Dubai stands high as one of the best cities and investing in real estate of Dubai is always worth it. Here is a step by step guide on how to buy property in Dubai.
While buying a property, take into account the agency fee and the transfer fee which are 2% and 4% respectively. Also some money will be required for Down payment and bank’s interest which will depend on the amount and time period of loan. It would be better to consult your agent and calculate budget accordingly.
Banks review the application before issuing the loan amount. Being pre-approved puts you in strong buying position.
It could get really tiring while buying a property and some legality may end up blowing up your brain. It would be better if an experienced person helps and guides you through the right property according to your requirement and budget.
Do not rush to a decision while purchasing a property, it is important to have patience and look at all the properties that are in option, meet the owner, take some time and then come to a final decision.
It is recommended that offer should be given in writing along with the required documents that include copy of cheque and ID’s which would ensure the other person that the deal is valid and nothing is fraud.
Once the offer is agreed on, the agent drafts an MOU (Memorandum of Understanding) also called Form F. Review this form and then both the parties sign the contract thus handing over the deposit cheque.
The bank’s valuation on property will be required if it is being purchased on a mortgage. The buyer will have to get the final offer from seller and present it to the bank to receive the loan. And if the property is already on mortgage, the buyer has to settle it before the NOC (No objection Certificate). Buyer will have to apply in bank for settlement of mortgage settlement as it may take a long time maybe 6-10 weeks.
After the deal, a NOC will have to be applied for to sell the property. A developer will do this against some fee. Once the fee is settled, any modification if made by seller would be under the developer’s guidelines and he may come to view the property for which NOC has been applied. Some developers may also for some refundable amount from buyer which would be refunded once the buyer presents title and the records in developer’s office get updated.
After the NOC is issued, parties go to office of Dubai Land Department to get the ownership transferred. The DLD will insist on payment of purchase price in form of manager’s cheque made payable to seller on date of transfer, along with manager’s cheque with 4% transfer fee. Once all the formalities are completed, a new title deed in name of buyer will be issued and the buyer will settle any overpaid service charges with seller.