Getting a property in Dubai was not possible until 2002 with the establishment of freehold areas. And since then, foreigners were able to build their new home in the city. The influx of ex-pats in the city grew in recent years, and infrastructures are built to accommodate these changes. If you want to move to Dubai, here are the steps you need to follow.
1. Determine the Property Type You Want
Before you dab onto Dubai real estate, you need to determine the usage of the property. Residential community providers have different property types to choose from (apartments, villas, etc.). Once it’s done, you need to search for the best options online and personally. Getting a real estate agent is solely up to you.
2. Meet with the Seller and Create an Agreement
The next thing to do is to talk to the seller and establish a seller agreement. Before arranging a tour, make sure that you have done extensive research about the seller and the developer of the property. Make sure that the seller is the real owner of the property and that the listing is real.
Go on and negotiate with the seller about the price or any additional changes you want before closing the deal. You can also negotiate the payment system with the seller in this stage. If the negotiation goes well, you will need to sign an MOU or Memorandum of Understanding (also known as Contract F). At this time, the deposit is also expected to be paid.
3. Pay All the Necessary Fees
If you’re a first-time property buyer in Dubai, you might be surprised to tons of fees in your way. You need to pay a registration fee of AED 2,000 or AED 4,000, depending on the property size. A 0.25% mortgage registration fee and a 1% mortgage processing fee is needed if you opted for a mortgage. Besides, you need to pay other fees such as estate agency fees, conveyancing fees, valuation fees, and the Oqood fee.
Also, see: 5 Reasons Home loans make sense for the first time home buyer
4. Apply and Pay For NOC
When all is said and done, and all fees are paid, you need to get a document called the No-Objection Certificate or NOC. This means that the seller doesn’t have any objection to the sale. Usually, the seller and the buyer will go to the developer’s office, where the developer issues the document. If the buyer has outstanding fees, the seller can still agree to shoulder the cost and agree to issue the NOC, but the buyer will need to pay the remaining fees later on.
5. Transfer of Ownership
After obtaining the NOC, the seller and the buyer will need to go to the Dubai Land Department to transfer the ownership of the property. The buyer will need to deposit the payment through the manager’s cheque addressed to the seller’s name on that date. Take note that you need to include the broker’s commission if it’s applicable.