The required documents for purchasing property in Dubai are straightforward and streamlined.
The process of purchasing property in Dubai is smooth and fast, assuming you are using the services of the RERA certified agent who will guide you through the process end to end and handle any potential challenges you may face.
The Dubai Land Department, along with the legislating bodies in charge, have made sure the process of purchasing a property in Dubai is straightforward and streamlined. However, the home buying process in Dubai depends on the type of purchase.
A cash or a mortgage purchase, a ready or an off-plan property and whether you are buying from an individual owner, company or developer. All these factors will dictate the time frame and paperwork required.
Here is an insight on the scenario of purchasing property in Dubai on the secondary market.
Once a property is selected and after mutual agreement on the price between the buyer and the seller. The broker then prepares the contract between buyer and seller, also known as form F (memorandum of Understanding).
After the signing of the contract by all parties, the seller then applies for a no-objection certificate NOC from the developer which will state that all services charges and fees are cleared and developer has no objection to the sale. NOC should be in Arabic and addressed to Dubai Land Department.
The DLD only conducts transfers if both parties to a transaction are GCC nationals; all other transactions must be done through a DLD-accredited RT office. Both parties or their legal representatives, through a valid power of attorney, must attend the transfer. The buyer must bring the following manager’s cheques:
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Property Price
100% from selling price to the name of the seller (Manager chq). Buyer will get back his security cheque.
- Land Department Fees:
- Registration Trustee Fees: cash only
- Broker Fees:
- Required Documents:
- Original title Deed.
- Real NOC from Developer.
- Original passport, visa, Emirates ID (seller and buyer).
- Signed form F (MOU)
Once all payments cleared, DLD then issues the Original new title deed which will be handed over to the buyer along with keys and access cards for the property. The cash-to-cash process time frame can take from One to Three weeks.
When it comes to purchasing property in Dubai and the UAE, you have two options: pay cash or apply for a mortgage. The ability to negotiate is perhaps the biggest benefit you have when you buy a property on cash vs mortgage. Cash buyers have a better idea of their budget and that’s why they can barter for a lower price.
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The Formulation of contract between the Buyer and the Seller
You can complete this stage without the assistance of a real estate agent or a lawyer. The rest should be handled by any reputable Dubai real estate agency or legal compliance firm.
When agreeing to the terms of sale, make sure there are no ambiguities between you and the seller over the selling price, mode of payment or any other important factors.
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The Signing of the Agreement of Sale
The second legal step of buying property in Dubai is signing the sale agreement, also known as the Memorandum of Understanding (MOU).
The MOU or Form F is one of the RERA real estate forms in Dubai. Form/Contract F is available on the official website of the Dubai Land Department. Usually, the real estate agent will get the contract ready for you.
Once the contract is ready, both the buyer and the seller have to sign it before a witness (usually the agent) at the Registration Trustee office.
The buyer also needs to pay a standard 10% security deposit on the property to the Registration Trustee, which is returned once the property transfer is finalized.
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The Application for A No Objection Certificate
Next up, you and the seller, along with the real estate agent, need to meet at the developer’s office (for example, Dubai Properties, Emaar or other property developers in Dubai).
The objective of this meeting is to apply and pay for a No Objection Certificate (NOC) to transfer the ownership. The developer will issue the NOC only if there are no outstanding service charges on the property.
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Effecting the ownership transfer with DLD
Once you’ve obtained the NOC, the last legal step of buying a property in Dubai is meeting the seller at the Dubai Land Department office for the transfer to become effective.
Conclusion
The process of purchasing property in Dubai can be daunting for first-timers. No matter where in the world you are, there are certain legal aspects linked to investing in real estate that you need to be aware of.
The same applies in Dubai. Examine the procedures that must be followed for purchasing property in Dubai per the real estate laws.
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