What is the need for a title deed?
Buying a property in Dubai can be one of the most significant long-term investments. This city is constantly growing and bringing more and more promising opportunities. Some find it great to buy and then resell or rent. Others prefer to have property of their own to settle in one of the safest cities in the world. In either case, owning a property in Dubai requires obtaining a title deed. Is this a new term to you? Well, this article will clarify and explain it in more detail.
What is a title deed?
You need proof to show that you own a particular property. This proof is a legal document telling everyone that you have bought a house, villa, or apartment. It is now yours. In Dubai, this legal document is called a title deed, which contains essential information about you, the homeowner, and the property you have.
A title deed will have the following information:
- Personal information about the owner (His first and last name).
- The property description (a house, an apartment, a villa).
- Size of the bought property.
- Location of the property.
- Restrictions or conditions on the property, if any.
How to obtain a title deed?
To be able to obtain a title deed in Dubai, you need to follow these steps:
- To be able to obtain a title deed in Dubai, you need to follow these steps:
- First, you must pay the total amount you agreed on with the buyer and sign the sales agreement.
- Once you finish the payment, you should register the sales with Dubai Land Department (DLD). You can either register for the sale of the property online or go to one of the Dubai Land Department (DLD) centres.
- When registering with DLD, you must provide necessary documentation such as your ID, passport and proof of address.
- It is time to pay fees. The buyer must pay any fees related to registering the sale and acquiring the title deed, such as transfer fees, mortgage registration fees, and other charges.
- After the sale has been registered and all fees paid, the DLD will issue the title deed to the new owner.
Types of title deeds in Dubai
Before we delve deeper into types of title deeds, it is crucial to remind homeowners that the kind of title deed can affect the property’s value and the ability to rent and resell it. The reason is that each title deed comes with different rights and obligations. There are two types of title deeds in Dubai:
Freehold title deed
A freehold title deed owner has complete and unfettered property ownership, including the right to use, sell, rent, or transfer the property as desired. This type of title deed comes with a set of pros and cons.
Pros of getting a freehold title deed
- Your children can inherit the property without any problems.
- You can innovate, resell and rent the property.
- You can get a freehold deed even if you reside outside UAE.
- You and your family can get renewable visas if your property is worth 1 million AED or more.
Cons of getting a freehold title deed
- You have limited options because you can only buy from freehold designated areas.
- You are fully responsible for maintenance costs.
- The freehold owner will pay the annual maintenance fees.
Leasehold title deed
A leasehold title deed grants the owner the right to use and occupy the property for a fixed period. This period will often last 99 years. Once the 99 years are over, the property goes back to the original owner or the government after the lease period.
Pros of getting a leasehold title deed
- You have more options to do with the property.
- You are not responsible for maintenance or repair.
- Once the lease period is over, the property returns to the freehold owner. However, you can renew the lease.
Cons of getting a freehold title deed
- Your children cannot inherit the property.
- You need written approval from the original holder to make any changes to the property.
Some last words
That is about the title deed, the most crucial document regarding owning a property. Do you have a property in Dubai? Is it a good idea to get a property there? Which option is better? Freehold or leasehold? Are there other pros or cons that you would like to add to our list? Do not hesitate to share all you have about the matter in the comment below. But, as is always the case, we cannot wait to hear from you all.