{"id":17884,"date":"2025-03-03T11:43:10","date_gmt":"2025-03-03T11:43:10","guid":{"rendered":"https:\/\/www.bayut.com\/agentportal\/?p=17884"},"modified":"2025-03-03T11:43:18","modified_gmt":"2025-03-03T11:43:18","slug":"introduction-to-the-dubai-real-estate-sales-process","status":"publish","type":"post","link":"https:\/\/www.bayut.com\/agentportal\/introduction-to-the-dubai-real-estate-sales-process\/","title":{"rendered":"Sales 101: Introduction To The Dubai Real Estate Sales Process"},"content":{"rendered":"\n<ul><li><a href=\"#the-sales-process\">The Sales Process<\/a><\/li><li><a href=\"#real-estate-models\">The Four Real Estate Sales Models<\/a><\/li><li><a href=\"#mortgages-dubai\">All About Mortgages<\/a><\/li><li><a href=\"#power-of-attorney\">Power Of Attorney<\/a><\/li><\/ul>\n\n\n\n<p>Being a real estate sales agent in Dubai is more than just showing clients properties or sharing listings with them. You should have a comprehensive understanding of the sales journey, and the laws that govern the industry.&nbsp;<\/p>\n\n\n\n<p>In this session at Bayut Academy, we discuss everything you need to know to kick-start your career in Dubai real estate sales, as we share the key highlights of Dubai real estate sales that every new realtor should know.&nbsp;<\/p>\n\n\n\n<h2 id=\"the-sales-process\"><strong>THE SALES PROCESS<\/strong><\/h2>\n\n\n\n<p>The typical Dubai sales process from an agent\u2019s point of view is as follows:&nbsp;<\/p>\n\n\n\n<ol><li>The seller decides to sell<\/li><li>The seller authorises an agent(s) to list the property<\/li><li>Agent advertises the listing&nbsp;<\/li><li>Agent qualifies potential buyers<\/li><li>The buyer makes an offer<\/li><li>The seller accepts the offer<\/li><li>Buyer and seller sign the contract<\/li><li>The property is scheduled for transfer of ownership.<\/li><\/ol>\n\n\n\n<p>Let\u2019s look at the <strong>key sales terminology <\/strong>that you should be familiar with:&nbsp;<\/p>\n\n\n\n<ul><li>Listing: A contract between the owner and broker, authorising the broker to advertise his\/her property<\/li><li>Exclusive listing: An agreement in which a property seller appoints and authorises a single broker to act as a seller\u2019s agent<\/li><li>Open listing: An agreement in which a property seller appoints more than one seller\u2019s agent<\/li><li>Distress Sale: A type of sale that occurs when a property, stock or asset must be sold quickly<\/li><li>Commission: A fee earned on a real estate transaction, usually a percentage of the selling price<\/li><li>Valuation: A professional estimate of the value of an asset in this case a property&nbsp;<\/li><li>Service charge: A fee collected to pay for the services related to the primary product or service being purchased&nbsp;<\/li><li>Liability: A debt or obligation that one owes<\/li><li>Lender pre-approval: An authorisation by the lender to the borrower of a loan amount<\/li><li>Comparative Market Analysis: A tool used to estimate the value of a specific property by evaluating similar ones sold recently<\/li><li>Down Payment: An amount of money the buyer pays at the start of a real estate transaction<\/li><li>Equity: The amount of your home that you own&nbsp;<\/li><li>Escrow account: A legal holding account, where funds cannot be released until the predetermined conditions are met<\/li><li>Mortgage: A type of loan used to purchase or maintain a home, land or other types of real estate<\/li><li>Foreclosure: The action of taking possession of a mortgaged property when the mortgagor fails to keep up with payments<\/li><li>Title Deed: A legal deed or document that reflects ownership of a property&nbsp;<\/li><li><a href=\"https:\/\/www.bayut.com\/mybayut\/oqood-service-dubai\/\">Oqood<\/a>: A registration document for contracts between property developers and buyers&nbsp;<\/li><li>Principal: The original sum of money borrowed in a loan or put into an investment<\/li><li>Asset: A resource with economic value that an individual, corporation or country owns or controls, with the expectation that it will provide a future benefit.&nbsp;<\/li><\/ul>\n\n\n\n<p>The Dubai Land Department governs all the real estate operations in the emirates. RERA (Real Estate Regulatory Agency) is the DLD\u2019s regulatory arm, and offers a legal framework for the sector.&nbsp;<\/p>\n\n\n\n<p>Here are some important real estate laws in Dubai:&nbsp;<\/p>\n\n\n\n<ul><li>Law number 7 of 2006: Established a freehold market for foreign ownership<\/li><li>Law number 85 of 2006: Regulates the real estate profession and sets out criteria to hold a license and practice as a real estate broker in Dubai<\/li><li>Law number 6 of 2019: Regulates the ownership of jointly owned properties (owner\u2019s association)<\/li><li>Law number 14 of 2008: Applies to property mortgages and property units as a security for debt<\/li><\/ul>\n\n\n\n<p>RERA uses <strong><em>forms<\/em><\/strong><em> <\/em>for real estate transactions in Dubai, to streamline the process for all stakeholders involved. These forms are as follows:&nbsp;<\/p>\n\n\n\n<ul><li>Form A: An electronic copy, an agreement between the buyer and seller<ul><li>It is mandatory by law to have Form A to list the property<\/li><li>It is filled out online at Dubai REST App or Dubai Brokers Portal<\/li><li>Three agents can simultaneously acquire Form A, or one agent can exclusively acquire it<\/li><li>If a property has multiple owners, then all owners must sign the Form A<\/li><\/ul><\/li><li>Form B: An Agreement between the buyer and the broker<ul><li>It appoints a real estate agent to find a property for sale in Dubai<\/li><li>Outlines the property search criteria and contract termination terms<\/li><li>Outlines what buyers are looking for, type, location, budget and requirements<\/li><li>Outlines the agent&#8217;s compensation percentage and commission\/<\/li><\/ul><\/li><li>Form F: An Agreement between seller and buyer<ul><li>It is the contract of the sale between the buyer and the seller. Also, known as the Memorandum of Understanding (MoU)<\/li><li>It protects both parties by having clear terms and responsibilities<\/li><li>Additional terms and conditions can be added.<\/li><\/ul><\/li><li>Form I: The Agreement between two brokers<ul><li>It ensures both agents get compensated for a sale<\/li><li>Key contents include both agents details, property details and the commission agreement.<\/li><\/ul><\/li><li>Form U: The termination of the contract between seller\/buyer and broker<\/li><\/ul>\n\n\n\n<p>Check out our in-depth guide to the RERA forms here: <a href=\"https:\/\/www.bayut.com\/mybayut\/guide-rera-forms-dubai\/\">https:\/\/www.bayut.com\/mybayut\/guide-rera-forms-dubai\/<\/a><\/p>\n\n\n\n<h2>Exclusive versus Open Listings <\/h2>\n\n\n<style>table#tableTopHeader292760,#tableTopHeader292760 td,#tableTopHeader292760 th,#tableTopHeader292760 caption{border:0;}#tableTopHeader292760 th[scope=\"row\"]{text-align: left;}#tableTopHeader292760 .mobile{display: none;}#tableTopHeader292760 .content td{text-align: center;}#tableTopHeader292760 .content td{padding: 10px 0;}#tableTopHeader292760 .content:nth-child(even) {background-color: #f7f7f7;}#tableTopHeader292760 .content:nth-child(odd) {background-color: #D1EDE1;}#tableTopHeader292760 th[scope=\"col\"]{text-align:center;}#tableTopHeader292760 th[scope=\"col\"] div:nth-child(1){border-top: 2px solid #000000;display: inline-block;border-bottom: 2px solid #000000;padding: 2px 5px 3px;margin-bottom: 10px;}@media only screen and (max-width: 600px) {#tableTopHeader292760 th[scope=\"row\"],#tableTopHeader292760 td {display: block;}#tableTopHeader292760 th[scope=\"row\"]{text-align: center; padding: 20px 0 10px;}#tableTopHeader292760 .desktop{display: none;}#tableTopHeader292760 .mobile{display: block;}.#tableTopHeader292760 content td div:nth-child(1),#tableTopHeader292760 .content td div:nth-child(2){display: inline-block; width: calc(50% - 10px); padding: 5px; vertical-align: top; text-align: left;}#tableTopHeader292760 .col-head{font-weight: bold; padding: 10px 0 5px;}#tableTopHeader292760 .content td{padding: 10px 0; margin: 10px; background-color: #ffffff;}#tableTopHeader292760{border-spacing: 0 15px;}}<\/style>\n<table width=\"100%\" border=\"0\" cellspacing=\"2\" cellpadding=\"0\" id=\"tableTopHeader292760\" class=\"datatabletopheadfilled\" dir=\"ltr\">\n<tbody>\n<tr class=\"header desktop\"><\/tr>\n<tr class=\"header desktop\">\n<th scope=\"col\">\n<div class=\"col-head\">Exclusive Property Listing<\/div>\n<\/th>\n<th scope=\"col\">\n<div class=\"col-head\">Open Property Listing<\/div>\n<\/th>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Exclusive Property Listing<\/div>\n<div class=\"values\">You are only one that can list the property<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Open Property Listing<\/div>\n<div class=\"values\">Three agents can advertise<\/div>\n<\/td>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Exclusive Property Listing<\/div>\n<div class=\"values\">You are guaranteed to earn commission if it sells<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Open Property Listing<\/div>\n<div class=\"values\">Commission depends on the agent<\/div>\n<\/td>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Exclusive Property Listing<\/div>\n<div class=\"values\">You are the single of point of contact for the owner<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Open Property Listing<\/div>\n<div class=\"values\">Every agent has relationship with the owner<\/div>\n<\/td>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Exclusive Property Listing<\/div>\n<div class=\"values\">You can give it to other brokers for showings<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Open Property Listing<\/div>\n<div class=\"values\">Higher risk of losing the deal<\/div>\n<\/td>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Exclusive Property Listing<\/div>\n<div class=\"values\">Keeps integrity of the listing honest<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Open Property Listing<\/div>\n<div class=\"values\">Owners think this will sell it faster; which is not always the truth<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2><strong>Types Of Ownership In Dubai<\/strong><\/h2>\n\n\n<style>table#tableTopHeader457802,#tableTopHeader457802 td,#tableTopHeader457802 th,#tableTopHeader457802 caption{border:0;}#tableTopHeader457802 th[scope=\"row\"]{text-align: left;}#tableTopHeader457802 .mobile{display: none;}#tableTopHeader457802 .content td{text-align: center;}#tableTopHeader457802 .content td{padding: 10px 0;}#tableTopHeader457802 .content:nth-child(even) {background-color: #f7f7f7;}#tableTopHeader457802 .content:nth-child(odd) {background-color: #D1EDE1;}#tableTopHeader457802 th[scope=\"col\"]{text-align:center;}#tableTopHeader457802 th[scope=\"col\"] div:nth-child(1){border-top: 2px solid #000000;display: inline-block;border-bottom: 2px solid #000000;padding: 2px 5px 3px;margin-bottom: 10px;}@media only screen and (max-width: 600px) {#tableTopHeader457802 th[scope=\"row\"],#tableTopHeader457802 td {display: block;}#tableTopHeader457802 th[scope=\"row\"]{text-align: center; padding: 20px 0 10px;}#tableTopHeader457802 .desktop{display: none;}#tableTopHeader457802 .mobile{display: block;}.#tableTopHeader457802 content td div:nth-child(1),#tableTopHeader457802 .content td div:nth-child(2){display: inline-block; width: calc(50% - 10px); padding: 5px; vertical-align: top; text-align: left;}#tableTopHeader457802 .col-head{font-weight: bold; padding: 10px 0 5px;}#tableTopHeader457802 .content td{padding: 10px 0; margin: 10px; background-color: #ffffff;}#tableTopHeader457802{border-spacing: 0 15px;}}<\/style>\n<table width=\"100%\" border=\"0\" cellspacing=\"2\" cellpadding=\"0\" id=\"tableTopHeader457802\" class=\"datatabletopheadfilled\" dir=\"ltr\">\n<tbody>\n<tr class=\"header desktop\"><\/tr>\n<tr class=\"header desktop\">\n<th scope=\"col\">\n<div class=\"col-head\">Lease-Hold<\/div>\n<\/th>\n<th scope=\"col\">\n<div class=\"col-head\">Free Hold<\/div>\n<\/th>\n<th scope=\"col\">\n<div class=\"col-head\">Non-Freehold<\/div>\n<\/th>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Lease-Hold<\/div>\n<div class=\"values\">An individual owns a property for a limited period<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Free Hold<\/div>\n<div class=\"values\">An individual owns the property in full <\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Non-Freehold<\/div>\n<div class=\"values\">A GCC National owns a property or land in full <\/div>\n<\/td>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Lease-Hold<\/div>\n<div class=\"values\">Ownership: up to 99 years<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Free Hold<\/div>\n<div class=\"values\">Ownership: unlimited (for life)<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Non-Freehold<\/div>\n<div class=\"values\">Ownership: unlimited (for life)<\/div>\n<\/td>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Lease-Hold<\/div>\n<div class=\"values\">Example: Dubai Silicon Oasis, Green Community (DIP)<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Free Hold<\/div>\n<div class=\"values\">Example: Dubai Marina, Dubai Hills Estate, Emirates Living, JBR<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Non-Freehold<\/div>\n<div class=\"values\">Example: Bur Dubai, Sheikh Zayed Road, Barsha, and more<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2>Types of Sales In Dubai<\/h2>\n\n\n\n<h3>Direct developer sales (off-plan)<\/h3>\n\n\n\n<ul><li>It involves sales of property under construction<\/li><li>Property is sourced directly from the developer<\/li><li>Commission is paid by the developer<\/li><li>It&nbsp; cannot be mortgaged if its under construction<\/li><li>Registered in the DLD as Oqood (under construction)<\/li><\/ul>\n\n\n\n<h3>Secondary market sales (resale)<\/h3>\n\n\n\n<ul><li>Ready properties<\/li><li>Sourced from individual owners<\/li><li>Commission paid by the buyer or seller&nbsp;<\/li><li>These properties can be mortgaged<\/li><li>Registered by the DLD as Title Deed<\/li><\/ul>\n\n\n\n<h3>Direct Sales&nbsp;<\/h3>\n\n\n\n<ul><li>Ready properties&nbsp;<\/li><li>Sourced by developers directly&nbsp;<\/li><li>The commission is paid by the developer&nbsp;<\/li><li>Registered in the DLD as the 8title deed<\/li><\/ul>\n\n\n\n<h2>Developer\u2019s Obligations<\/h2>\n\n\n\n<ul><li>The developer must have proof of possession of the <strong>plot<\/strong> and an <strong>escrow account<\/strong> for each project&nbsp;<\/li><li>5% of the funds in the trust account is used for marketing purposes&nbsp;<\/li><li>A developer must complete 20% of the construction before selling a project or provide a bank guarantee for 20% of the construction value to RERA&nbsp;<\/li><li>The developer is allowed to charge an administration fee and fee for NOC. The minimum charge is AED 5K<\/li><li>Developers may charge an additional service fee, such as a fee for an urgent issuance of NOC<\/li><li>A developer must have a contract with the brokerage before giving permission to the broker to market their project<\/li><\/ul>\n\n\n\n<p>If there is a variation in the property size at the handover:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>If the unit area is<\/strong><\/td><td><strong>The developer must<\/strong><\/td><\/tr><tr><td>Greater than the area mentioned in the SPA<\/td><td>Not increase the price of the unit<\/td><\/tr><tr><td>Smaller by more than 5% than the area mentioned in the SPA<\/td><td>Compensate the buyer for the shortfall in proportion to the reduction<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>If there are any defects after the handover, the developer remains liable for:&nbsp;<\/p>\n\n\n\n<ul><li>Ten years to repair any structural defects&nbsp;<\/li><li>One year to repair or replace defective installations, such as mechanical, electrical, sanitary or plumbing installations.<\/li><\/ul>\n\n\n\n<p><strong>Developers\u2019 rights to terminate for buyers\u2019 default<\/strong><\/p>\n\n\n\n<ul><li>The developer shall give the buyer a written notice<\/li><li>If the buyer fails to comply, the developer should notify the DLD<\/li><li>The DLD will issue a default notice to the buyer, allowing the buyer 30 days to rectify the default&nbsp;<\/li><li>If the default persists beyond 30 day notice period, the DLD may deregister the unit, and the developer has the right to cancel the contract with the buyer<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>If the Developer has\u2026<\/strong><\/td><td><strong>The Developer can retain<\/strong><\/td><\/tr><tr><td>Completed <strong>80% <\/strong>of the construction&nbsp;<\/td><td><strong>Full amount <\/strong>paid by the buyer<\/td><\/tr><tr><td>Completed <strong>60%<\/strong> of the construction<\/td><td><strong>40% <\/strong>of the purchase price<\/td><\/tr><tr><td>Completed <strong>Less than 60% <\/strong>of the construction<\/td><td><strong>25%<\/strong> of the purchase price<\/td><\/tr><tr><td><strong>Not commenced <\/strong>construction for reasons beyond their control<\/td><td><strong>30% <\/strong>of the <strong>amount paid<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2><strong>Cancelled Projects<\/strong><\/h2>\n\n\n\n<p>If the developer\u2019s project is cancelled by order of RERA, the developer must refund the full amount paid by the buyer.&nbsp;<\/p>\n\n\n\n<p>The Special judicial committee for cancelled projects was set up to oversee cancelled developments in Dubai.&nbsp;<\/p>\n\n\n\n<ul><li>It handles all matters regarding the liquidation of assets of cancelled projects<\/li><li>Relates to \u2018cancelled\u2019 projects and not \u2018on hold\u2019 or \u2018delayed\u2019<\/li><li>Responsible for liquidating real estate projects and settling debts after the deduction of liquidation costs<\/li><li>All decisions of this committee are final and cannot be appealed<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"640\" src=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/cancelled-projects-1024x640.jpeg\" alt=\"\" class=\"wp-image-18056\" srcset=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/cancelled-projects-1024x640.jpeg 1024w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/cancelled-projects-300x188.jpeg 300w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/cancelled-projects-768x480.jpeg 768w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/cancelled-projects-640x400.jpeg 640w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/cancelled-projects.jpeg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><em>The developer must refund the full amount paid by the buyer, in the case of a cancelled project by the order of RERA<\/em><\/figcaption><\/figure>\n\n\n\n<p>Read more about the <a aria-label=\"undefined (opens in a new tab)\" href=\"https:\/\/www.bayut.com\/mybayut\/dubai-introduces-law-cancelled-unfinished-real-estate-projects\" target=\"_blank\" rel=\"noreferrer noopener\">legislation regarding cancelled projects<\/a><\/p>\n\n\n\n<h2 id=\"mortgages-dubai\"><strong>Mortgages<\/strong><\/h2>\n\n\n\n<ul><li>A mortgage is an agreement between a borrower and a lender to buy a home without having all the cash upfront.&nbsp;<\/li><li>A mortgagee (lender) is a creditor who lends money to someone against the security of property that exists. It must be a bank or a financial institution licensed by the Central Bank&nbsp;<\/li><li>A Mortgagor (borrower)<strong> <\/strong>is the holder of personal rights under the contract of sale registered in the real estate register&nbsp;<\/li><li>Mortgages must be registered at the Dubai Land Department<\/li><li>The mortgagor (borrower) is responsible for paying registration fees<\/li><li>The fee to register a mortgage is 0.25% of the loan amount, payable to the DLD<\/li><li>The mortgage terminates on registration upon the repayment of the secured debt<\/li><\/ul>\n\n\n\n<h3>Mortgages in Dubai:&nbsp;<\/h3>\n\n\n\n<ul><li>UAE nationals and expats (both UAE residents and non-residents) are eligible to take a home mortgage in Dubai<\/li><li>The maximum age limit to avail of a home mortgage is <strong>65 for salaried individuals <\/strong>and 70 for self-employed<\/li><li>Maximum mortgage tenure is 25 years<\/li><li>Banks have four main criteria to calculate eligibility: time spent in the UAE (a minimum of 6 months to one year), duration of employment in the UAE (minimum of six months), annual income and credit history.&nbsp;<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"640\" src=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/mortgage-1024x640.jpeg\" alt=\"\" class=\"wp-image-18052\" srcset=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/mortgage-1024x640.jpeg 1024w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/mortgage-300x188.jpeg 300w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/mortgage-768x480.jpeg 768w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/mortgage-640x400.jpeg 640w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/mortgage.jpeg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><em>Further reading: Check out our guide to mortgages in Dubai: <\/em><a href=\"https:\/\/www.bayut.com\/mybayut\/mortage-types-dubai\/\">https:\/\/www.bayut.com\/mybayut\/mortage-types-dubai\/<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"640\" src=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/Introduction-to-Dubai-sales-process-_-Body-26-10-22-1024x640.jpg\" alt=\"\" class=\"wp-image-18049\" srcset=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/Introduction-to-Dubai-sales-process-_-Body-26-10-22-1024x640.jpg 1024w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/Introduction-to-Dubai-sales-process-_-Body-26-10-22-300x188.jpg 300w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/Introduction-to-Dubai-sales-process-_-Body-26-10-22-768x480.jpg 768w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/Introduction-to-Dubai-sales-process-_-Body-26-10-22-640x400.jpg 640w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/10\/Introduction-to-Dubai-sales-process-_-Body-26-10-22.jpg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 id=\"real-estate-models\"><strong>The Four Real Estate Sales Models&nbsp;<\/strong><\/h2>\n\n\n\n<ol><li>Cash buyer and cash seller<\/li><li>Mortgage buyer and cash seller&nbsp;<\/li><li>Cash buyer and mortgage seller&nbsp;<\/li><li>Mortgage buyer and mortgage seller<\/li><\/ol>\n\n\n\n<p>Let\u2019s look at the journey with each sales model:&nbsp;<\/p>\n\n\n\n<h3><strong>Cash buyer and cash seller<\/strong><\/h3>\n\n\n\n<ol><li>Buyer and seller sign Form F&nbsp;<\/li><li>Buyer submits a booking deposit<\/li><li>Seller issues a security cheque against the booking deposit&nbsp;<\/li><li>Seller applies for NOC from Master Developer<\/li><li>Buyer arranges for all payments; payable to the seller, DLD and broker&nbsp;<\/li><li>Buyer and seller go to the Registration Trustee to transfer the property Title Deed<\/li><\/ol>\n\n\n\n<h3><strong>Mortgage Buyer and Cash Seller<\/strong><\/h3>\n\n\n\n<ol><li>Buyer applies for pre-approval&nbsp;<\/li><li>Buyer and seller sign Form F<\/li><li>Buyer submits a booking deposit&nbsp;<\/li><li>Seller issues a <strong>security cheque<\/strong> against the booking deposit<\/li><li>Buyer\u2019s bank conducts valuation of the property<\/li><li>Buyer\u2019s bank issues Final Offer Letter&nbsp;<\/li><li>Sellers applies for NOC from the Master Developer&nbsp;<\/li><li>The buyer, seller and bank representative go to the registration trustee to transfer the property ownership&nbsp;<\/li><\/ol>\n\n\n\n<h3><strong>Cash Seller and Mortgage Seller&nbsp;<\/strong><\/h3>\n\n\n\n<p>When there is an existing loan on a property, the outstanding loan must be settled prior to the transfer of the Title Deed.<\/p>\n\n\n\n<ol><li>Blocking of the property with a <strong>liability letter<\/strong> from the bank to the DLD<\/li><li>Buyer and seller sign the Form A<\/li><li>Seller to obtain a No Objection Certificate from the Developer\u00a0<\/li><li>Buyer to issue Manager&#8217;s Cheque payable to the bank to settle the outstanding loan amount<\/li><li>Buyer to issue Manager&#8217;s Cheque payable to the seller for the remaining balance\u00a0<\/li><li>Buyer to issue Manager&#8217;s Cheque to the DLD for the transfer fee<\/li><li>The seller takes the cheque payable to the bank to release the mortgage and obtain the clearance\/release letter<\/li><li>Unblock the property at the Dubai Land Department and arrange for the transfer of\u00a0the property\u00a0<\/li><\/ol>\n\n\n\n<p>Check out our in-depth <a href=\"https:\/\/www.bayut.com\/mybayut\/guide-selling-mortgaged-property-dubai\/\" target=\"_blank\" rel=\"noreferrer noopener\">guide to selling a mortgaged property<\/a><\/p>\n\n\n\n<h3><strong>Mortgage Buyer And Mortgage Property&nbsp;<\/strong><\/h3>\n\n\n\n<ol><li>Buyer and seller sign Form F<\/li><li>Buyer submits a <strong>Booking Deposit<\/strong>&nbsp;<\/li><li>Seller issues a Security Cheque against booking deposit&nbsp;<\/li><li>Buyer\u2019s bank conducts valuation of the property&nbsp;<\/li><li>Buyer\u2019s bank issues Final Offer Letter to the buyers&nbsp;<\/li><li>The seller applies for the Liability Letter from the bank&nbsp;<\/li><li>A liability letter is sent to the buyer\u2019s bank&nbsp;<\/li><li>The buyer\u2019s bank will start settling the existing mortgage&nbsp;<\/li><li>Original Title Deed is released to the Buyer\u2019s bank&nbsp;<\/li><li>Seller requests No Objection Certificate (NOC)<\/li><li>Seller submits the NOC to the buyer&#8217;s bank<\/li><li>Buyer, seller and buyer\u2019s bank representative<\/li><\/ol>\n\n\n\n<h2><strong>Fees&nbsp;<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Type of Fee<\/td><td>Percentage of Sales Price<\/td><\/tr><tr><td>Registration fee at DLD<\/td><td>4%<\/td><\/tr><tr><td>Registration Trustee Fees*<\/td><td>AED 2K \u2013 AED 5K<\/td><\/tr><tr><td>Brokerage Fees<\/td><td>2%&nbsp;<\/td><\/tr><tr><td>NOC Fees<\/td><td>AED 500 \u2013 AED 5K<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Registration Trustee Fees* are charged based on the property value and completion.<\/p>\n\n\n\n<p>Payments at the time of transfer are to be made in the <strong><em>manager\u2019s cheque<\/em><\/strong><em> only<\/em><\/p>\n\n\n\n<p>All parties involved in the transaction must <em>be <\/em><strong><em>present<\/em><\/strong><em> <\/em>at the time of transfer.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Property Price<\/strong><\/td><td><strong>Off Plan Property<\/strong><\/td><td><strong>Ready Property<\/strong><\/td><\/tr><tr><td>More than AED 500k<\/td><td>AED 5k<\/td><td>AED 4k<\/td><\/tr><tr><td>Less than AED 500k<\/td><td>AED 3.5k<\/td><td>AED 2k<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"power-of-attorney\"><strong>Power of Attorney&nbsp;<\/strong><\/h2>\n\n\n\n<p>Power of Attorney is a legal document that gives one party the authority to represent another, in specified legal or financial matters.&nbsp;<\/p>\n\n\n\n<p>In real estate, power of attorney is used for the following purposes:&nbsp;<\/p>\n\n\n\n<ul><li>Withdrawing funds from an account<\/li><li>Collecting rental income&nbsp;<\/li><li>Entering a mortgage<\/li><li>Entering a lease transaction, either as a landlord or tenant<\/li><li>Entering a sale or purchase contract<\/li><li>Paying bills<\/li><li>Investing money<\/li><\/ul>\n\n\n\n<h3>Provisions of a Power of Attorney (POA):&nbsp;<\/h3>\n\n\n\n<ul><li>If the grantor is in the UAE, POA must be notarised by the Dubai Notary Public<\/li><li>If the grantor is outside the UAE, the POA must be legalised by the UAE Embassy in their country of residence and further legalised by the UAE Ministry of Foreign Affairs<\/li><li>POA must be in both English and Arabic. If there are inconsistencies in the two language versions, the Arabic interpretation prevails<\/li><li>POA is valid for a maximum of two years and must have an expiry date<\/li><li>POA must be granted for a specific property for a specific purpose (such collection of rent, signature on a SPA, or paying DEWA bills)&nbsp;<\/li><li>POA will lapse with the death of a grantor<\/li><li>If a real estate broker holds the POA, it must be verified by the Grantor before every use.<\/li><\/ul>\n\n\n\n<h2><strong>Owner\u2019s Association<\/strong><\/h2>\n\n\n\n<ul><li>The Owner\u2019s Association is a non-profit organisation that manages common areas in jointly owned properties, i.e. buildings or communities, where there are multiple title-deed holders.\u00a0<\/li><li>It is a business in its own right and can be sued on its name<\/li><li>It has the right to own and dispose of movable assets<\/li><li>It can enter service agreements.\u00a0<\/li><\/ul>\n\n\n\n<p>Read more about the <a href=\"https:\/\/www.bayut.com\/mybayut\/mollak-system-dubai\/\">Mollak System <\/a><\/p>\n\n\n\n<h2><strong>Service Charges&nbsp;<\/strong><\/h2>\n\n\n\n<p>Service charges are recurring fees for maintaining and upkeep common areas in Dubai\u2019s residential buildings or communities.<\/p>\n\n\n\n<p>The fees usually cover costs for security, cleaning and maintenance services, landscaping and other aspects of property management.&nbsp;<\/p>\n\n\n\n<h2><strong>Unpaid Service Charges&nbsp;<\/strong><\/h2>\n\n\n\n<p>If a unit owner fails to pay the service charges and fails to remedy the following notice from the Owners Association (OA), OA may impose a penalty at the rate of 12% per annum, calculated daily.&nbsp;<\/p>\n\n\n\n<h2><strong>Transferable Service Charges<\/strong><\/h2>\n\n\n\n<p>Services charges can be transferred to the new property owner, calculated daily on a pro-rata basis.&nbsp;<\/p>\n\n\n\n<h2><strong>Code of Ethics<\/strong><\/h2>\n\n\n\n<p>As a Dubai real estate agent, it is expected to adhere to a code of ethics, detailed as follows:&nbsp;<\/p>\n\n\n\n<ol><li><strong>Duties to your clients<\/strong>: To protect and promote what\u2019s in the client&#8217;s best interest.<\/li><li><strong>Duties to the public:<\/strong> To avoid misinterpretation or conceal factual or essential information related to the property and the transaction.<\/li><li><strong>Duties to other realtors: <\/strong>To not make false or misleading statements about other real estate professionals, their businesses or their business practices.&nbsp;<\/li><\/ol>\n\n\n\n<p>We recommend you thoroughly understand Dubai\u2019s sales laws and processes, study the market\u2019s trends, and price your inventory correctly.&nbsp;<\/p>\n\n\n\n<p>Kick off your learning journey with <a href=\"https:\/\/www.bayut.com\/academy\" target=\"_blank\" aria-label=\"undefined (opens in a new tab)\" rel=\"noreferrer noopener\">Bayut Academy<\/a>, our in-house series of workshops for real estate professionals in the UAE, and accelerate your real estate career in the country. Our expert trainers offer seminars on various topics, including prospecting, time management, communication, and more. You can also check out the <a href=\"https:\/\/www.bayut.com\/agentportal\/blog\/\" target=\"_blank\" aria-label=\"undefined (opens in a new tab)\" rel=\"noreferrer noopener\">Content Corner<\/a>, our library of resources to help you learn and grow.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Looking to launch a career in Dubai real estate sales? Find out everything you need to know in our in-depth guide to the Dubai sales process for realtors, based on our session at Bayut Academy.<\/p>\n","protected":false},"author":7,"featured_media":17890,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[381],"tags":[],"category_group":[],"yst_prominent_words":[140,67],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v14.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Introduction To The Dubai Real Estate Sales Process<\/title>\n<meta name=\"description\" content=\"Looking to launch a career in Dubai real estate sales? 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