BUYERS GUIDE

Here's a step by step guide to take you through the process...

1. Determine your financial capacity.

Take into account a 2% agency fee and a 4% transfer fee attached to any purchase as a buyer. If you're considering a mortgage, you'll likely need a down payment of at least 25% of the property's value. Additionally, expect to pay an interest rate of around 3-4% on your loan, which varies based on the loan duration and the bank. Your agent can assist you in these calculations to establish a budget.

2. Have you been pre-approved as a Finance Buyer?

A pre-approval not only verifies your budget but also strengthens your buying position. Initially, your application undergoes a bank review, following which you'll receive a letter or an email indicating the approved loan amount. This pre-approval is typically valid for a period of 60 days.

3. Choose a trustworthy Real Estate agent and agency.

Select an experienced agent who can comprehend your financial capability, desires, and needs. The more precise you are in the initial stage with industry professionals, the quicker you'll find the perfect property. At this point, it's crucial to provide your agent with a comprehensive understanding of your preferences.

4. Begin your property search!

Your agent, serving as a property consultant, will point out communities and properties that meet your budget and criteria. Schedule visits to various options until you locate what you're seeking.

5. Submit a proposal.

For a higher likelihood of acceptance, we suggest you present your offer in writing, accompanied by a copy of a 10% deposit cheque, and copies of the passport and Emirates ID of all the parties who will be listed on the title deed.

6. Sign the MOU once the offer is accepted.

Your agent will prepare an MOU, which stands for Memorandum of Understanding, also known as Form F. After reviewing the MOU, both parties need to sign the contracts and hand over the 10% deposit cheque.

7. The process of sales progression.

For buyers purchasing with a mortgage, the bank's participation is necessary. The bank will need to conduct a property valuation, and the buyer must secure the final offer letter from the lender, which assures the possibility of a mortgage. If the seller has a mortgage on the property, the buyer is obligated to pay off the seller’s mortgage in full before applying for the No Objection Certificate (NOC). Once the MOU is signed by both parties, the seller should request a mortgage settlement statement from their bank, as it can take up to 2 weeks. (This process may vary depending on the bank, but we would factor in an average of 6-10 weeks)

8. Initiate the NOC application.

All involved parties will congregate at the developer's offices to apply for an NOC to sell the property. The developer will generally issue the NOC against a payment of a fee (AED500-5,000 depending on the developer) once they are satisfied that any service charges have been fully paid and any modifications made by the seller have been completed according to the developer’s guidelines. A representative from the developer’s office will usually inspect the property once the NOC application is submitted. Some developers may also require a refundable deposit from the buyer, which is only returned once the buyer presents the new title deed at the developer’s office and their records are updated. (The processing can take up to 5 working days)

9. Ownership transfer.

Upon issuance of the NOC, all parties can proceed to the Dubai Land Department office to officially change the property's ownership. The DLD will require payment of the purchase price in the form of a manager’s cheque made payable to the seller on the transfer date. Additional manager’s cheques for the 4% transfer fee owed to the DLD and an admin fee not exceeding AED 4,000 will also be needed. Once all formalities are complete, a new title deed will be issued in the buyer's name. The buyer will then settle any overpaid service charges with the seller on a pro rata basis.