In Dubai, buying off-plan property has become a popular trend. It is the first choice for many investors due to the attractive low prices and potential high returns. Off-plan properties offer flexible payment options through various payment plans, which is a very convenient system for buyers. The Dubai Land Department (DLD) has introduced a new management system called the Oqood system to facilitate the purchase of off-plan properties.

What is the Oqood system?

This system was introduced by the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) as a new management tool called the Oqood system. It was created to efficiently manage real estate transactions. The word “Oqood” is Arabic and means “contract.” This management system is very important for both developers and buyers.

The Oqood system simplifies the process of purchasing off-plan properties in Dubai. It allows buyers to efficiently manage key elements such as properties, accounts, and transactions. To ensure transparency and compliance, the Dubai Land Department actively oversees all activities within the system, regulating every stage of the sale and purchase process.

Unlike conventional title deeds, which are issued only after a property is completed. The Oqood certification specifically applies to properties that are still under construction.

Understanding How Oqood Works

Dubai’s Oqood system is a digital service operated by the Real Estate Regulatory Agency (RERA) under the authority of the Dubai Land Department. Its primary purpose is to register sales contracts for off-plan properties while ensuring full compliance with all legal and regulatory requirements.

This is how the system operates:

• Registration of Developer: Property developers are required to submit their projects for registration and ensure that all necessary documents receive official approval.

• Registration of Buyer: Once the sale agreement is finalised, the buyer’s information is recorded in the system.

• Digital Proof of Registration: The platform issues an Oqood certificate, which serves as legal proof of ownership for the off-plan unit.
• Regulatory Control: RERA oversees these registrations to protect against fraudulent activities.

With the help of the Oqood system, buyers can track their investments and stay updated on their status.

Oqood vs. Title Deed

Both systems are used in real estate, but their purposes are entirely different:

Title Deed: After the off-plan property is completed and officially handed over to the buyer, a title deed is issued. This document serves as the final and official proof of full ownership. Registered with the Dubai Land Department, the title deed confirms that the buyer is the legal owner of the property.

Oqood: This is an initial registration for the sale of an off-plan property. It confirms that both the buyer and developer have entered into a legally binding agreement, even though the property is still under construction. The Oqood certificate is a temporary document that remains in effect until the property is completed and the final title deed is issued.

Key Advantages of Oqood in the Real Estate Sector.

Since the introduction of the Oqood system, the transaction process for off-plan properties has improved significantly and offers many benefits. Here are some of them:

• Disagreement Settlement: When contracts are kept digitally, resolving disputes between buyers and developers becomes more efficient.
• Simplicity: From the Oqood system buyer can keep an eye on the exact transaction of the property.
• Fraud Control: Registering through Oqood Dubai is required to prevent unregistered and unauthorized transactions.
• Legal Guarantee: The system safeguards buyers’ rights by enforcing adherence to local property regulations.
• User-Friendliness: The digital Oqood registration streamlines paperwork, reducing time and effort for everyone involved.

Oqood Registration Procedure.

The Oqood registration process is easy to navigate with the right guidance. Here’s a step-by-step approach to ensure your property transaction is officially recorded:

• Registration for Property Developers: The registration process is triggered when the developer submits the sale agreement data on Oqood.
  
• Document Authentication: The buyer’s passport, Emirates ID, and other necessary documents are submitted for review.
• Payment Processing: Payment of Oqood registration fees—set as a percentage of the property’s worth—is mandatory for buyers.
• Certification Process: The buyer receives the Oqood certificate after all necessary steps are finalized, confirming the property’s registration.

Oqood System Registration Expense in Dubai.

In Dubai, the Oqood system’s registration fee is an important point to consider. The fee for the Oqood registration process is 4% of the property value, regardless of the property’s price.

There are three types of charges associated with property registration through the Oqood system:

• Administration Fees: AED 250 – AED 500
• Consultation Fee: AED 10 – AED 20 per transaction
• Registration Fee: 4% of the total property price

FAQs:

Q. How is Oqood defined in the context of Dubai real estate?
Ans: In the context of Dubai real estate, Oqood stands for “contracts” in Arabic and refers to the registration system for off-plan property sales. Operated by the Dubai Land Department, it ensures all parties involved are protected through transparent and legally compliant processes.

Q. At what point do buyers receive the Oqood certificate?
Ans. An Oqood certificate is issued when you buy an off-plan property in Dubai. After the property is completed and ownership is officially transferred, the Oqood is replaced by a Title Deed.

Q. Can ownership of an Oqood certificate be assigned or sold to another party?
Ans. Yes, if a buyer wants to transfer ownership of an off-plan property to someone else before its completion, they can do so via the Oqood system. However, this transfer requires approval from both the developer and the Dubai Land Department.

Conclusion:

If you are planning to buy property in Dubai, it’s essential to understand what the Oqood system is and how its registration process works. By enhancing transparency, protecting legal rights, and streamlining procedures, the Oqood system ensures smoother and more secure real estate transactions. Every step of the system—from initial registration to final certification—is designed to build trust and confidence for buyers and strengthen transparency in the market.

Whether you’re new to investing in Dubai or looking to expand your property portfolio, understanding how the Oqood system works can give you a strategic advantage. For expert guidance, Auxilium Real Estate is just a call away—let us help simplify your real estate journey.