GUIDE TO BUYING PROPERTY IN DUBAI

1

Estimate how much you can afford.

When making a purchase, buyers should factor in a 2% agency fee and a 4% transfer fee. If you’re planning to get a mortgage, you’ll probably need a down payment of at least 25% of the property’s purchase price. Additionally, you’ll need to pay interest on your loan, which typically ranges from 3% to 4% based on the loan duration and lender. It’s important to meticulously plan your budget when making a purchase.

2

Get pre-approved as a finance buyer.

Pre-approval not only verifies your budget but also enhances your buying position. Before issuing a letter or email that states the approved loan amount—usually valid for 60 days—a bank will first evaluate your loan application.

3

Find a Professional real estate agent and company.

To gain a clear understanding of your financial limits and personal preferences, it is advisable to engage with a seasoned agency such as Buy Sell Let that is committed to working closely with you. Providing comprehensive details during the initial phase can greatly expedite the process of finding the ideal property. It is essential to clearly communicate your specific needs to your agent to ensure they fully grasp the type of property you are looking to purchase.

4

Start exploring properties!

Your real estate agent will serve as a property advisor, identifying neighborhoods and listings that fit your budget and other preferences. Schedule viewings for various options until you find the one that meets your needs.

5

Make an offer for the property!

We highly recommend submitting your offer in writing, along with a cheque for the 10% deposit. Additionally, include copies of the passports and Emirates IDs for all individuals who will be listed on the title deed. This approach will significantly increase the chances of having your offer accepted.

6

When you are satisfied with the offer, sign the MOU.

Your agency will prepare a Memorandum of Understanding (MOU), also known as Form F. You will review this document, and once both parties have signed it, you will provide the cheque for the 10% deposit.

7

The process of progressing through sales.

If the buyer plans to finance the purchase with a mortgage, the bank will need to be involved. The buyer must have the property appraised by the bank, and the lender will need to issue a final offer letter before the buyer can move forward with obtaining the mortgage.

If the seller has an existing mortgage on the property, the buyer must settle this mortgage in full before applying for a No Objection Certificate (NOC). After both parties have signed the Memorandum of Understanding (MOU), ensure that the seller promptly contacts their bank to request a mortgage settlement statement. This process may take up to two weeks, though the exact time frame can vary by bank. It is advisable to plan for an average duration of six to ten weeks for this procedure.

8

Apply for the NOC

To obtain a No Objection Certificate (NOC) for selling a property, all parties involved must meet at the developer’s office. After confirming that all outstanding service charges have been paid and that any modifications made by the seller comply with the developer’s guidelines, the developer will typically issue the NOC for a fee, which can range from AED 500 to AED 5,000 depending on the developer. In some cases, a representative from the developer’s office may also inspect the property following the NOC request. Additionally, some developers may ask for a refundable deposit from the buyer. This deposit will be returned once the buyer submits the new title deed to the developer’s office for updating, a process that can take up to five business days.

9

The transfer of ownership.

After obtaining the No Objection Certificate (NOC), the formal transfer of property ownership takes place at the Dubai Land Department (DLD) office. The payment for the property is made using a manager’s cheque, which is issued to the seller on the transfer date. Additionally, manager’s cheques are needed to cover the 4% transfer fee payable to the DLD and an administrative fee of up to AED 4,000. Once all procedures are completed, a new title deed will be issued in the buyer’s name. The buyer must also reconcile and pay any overpaid service charges to the seller, based on a pro rata calculation.