Are you looking to purchase a property in Dubai? Considering the economy, it is one of the best decisions you can take for investing your money in a secured market. The process of purchasing a property in Dubai can take anywhere between two to ten weeks. There are several factors involved and the duration of transactions depend upon them. If you are looking to buy on mortgage, it might take a little more time as compared to direct payment. If you are willing to carry out a transaction in cash directly, it will save you a lot of trouble and will save your time. The transaction costs also depend on the mode of payment and a few other factors. It can range from 3 percent to 7.5 percent, depending on whether you choose brokers, advisors or carry out a transaction without the help of any third-party support.
No matter whether you want to invest in a small apartment in a middle-class locality or want to buy a luxurious villa in a suburban upper class residential area, you should know the process in and out to avoid being suspect to any fraudulent or cheating activities. It is important to learn the entire process by yourself. Here are some of the most essential things you should know about before you buy from LuxuryProperty.com. The steps differ on whether you’re a seller or a buyer. You should go through this!
The Process for a Seller
It is much easier if you are a seller as there is not much action require by you in the entire process. However, you should make sure:
- You have all the important documents such as emirates ID, passport and title deed ready.
- Involve a third-party agent to be sure that the contract is carried out in a smooth manner and decide an end or expiry date for the contract in case if the payment is not received by that date.
- If you’re selling a property on mortgage, you need to involve a third-party which is most likely bank that will assist in closing the entire process. The process might vary depending on the specific bank you choose to work with, however in most cases the process usually takes place after the sale has been completed.
- Be sure that you have cleared all the dues you have been required to including the service, maintenance and utility fees.
The Process for a Seller
The process is a bit longer if you are a buyer. Here are several steps you should be aware of before making that transaction.
- Ensure the availability of all the papers including emirates ID, your photos, residence visa copy and passport.
- If you are looking to buy the property on mortgage, you should get pre-approval from bank. Depending on the bank you choose, there will be different paperwork and formalities required of you. Make sure you complete all the documentation in time. The process can take around one to two weeks. In most cases, the documents you will be required for includes six-month credit card statement, passport, visa, payslips, six-month bank statement, emirates ID are the most common documents required. Submitting these will help you in gaining a pre-approval that will only specify general terms of the mortgage. A pre-approval usually lasts for 45 to 60 days.
- Once the property has been finalized, you will be required to sign a memorandum of understanding along with the seller. The standardized format of that MOU is available at Dubai Land Department (DLD) website.
- The MOU signed by you will then be registered with DLD at a Registration Trustee office. It is representation of “finality” of decision of buying, although it doesn’t signify the actual purchase yet.
- A security cheque of 10 percent of the total property value will also be submitted to Registration Trustee, in case there is any change in buying.
- Once these steps are finalized, the Registration Trustee will transfer the details of your transaction to DLD for further clearance.
- Once you receive a final approval for mortgage, you can also get a no-objection certificate (NOC), which will state that all the dues required by you are cleared. In most cases, the NOC can take around 1 to 5 working days, depending on individual cases. There are distinct requirements by different developers, some demand the presence of a buyer to provide security cheque for maintenance fees of the upcoming year.
- In around one to three week, you will receive a final offer letter if your case is approved. You can decline and apply for another process in different bank if your terms are not met.
- The liability letter is going to be generated by seller’s bank which will be cleared by the buyer’s bank.
- The ultimate step is to book a transfer. For cash transactions, money is paid by cheque or bank transfer at the Registration Trustee. The entire amount must be paid at this point, including all fees for issuance of title deed.
- Last but not the least, you will book a transfer of money. The amount can be paid using cheque or bank transfer at Registration Trustee. You will be paying the whole sum at this point.
- This process is followed everywhere, however there are some exceptions depending on the conditions. If the property is off-plan, then the developer will conduct most of the process and the funds will be paid using escrow.
- A will is also going to be written by the purchase, to state how the property will be managed if owner is faced with any unforeseen circumstances.
