Selling and buying properties in Dubai is regulated by DLD (Dubai Land Department). One of the most important documents in sales/purchase transactions in Dubai is the SPA (Sale and Purchase Agreement).
A Sales and Purchase Agreement (SPA) serves as a legally binding contract that mentions the terms and conditions of a property transaction between a buyer and a seller in Dubai and UAE. It stands as a pivotal document protecting the interests of both parties involved.
Once the concerned parties sign the agreement, it is important to register sales purchase agreement Dubai with DLD (Dubai Land Department).
What is a Sale and Purchase Agreement (SPA) in Dubai?
As mentioned earlier, sales purchase agreement Dubai is a legal contract between property buyers and sellers in Dubai or UAE.
SPA is technically the registration of land plots or off-plan units sold by a real estate developer. DLD necessitates registration for properties whose full value remains unpaid at the provisional register stage.
This legally binding document outlines specifics such as property description, purchase price, payment terms, and any other mutually agreed-upon conditions between buyer and seller.
In order to start the sales and purchase agreement (SPA) registration process with DLD, following the below-mentioned rules is necessary.
- Both buyer and developer must sign the sales and purchase contract.
- If the buyer is a minor, a guardian must sign the contract on the minor’s behalf. The guardian must attach a copy of their passport or ID with the agreement.
- Register the contract in the provisional register within 90 days from the contract signing date.
- If the buyer is a decree holder, they must provide a valid letter issued by the Federal Authority for Identity and UAE Citizenship, addressed to “To Whom It May Concern.”
Here is how to register sales and purchase agreement SPA with DLD (Dubai Land Department).
Steps on How to Register Sales Purchase Agreement Dubai with DLD
Here is what you need to know about the SPA registration process.
- Go to the Oqood portal and opt for the provisional sale registration service.
- Choose the desired property
- Enter your details
- Attach the necessary documents
- Pick your preferred payment method
- Submit the application electronically
- Get your receipt confirmation via email
Documents Need to Register Sales Purchase Agreement Dubai with DLD
The requirements for documents vary for individuals, companies, and sole proprietors. Here is a detailed list of documents needed to register SPA with DLD.
Required Documents for Individuals
- Sales and purchase contract copy
- Valid Emirates ID copy
- Valid passport copy for non-residents
Required Documents for Sole Proprietorship Companies
- Valid trade license copy
- UAE ID or passport copy of the license holder
- Power of attorney (if applicable)
Required Documents for Limited Liability Companies
- Valid trade license copy
- UAE ID or passport copy of the license holder
- Power of attorney (if applicable)
- Translated copy of the company’s Memorandum of Association and annexes (legally translated into Arabic)
- Shareholder certificate copy
Required Documents for Foreign Companies
- Valid trade license copy
- National ID or passport copy of the license holder
- Power of attorney (if applicable)
- Translated copy of the company’s Memorandum of Association and annexes (legally translated into Arabic and ratified by the Ministry of Foreign Affairs)
- No Objection Certificate (NOC) from the free zones
- Shareholder certificate copy
Note: To register SPA with DLD for a foreign company, shareholder names must be specified.
Required Documents for GCC Companies
- Valid trade license copy
- National ID or passport copy of the license holder
- Power of attorney (if applicable)
- Translated copy of the company’s Memorandum of Association and annexes (legally translated into Arabic and ratified by the Ministry of Foreign Affairs)
- Shareholder certificate copy
Registration Fee for SPA registration with DLD
The list of registration fees for SPA with DLD is as follows.
- Innovation fee: AED 10/-
- Knowledge fee: AED 10/-
- 2% of the net sales value for buyer and seller
- Self-registration for developers: AED 1000/-
Summing it up
It takes one day to register sale and purchase agreement with DLD, and the NOC for freehold areas is valid for one year. It is important for all parties involved in a sale and purchase agreement to carefully read the contract before signing it. Hiring a certified real estate broker in Dubai or the UAE can be very helpful in eliminating ambiguities in the SPA contract.
