How to Gift Property in Dubai & Understand the Sales Progression Process

 

Dubai’s real estate market is one of the most dynamic and attractive in the world. With its luxurious properties, investor-friendly laws, and tax benefits, more people are buying, selling, and even gifting real estate in the UAE. Two important aspects that many individuals and investors encounter in this process are Sales Progression and Gifting of Real Estate.

In this blog, we will explore what sales progression is, how it works in Dubai, and how real estate gifting can be done legally and efficiently. This guide is ideal for buyers, sellers, and those planning to transfer property to loved ones in the UAE.

What is Sales Progression in Dubai?

Sales progression Dubai refers to the process that takes place between accepting an offer on a property and completing the transaction. It involves several legal, administrative, and financial steps that ensure the property deal is finalized smoothly and efficiently.

Key Stages of Sales Progression in Dubai:

1. Signing the MOU (Memorandum of Understanding)
   Once the buyer and seller agree on the terms, a standard MOU is signed. This outlines the terms and conditions of the sale, and a deposit (usually 10%) is paid.
2. Applying for a NOC (No Objection Certificate)
   The seller must obtain a NOC from the developer. This certificate confirms that there are no outstanding service charges, and that the property can be sold.
3. Finalizing the Mortgage (if applicable)
   If the buyer is purchasing with a mortgage, the bank needs to finalize approval and issue a payment cheque. This may also include a property valuation.
4. Property Transfer at the DLD (Dubai Land Department)
   Both parties meet at the DLD office to complete the transfer. Payment is made, and ownership is legally transferred to the buyer.
5. Title Deed Issuance
   After the transaction, a new title deed is issued in the buyer’s name.

Why is Sales Progression Important?

Sales progression helps avoid delays, legal issues, and financial complications. It ensures transparency and protects both parties involved in the property transaction. In Dubai, using professional services for sales progression—such as legal advisors or real estate consultants—can streamline the process significantly.

Common Challenges in Sales Progression

• Delays in issuing the NOC
• Mortgage processing bottlenecks
• Incomplete or incorrect documentation
• Miscommunication between parties

To avoid these issues, working with experienced real estate professionals and lawyers familiar with Dubai’s laws is highly recommended.

Gifting Real Estate in Dubai

Gifting real estate  growing trend in Dubai, especially among family members. This involves transferring ownership of a property without a traditional sale or monetary exchange. It’s common among parents gifting property to their children or between spouses and siblings.

Legal Requirements for Gifting Property in Dubai:

1. Family Relationship Proof
   Property can only be gifted to first-degree relatives, such as parents, children, or spouses. You’ll need valid Emirates IDs and legal documents proving the relationship.
2. Gifting Deed Drafting
   A gift deed must be prepared by a registered legal firm or authorized service provider. This document outlines the intention and consent of both parties.
3. NOC from Developer
   Similar to a sale, a NOC from the developer is required to ensure there are no outstanding dues on the property.
4. Valuation from DLD
   The Dubai Land Department requires an official property valuation for calculating the applicable fees.
5. DLD Transfer Fee
   A reduced DLD fee of 0.125% is applied to gifts, compared to 4% in regular property sales.
6. Transfer at DLD
   The parties must visit the Dubai Land Department together with all required documents to complete the transfer.

Benefits of Gifting Real Estate in Dubai

• Reduced Costs: Lower DLD fees make gifting more cost-effective than selling.
• Tax-Free Process: Dubai has no property inheritance tax or gift tax.
• Asset Protection: Gifting can be a smart way to distribute assets among family members for future security.
• Simple Legal Process: With the right guidance, gifting is a straightforward and legal process.

Things to Keep in Mind When Gifting Property

• Gifts are irrevocable once the title deed is transferred.
• A gifted property cannot be transferred to non-relatives.
• Outstanding mortgages must be settled before gifting.
• Always work with a registered legal advisor for a smooth process.

Why You Need Professional Help for Sales Progression and Gifting

Whether you are buying, selling, or gifting real estate in Dubai, expert assistance can save you time, money, and stress. Legal professionals and real estate advisors are well-versed with DLD procedures, documentation, and property regulations. They ensure that every step is completed correctly and on time.

Final Thoughts

Dubai’s real estate market continues to grow in sophistication and regulation. Whether you’re buying a dream home, selling an investment, or gifting property to a loved one, understanding sales progression and property gifting laws is crucial.

To ensure peace of mind, always consult with experienced professionals, stay informed about the latest legal requirements, and plan your transactions with care.

Need help with sales progression or gifting property in Dubai?
Contact our legal experts for a free consultation and smooth end-to-end service.

Frequently Asked Questions (FAQs)

Q1: What is the average time required for sales progression in Dubai?

A: The sales progression process typically takes 2 to 6 weeks, depending on the documentation, financing, and how quickly the NOC and DLD appointments are secured.

Q2: Who can I gift property to in Dubai?

A: Property can only be gifted to first-degree relatives such as children, parents, and spouses. Gifting to friends or distant relatives is not permitted under DLD rules.

Q3: How much does it cost to gift real estate in Dubai?

A: The Dubai Land Department charges 0.125% of the property’s value for gifts, plus administrative and service charges for the documentation.

Q4: Can a mortgaged property be gifted?

A: No, a mortgaged property must be fully paid off before it can be legally gifted to another person.

Q5: Do I need a lawyer for gifting property in Dubai?

A: While not legally required, working with a real estate lawyer or legal consultant is strongly recommended to handle documentation, compliance, and ensure a seamless transaction.

Q6: Is sales progression different for off-plan properties?

A: Yes, off-plan property sales progression involves additional steps such as finalizing payments to the developer and receiving completion certificates before transferring ownership.