Oqood / عقود
Oqood written as عقود in Arabic literally means “contracts”. It is pronounced as “A – qood”
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Oqood in itself is a service provided to developers by the Dubai Land Department with the aim to ease the registration of all types of sale contracts for off-plan properties between developers and buyers.
It allows developers to manage their off-plan properties within a simple user-friendly bilingual Arabic-English interface while protecting buyers and their property investments.
Oqood registration is required for all Off-plan Properties.
For the buyer of the property; Oqood provides protection from unlawful actions. This is why it is required by law and must be made on an off-plan property.
For the developers; the system enables them to do the following:
• Provide Management Framework: Log-in to a secure on-line application using a web-based interface.
• Maintain Their Developments: Add their properties and populate property details on the application.
• Land Department Support: Request and receive online approvals from the Dubai Land Department.
• Sales Support: Register and perform a sales transaction after entering buyer & sales details in the process. Plus create sales registration receipts through the application with an auto generated Sales Agreement.
• Receipt Creation: Generate the regulated registration and transaction fee.
Oqood enables developers to perform and register their off-plan sales transactions smoothly with the full knowledge and approval of Dubai Land Department. The system allows the sale of off-plan property to be a more transparent and regulated process.
As a result, it safe guards the buyer from illegal practices such as a developer selling the same unit to multiple people or selling a false property. Furthermore it also allows the developer to keep record of their properties and their customers.
The developer is required to fill in the buyer and sale details in the online application and once the sale process is complete, a sales receipt can be produced through the system. All this information is regulated by the Dubai Land Department and helps keep everything documented.
Other benefits ensured by Oqood are reduction in time due to the online process and availability, uniformity in the sales approach and complete transparency of the registration fee structure.
Oqood serves to build and maintain a trusted regulatory community environment for the real estate industry in Dubai, benefiting both developers and buyers through providing complete clarity into the requirements, processes and fees.
The Oqood fee is paid by the buyer to the developer of the property and is equal to 4% of the Original Price of the property.
Remember that Oqood is paid on the Original Price (OP) of the property and not on the Selling Price (SP) of the property .