February 02, 2025
As Dubai establishes itself as a top destination for property investors from around the globe, the government continues to come up with initiatives that further empower buyers and sellers. Today, information and awareness have become more important than ever – especially when misinformation is fairly prevalent in the cyber sphere. Understanding this, the Dubai Land Department has created a 24/7 awareness service for property owners, tenants, and investors that helps to accurately answer any queries or queries they may have.
What is the Deposit Service by DLD?
The DLD launched the Deposit Service as a regulatory initiative to safeguard purchasers' deposits during real estate transactions. It lowers risks and promotes market trust by guaranteeing that money is safely kept in an escrow account until the sale is completed. It encourages equitable and open transactions between buyers and developers by simplifying the procedure.
Purpose of the Deposit Service
Buyer Protection: The main aim of the Deposit service is to provide protection for buyer’s money and stop the developers from wrong treatment towards the buyers. It makes sure that the money is protected until the real estate project is completed.
Transaction Transparency: It allows the buyers to track the progress of their money, developers are motivated to act in a professional manner by making clear understanding in real estate transactions.
Promoting Efficient Transactions: By introducing a streamlined deposit process, the DLD speeds up transactions and reduces the possibility of delays brought on by miscommunications or complicated administrative processes.
Regulatory Compliance: By streamlining the deposit process, the DLD speeds up transactions and reduces the possibility of delays brought on by miscommunications or complicated administrative processes.
A Guide to: How Does the Deposit Service Work?
1. Purchase Initiation: The buyer starts the deposit procedure when they sign a sales contract with a developer for the purchase of real estate. Typically, this calls for a payment of around 10% of the entire purchase price.
2. Payment to DLD: Through their official website, buyers should send deposit payments to the Dubai Land Department (DLD) in order to guarantee the safe storage of funds in escrow.
3. Issuance of Receipt: The buyer receives a confirmation receipt from the Dubai Land Department (DLD) following the completion of payment processing. This receipt is crucial for any further related procedures and acts as official transaction documentation.
Developer Notification: The Dubai Land Department (DLD) notifies the developer that the buyer has complied with their end of the bargain after receiving the deposit.
5. Completion of Sale: In the event that a property purchase does not go as planned, the DLD guarantees that buyers will receive their deposit back. The developer receives the deposit following the successful completion of the sale in accordance with the terms of the sales contract.
Required Documents
The documents required to register offer and deposit service with DLD are:
- Offer and deposit Motion
- A copy of Emirates ID for individuals.
- A copy of the manager’s Emirates ID and the latest copy of the commercial licence, if the applicant is a legal person or corporate body (company or establishment).
- A copy of the last signed lease and a copy of the new lease with the same terms and conditions.
- A copy of the cheques deposited with the new lease.
- A copy of any correspondence between the parties, if applicable.
About the DLD 24/7 Awareness Service
The 24/7 Awareness Service was introduced by the Dubai Land Department to assist people in learning about the regulations governing the real estate market, getting answers to their enquiries, and remaining up to date on the procedures involved. Three sub-sections can be found when you visit the 24/7 Awareness Portal. These are Instagram, Re-Shield, and Laws and Regulations.
Re-Shield
The awareness portal's Re-Shield, or Real Estate Shield, section provides a comprehensive database brimming with vital details about real estate in Dubai. This covers laws, rules, specifications, and other information.
Rules and Regulations
Rules and Regulations is the second section. All parties involved in the real estate market must be aware of the laws governing it, which is why this section is so helpful. In addition to those looking for a home, real estate brokers can use this information to inform their customers. For this reason, the user can view and download a number of DLD-related documents and circulars from the Rules and Regulations section of the portal.
The DLD Instagram page is connected to the third section of the DLD's 24/7 Awareness Service. This social media page regularly posts important information about the Dubai real estate market and provides videos and infographics for all real estate stakeholders.
Benefits of the Deposit Service by DLD
Security of Funds: Deposits are safeguarded, lowering the possibility of fraud or poor money management.
Legal Protections: The DLD provides legal protection by ensuring that all transactions adhere to UAE regulations.
Dispute Resolution: The DLD serves as an impartial mediator to resolve disputes and guarantee just results.
Simplified Procedure: Both developers and buyers gain from the increased efficiency brought about by the streamlined deposit system.
Tips for Navigating the Deposit Service
Recognise the Terms: Learn about your sales contract's deposit requirements and refund policies.
Maintain Documents: Keep thorough records of all communications and transactions.
Seek Expert Assistance: Seek advice from legal counsel or real estate experts.
Keep Up to Date: Stay informed about modifications to laws that impact the Deposit Service.
Use the Authorised Channels: To maintain security and compliance, always use the DLD's official payment platforms.
Real-Life Scenarios
Dispute Resolution: When a buyer encounters construction delays, they get in touch with the DLD, which works with the developer to mediate a just settlement.
First-Time Buyer: After buying an off-plan property, a buyer makes sure their deposit is safe by following the DLD procedure. Because of the documented procedure, they can easily retrieve their money when they later withdraw.
Investor: By using the Deposit Service to protect funds throughout all transactions, an investor purchasing multiple properties strengthens systemic trust.
Contacting DLD
The Dubai Land Department can be reached at 800-4488, and they are open Monday through Thursday from 7:30 a.m. to 3:30 p.m. and on Fridays from 7:30 a.m. to 12:00 p.m.
