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Property Acceptance and Key Collection Process
Property inspection, DEWA, and Service Charge
The property acceptance marks the final stage of purchase and registration. It involves key steps such as property inspection (snagging), utility connection, service charge payment, and key handover
What is Snagging?
Snagging is a detailed property inspection conducted before its acceptance. The goal is to identify any defects or issues that the developer must address before handing over the property to the owner.
Snagging Process
- Inspection: The owner or their authorized representative conducts a thorough inspection of all rooms, checking finishes, plumbing, electrical systems, and other elements.
- Report Creation: Any identified defects are recorded in a snagging list and shared with the developer.
- Defect Resolution: The developer is responsible for fixing all listed issues, typically within 2−3 weeks.
Utility Connection with DEWA (Dubai Electricity and Water Authority)
Connecting your property to electricity and water services is essential for good living conditions. A representative from the developer will assist the buyer throughout the registration and connection process.
Connection Process
- Application: The owner submits an application to DEWA for an utility connection.
- Documents: Required documents include a copy of the passport, sales agreement, and ownership certificate (Oqood or Title Deed).
- Payment: A deposit is paid, typically AED 2,500, depending on the property type and size.
- Service Activation: DEWA connects the property to electricity and water once the application and deposit are processed.
For rental properties, utility bills are automatically transferred to the renter, relieving the owner of payment concerns.
What is a Service Charge?
The service charge is an annual fee covering the maintenance and operation of common areas and facilities within the residential complex. This includes costs for security, landscaping, pool maintenance, upkeep of shared spaces, and gym equipment upgrades.
Payment Process
- Fee Calculation: The charge is based on the property’s size and an approved rate, typically AED 14−18 per square foot.
- Invoice: The management company issues an invoice for the service charge to the owner.
- Payment: Service charges are paid annually.
What is Handover?
Handover is the final step in the property purchase process when the developer transfers the keys to the new owner.
Handover Process
- Signing the Handover Agreement: The owner signs a document confirming the property meets the terms of the agreement.
- Key Collection: Once the agreement is signed and all identified defects are resolved, the developer hands over the property keys to the owner.
- Transaction Completion: The owner receives all necessary documents confirming their property ownership.