Dubai freehold property guide

Wednesday, May 4, 2016

Looking to buy Dubai property this year? Purchasing property is usually a great way of getting more for your buck – but it can be a minefield for the inexperienced.

 

Looking to buy Dubai property this year? Purchasing property is usually a great way of getting more for your buck – but it can be a minefield for the inexperienced.

Here is our Dubai freehold property guide outlining top things to remember before signing on the dotted line.

1. What is your budget?

2. Why are you buying? Are you looking to live in it or are you buying Dubai property as an investment for resale or to rent? Determining this will have an impact upon the type and the location of the property you should buy.

3. Have you done enough research on the developer? What have they built to date? Is the developer licensed by RERA? Were there any issues with previous projects?

4. What are your financing options?

5. Stay updated. Many developers are waiving off the 4 percent registration fee to buyers of Dubai property and rolling out monthly payment schemes such as “capital guarantee” and “money back”.

Timeframe

An average property transaction in Dubai may take a month to complete from the date on which the Agreement of Sale is signed.

Documents Required

Individual Buyer: Original passport

Purchasing Process

1. The buyer and seller agree on the terms outlined in the Dubai property contract.

2. A Memorandum of Understanding (MOU) is signed and a deposit, usually amounting to 10 percent is paid.

3. The parties meet at the offices of the developer to apply for a No Objection Certificate (NOC) to sell the Dubai property.

4. The developer issues the NOC against payment of a fee once satisfied that all service charges have been paid.

5. Once the NOC is issued, the parties go to Dubai Land Department (DLD) to officially transfer ownership. The payment should be made in the form of a manager’s cheque to the seller on the date of transfer, following which a new title deed is issued in the buyer’s name.

6. If the buyer is purchasing Dubai property with a mortgage, then the bank will need to be involved. If the seller has a mortgage on the Dubai property, the buyer will need to settle the seller’s mortgage in full prior to applying for the NOC.

Fees

1. NOC: This can range between AED 500 and AED 5,000 and is payable to the developer, usually by the seller.

2. Real estate agent’s commission: 2 percent of the purchase price.

3. Transfer fees: 4 percent of the purchase price with an additional amount paid towards admin fees which currently is not in excess of AED 5,000 and is paid to DLD.

4. Other fees such as annual service charges to be paid to the developer.

As one of the UAE’s most established brokerages, Better Homes makes the process of buying, selling, renting and financing Dubai property, smooth and hassle-free. Contact us today to connect with the best Dubai property professionals to help you with one of the biggest financial decisions of your life.

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