THE LUXURY ADDRESS
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PURCHASE PROCESS GUIDE
Dubai Property Buying Guide
Navigating Dubai’s luxury real estate landscape can be a captivating journey. For those considering an investment in this dynamic city, here’s a concise guide for things to consider.
Understand the Market
Dubai’s real estate sector is diverse and ever-evolving. Regularly updated market research, especially for the luxury segment, is essential to identify the right opportunities and to understand price trends.
Choose the Right Location
From the serene Palm Jumeirah to the bustling Downtown Dubai, every location offers a unique lifestyle. Identify which locale aligns with your luxury aspirations.
Engage a Boutique Advisory
Work with a specialised real estate advisor who can offer personalised services, insider knowledge, and exclusive property access.
Legal Framework
While Dubai is open to foreign property ownership, there are designated areas for expatriates. Ensure you’re looking in ‘freehold’ area where foreigners can own property.
Financials & Payment Plans
Properties often come with tailored payment plans for off plan offerings. Understanding upfront costs, potential financing options, and any associated fees is crucial.
Property Inspection
Always conduct a thorough inspection, preferably with an expert. For luxury properties, this not only helps in assessing the property’s condition but also its value proposition.
Know the Visa Benefits
Dubai offers residency visas linked to property investments. Property owners might be eligible for extended residency options, amplifying the investment appeal.
Finalising the Purchase
Once terms are agreed upon, an MoU is signed, followed by a deposit payment. Subsequently, a No Objection Certificate (NOC) is obtained from the developer, leading to the official transfer at the Dubai Land Department.
Post-Purchase Formalities
Ensure utilities are set up, service charges are understood, and any property maintenance or modifications align with community guidelines.
Enjoy the Luxe Life
Dubai’s luxury real estate is synonymous with a lavish lifestyle. Once settled, immerse in the world-class amenities, breathtaking views, and the unmatched luxury Dubai offers.
Remember, every property journey is unique. Partner with the right experts, stay informed, and let Dubai’s luxury real estate landscape enchant you.
Procedure for purchasing property in Dubai: The Steps
Purchasing real estate in Dubai follows a clear and straightforward process:
Agreement on Terms: Both the buyer and the seller finalise the property’s terms and conditions.
- Signing the MOU: A Memorandum of Understanding is drawn up and signed alongside the acceptance of a form B (Buyer and broker agreement) a Form A (Seller and broker agreement) and a Form F (Buyer and Seller agreement). Form A, B and F represent the Dubai Land Department process and are paperless in nature. Subsequently, a deposit, typically around 10%, is made by the buyer and held with the conveyance company.
Buying / Selling with finance: When a buyer intends to finance the property with a mortgage, the bank becomes an integral part of the transaction. This involves the bank conducting a valuation of the property. Additionally, the buyer must secure a final offer letter from the lender, confirming the possibility of a mortgage. If there’s an existing mortgage on the seller’s end, it’s the buyer’s responsibility to clear this amount before applying for the No Objection Certificate (NOC). It’s crucial that after the Memorandum of Understanding (MOU) is mutually signed, the seller promptly procures a mortgage settlement statement from their bank, a process that can extend up to two weeks. Overall, given the intricacies of bank procedures and potential mortgage settlements, the entire process can span anywhere from 6 to 10 weeks, though this can vary based on the specific bank in question.
Cash Purchase : If banks are not involved in the process it can be done within 2 to 4 weeks.
Obtaining the NOC: Both parties convene at the developer’s office to request a No Objection Certificate (NOC) for the property sale.
- Issuance of the NOC: Once the developer confirms that all service charge dues are cleared, they will grant the NOC, usually in exchange for a fee.
- Ownership Transfer: With the NOC in hand, the next step is to visit the Dubai Land Department to formally change the property’s ownership. On the day of transfer, the full purchase price should be presented as a manager’s cheque in the seller’s name. Upon completing all necessary procedures, the department will release a new title deed, now bearing the buyer’s name.
Buyers are responsible for a brokerage fee, which amounts to 2% plus VAT and a 4% fee payable to the Dubai Land Department, both calculated based on the sale price. Additional fees to be aware of include NOC charges, conveyancing costs, and, if relevant, mortgage-related fees.
A buyer can appoint a Power of attorney (POA) in their absence.
