How to buy
How to buy
The real estate market in Dubai is booming and there is a strong demand from overseas investors as well a locally based buyers. Bearing in mind that Dubai’s freehold market is only a very few years old, the procedure of buying and selling properties has been perfectly organized by the Dubai Government. Laws have been put in pace and the Dubai Land Department overseas all transaction in an extremely professional manner.
Title Deeds are being issued for every property owner by the Dubai Land Department and every property is officially registered.
Demand for property is so strong in Dubai that phases of new developments directly from developers usually sell out within hours or days. The Palm Jumeirah’s two thousand villas, for example, were sold out within 48 hours of its launch in 2003.
The most recent launches that were organized by Emaar in May 2018, for example Dubai Creek Harbour or Emaar Beach Front, saw investors queuing up for days in order to secure a property for themselves.
Consequently the usual situation here is that you buy a property on the secondary market, i.e. you buy from a private owner who sells his property.
The good news is that prices in Dubai are still on the lower side compared to other prime real estate spots all over the world. So wherever you buy in Dubai today, it is still great value for money.
The procedure for buying a property is as follows:
1.
After we show you different properties and you have made your choice, the Buyer and Seller agree on the total Sales Price.
2.
The Buyer puts down a non-refundable deposit of 10% of the price to reserve the property for an agreed period (usually 30-40 days). The deposit is usually in the form of a cheque in the name of the Seller, which is held by the agent until the time of transfer of the property into the new buyer’s name.
3.
Both Buyer and Seller sign an agreement, termed MOU (Memorandum of Understanding) or Agreement of Sale.
4.
At an agreed date Buyer and Seller meet at the respective developer’s office to apply for an NOC (non-objection certificate). This document is addressed to the Dubai Land Department and is issued after the developer assures that the seller has no out-standing payments or maintenance fees to be paid. The NOC is usually issued within 5-7 working days.
5.
At Dubai Land Department the transfer of the property into the new owner’s name takes place. At this stage the full amount of money will be paid to the Seller, in the form of a guaranteed bank cheque. At the time of transfer, a 4% transfer fee has to be paid to the Dubai Land Department. A new title deed in the new owner’s name is issued on the spot.
6.Your real estate agent will be present to guide you through the whole process and the agency shall be paid a commission of 2% of the property price at successful completion of the purchase.
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