Moving into your new property can be an exciting time, but it can also be a little daunting. There are so many things to think about! One of the most important things to consider is the handover process. This guide will give you a quick overview of what to expect during the handover process and will help to make sure that everything goes smoothly for you and your new home!
After many years of waiting, your property in Dubai is ready o be handed over from the developer. Here is what you can expect during the process:
Reality check! The Handover & Snagging process is not as smooth as the marketing brochures make it sound. There will be a few teething problems that you have to deal with.
Below is a just a general guide to property Snagging and Handover:
1- COMPLETION NOTICE
As soon as the building is completed, your Developer will notify the Dubai Land Department (DLD) that the project is complete.
The DLD will then issue a Completion Notice, which gives you 30 days to move in. This notice will be sent to your developer who will then send it on to you.
If you don’t receive the Completion Notice within 30 days of completion, you can contact the DLD directly. The Completion notice which is sent to your Developer will have your Property Index Number (PIN) on it. This is important as you will need your PIN to apply for utilities and to register at the Ejari website.
Completion of a building does not mean that it is handed over! Handover only happens once the developer has completed all of the snagging items and has received an occupancy certificate from the Dubai Municipality.
2- PROPERTY SNAGGING AND INSPECTION
Once you have received the Completion Notice, you will need to arrange a date and time with the developer to do a final inspection of your property, known as ‘snagging’.
You will need to check that everything in your property is working correctly and that there are no defects.
If you find any snags, you should report them to the developer so that they can be fixed. The developer has a responsibility to fix all snags before handover.
It is important to remember that your new home is not going to be perfect! There may be some minor imperfections, such as scratches on the floor or walls, or loose tiles. These are known as ‘snags’, and are relatively common in new properties.
You should also check that all of the appliances and features in your property are working correctly. If anything isn’t working properly, again, you should report this to the developer so that it can be fixed.
Once you have completed the inspection and reported any snags, the developer will have a certain amount of time to fix them.
The developer is required to provide you with a ‘snagging list’ which outlines all of the defects in your property and how they will be fixed.
Make sure that you keep a copy of this list!
Note: It is important to remember that you are not the only one moving into a new property! There may be other people moving in on the same day, or in the same week. This means that there may be some noise and disruption during the handover process.
Try to be patient and understanding during this time and remember that everyone is in the same situation!
3- PROPERTY HANDOVER NOTICE
Once the developer has completed all of the snagging items and has received an occupancy certificate from the Dubai Municipality, they will issue a Handover Notice.
This notice will be sent to you and your agent and will confirm the date and time of handover.
The handover process can take anywhere from a few hours to a few days, depending on how many people are moving into the property.
It is important to make sure that you are available on the day of handover so that you can sign all of the necessary documents.
If you are not available, you can appoint someone else to act on your behalf. However, this person must have a Power of Attorney which gives them permission to sign the documents on your behalf.
Once you have received the Handover Notice, you should start to prepare for the big day! Make sure that you have all of the necessary documents with you, and that you are ready to sign them.
You should also make sure that you have arranged for utilities to be connected at your new property, as well as arranging furniture delivery and any other services that you need.
4- FINAL PAYMENTS
Along with the Completion Notice, you should also receive a Handover pack which includes the details of your completion/account statement with the developer which should clearly outline any final payments that are due.
It is important to check this statement carefully, as you may be required to make a final payment on the day of handover.
If you have any questions about the statement, or the amount of money that you owe, you should contact your agent or the developer directly.
They will be able to advise you on the situation and help to resolve any issues.
Once you have made all of the necessary payments, you will be ready to move into your new property!
Final Installments:
-The final payment is usually made in two installments. The first installment is paid when you sign the contract, and the second installment is paid on or before handover.
-If you are paying in cash, you will need to arrange for the funds to be available on the day of handover.
-If you are taking out a mortgage, your lender will usually release the funds a few days before handover. You should speak to your lender in advance so that you know when the funds will be available.
-Once you have made the final payments, all that is left to do is move into your new property and enjoy your new home!
Oqood Fees:
-An oqood is a registration fee that is paid to the Dubai Land Department.
-The oqood fee is usually paid in two installments, and it is important to make sure that you have the funds available when it is due.
-You will need to pay the first installment when you sign the contract, and the second installment will be due on or before handover.
-If you are taking out a mortgage, your lender may include the oqood fees in your loan amount. However, this is not always the case, so it is important to check with your lender in advance.
-Once you have paid the oqood fees, you will be able to move into your new property!
Registration Fees:
-The registration fee is a one-time fee that is paid to the Dubai Land Department.
-The registration fee is usually paid in cash, and you will need to have the funds available when it is due.
-You will need to pay the registration fee on or before handover.
-If you are taking out a mortgage, your lender may include the registration fees in your loan amount. However, this is not always the case, so it is important to check with your lender in advance.
-Once you have paid the registration fees, you will be able to move into your new property!
Service Charges:
-The service charges are an annual fee that is paid to the developer.
-The service charges are usually paid in two installments, and it is important to make sure that you have the funds available when it is due.
-You will need to pay the first installment when you sign the contract, and the second installment will be due on or before handover.
-If you are taking out a mortgage, your lender may include the service charges in your loan amount. However, this is not always the case, so it is important to check with your lender in advance.
-Once you have paid the service charges, you will be able to move into your new property!
Administration Fees:
-The administration fees are a one-time fee that is paid to the developer.
-The administration fees are usually paid in cash, and you will need to have the funds available when it is due.
-You will need to pay the administration fees on or before handover.
-If you are taking out a mortgage, your lender may include the administration fees in your loan amount. However, this is not always the case, so it is important to check with your lender in advance.
Utility Registration Fees
You will also need to register the utilities in your name and pay the associated fees.
-The utilities that you will need to register include water, electricity, gas, and telephone.
-The registration fees for each utility vary, and you will need to have the funds available when it is due.
-You will need to register the utilities in your name on or before handover.
-If you are taking out a mortgage, your lender may include the utility registration fees in your loan amount. However, this is not always the case, so it is important to check with your lender in advance.
Once you have paid all of the necessary fees and made all of the necessary payments, you will be ready to move into your new property!
5- FINAL HANDOVER
-At final handover, you will need to sign a document called the Certificate of Completion and Possession (CCP). This document officially transfers ownership of the property from the developer to you.
-You will also need to provide your Emirates ID or passport at final handover.
-If you have a mortgage, you will need to provide a letter from your lender confirming that the loan has been paid in full.
-Once you have signed the CCP and provided all of the necessary documents, you will be ready to move into your new property! Congratulations!
6- POST HANDOVER
Congratulations! you are now the proud owner of a new property in Dubai!
-Once you have moved into your new property, there are a few things that you need to do in order to maintain your investment.
-First, it is important to insure your property. This will protect your investment in case of fire, floods, or other damages.
-You should also consider joining the Homeowners Association for your community. The Association will take care of the common areas in your community and can provide helpful services such as security and maintenance.
-By taking these steps, you can be sure that your new property will be well taken care of and will retain its value for years to come! Thanks for reading!
We hope that this guide has been helpful in explaining the property handover process in Dubai. If you have any further questions, please feel free to contact Azco at [email protected]. Thanks for reading!
Also Read:
https://azcorealestate.ae/sell-your-property-in-dubai-a-complete-guide/
