Buying Property Guide in Dubai

Start by figuring out the budget that you can afford. Setting aside a specific amount enables you to look for properties in that range. There is a 2% agency fee and a 4% transfer fee that you should also consider. Individuals applying for a mortgage would need to put 25% of the property as a down payment. The interest on the loan would be at around 3-4%. You can consult with your agent to figure out the calculations.

Being pre-approved as a finance buyer improves your position as a property buyer. Banks review your application and issue a letter or send an email after approval stating the approved loan amount. The validity time for the loan is usually 60 days.

Hire an experienced agent from a trusted company who will look at your budget and offer tailored recommendations. These experts provide guidance based on your financials. Finding an ideal property requires thorough research, and real estate agents handle the hassle for you, looking for the exact property you want based on your budget considerations.

Your agent will recommend communities & properties as per your requirements. You can arrange appointments to see the properties in person. Make sure to view multiple properties before deciding.

Make an offer in writing to the property seller. Your agent can help you craft the best offer that reflects your interests. Most offers include a copy of a 10% deposit cheque along with copies of your passport & Emirates ID for all parties who will be on the title deed for the property.

A Memorandum of Understanding (MOU) is prepared by the agent when you have selected a property & talked to the seller. Review the MOU and then sign it. The seller will also sign it. Hand over the 10% deposit check after signing the MOU.

The bank's involvement is necessary if the buyer is getting a mortgage. A property valuation by the bank is done, and the buyer will have to obtain the final offer letter from the lender. If the seller has a mortgage, then the buyer must settle it before applying for the No Objection Certificate (NOC). The seller has to request a mortgage settlement statement once the MOU is signed. This may take up to 2 weeks. This process typically takes 6-10 weeks and may depend on the bank.

Parties involved will go to the offices of the developer to get the NOC. The NOC is issued by the developer against the payment of a fee between AED500-5000, depending on the developer.

All parties need to go to the Dubai Land Department to officially transfer the ownership. NOC must be brought to the department. The DLD will require payment of the purchase price in the form of a manager's cheque payable to the property seller on the ownership transfer data. A manager's cheque with a 4% transfer fee due to DLD and admin charges is also required. A new title deed is issued in the name of the buyer after the formalities.