Dubai is undoubtedly the city of the future, currently being one of the most important cities in the world for expatriates, as it allows you to improve your lifestyle and increase your income. It is for this very reason that Dubai is a very attractive place to invest and live, fostering an environment of exponential growth.
In this article, you will learn everything about buying and selling property in Dubai. We will explain and offer you our help so that you have extensive knowledge and have all the confidence and security you need. Therefore, it is important to clarify all doubts and do the complete process; from the best property to the agent you need to do it.
- What is buying and selling of real estate?
- How does a purchase and sale contract work?
- Steps for buying and selling real estate
- Why should you buy a property on the secondary market?
- How can I ensure the pre-approval of the mortgage?
- What are the different types of property prices?
- Tips for buying property
- How can we help you to buy and sell real estate?
1. What is buying and selling of real estate?
Real estate purchase and sale contracts are documents that legalize the process of acquiring a house, apartment, warehouse, or any other type of real estate, in exchange for a monetary amount or some other type of good.
2. How does a purchase and sale contract work?
Let’s analyze how the contract works:
· Submit an initial offer:
The buyer’s real estate agent prepares an official offer form and sends it to the seller for acceptance or counteracting. Among other details, the offer will include a description of the parties and the property, the purchase price offer. Also, the amount of the security deposit, the closing costs involved, and the proposed closing date.
· You can make a counteroffer:
The seller accepts or rejects the offer. If the seller counters the offer, the seller or their commissioned real estate agent will send a counteroffer for the buyer to accept or reject as well. Therefore, it could include changes or modifications to one or more components of the offer, such as the purchase price, closing costs, or an unforeseen event.
· It becomes a legally binding contract:
Once the seller accepts the initial offer or the buyer accepts the counteroffer, it becomes a legally binding contract, and both the buyer and the seller work to comply with the terms and conditions outlined in the contract, as if the buyer and the seller cannot agree on all the terms set forth in the offer, there is no agreement or contract.
On the other hand, you must bear in mind that when selling a property it is essential to write this type of contract well, accompanied by all the legal advice that this procedure implies, either from a lawyer or directly with a notary, in order to get to use a purchase and sale contract. The first thing you should do is that the advertisements of your properties have a lot of scope.
2.1 Why is it important for an agent to be properly registered?
The Dubai property market is multinational. Buyers and sellers are usually foreigners. Therefore, a real estate agency with a registered office in Dubai is a serious guarantor of the transaction.
In addition, an important factor is the requirement of the legislation on 100% ownership of said company by local residents, UAE citizens. In fact, in most cases, the real estate agency acts as a third party in the transaction between the seller and the buyer, guaranteeing the observance of the interests of both.
For the buyer, this guarantees the return of the deposit if the transaction is not carried out through the fault of the seller. And the seller, in turn, can count on the payment of the deposit amount as compensation if the transaction is not carried out because of the buyer.
3. Steps for buying and selling real estate
3.1. Establish a buyer and seller agreement
Once you have done your search, found the right property, and done a thorough research on the developer, the Dubai area, what is the ROI, and more, you can start with the first step, which is to negotiate the terms of sale online with the seller.
You can perform this step without the help of a real estate agent or legal consultant. Then, complete the process with a reputable Dubai real estate agency or legal proof firms that do so under real estate laws.
3.2. Sign a sale agreement according to real estate laws
After that, the next thing is to sign the sales agreement, also called a Memorandum of Understanding (MOU). This document in Dubai is titled Contract F and is available on the Dubai Department of Land website. The standard in Dubai is a 10% deposit on the property to be paid to the seller simultaneously. Once this step is complete, you are in the middle of the process.
3.3. Request for a No Objection Certificate (NOC)
You will immediately meet the seller at the developer’s office. The reason for this meeting is to request and pay a No Objection Certificate (NOC) for the transfer of ownership. Therefore, the developer will issue the NOC, but after verifying that there are no outstanding fees on the property for service charges.
3.4. Carry out the transfer of ownership with the Dubai Land Department
Once you get the NOC, you will meet the seller at the Dubai Land Department office to complete the transfer. Clearly, DLD will ask you to make payment for the property in the form of a manager’s check. Finally, a new title deed will be issued in your name, and you will officially become the owner of a property in Dubai.
3.5. The different ways to buy a house in Dubai
If you are unable to pay for a property in cash, you will need to apply for a mortgage, as buying property as an expat can sound complicated, with different hurdles that can paralyze small players. However, the Dubai Land Department, along with other legislative bodies in charge, makes the property buying process smooth and fast.
4. Why should you buy a property on the secondary market?
This is the fastest way to acquire a property in Dubai, but this process is a bit complicated, which involves a few financial expenses. Likewise, an investor who wants to buy a property where the seller has a mortgage must be able to cancel the seller’s mortgage before the land deed is collected.
- The buyer must be registered in RERA.
- Once the property has been viewed, the buyer presents an offer to the seller. Therefore, once this offer is accepted, the seller’s agent produces the memorandum of understanding (contract), which sets out the costs and responsibilities of all parties.
- The buyer will pay a 10 percent deposit on behalf of the seller to secure the property.
- Depending on whether the buyer is paying in cash or through a mortgage, the next step is for the buyer’s bank to carry out an appraisal procedure to inspect the property and ensure that it is safe enough.
- Once approved, the buyer receives the property. The seller will then request to receive the No Objection Certificate (NOC) from the developer.
- Make the transfer to the Dubai Land Department.
- With all the processes registered, the buyer will have to pay 2% and AED 315 to the Dubai Land Department, along with the purchase price to the seller and the commission to the agent.
- The buyer will receive the title deed, which will be in his name, along with the keys and access cards to the new house.
4.1 Should I buy a property outside the plan?
Although compared to other methods, this takes time. Therefore, it is actually the easiest way to buy property in Dubai. So, the steps are:
- The buyer must submit an application form to the developer.
- Once the application is approved, the buyer will go to the developer’s sales center on a pre-scheduled day to choose the unit and pay the initial deposit.
- Depending on its level of completion, the buyer can wait 2-3 years before receiving the property. The developer will provide the completion date.
5. How can I ensure the pre-approval of the mortgage?
If you cannot pay cash for the property, you will need to apply for a mortgage. To ensure mortgage approval, here are the simple documents to prepare:
- A pay letter from your employer.
- The pay stubs you have received.
- Bank statements for the last six months.
- Copy of passport with a photo page and visa.
- Copies of Emirates ID.
- A copy of your credit card statements.
- Proof of address.
- The pre-approval stage for a mortgage takes more than seven days for salaried borrowers and takes longer for the self-employed.
6. What are the different types of property prices?
- List price: The sale price of the property is the list price that is negotiable.
- Sale price: It is the price at which the owner is established.
- Appraised value: The value that the real estate agent provides when comparing the property’s value with other properties on the market.
6.1. What other expenses should you consider?
- Mortgage settlement (cancellation fees).
- Settlement of service charges/maintenance fees.
- Liquidation of DEWA / Cooling District.
- The NOC of the developer, if necessary.
- Transfer fees paid to the Dubai Land Department.
7. Tips for buying property
- Type of investment that you are going to make:
If your purpose is to buy a property to live permanently, you must invest in a residential and non-commercial property. This way, you will be able to stay in the country since you will be able to obtain a residence visa.
- Analyze the real estate market:
If you want to buy a property to generate rental income, it is more profitable to invest in a one or two-bedroom apartment.
- Hiring a suitable real estate agency:
It is important to take the time necessary to analyze which is the most appropriate agency. So, check if you have the most complete information and that your agents are knowledgeable and committed people.
8. How can we help you to buy and sell real estate?
Price is an important and essential factor when buying a property. For this reason, prices tend to vary according to the size, location, and expenses of the property. That is why it is an extremely delicate decision since you must think well about the pros and cons of said property.
Therefore, we offer you all the help and services you need if you leave everything in our hands. We guarantee trust and the best property for purchase and sale and we make your job much easier. Evidently, it is true that there are many options, but we are your best alternative.
If you are looking for a property to buy and sell in Dubai on our page, you will find a selection on the topic of buying or selling a property.
8.1 What option do we offer you to buy and sell real estate?
There are many options and online pages that provide this type of service. We are your best option, so enter our page since we have the best prices and publications for you since we offer you all the facilities to buy and sell a property.
On our page, you will find all the information you need to guide you and have more knowledge about this topic. We are professionals with more than 20 years of experience, we help companies and freelancers.
Therefore, if you have cash and want to invest, putting it in real estate is great. Your real estate asset may increase in value.
Would you like to contact us to obtain more information about buying and selling real estate? If you have any questions, call us on +97143316688 and feel free to contact us and request the services you need.