So, you’ve decided to buy a property in Dubai. Whether you are a seasoned investor or a first-time buyer, buying a property is one of the most complex and unnerving decisions to make. While buying a property, the one thing that you cannot overdo is research and finding a trusted RERA certified broker.
So before jumping right in, go through our comprehensive Dubai Buyer’s Guide.
What is the Procedure?
Buyer and Seller Agreement
Once you have decided which property to purchase (Off-Plan or Secondary Market Property), you need to start negotiating and outlining the terms of the sale with the seller which is usually aided by your broker.
Signing of the MOU
When both parties have agreed, you will need to sign the agreement of sale, also known as Memorandum of Understanding (MOU) or in Dubai, called Form F which is required by the Dubai Land Department.
This is also the stage where you hand over a 10% deposit cheque in the name of the seller. This deposit is to be held by the seller’s broker or a neutral third party if no broker is involved. The cheque is returned to the buyer at transfer date.
Applying for a No Objection Certificate (NOC)
After this, a no-objection certificate (NOC) must be applied from the developer. The NOC should state that the seller has paid all service charges and other fees, and that the developer has no objection to the sale.
Transfer of Ownership with Dubai Land Department
Once you have obtained the NOC, the transfer of title deed will take place. You will need to meet the seller at the office of Real Estate Registration Trustee or Dubai Land Department or at developer’s office if the property is yet to be completed.
Dubai Land Department will require you to make a payment of the property price in the form a Manager’s Cheque. Then, a brand-new title deed will be issued in your name, and you will officially own a Dubai property.
What are the documents required from the buyer?
- Original Passports and Passport Copies with Visa page
- Emirates ID as well for Residents
What are the fees that need to be settled?
- The cost of issuing NOC varies with developers with some charging Dh 500 to Dh 1000 for completed units and Dh 5000 for off-plan units.
- Manager’s Cheques for Full Property Price (10% security cheque will be returned)
- Dubai Land Department property transfer fee is 4% of the property sale price (in form of Manager’s Cheque, No Cash) + Dh 580 Admin Fee
- Dubai Land Department mortgage registration fee (if applicable) is 0.25% of the mortgage amount
- Developers ask for their annual service charges to be paid in advance and buyers should therefore account for their proportional share upfront.
- Broker’s commission is 2% of the purchase price
- Trustee Administration Fee of Dh 4,000
FAQs of Buyers
Anyone. You are not required to hold any type of residency or similar permit in order to purchase a Dubai property but bear in mind that there are two types of ownership.
- Freehold Property Ownership.
Freehold Property Ownership gives the buyer an outright ownership of the property and land on which it stands. The owner of the land has no time limit to his period of ownership.
UAE Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum has designated Freehold Areas in which non-UAE and non-GCC nationals can own properties.
- Leasehold Property Ownership
Leasehold Property Ownership gives the buyer temporary ownership of the purchased property or land. Lease period ranges from 30-99 years and property is reverted back to the landlord at the end of the lease term.
Dubai property transaction on an average takes 30 days to complete from the date on which the Agreement for Sale is signed. But, in some cases, it may take longer if there is a mortgage involved typically from the seller’s side.
We are committed to help our clients (local and international) to buy the right Property in Dubai by showing them the right options according to their specific needs and requirements, providing expert real estate advice through our RERA Certified brokers and giving full-assistance throughout the buying process.
We have a large selection of Dubai properties for Sale from affordable to luxury, off-plan and secondary market. Choose from villas, apartments, townhouses, holiday homes, etc. across key areas in Dubai.