How to Buy a Property in Dubai

How to Buy a Property in Dubai:

In any part of the world, the process of buying a property can be overwhelming. However, doing proper research, working with the right agent, and being fully aware of the steps and fees associated would result in a smoother process.

You probably heard different processes and opinions on how to buy a property in Dubai that got you confused. Therefore, in this article, we will summarize the process of buying a property in Dubai.

Steps of Buying a Property in Dubai:

1. Bank Pre-approval

If you are buying the property through a mortgage, then the first thing to start with is to take bank pre-approval. Getting the approval will take approximately 1-2 weeks. The pre-approval validity is around 45-60 days.

2. Memorandum of Understanding MOU

After choosing the property and agreeing with the seller on the price, the next step is signing the memorandum of understanding (MOU) between the buyer and seller.

The MOU format can be downloaded from the Dubai Land Department (DLD) website. However, the buyer and seller can agree to add anything they want to be added on top of the MOU in the addendum. It may include clauses and other terms, including the payment method.

3. Getting Final Approval From the Bank (in the case of a mortgage)

The bank normally takes one to two weeks to issue a final offer letter with all the details about the mortgage.

4. Non Objection Certificate NOC from the developer

The buyer and seller, along with the real estate agent, need to meet at the developer’s office to issue a NOC letter stating that the developer has no objection to transfer the property to the buyer.

The developer will issue the NOC after ensuring that there are no outstanding service charges on the property.

NOC cost varies from a developer to another.

5. Trustee Office:

The buyer, seller, and the agent have to be present at the Registration Trustee office.

The MOU will be registered with the DLD, and once the information is verified, the buyer has to submit the following cheques:

• Manager’s cheque in the seller’s name (Total Sale Price) – in case the seller still has mortgage on that property. The seller’s bank generates the liability letter, and the buyer’s bank will clear the liability.

• Manager’s cheque in the name of Dubai Land Department (4% of the sale price)

• Manager’s cheque in the name of Agent (2% of the sale price)

• Manager’s cheque in the name of Trustee office (AED 2,000 if the property value is less than or equal to AED 500,000; AED 4,000 if the property value is higher than AED 500,000)

• Fees for issuing the Title Deed – AED 520

• The original identification documents of buyer and seller (Emirates ID, passport and visa)

• The NOC issued by the developer

• Signed Contract F (MOU)

Security cheque of 10% of the sale value, this cheque will be returned to the buyer when the property transfer is completed. It will only be cashed out if the buyer quit on buying the property on this stage.

6. Title Deed

Once all the above cheques are submitted, the trustee office sends the details to Dubai Land Department DLD, and the DLD will issue the title deed with the name of the buyer within around 1 hour.

In the case of off-plan properties, make sure to have full disclosure from the developer on the payment plan, completion date, default clauses, and exact property location.

The process of buying an off-plan might slightly vary since the developer does most of the work, and the funds are transferred into an escrow held by the DLD.

Bottom Line:

Dubai’s real estate market holds many opportunities, and the buying process is entirely transparent with no hidden costs. However, working with the right agent can save you much money and might get you some opportunities you wouldn’t get by searching alone.