transaction of off-plan projects are enlisted under the Participants’ Section. The primary participants include stakeholders, developers, and companies involved in the sales and purchase procedure.
Users can add or remove the participants via the Participant Management Screen. To add the participants to the Oqood Portal, you can follow the given steps for ease;
- Click the Participants Management option to continue the procedure.
- Compute the name of the company or individual you want to add.
- The recent owner or company's contact information, including their details, is mandatory.
- The participant will receive a confirmation message once all the details are computed and saved.
3. No Objection Certificate (NOCs)
Due to Dubai’s real estate sector's dynamism, off-plan properties are often resold before completion. However, reselling cannot be conducted unless an NOC is issued from the master developer and approved by the Dubai Land Department.
The Oqood online portal also includes a section to request a NOC to complete the legal implications before the property transfers to a new owner.
4. Procedures
The Oqood portal also includes a separate section called Procedures. Users can navigate and manage key processes from here. This module provides validated contracts and certificates generated after DLD approves any specific procedure the user requests. The procedure module helps in the following actions;
- Cancellation of the Property
- Approval of the Property
- No Objection Certificate Procedures
- Converting the lease properties to ownership
- Details of Voucher
- Modification of the Property
- Browse Property Number, Name, and Type
- Registration of Property for Mortgage Pre-approval
5. Administration
The administration is an additional section within the Oqood portal, giving developers the authority to add, manage, revise, or remove participants and companies. Sub-users can continue to navigate their main account even if they are removed by the developer.
6. Contracts
Oqood's e-service system is also used to generate various kinds of contracts. Once requested, these contracts need endorsement from owners and related parties involved in selling and purchasing off-plan properties. Different types of certificates produced by Oqood include;
- Certificate for Initial Sales
- Certificate for Mortgage
- Certificate for Lease
- Certificate for Dismortgage
7. Vouchers
Performing different procedures on the Oqood portal requires a set fee from the payees. Generally, the developer initiates the request on behalf of the requester and provides him/her with the fee voucher after it is generated by Oqood. These vouchers may include the registration fee for Oqood.
Oqood and Title Deeds – Key Differences
First-time buyers may mistake the Oqood for title deeds; however, both are pivotal in the Dubai real estate sector. It is crucial for buyers to comprehend the differences between the two to avoid future negligence.
With unique characteristics held by each document, the Dubai real estate market ensures a protected environment throughout the cycle, from the initial purchase stage to full ownership after the completion of off-plan property sales.
1. Oqood Certificate – A Pre-Completion Record for Ownership
The Oqood certificate is necessary for off-plan property sales. It serves as evidence indicating the buyer’s commitment to real estate under construction.
The certificate also demonstrates that the buyer has completed the registration process in compliance with DLD regulations, which ultimately provides security until the issuance of the title deed after the project’s handover.
2. Title Deed – Final Attestation to Ownership
A title deed is issued after the construction is complete at the time of handover. This attestation proves that the owner has full ownership rights over the purchased unit or development. Payment settlement and handover processes are required before the title deed is granted.
How to Transfer an Oqood Certificate
If a buyer’s reselling decision emerges before the project’s completion, Oqood generates a certificate for the new buyer. However, the process undergoes various steps:
- Notify the Developer: You must contact the developer to request a No Objection Certificate for the transference of ownership to the new buyer.
- Transfer Request to Dubai Land Department: After the developer’s approval is guaranteed, a transfer request is made to the DLD via the Oqood e-service portal.
- Transference Fee: Oqood has specified different charges for different procedures. The required amount should be paid to proceed with the transference process.
- New Oqood Certificate: After the legal requirements are completed, the Dubai Land Department issues a new Oqood certificate in the name of the signatory buyer.
Advantages of Oqood for Property Buyers
1. Evidence of Ownership in Pre-Completion Stage
Oqood plays a key role in establishing evidence of the buyer’s right to the purchased property in the pre-completion phase.
2. Legal Protection & Transparency
One of Oqood's elementary advantages is the protection it provides to buyers. It keeps a digital record of all sales and purchases in the under-construction segment and ensures that the record is error-free. The legal registration of properties in the construction stage fosters investors’ confidence.
3. Improved Conflict Resolution Mechanism
Several protocols regarding Oqood's regulatory framework include dispute resolution. In case of any conflict between the developer and buyer, the Dubai Land Department can intervene and solve the case through validated records present in Oqood.
Benefits of the Oqood System for Developers
1. Enhanced Credibility
Developers may find the system enhancing their credibility if all the norms and regulations of Oqood are legally adhered to. This requires the quick registration of sold off-plan properties on the Oqood portal to ensure compliance with the rules and preference of investor protection.
2. Simplified Registration Procedure
The seamless registration of off-plan property sales through Oqood’s digital platform is a prominent advantage for developers. They can register multiple sales efficiently, eliminating the need for frequent visits to the DLD office.
3. Systematic Record-Keeping & Project Management
Oqood provides a centralized system to track off-plan property sales and purchases effectively. This ensures enhanced management of project handover details, project progress, and buyer’s commitment.
Perks of Oqood for Foreign Buyers
Dubai’s thriving real estate invites foreign investors in abundance, providing them with seamless benefits through Oqood’s effective system;
1. Secure Online Transactions
Oqood's e-portal allows foreign buyers to complete payments securely through digital platforms. This minimizes the burden of paperwork and the need for physical visits.
2. Transparent & Clear Regulations
Oqood is a transparent regulatory system managed by DLD officials. This confidence benefits foreign investors, reducing ownership disputes or legal concerns.
3. Verified Property Records
Properties registered on Oqood are approved and verified by the Dubai Land Department, which adds a layer of assurance and makes transactions completely legitimate.
Oqood’s Role in Shaping a Transparent Property Sector in Dubai
The government of Dubai is making tireless efforts to enhance the real estate sector's transparency. Oqood is pivotal to strategically shaping Dubai’s reputation on a global level. The digital platforms also align with the Emirate’s broader aims of nurturing investor confidence and encouraging sustainable development.
The introduction of Oqood creates a safe regulatory environment for local and foreign buyers. Its e-services document the transactions of off-plan property sales and help curb likelihood issues with speculative fraud, investments, and misinformation.
Closing In
The digital services of Oqood are crucial to continuing the success and vivifying ecosystem of Dubai’s property sector. The system is designed to register and manage off-plan properties to stimulate buyers' interest through enhanced transparency and simplified procedures.
This essential tool is useful for investors and developers alike, providing distinct benefits to each. Understanding the functions, advantages, and fees associated with it is essential to making a well-informed decision and making secure investments.
The Oqood system will consistently serve as the cornerstone of Dubai’s real estate framework, helping the city with the continued influx of investors. It also supports Dubai’s goal to extend a secure, transparent, and appealing atmosphere for property investments on a global level.
Explore More...
