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A step by step guide to purchasing a house in Dubai

A step by step guide to buying a house in Dubai

Buying a property as an expat might sound like a complicated procedure, filled with obstacles that could cripple small-time players. But you don’t have to look at it that way; the Dubai Land Department, along with the legislating bodies in charge, have made sure the process of purchasing a property in Dubai is smooth and fast.

Should I dare and buy an off-plan property? 

Elite City IMG_7127-300x200 A step by step guide to purchasing a house in Dubai Property Updates

Although it takes more time than any other method you could consider, this is the absolutely easiest way to buy a property in Dubai.

  • The buyer needs to submit an application form to the developer.
  • Once the application has been approved, the buyer needs to go to the developer’s sales centre on a pre-scheduled day to select the unit and pay the initial deposit.
  • Depending on the level of completion, the buyer might have to wait for 2-3 years before receiving the property. The completion date will be given by the developer.

Is it a good idea to buy a property on the secondary market instead?

This is a much quicker way to acquire a property in Dubai, however, it is a slightly more complicated process which involves more financial expenses.

  • An investor who wishes to buy a property where the seller has a mortgage needs to be in a position to discharge the seller’s mortgage before collecting their title deed from the land department.
  • The buyer needs to use a RERA-registered broker.
  • Upon viewing the property, the buyer presents an offer to the seller, and once the buyer’s offer has been accepted, the seller’s agent will produce the memorandum of understanding (contract) which states all the costs and responsibilities of both parties.
  • The buyer then pays a 10 percent deposit in the name of the seller to secure the property.
  • Depending on whether the buyer is paying cash or via a mortgage, the next step is for the buyer’s bank to carry out a valuation procedure to inspect the property and ensure that it is secure enough.
  • Once the buyer receives the final approval, the seller will apply for the No Objection Certificate (NOC) from the developer.
  • An appointment needs to be booked at the land department in order to complete the transfer.
  • When all processes have been registered, the buyer needs to pay 2% and AED315 to the DLD, along with the purchase price, to the seller and the commissioner to the agent.
  • The buyer will then be given the title deed which will be in his name, along with the keys and the access cards to the new house.

Can you define the different kinds of prices of a property?

List Price: The list price is the asking price of the property and is negotiable.

Sale Price: The sale price is what the owner will settle at.

Appraised Value: The value provided by the real estate agent by comparing the property’s value with other properties in the market.

What other costs should I consider?

When it comes to selling:

  • Clearance of mortgage (cancellation fees)
  • Clearance of service charges/maintenance fees
  • Settlement of DEWA/District cooking
  • Developer’s NOC if required
  • Transfer fees paid to the land department
  • Commission

When it comes to buying:

  • Deposits as per Agreement of sale between Buyer & Seller
  • Transfer fees with the land department
  • Connection fees for the Electricity and Water Authorities
  • Community service fees
  • Mortgage application fees if required
  • Misc admin fees to the land department
  • Commission

To learn if off-plan properties can be a solid investment for you, get in touch with our friendly consultants at Triplanet International without delay.

Source: Property Finder, 2017

1 Response
  1. Thanks for giving us the precious data concerning buying a house in Dubai, you have got shared each detail starting from appraisal charge to commision. and also regarding RERA terms and condition as well as which states all the charges and responsibilities of both parties. Every person has to go through this weblog before investing cash on the Dubai belongings.

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About Elite City

Elite been developing residential projects in the UAE for the past decade. With ten residential towers successfully completed we have handed over 3,500 apartments to our customers.

Ten Completed Towers
3,500 Occupied Apartments
3 Billion AED Elite Stock Sold
Leading Independently Financed Developer