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Freehold or Leasehold Property
The differences between freehold and leasehold properties are listed as follows:
Freehold: Grants the buyer to own the property forever.
Leasehold: Allows the purchaser to hold ownership over the property for 99 years.
Market Research
Dubai’s market is ever-changing, so it is important to note the current market trends and conditions. The key benefits of market research are as follows:
Understand Property and Market Trends
Gain insight into the current property prices. Know the market trends and how they change over time.
Where to Invest
Tells you which area is more profitable and convenient for you. If you are planning to live there, go for an area with all the facilities in close reach.
Higher Return On Investment
Proper market research will tell you about the area’s future potential and will most likely give you a higher ROI.
Plan Your Finances Better
Helps you manage your finances better, such as cost estimation, taxes, legal fees, mortgage fees (if any) and maintenance costs.
Research current market trends before buying property in Dubai
Hiring a Real Estate Agent
It is not mandatory to do so, but hiring a property agent will make the property-buying process more manageable. Key benefits of it are listed below:
Market Insight:
Real estate agents have excellent extensive market insight and they know Dubai’s current market trends.
Price Budgeting:
They can help buyers negotiate and budget the final purchase prices. Some even know the developers, thus getting you substantial discounts.
Documentation:
A real estate agent can also handle legal documentation such as the MoU.
Expertise:
Experts know their job well. The same goes for the expert property agents who know how to go about the whole property-buying process. Also, they can guide buyers on legal matters.
Legal Steps to Buying a Property in Dubai
The guide to buying the property also includes strict legal steps that the buyer should follow. The legal procedure to buy property is as follows.
Buyer - Seller Contract
After choosing the property, it is time to move on to the next step. A contract needs to be signed to ensure the legalities of the purchase and list down all the necessary details.
Signing Memorandum of Understanding (MoU)
The Memorandum of Understanding, a type of RERA Form, is the Purchase Agreement Contract. It legally binds the buyer and the seller with the terms of the contract. Ideally, a contract should contain the following:
Name and UAE ID details of the buyer and seller.
The purpose and intent of the contract should be clear.
Each party should understand and agree to the terms of the contract.
The MoU needs to be written in English or Arabic.
Financial details, such as payment (cash, mortgage or instalments), amount of payment and date of receiving.
All rights and responsibilities should be established.
Signature of buyer, seller and witnesses (if any).
purchase agreement signing
NOC Application
The NOC (No Objection Certificate) is a document commonly required in various administrative processes and transactions, particularly in real estate. It takes consent of the developer or homeowners association (HoA), that they have no objections to a specific action or transaction being pursued by the seller or buyer.
Transfer of Ownership at the Registrar’s Office
Ownership Transfer is the next viable step, as it finalises the process of legally transferring the property to the buyer. The steps that are required are as follows:
Documents Submission:
Payable Cheque, NOC, F Form (signed) and Emirates ID of both parties.
Verify the details:
Location of property, original ownership verification, all terms and conditions should be met and both parties should be identified.
Fee Submission:
The fee needs to be submitted.
Email
Wait for the Title Deed through Email.
Costs to Consider Before Buying a Property
Several concerns need to be considered before house-buying in Dubai, listed as follows:
Down Payment: 25% of total property for expats and 20% for nationals.
Property Valuation: Above AED 2,500 + 5% VAT.
Processing Fee for Bank Mortgage: 0.5% of the total loan amount and 5% VAT extra.
DLD Registration Fee for Property: AED 4000 + 5% VAT.
DLD Fee for Mortgage Registration: 0.25% of the total loan amount + extra charges.
Fee for Transfer: 4% of the agreed purchase price + extra charges.
Issuing Title Deed: AED 580.
Admin Fees to the DLD: AED 4,200.
Agency Fee: Property price 2% + 5% VAT.
Security Deposit: 10% of the official purchase price.
DEWA, Maintenance and Transfer Fees.
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