FAQ: Most asked questions about buying apartments in Dubai
ABOUT ELLINGTON PROPERTIES
Founded in 2014, Ellington Properties endeavors to meticulously craft not just homes, but lifestyles. The stunning environments range from townhouses and villas to stylish studio flats and holiday homes in Dubai for jet-setting investors. Ellington is inspired by art and reflective of their owners’ aspirations – designed to accommodate any experience and to radiate an unmistakable air of quality living.
Ellington Properties’ current projects include high-rise luxury residences and family communities which are located across different areas in Dubai such as the prestigious Downtown Dubai, Mohammed Bin Rashid City, Emirates Hills, Palm Jumeirah and the upcoming Jumeirah Village Circle.
- WHAT TYPE OF TITLE DEED WOULD I GET FROM ELLINGTON PROPERTIES?
You will receive a freehold title deed since all projects developed by Ellington Properties are situated in freehold designated areas. These areas are recognized by the government where non-UAE citizens can own properties in Dubai under local property laws (as applicable) to date. The units could be sold outright for a specific purchase price and there is no time restriction on freehold ownership rights.
- WHAT ARE THE MAINTENANCE AND SERVICE FEES?
The maintenance and service fees are used to ensure all common areas are well kept and clean for the use of the residents of the property. The fees are calculated based on the yearly costs required to maintain the common areas and as approved by RERA. It is mandatory that the budget for the maintenance and service charges should be approved by RERA before collecting the same from end-users. All details relating to the service fees are mentioned in the SPA (Sales Purchase Agreement).
- CAN I ADD OR REMOVE A JOINT OWNER FROM MY SALE AND PURCHASE AGREEMENT?
As per the prevailing laws, any person could be added or removed from the sale purchase agreement. All involved purchasers should visit [email protected] to complete the required paperwork and pay any required fees to the Dubai Land Department, if applicable.
- WHAT HAPPENS IF I LOST MY SALE PURCHASE AGREEMENT (SPA)?
In this instance, you would need to contact the Customer Relations Management Department at Ellington Properties and they will advise you on the steps to be taken. Ellington Properties might request you to provide an indemnity letter.
The letter would need to specify how the SPA was lost and a confirmation to return the copy should it be found later. The validity of your request will be verified, and an original copy of the SPA will be issued on payment of an administrative fee of AED 5,250.
- HOW MANY DAYS DOES IT TAKE TO RECEIVE AN SPA FOR SIGNATURE FROM THE DATE OF PURCHASE?
Issuance of SPA takes up to 30 working days from the date of purchase. The documents submitted and details entered at the time of booking will be reviewed by the Compliance department before issuance of the SPA. Ellington Properties need to ensure that the down-payment, Oqood, and registration charges as per the timelines are cleared in full before the SPA can be issued. Purchasers are required to sign the SPA within seven days from the date of issuance.
The signed copy can be either delivered in hand to Ellington Properties’ offices or couriered to the below-listed address:
Burlington Tower, 16th Floor
P O Box 117500
Dubai, United Arab Emirates
- WHAT DO YOU MEAN BY SNAGGING INSPECTION?
It means that once you have been issued a completion notice, you will be invited to visit the actual project and to inspect the property. Inspections must be based on the SPA specifications.
- CAN I MAKE CHANGES TO MY PROPERTY OR UNIT?
No changes can be made to the external façade and structure of the property or unit until the construction is complete. However, small internal modifications may be carried out after the unit is fully constructed and handed over to the purchaser. This is subject to clearance from the development team of Ellington Properties and other government authorities like DHCC or Dubai Municipality. Accordingly, administrative fees could apply for providing the NOC by Ellington Properties.
- CAN I RENT OUT MY PROPERTY ONCE IT’S HANDED OVER TO ME?
Yes, you can rent out your property once the handover process is complete and title deed issued under your name.
- WHERE IS THE LOCATION OF THE SALES OFFICES OF ELLINGTON PROPERTIES?
The sales office is currently located on the 16th & 17th floors of Burlington Tower in Business Bay, Dubai, United Arab Emirates.
- WILL MY UNIT BE EXACTLY THE SAME AS THE ONE I SAW AT THE SALES OFFICE OF ELLINGTON PROPERTIES?
Mock-up units are created in the office of Ellington Properties only to demonstrate how a finished unit might look like. Usually, the mock-up unit is presented with sample furniture, appliances, etc. However, your unit will be provided to you as per the specifications provided in your SPA. You can also expect some variation which is in line with the applicable laws and in accordance with your SPA.
- WHAT IS THE PROCESS TO TAKE POSSESSION OF MY UNIT?
Nearing the completion of the project, Ellington Properties will notify the purchasers of the handover date by way of a completion notice and as per the SPA. Ellington Properties will request the purchasers to complete their payments in relation to the purchase price and any other due amounts. The purchasers would also be provided with an opportunity to inspect the unit. Based on the visit, they will prepare a list of defects which will be countersigned by the project manager or their representative.
Any outstanding defects which cannot be fixed before the handover date will be completed during the defect liability period. Notwithstanding, the purchaser will be bound to complete the payments and take possession of the unit on the handover date.
In case the purchaser fails to complete the payment, inspection or possession of the unit, Ellington Properties has the right to take appropriate action as per the applicable laws. In such event, no further inspection opportunity will be provided. The purchasers will also be notified of the documents that would be required and the process of handover to complete the handover.
- WHAT WILL OWNERS RECEIVE ON HANDOVER OF THE PROPERTY?
- Keys to their unit
- List of important phone numbers
- Car parking remote
- Access card(s) (if applicable) or biometric fingerprint to access the building
- Car security sticker (if applicable)
- Owner’s manual
PROPERTY REGISTRATION & RESALE
- WHICH PROPERTIES ARE ELIGIBLE FOR REGISTRATION AT DUBAI LAND DEPARTMENT?
All transactions which include a new purchase, a transfer or an amendment of a Real Estate Property Rights must be recorded with DLD.
- DOES THE PURCHASER NEED TO BE A RESIDENT IN THE UAE TO OWN THEIR PROPERTY?
As per prevailing laws, the purchaser does not have to be a resident of the UAE to be eligible to own a property in the Emirate of Dubai. Areas for freehold properties are designated areas for expatriates where non-resident of UAE can buy the property in the Freehold area. Additional document as required by the applicable laws needs to be submitted by such purchasers.
- WHAT ARE THE REQUIRED DOCUMENTS TO COMPLETE REGISTRATION FOR MY
RIGHTS IN OQOOD REGISTRATION AND WHO IS RESPONSIBLE FOR UNDERTAKING THE PROCESS?
Once you book a unit, CRM will assist you with the required documents for registration of your unit. The documents might differ based on the project or whether you are a resident or non-resident or a company or other entities. Ellington Properties has a designated department which liaises with DLD and undertakes registration of the sale of the unit on behalf of the purchaser(s).
- CAN I REGISTER MY PROPERTY AT A LATER STAGE?
As per DLD, all units must be registered within 60 days from the date of sale. Accordingly, it is mandatory for the purchasers to ensure all documents are provided to Ellington Properties on time to avoid any penalties imposed by DLD. Should you delay the process, DLD will double the registration fees as part of their penalty fees.
- HOW WILL I BE NOTIFIED REGARDING COMPLETION OF MY REGISTRATION?
Once the sale of your unit is registered with DLD, you will be contacted by Ellington Properties to collect the registration documents including receipts for the fees paid. For overseas purchasers, the documents can be couriered or collected but only by official instruction from the purchaser.
- WHAT ARE THE REGISTRATION FEES & MODE OF PAYMENT?
As per DLD, the current registration fee is 4% of the purchase price in addition to administration fees. All fees may be amended by the relevant authorities from time to time. The preferred mode of payment is by way of manager’s cheque issued in the name of the Dubai Land Department directly. Alternatively, the fees can be paid to Ellington Properties who can in turn pay to DLD while registering the sale of your unit.
- ARE THERE ANY OTHER FEES PAYABLE TO ELLINGTON PROPERTIES BESIDES THE REGISTRATION FEE?
As of now, there is no fee charged by Ellington Properties for registration of any unit in the name of the original purchaser.
- TO WHOM ARE THE REGISTRATION FEES PAID?
The registration fees are paid to DLD. The fee is required by DLD to register the owner’s right in the property at the DLD registry.
- WHAT IS THE PROCEDURE FOR RESALE?
The procedure for resale is always subject to change by DLD from time to time. However, the current process is as follows:
- For off-plan projects, the purchaser and the incoming purchaser need to contact the CRM Department at Ellington Properties to apply for a transfer No Objection Certificate (NOC).
The NOC is subject to fulfilling the payment obligations of the purchaser under the SPA and any conditions laid down by Ellington Properties.
- The purchaser is required to pay 30% of the purchase price for Ellington Properties to allow any resale.
- Appropriate administrative fees to process the NOC and SPA need to be paid to Ellington Properties, currently being AED 5,000.
- The purchaser must collect a NOC from Ellington Properties and execute the Transfer of Ownership Form and the required documents of the incoming purchaser. Accordingly, Ellington Properties will process the transfer and arrange a new SPA to be issued in favor of the incoming purchaser.
- All payments that are due on the NOC’s date of the application need to be settled before issuance. This is as per the policy set by Ellington Properties.
- The transfer will be registered in Ellington Properties interim registry and then completed at the DLD, subject to transfer fees being paid to DLD directly.
- Once the resale is completed at DLD, the new owner must provide a copy of the initial sale contract with Ellington Properties for update
- Any unit with mortgage shall be dealt with separately as per the norms of such Banks and on case to case basis
- WHAT IS THE PAYMENT POLICY FOR THE PROJECT?
Purchasers are advised to make all their payments as per the payment plan schedule provided in their SPA. Delay or non-payment of instalments would result in penalties and/or other courses of action in accordance with the SPA and Dubai property laws.
- WHAT IS THE PAYMENT PLAN OF THE PROJECT?
Ellington Properties typically offers 50% payment during construction and 50% on completion. However, the milestones and payment timelines will vary from project to project. It is best to request for the payment plan from a Property Consultant. Alternatively, please review the payment details which are outlined in the SPA which are considered final.
- WHAT IS THE PROCESS IN CASE OF DEFAULT OF PAYMENT BY THE PURCHASER?
Ellington Properties will provide 30 days notice to pay any defaulted amounts. Should the purchaser fail to do so, Ellington Properties reserves the right to take all necessary action in accordance with the applicable laws.
- HOW DO WE NOTIFY ELLINGTON PROPERTIES OF ANY CHANGE IN COMMUNICATION DETAILS?
You can send an e-mail using your registered email ID to Ellington Properties’ CRM Department or by visiting the Ellington Properties sales office. We encourage you to immediately notify Ellington Properties of any change in your address and telephone numbers, so you are constantly updated.
- CAN I TAKE A HOME LOAN AND REGISTER THE MORTGAGE OVER THE PROPERTY?
Yes, the purchaser can take a home loan and register a mortgage on the property by paying the requisite fee to DLD. Please note only banks or financial institutions duly licensed and registered with the UAE Central Bank can provide finance for the property.
- IS THERE VALUE ADDED TAX (VAT) APPLICABLE ON MY PROPERTY?
Under UAE law, a newly constructed residential properties that are supplied for the first time or within three years of their construction, are exempted from paying any VAT. However, there is still ambiguity on the date of supply i.e. whether it is the date of payment or whether it is the date of property completion.
- CAN I PURCHASE A PROPERTY IN THE NAME OF A FREE ZONE COMPANY?
Yes, you can purchase the property in the name of certain designated free zone company. It will be subject to meeting the requirements of DLD and the concerned free zone authorities. In order to register the property in the Interim Property Registry, the sales team will first guide you on the rightful procedure.
- WHAT IS THE DIFFERENCE BETWEEN THE PRINCIPAL AND JOINT OWNERS TO THE SALE AGREEMENT?
There is no substantial difference between principal and joint owners as both are equal shareholders of the property unless notified otherwise to DLD. For instance, a property purchased by two friends could have a different percentage, depending on their contribution to the property. But if not specified both parties will have equal rights. Any notices or communications sent to the Principal Owner will be considered as served to all involved owners as per the UAE law.
Disclaimer: These FAQs are meant to serve merely as guidance and consequently have no legal merit. They can also be subject to amendments as per the guidelines issued for any amendment to the prevailing laws and regulations pertaining to real estate laws in Dubai.