How to
Buy a Property
in Dubai
đź”˝ AN OVERVIEW OF BUYING REAL ESTATE IN DUBAI
Determine Your Budget
Start by figuring out how much you can afford. Keep in mind that when buying a property, you’ll need to pay a 2% agency fee and a 4% transfer fee. If you plan to mortgage the property, you’ll likely need at least 25% of the property’s value as a down payment. Additionally, you’ll be paying interest on the loan, which usually ranges from 3-4%, depending on the bank and loan term. Work out your budget and let your agent help you with the calculations.
Are You Pre-approved for Financing?
It’s a good idea to get pre-approved for a mortgage before you start. This step not only confirms your budget but also strengthens your position as a buyer. The bank will assess your application and send a letter or email confirming the approved loan amount, typically valid for 60 days.
Find a Reliable Real Estate Agent
Choose a trustworthy agent with experience who can help you understand your budget, preferences, and requirements. Being specific at the outset will help you find the right property faster. It’s crucial to communicate your needs clearly so your agent can assist you effectively.
Start Property Viewings
Your agent will present properties and areas that match your budget and needs. Arrange to view several properties and explore your options until you find one that suits you perfectly.
Make Your Offer
For a higher chance of having your offer accepted, put it in writing along with a 10% deposit cheque. Be sure to provide copies of the passports and Emirates IDs for everyone listed on the title deed.
Sign the MOU (Memorandum of Understanding)
Once your offer is accepted, your agent will prepare the MOU, also known as Form F. Both parties will review and sign it, and the 10% deposit cheque will be handed over.
Sales Progression Process
If you’re purchasing with a mortgage, the bank must conduct a property valuation and provide the final offer letter to confirm the mortgage. If the seller has an existing mortgage, it needs to be fully paid off before the No Objection Certificate (NOC) can be processed. After signing the MOU, the seller should request a mortgage settlement statement from their bank, which can take up to two weeks. This process may take 6-10 weeks, depending on the bank.
Apply for the NOC
Once the MOU is signed, both the buyer and seller will meet the developer to apply for the NOC. The developer will charge a fee, usually between AED 500-5,000, and confirm that all service charges have been paid and that any property modifications align with their guidelines. A representative from the developer may also visit the property. Some developers require a refundable deposit from the buyer, which will be returned once the buyer presents the new title deed. This process can take up to 5 business days.
Transfer Ownership
When the NOC is issued, both parties will go to the Dubai Land Department (DLD) to finalize the transfer. The DLD will require the full purchase price to be paid via manager’s cheque made out to the seller, along with manager’s cheques for the 4% transfer fee and an administrative fee up to AED 4,000. Once the formalities are completed, a new title deed will be issued in the buyer’s name. The buyer will also settle any pro-rata service charges that were overpaid to the seller.