Title Deed vs. Oqood: Understanding the Difference

When you buy a house, you get important documents that prove you own it. These documents are like certificates that say, "This property belongs to you." In different parts of the world, these documents may have different names and serve slightly different purposes. Two common terms you might hear in the United Arab Emirates (UAE) are "Title Deed" and "Oqood." Let's break down what each one means.

Title Deed:

A Title Deed is a legal document that proves ownership of a property. It includes details such as the owner's name, a description of the property, and any rights or restrictions associated with it.

Think of it like the deed to a car. When you buy a car, you get a document that shows you own it. Similarly, a Title Deed shows you own a piece of property.

Oqood:

Oqood, an Arabic term meaning “Contract,” is used in some countries, like the United Arab Emirates (UAE), for the process of registering a property off-plan or before it's fully constructed.

In simple terms, Oqood is like a reservation slip for a property that hasn't been built yet. It ensures that your rights as a buyer are protected during the construction process.

Let's say you decide to buy an apartment in a building that's still being built. You pay a deposit and registration fee to receive an Oqood contract. This contract guarantees that once the building is complete, the property will be transferred to you as agreed upon.

Once the construction is finished, the developer will issue a Title Deed in your name, confirming that you are now the official owner of the property.

In summary, while both Title Deeds and Oqood serve to establish property ownership, they are used in different stages of the property buying process. A Title Deed is the final document that confirms ownership of a property, while Oqood is a preliminary contract used mainly for off-plan properties to safeguard buyers' interests until the property is completed. Understanding these distinctions can help property buyers navigate the legal aspects of real estate transactions more confidently.