Buying Guide

How to buy property in Dubai?

Dubai has become a popular destination for many expats and foreigners to invest in or buy properties in the city. From luxury properties to affordable and comfortable housing facilities. Dubai has a leading real estate sector which is offering more to the people. It is important to know the information before you make a decision. Here is what you need to know when you want to buy a property.

Affordability

Make your budget depending on whether you are planning to purchase with cash or mortgage. For buyers, there is a 2% agency fee and a 4% transfer fee when considering purchases. But if you plan to mortgage then you will have at least 25% of the property as a down payment. The loan will also consist of an interest which will be around 3-4% depending on the loan length and the bank.

Pre-approved

It is best to be pre-approved to confirm your budget for the property. It will also make you look like a stronger buyer in comparison to others. Bank loans normally take time for reviewing, and issuing a confirmation email stating the approved amount of the loan.

Find a real estate agent

Once you get your loan approved by the bank, it is best to choose a trustworthy real estate agent to guide you with the property purchase process. An experienced agent is easier to work with your budget and requirements. Coordinating with your real estate agent will help you find the perfect property with detailed information.

View Properties

Start viewing properties with your real estate agent. Your agent will provide you with many communities and properties that will match your budget. Arrange appointments and view as much as properties so you have a wide option to choose from.

Make an Offer

Once you choose a property you like, make an offer in writing. With a 10% deposit cheque, along with copies of some documents such as a copy of the passport, Emirates ID of all parties who will be on the title deed.

Sign MOU

After your offer is agreed upon, your agent will draft an MOU also known as the Form F to sign. Review the document and sign the contract along with handing over the 10% deposit cheque.

Purchase process

If you are purchasing the property with a mortgage, then the bank’s involvement is necessary. The bank will evaluate your property to pass the mortgage. You need to provide a final offer letter from the lender to secure the chance of a mortgage.

If in case, the seller has a mortgage on the property then the buyer is required to settle the mortgage in full before the No Objection Certificate application.

Transferring ownership

Both parties in the transaction should go to the Dubai Land Department to officially transfer ownership of the property. This can be done after the NOC is issued. The Dubai Land Department will insist on making a payment of the purchase price in the form of a manager’s cheque made payable to the seller on the date of the transfer, along with the manager’s cheque for the 4% transfer fee due to the Dubai Land Department and an admin fee of AED 4000. Once this formality is completed, the buyer will possess the deed title.