Guide to buying a property in Dubai

 

Define your criteria

Once you've decided to become a Dubai homeowner, you'll need to decide whether the property will be used for personal or investment purposes. Buyers should keep in mind that there is an agency fee and a 4% transfer cost to consider when making a purchase. If you plan to finance the purchase with a mortgage, you'll need to put down at least 25% of the property's value.

Do your research 

Make sure you understand the type of property you're looking for as well as the precise criteria. Whether you're looking for an apartment, a townhouse, or a standalone villa, it's critical to understand current property prices and the factors that influence them, such as location, view, facilities, and the type of community the property is located.

Find a Real Estate agent and company that you trust.

When looking for a new home, it is critical to work with the appropriate agent. You need someone who knows exactly what you want and can properly assist you through the process. That person should be completely dedicated to supporting you in reaching your objectives, and it goes without saying that they should be fully certified. fam Properties prides itself in transparency by making the latest property transactions available to everyone on https://dxbinteract.com/

Organise your finances

For buyers choose to pay cash for a property. This is frequently favoured because it simplifies the purchasing procedure and streamlines the overall experience. A mortgage is another option that is frequently available, depending on eligibility. Being pre-approved not only verifies your budget, but it also puts you in a better buying position. A bank will first assess your application before providing a letter or email detailing the authorized loan amount, which is usually valid for 60 days.

Finding your dream property

Make appointments to look at several options until you discover what you're searching for. Consult your agent if you have any questions about the property. They will be pleased to answer your questions, tell you what to anticipate, and assist you in starting the process of completing your purchase.

Timeline for the purchase

An average property transaction in Dubai takes 2 – 6 weeks to complete from the date the Agreement for Sale is signed. However, a variety of factors ranging from the type of buyer, the developer and the property type might have an impact on these dates.

A cash to cash transaction, for example, will be completed faster than a mortgage to mortgage transaction. With that in mind, create a timetable that allows you some flexibility.

Placing an offer

For the best chance of your offering getting accepted, we recommend submitting your offer in writing, together with a copy of a 10% deposit cheque and copies of all parties who will be named on the title deed.

Finalising the deal

The Sale Agreement is the initial stage in the process of a legal contract (MOU). It is a legally binding agreement between the buyer and seller that outlines the terms and specifics of the agreement, including each party's obligations and responsibilities. Before proceeding to the transfer step of the transaction, your broker will go through this with you to confirm that you are aware of the terms and conditions. The agent will generate a Form F on the broker's DLD REST App. 

Conveyancing

fam Properties' in-house sales progression team will be with you every step of the way to guide you through the selling process and make it as smooth as possible, from the developer's No Objections Certificate (NOC) through the transfer. They coordinate between you as a buyer, the seller, the developer, and the banks involved, and with all of their expertise, they are incredibly proactive and know the process inside and out. To prevent delays, your sales coordinator will ensure that all of your documentation are in order prior to commencing the process.

Additional Information

When it comes to selling:

  • Clearance of mortgage (cancellation fees) for mortgaged properties.
  • Clearance of service charges/maintenance fees
  • Settlement of DEWA/District cooling
  • Developer’s NOC (Ranging from AED 500 + VAT – AED 5000 + VAT)
  • Commission/Agency fees
  • If selling whilst outside the country you can appoint a POA to facilitate the transaction, otherwise you can appoint a third party who can receive funds on your behalf and transfer once the transaction is complete (Additional fees apply)
  • Sales Progression fee of AED 2,625 if Cash (Selling price more than AED 1 Million) AED 1,313 if Cash (Selling price less than AED 1 Million) AED 4,200 if Finance (Selling price more than AED 1 Million) AED 2,100 if Finance (Selling price less than AED 1 Million).

 

When it comes to buying:

  • Deposits as per Agreement of sale between Buyer & Seller (10% of the Selling Price)
  • Dubai Land Department fees – 4% of the property value + AED 430 for land or AED 40 for off-plan or AED 580 admin fee for apartments and offices
  •  
  • Connection fees for electricity and water authorities
  • Community service fees
  • Mortgage registration which is 0.25% of the loaned amount. Moreover, there is a Property Valuation fee between AED 2,500 to 3,500 + 5% VAT. (if applicable)
  • Commission/Agency fees.
  • If buying whilst outside the country you can appoint a POA to facilitate the transaction, otherwise you can appoint a third party who can receive funds on your behalf and issue a manager’s cheque if a local bank account isn’t present (additional fees apply)
  • Sales Progression fee of AED 2,625 if Cash (Selling price more than AED 1 Million) AED 1,313 if Cash (Selling price less than AED 1 Million) AED 4,200 if Finance (Selling price more than AED 1 Million) AED 2,100 if Finance (Selling price less than AED 1 Million).

Trustee Fees

  • Properties value below AED 500,000: AED 2,000 +5% VAT
  • Properties value above AED 500,000: AED 4,000 + 5% VAT
  • 5,250 (if off-plan and selling price is more than 500,000)
  • 3,675 (if off-plan and selling price is less than 500,000

 



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