Key Documents Needed for Buying and Selling a Property in Dubai

The property market in Dubai offers exciting opportunities, whether you're buying for investment or as a residence. Buyers must be aware of the legal and necessary documentation required for buying or selling a property. Understanding what documents you need and their purpose will ensure a seamless experience. This handy guide will help you understand the legal documents required and the additional costs associated with buying or selling a property.

Mandatory Documents For Buying a Property

If you are planning to buy a property in Dubai, the following documents are mandatory:

• Passport and Emirates ID as proof of identity that you are living in the United Arab Emirates.
• Proof of address in the form of a utility bill or bank statement.
• The Sale Contract
• A No-Objection Certificate (NOC)
• Receipts of bank transfers or other evidence of agreed payment to show proof of payment.
• The original title deed to certify the ownership of the property.
• Power of Attorney
• Mortgage Approvals
• Valuation reports of the property.

There will be additional documents needed if taking a mortgage, which are:

• Proof of Income
• Pre-approval letter of Mortgage from the bank
• Bank statement for the last 6 months

Cost for Buyers

The costs and additional fees associated with the purchase of the property in Dubai are given below:

DLD Fees

A Dubai Land Department (DLD) fee, usually paid by the buyer, is due when buying a property. This fee is 4% of the purchase price plus AED 580 as an Admin fee. 

Registration Fees

A registration fee of AED 2000 + 5% VAT applies to properties under AED 500,000. For properties with a purchase price over AED 500,000, the fee is AED 4000 + 5% VAT.

Mortgage Registration Fees

If you purchase the property using a mortgage, there is a mortgage registration fee of 0.25% of the loan amount + AED 290.

Agent Fees

A qualified real estate agent will charge a fee of 2% of the purchase price + 5% VAT.

Conveyancing Fees

Using a conveyancer is recommended to ensure a smooth and legally compliant transaction. Conveyancing fees range from AED 6,000 to 10,000. 

NOC fees

NOC fees vary depending on the developer, but cost between AED 500 and AED 5,000. 

Title Deed Issuance Fee

AED 250 per ownership.

Trustee Office Fee

It depends on the property value, ranging from AED 2,000 to AED 5,000.

Guide to Buy a Property

When buying a property in Dubai, keep these points in mind:

Determine Your Budget

Establish your budget clearly before you start looking at properties. Remember that buying property in Dubai involves extra costs, so factor those in. This will help you focus on suitable properties. Then, research the Dubai property market thoroughly. It offers a variety of properties, ranging from apartments to villas. Consider property value increases, rental income potential, and demand in different areas. Dubai market reports can provide useful insights for informed decisions.

Explore Diverse Market

Dubai has diverse communities, each with its own lifestyle and amenities. Consider proximity to schools, workplaces, and transport links. Also, consider future development plans in the area, as these can affect property values over time. Your long-term satisfaction depends on this choice.

Understand the Legal Framework

Familiarise yourself with the laws of property purchases in the UAE. Some areas are freehold zones where foreigners can own property outright, such as Dubai Marina, Business Bay, and Dubai Hills Estate. You must also understand how to transfer ownership and register the property.

Partner with a Trusted Agent

We recommend you work with a trusted real estate agent. A good agent can provide market insights, help you find suitable properties, and guide you through the buying process. They will also ensure you know all costs and assist with paperwork, including registration. Their expertise can save you time and effort. 

Our real estate agents are readily available to serve you today.

Explore Financing Options

Financing your Dubai property purchase offers flexibility. While having sufficient funds simplifies matters, mortgages are readily available through various banks if you need additional capital. Explore options like fixed-rate or variable-rate mortgages to suit your financial situation, ensuring you meet the eligibility criteria. Mortgage advisors can provide valuable assistance.

Explore mortgage options for your Dubai property.

Mandatory Documents for Selling a Property

Selling a property involves proving ownership and clearing financial liabilities. The mandatory documents required for selling the property in Dubai are as follows:

• The original title deed, which shows ownership of your property.
• Passport copies are required to identify nationality, and the passport's expiration date must be at least 6 months after the transaction date.
• An Emirates ID for proof of identity that you’re living in the United Arab Emirates
• No Objection Certificate to certify that no outstanding dues or disputes on the property.
• A sales contract lays out the agreement between the seller and the buyer.
• A clearance certificate that proves no outstanding service charges or utility bills.
• Mortgage clearance certificate from your bank
• A floor plan helps potential buyers know about the property's features.

Cost For Sellers

NOC Fee

NOC fees range from AED 500 to AED 5,000, plus VAT, and are paid by the seller.

Agent Fee

Agent fees are also known as commissions. They charge 2% of the property's sale price, plus 5% VAT, unless the contract specifies otherwise.

DLD Fee

DLD Fees are 4% of the property value and are split between the buyer and seller.

Transfer of Ownership Fee

The transfer fee will vary depending on the sale price of the property:

• If the sale price of the property is below AED 500,000, the fee will be AED 2,100
• If the sale price of the property is above AED 500,000, the fee will be AED 4,200

If you're selling a mortgaged property, the additional costs will be:

Mortgage Release fee

The Mortgage Release Fee is AED 1,000.

Early Settlement Fee

Homeowners and investors will pay 1% of the remaining amount or AED 10,000.

Blocking fee

The fee ranges from AED 1,020 to AED 1,540. It is paid to register the property temporarily in the buyer’s name.

Guide to Selling the Property

Select the Right Broker

Choosing the right broker is the most important step when selling property. With many real estate professionals available, it's essential to find one who knows the area and has experience.

Strategic Pricing

You must conduct thorough research on the local market to determine a realistic price for your property. Avoid being swayed by the highest valuation, as overly ambitious pricing can deter buyers.

Be Flexible with Viewings

Serious buyers often need to view properties outside of working hours, and a single viewing at their convenience may be sufficient for them to make a decision. Therefore, your willingness to be flexible can help you sell your property quickly.

Market Your Property

Ensure your property is presented well in online listings, social media, and traditional brochures. High-quality photography and videography are particularly important in capturing the attention of potential buyers online, where first impressions are formed within seconds. Consider a 'For Sale' board for local visibility, as it can still be an effective way to generate interest.

Evaluate Offers Carefully

Carefully consider each offer you receive. The highest price might seem most appealing for a while, but a cash buyer with a slightly lower offer could offer a more secure and quicker transaction. Avoid holding out indefinitely for a higher offer, as you risk losing interested buyers. Requesting proof of funds from potential buyers to ensure they can proceed promptly is a reasonable step.

Prepare Necessary Documents

Once an offer is accepted, prepare all necessary documents to avoid delays. This includes documents such as mortgage information, title deeds, power of attorney (if applicable), and any other relevant documents mentioned above. These documents must be easily accessible to speed up the process.

Communicate Your Timeframe Clearly

Be clear and upfront about your expected timeframe for the property transaction with all involved parties. This ensures everyone knows the desired timeline and can work towards it effectively.

Ensure Transaction Progress

Once a sale is agreed upon, maintain regular communication with all parties involved. This helps to keep the momentum going and ensures the deal progresses towards completion on time. Stay in touch with your broker to ensure your sale remains a priority and to receive updates on its progress.

Conclusion

Understanding the legal documents for your purchase or sale is necessary when buying a property in Dubai. Having all the documents in order will help make the transaction smooth. With the right knowledge, careful planning, and licensed agents, you can confidently conduct Dubai's buying and selling process. 

Your dream home awaits. Contact us now

You may also like: Key Tips for Property Investors in Dubai.