When you are selling or buying property in the UAE, there are several crucial steps and paperwork involved. These things are important to make sure that all the legal aspects concerning the rights of both the buyers and sellers are properly taken into account.
Hence, one of the essential documents in this process is the No Objection Certificate (NOC) in real estate.
In this article, we will address all your queries concerning NOC, from its importance to the process of obtaining NOC and everything else you need to know.
What is NOC in Dubai Real Estate?
To ensure a property’s legality during a sale-purchase transaction, a buyer must secure a No Objection Certificate (NOC) from the relevant authority or the previous owner (if purchasing in the secondary market).
Also, in the UAE real estate industry, obtaining an NOC is crucial for the developers, particularly for off-plan properties still under construction. That’s because NOC serves as evidence that the property has a clear title and there are no unpaid utility bills.
What’s more, the NOC also confirms the developer’s agreement for the property’s purchase and assures that the ownership transfer is feasible, with no financial obligations and other payments remaining.
All-in-all, NOC includes information such as:
- Date
- Official letterhead
- Addresses
- Names and any other relevant information
Significance of Obtaining NOC in Dubai Real Estate
Prior to applying for an NOC in real estate, it’s critical to highlight its importance since NOC aids property buyers and sellers in the following areas.
1. Verification of Property Ownership
No objection certificate holds significant importance in the selling or buying process of property in Dubai and UAE. What’s more, it also serves as evidence that the seller possesses the complete legal right to transfer ownership.
Also, it guarantees that the intended real estate property is free from any legal disputes that could hinder the process or may negatively affect the buyer in the future.
Hence, NOC provides the buyer with confidence in the legitimacy of the transaction and the property they are buying.
Moreover, buyers can utilize the REST APP to confirm the title deed as well as the ownership of the property.
2. Legal Compliance with Regulations
The NOC also ensures adherence to the regulations, laws, and policies governing real estate transactions in Dubai and UAE. It certifies that all relevant permits and approvals are in place and that the transactions comply with the guidelines established by the authorities.
Plus, this compliance serves the interests of both sellers as well as buyers, shielding them from any potential complexities in the future.
3. No Financial Liability or Debt
NOC plays a critical role in verifying that the seller has settled all financial obligations related to the property. This includes clearing:
- Loans
- Mortgages
- Services fees
- Utility bills
Overall, NOC ensures the buyer that they won’t inherit any financial liabilities associated with the property.
4. Prevention of Real Estate Scams
The biggest perk is that the No Objection Certificate (NOC) serves as a robust measure to prevent potential scams in both rentals as well as property purchases. By validating the legitimacy of real estate dealings, the NOC acts as a protective barrier against fraudulent activities.
This document provides assurance that the concerned property is legitimate, promoting transparency and legality in the transaction.
Process of Obtaining a NOC in Dubai Real Estate: Step-by-Step Guide
Obtaining a No Objection Certificate for real estate transactions in the UAE may vary slightly from Emirate to Emirate. Nonetheless, the following steps outline a general framework for acquiring an NOC.
Application Submission
No Objection Certificate application is typically lodged with the relevant authority, for example, the Dubai Land Department in Dubai.
The buyer or their representative needs to provide the following documents.
- Proof of ownership
- Copies of identification documents
- Transaction details such as purchase price and sale date
Nonetheless, in certain cases, additional documents may be necessary for NOC in real estate.
Documentation and Verification
After receiving the application, the relevant authority examines the submitted documents and scrutinizes the financial and legal status of the property. This includes checking for:
- Any pending disputes
- Dues
- Violations associated with the property
Moreover, the authority may conduct a legal review of the buyer’s eligibility to purchase the property.
Approval and Issuance of NOC in Real Estate
Once the application meets all the necessary criteria, the authority grants the No Objection Certificate. The issuance of NOC signals that the property is legally fit for transfer to the buyer.
However, the processing period for NOC in the UAE may span between 3 to 5 working days, and that can differ on a case-by-case basis.
No Objection Certificate Procedure Fees
The No Objection Certificate fee in UAE real estate varies based on the developer as well as the size of the project. Generally, the seller has to pay the NOC fee that may range anywhere from 500/- AED to 5000/- AED.
Also, the cost of the NOC application is included in the overall expense of selling property in Dubai and other Emirates.
Documents Needed to Obtain NOC in Dubai
You need the following documents to obtain NOC in Dubai.
- Property Title Deed: Official document showing who owns the property.
- Emirates ID or Passport: Proof of who you are.
- Sale or Lease Agreement: Needed if the property is rented; include a copy of the lease.
- Proof of Payment for All Fees and Debts: Includes receipts for utility bills and maintenance costs.
- Architectural Plans and Building Permits: Required if you are planning to make changes or improvements to the property.
- Approvals from Relevant Authorities: Needed if you need extra approvals from government bodies like the Environmental Authority or Municipality.
How to Apply for NOC Certificate Dubai Online?
There are two online methods to apply for NOC certificate in Dubai—DLD website and REST app.
The Dubai Land Department (DLD) provides an online option to submit NOC (No Objection Certificate) applications. Here’s how to use it:
- Visit the Website: Go to the official Dubai Land Department website.
- Log in or Register: Sign in to your account, or create a new one if you don’t have one yet.
- Choose the Service: Find and select the “No Objection Certificate” option from the available services.
- Complete the Form: Fill out the online form with the required details.
- Upload Documents: Upload all the needed documents in digital format.
- Pay Fees: Use the online payment system to pay any fees.
- Receive the Certificate: After the review, the certificate will be emailed to you.
You can also apply through the REST app Dubai. Here is how to do it.
- Download the Dubai REST App: Get the app from the Play Store or App Store.
- Log in and Provide Information: Sign in using your Emirates ID or Title Deed and enter the necessary details.
- Choose Property Type: Pick the type of property you want and find the specific one you are interested in.
- Submit Your Application: Enter the buyer’s details, check the information, upload the needed documents, and submit your application.
DISCLAIMER: When appointing someone to handle real estate transactions on your behalf, make sure they have a power of attorney.
Frequently Asked Questions
Q: Can a seller sell a property in UAE without NOC?
A: No, sellers cannot sell property in the UAE without acquiring an NOC. Hence, it’s essential to inspect the NOC thoroughly before making any payments.
Q: What is a Title Deed?
A: Title deed is a document that showcases the ownership of the property and is registered at DLD. When purchasing a property via a mortgage, the original title deed is held by the bank as security until the full mortgage is paid off.
How much is the NOC fee for properties in Dubai?
The cost for NOC in Dubai can range from AED 500 to AED 5,000. It is an important but relatively small expense to make sure the property transaction goes smoothly without any legal issues.
What is the validity of NOC in UAE?
A No Objection Certificate (NOC) is a key document from an authority or organization that confirms there are no issues with the details provided in it. In the UAE, you often need an NOC for things like transferring car ownership, changing jobs, or applying for a visa.
Wrapping it up
In a nutshell, understanding the complex role of NOCs is imperative for all—investors, tenants, and real estate professionals to navigate the complexities of property dealings efficiently.
Moreover, with its impact on property rights and legal obligations, the No Objection Certificate serves as a cornerstone in shaping the landscape of real estate practices in the UAE.
Feel free to contact Orchid Homes Real Estate Dubai to obtain your NOC and for other real estate needs in Dubai.