Steps for buying a house in Dubai
Want to buy a property in Dubai but have no idea on how to go ahead and get your dream home? We got you covered.
Purchasing a property as an expat may seem like a big challenge from the outside, filled with many hurdles in the forms of regulations. Be rest assured, it is not the case. The Dubai Land Department, alongside the legislating bodies in control of the department, have ensured that the process of buying a property in Dubai is smooth and quick.
Usually it takes two to ten weeks to buy a house in Dubai, depending on whether there are mortgages involved on either side, buyer or seller. The quickest route, obviously, is a full cash transaction. The transaction costs for buying property can range anywhere from 3% to 7% on the cost of the property, depending on the type of property and the broker services used, barring mortgage related charges and interest rates.
Should you take the risk of buying an off-plan property ?
Although this method usually takes time, it is the easiest way to buy the property in time. The process is simple :-
- An application form needs to be submitted to the developer by the buyer.
- Once the application gets approved, buyer needs to visit the developer’s sales centre to choose the unit and pay the initial deposit.
- Buyer might have to wait for 2-3 years before getting the property, depending on the level of completion. A completion date is provided by the buyer.
Buying on the secondary market
Don’t have the time to wait for a off-plan and need something quickly ? You can give a look at the property on the secondary market. Acquiring a property on the secondary market is a much quicker way, however, it is a more complicated process which involves more financial expenses. Over the years the process has become very streamlined with various procedures issues by the Dubai Land Department (DLD). The requirements, as specified by the DLD, are given below :-
- For the transaction, A RERA-Registered broker has to be used.
- The investor who wishes to buy the property should be in a position to discharge the seller’s mortgage before collecting their title deed.
- After viewing the property, the buyer presents an offer to the seller and once the offer is been accepted, the seller’s agent will produce an MoU which states all obligations of both the parties.
- A 10% deposit needs to be paid by the buyer in the name of the seller to secure the property.
- Next step is for the buyer’s bank to inspect the property and ensure It is secure enough, depending on whether the buyer is paying cash or via mortgage.
- Once the buyer has the final approval, then seller will apply for NOC from the developer.
- After all processes get registered, Buyer has to pay 2% and AED 315 to the DLD, along with the purchase price to the seller and commission to the agent.
- Buyer will then receive the title deed in his name and access to the house.
Buying mortgage- free property
For a cash buyer, this is the least complicated method. Once the terms are negotiated between the buyer and seller, the property sales contract, also known as Form F, which is the required by the DLD has to be filled.
- Buyer has to hand over the deposit cheque in the name of the seller. The usual deposit is 10% of the purchase price. This cheque gets returned to the buyer at transfer and is only cashed if the buyer defaults on the agreement.
- An NOC has to obtained from the developer. The charges for the NOC has to be paid by the seller. The buyer might have to attend the NOC application procedure, depending on the developer requirements. It usually takes 5-7 working days for the NOC to be issued.
- The DLD only conducts transaction if both parties are GCC nationals otherwise the transactions have to be done through a DLD accredited RT office. Both parties or their legal representatives must attend the transfer. Fees in all RT offices is Dh 4,000 for transactions over Dh 500,000 and Dh 2000 for below this amount.
- Once all payments are made and documents are verified by the trustee, the information is sent to DLD for approval. Once approved, official transfer documents are signed and original title deed is given to the buyer.
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