Buying Guide
Secondary Market
- STEP BY STEP GUIDE TO BUYING REAL ESTATE IN DUBAI
Figuring out what you can afford.
You will need at least 26% of the property as a down payment. Remember for buyers there is a 4% transfer fee & a 2% agency fee to make any purchase. Are you planning to mortgage? Rate of interest will vary between 4-5% based on bank & tenure. Make your calculations to set a budget – your agent can help you with this step.
As a Finance Buyer, are you pre-approved?
Being pre-approved not only confirms your budget but it also puts you in a stronger negotiating position. A bank on reviewing your application, will issue a letter or an email stating the approved loan amount, which is generally valid for 60 to 90 Days.
Find a Real Estate agent and company that you trust.
Find an experienced agent to work with who understands your budget, wants and requirements. When working with industry experts, the more detail you go into at a preliminary stage, the less time it takes to find the right property. It is very important at this stage to give your agent the best understanding of what you are looking for.
Start viewing properties!
As a property consultant, your agent will highlight communities and properties that match your budget and requirements. Arrange appointments to view several options until you find what you are looking for.
Make an offer.
We recommend putting your offer in writing, with a copy of a 10% deposit cheque, along with copies of the passport and Emirates ID of all parties who will be on the title deed for the best chance of acceptance.
Once the offer is agreed sign MOU.
After completing Form B, your agent will draft an MOU or Memorandum of Understanding also known as Form F. You will review the MOU & both parties will sign the contract along with handing over the 10% deposit cheque.
Bank NOC.
If mortgage is involved, a bank valuation of the chosen property will be required before obtaining the final offer letter from the lender. If the seller has a mortgage on the property, the buyer's bank is required to settle the seller’s mortgage in full prior to the bank No Objection Certificate (NOC) application. Seller will require to provide a mortgage settlement statement which may take 2 weeks to procure. (This process can vary depending on bank)
Apply for the developer NOC.
All parties will meet at the offices of the developer to apply for an NOC for sale of the property. The developer will issue the NOC for a fee of AED500-5,000. on being satisfied that any amount due to them in the form of service charges have been settled in full, along with ensuring that any modifications the seller may have made have been completed as per the developer’s guidelines. Usually someone from the developer’s office will come to view the property once the NOC is applied for. Certain developers will also require a refundable deposit made from the buyer, which is only refunded once the buyer presents the new title deed at the developer’s office and their records are updated. (The processing can take up to 5 working days)
Transfer of ownership.
Once the NOC is issued, all parties are able to go to the office of the Dubai Land Department to officially transfer ownership. The DLD will insist on payment of the purchase price in the form of a manager’s cheque made payable to the seller on the date of transfer, along with manager’s cheques for the 4% transfer fee due to the DLD and an admin fee not in excess of AED 4,000. Once formalities are completed, a new title deed will be issued in the name of the buyer. At this time, the buyer will settle any overpaid service charges with the seller worked out pro rata.
- RECEIVE KEYS AND MOVE IN