_A guide to the legal steps of buying property in Dubai
by Milos Jakovljevic, the Creative Content Specialist at Bayut.com
1. Establishing buyer and seller agreement
Once you have unearthed the right property perhaps on a property portal such as Bayut and undertaken extensive research on: the developer, areas of Dubai, ROI, and so forth, the first step you’ll have to undertake is to negotiate and outline the terms of the sale with the seller. This step can be done without the help of an estate agent or legal consultant, but it is advisable to enlist the services of a reputable Dubai real estate consultancy such as Knight Frank, who can help negotiate.
2. Signing an agreement for sale
Following that, you will need to sign the agreement of sale, also known as Memorandum of Understanding (MOU). In Dubai, this document is entitled Contract F and is available on the website of Dubai Land Department (on the ‘Contracts’ page). The standard in Dubai is for a 10% deposit on the property to be paid to the seller simultaneously. Once this step is finalised, you’ll be halfway through the process.
3. Applying for a No Objection Certificate (NOC)
Next, you and the seller will need to meet in the office of the developer (for example, Dubai Properties DP). The objective of this meeting is to apply and pay for a No Objection Certificate (NOC) to transfer the ownership. The developer will then issue the NOC, but only after ascertaining that there are no outstanding fees on the property in the way of service charges.
4. Transfer of ownership with Dubai Land Department
Once you have obtained the NOC, you will need to meet the seller at the office of Dubai Land Department to affect the transfer. DLD will require you make a payment of the property price in the form a manager’s cheque. This cheque should be made payable to the seller on the date of the transfer. Lastly, a brand-new title deed will be issued in your name, and you will officially become a property owner in Dubai.
Frequently asked questions:
How long does the process take to purchase property in Dubai?
From the date when you sign the agreement of sale (step number 2), it shouldn’t take more than 30 days to become a legal homeowner.
What if you are buying with the aid of a mortgage?
If this is the case, the involvement of the bank will be required, and the whole process will take longer. Bayut.com will be introducing a detailed guide of how to buy a property in Dubai with the aid of a mortgage shortly.
What if the seller has an existing mortgage on the property?
The buyer will be obligated to settle the seller’s mortgage in full before applying for the NOC (step number 3). The circumstance, on the whole entails a few more steps and precautionary measures. Hence, this option requires the most time as well as the most effort.