Having a home in Dubai everyone’s desire due to the extraordinary amenities offered by the city. But, how to buy a home legally is a big question? Today, we are going to share the legal process of buying a home in an ultra-luxurious city.
Usually, it takes two to ten weeks to complete the buying process in Dubai. The time duration is dependent on the involvement of mortgages. However, if you want to speed up the process, then the full cash transaction is the best option and it saves you from the slow property buying problem. 3% is the buying transaction cost of a low-value property with no broker and for a full suite of an adviser with property value over Dh 5M, the transaction cost is 7.5%.
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Guidance For the Home Seller in Dubai
Property sale and buying processes involve two parties, but there are some steps that the seller has to perform in the presence of a buyer.
• You must have all necessary documents which are required for the transfer of the property such as an Emirates ID card, official documents of the property, a title deed, and passport.
• It’s always a good idea to hire a property agent to avoid any hassle in the process. Never forget to mention the end date of the validity of the signed contract, if you don’t find any potential seller or postpone the idea of property selling.
• All banks have different mortgage value and close-out procedures. If a mortgage is involved, then contact the bank and ask for the right process.
• It’s necessary to pay all dues to the developer before selling the property as without paying maintenance, utility, and paid amenities charges you can’t go ahead.
Guidance for the Home Buyer in Dubai
Following are the steps the purchaser has to perform to buy a property in Dubai.
• Like the seller, the buyer also has to collect all important documents involved in the buying process such as residence visa copy, passport, Emirates ID, and passport size photos.
• In the case of a mortgage, you need bank approval that usually takes two weeks. The paperwork depends on the profession of the purchaser and the fees are also associated with the process. The validity of pre-approval is only 40-60 days. To get a loan, you must inform the bank about your job, whether you are a self-employed person, working in a private sector, or in the public sector. A six-month bank statement, visa, Emirates ID, payslip, and letter of incorporation from the company are required to take borrow. In the pre-approval, general terms and conditions are mentioned for a mortgage.
• Signing the memorandum of understanding (MOU) is the next step both parties have to perform once the property is finalized. You can download MOU directly from the official website of the Dubai Land Department (DLD). In some cases, terms and conditions regarding the money transfer are also mentioned in the addendum.
• MOU can be registered from any authorized Registration office trustee from DLD. At that time, both parties and the agent should be present there. However, the MOU isn’t the final document rather a sort of finality. The buyer gives a cheque of 10 percent of the sell value which can be cashed only when the buyer changes the plan of buying the property. However, if both parties don’t agree to move further, then a mutual penalty is decided which is less than the amount mentioned in the security cheque.
• Registration trustee then sends details to DLD where clearance process is done and it involves a little fee as well.
• Now, take mortgage approval from the bank and NOC from the developer. Usually, it takes five days to get NOC from the developer once you clear all dues.
• The buyer can decline the bank loan if he finds terms and conditions unfavorable. Purchaser bank clears the liability issued by the seller’s bank.
• Now, in the last step, book a transfer and pay the amount. Pay complete amount including fee for issuance of title deed.
The process can slightly vary in some cases and it’s mandatory for the buyer to write a will in the contract to guide what to do with the property in the case of any unforeseen situation.
Guest Author: Mudassir
Email: [email protected]
Author URL: https://www.luxuryproperty.com
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