While it wasn’t necessarily always the case, the process of buying a property in the emirate in 2017 is straightforward and streamlined. There are four basic legal steps of buying property in Dubai, as presented to us by the legal consultants at Knight Frank global real estate consultancy firm.
Note: if you’re a foreign national, you can buy an estate only in one of the so-called Designated Areas of Dubai. These communities were hand-picked by His Highness Sheikh Mohammed bin Rashid Al Maktoum to give non-UAE and non-GCC nationals the opportunity to own a home in the emirate.
Now, with that out of the way, let’s get you closer to your next home/real estate investment!
In a nutshell, when it comes to cash buying property in Dubai, the legal steps you’ll need to undertake are as follows:
1. ESTABLISHing A BUYER AND SELLER AGREEMENT
Once you’ve unearthed the right property on Bayut and done 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. The rest of them should only be taken after enlisting the services of a reputable Dubai estate agency or a legal consultancy firm like Knight Frank. Rather logical, isn’t it? Let’s continue.
2. SIGNING AN AGREEMENT OF 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. Bear with us – we’re almost there!
4. EFFECTING THE TRANSFER OF OWNERSHIP WITH DUBAI LAND DEPARTMENT
Once you’ve obtained the NOC, you will need to meet the seller at the office of Dubai Land Department to effect 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 do legal steps of cash buying property in Dubai usually take?
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, according to Knight Frank.
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 bringing you a detailed guide to buying a property in Dubai with the aid of a mortgage shortly, so make sure to subscribe to our newsletter.
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, is a riskier for you and entails a few more steps and precautionary measures. Hence, this option requires the most time as well as the most effort.
And that concludes our basic overview of the four most common legal steps of buying property in Dubai. If you have any additional questions, do not hesitate to write us on email@example.com or contact the good people at Knight Frank Dubai. If you haven’t unearthed the right property yet, browse apartments and villas for sale in Dubai on Bayut.