How to buy a Property / House / Flat in Dubai, UAE?:Procedure, cost, Documents required

Procedure to buy a Property / House / Flat in Dubai, UAE?

The Real Estate Law No. 7 of 2006: Land Registration Law governs the legal facets of purchasing property in Dubai. Article (4) of Law No. 7 of 2006 outlines who may purchase and possess real estate in Dubai.

  • Before beginning the purchasing process, it is crucial to conduct market research on Dubai’s real estate, including information on prices, available properties, and locations. You’ll be better able to make decisions as a result.
  • Hire a reputable real estate agent who specializes in the Dubai market. They will assist you in finding suitable properties, negotiating prices, and guiding you through the buying process.
  • Determine your budget and explore financing options. You can finance your purchase through a local bank or other financial institutions in the UAE. It’s crucial to have pre-approval for a mortgage or have sufficient funds available to proceed with the purchase.
  • Work with your real estate agent to find properties that meet your requirements. Once you identify a suitable property, conduct thorough inspections to ensure it meets your expectations and complies with all regulations.
  • Once you’ve chosen a property, you must make an offer to the seller. Your real estate agent will help you negotiate the price and other terms and conditions of the sale.
  • Once both parties agree on the terms, a sales agreement or Memorandum of Understanding (MOU) is drawn up. This document outlines the terms of the sale, payment schedule, and other details. It is advisable to involve a legal professional to review the agreement before signing.
  • To secure the property, you must pay a reservation fee, typically around 10% of the property’s value. This fee is usually non-refundable if you decide not to proceed with the purchase.
  • The next step involves transferring the ownership of the property. You’ll need to submit the necessary documents to the Dubai Land Department (DLD) to verify and pay fees. The DLD will conduct due diligence and transfer the property ownership to your name.
  • Prepare to pay various fees associated with the property purchase, including transfer fees, registration fees, agent commission (if applicable), and any outstanding utility bills or service charges.
  • If you are purchasing a property in a freehold area, you’ll need to obtain a No Objection Certificate (NOC) from the developer to transfer ownership.
  • Once the ownership transfer is completed, you must settle the remaining balance to the seller. This is usually done through a manager’s cheque or bank transfer.

Documents required

  • Valid passport copies of the buyer and seller
  • Emirates ID (for UAE residents)
  • Proof of residency (for non-UAE residents)
  • Sales agreement or Memorandum of Understanding (MOU)
  • Bank statements or proof of funds for financing
  • No Objection Certificate (NOC) from the developer
  • Title deed or property registration documents
  • Power of Attorney
  • Any additional documents requested by the Dubai Land Department or developer.

Cost of buying a property

Dubai Land Department (DLD) Fees

  • 4% of the purchase price + AED 580 admin fee for apartments and offices or AED 430 for land or AED 40 for off-plan

Property Registration Fee

  • For properties valued below AED 500,000: AED 2,000 +5% VAT
  • For properties valued above AED 500,000: AED 4,000 + 5% VAT

Dubai Land Department Mortgage Registration Fees

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  • 0.25% of the loan amount + AED 290
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