Advice For Buyers
The purchasing process in Dubai is fairly simple compared to many other countries in the world; we are here to take you through each step stress and hassle free. Our fully qualified consultants will provide you with a portfolio of properties suited to your needs whether you are looking for investment purposes or your next family home.
If you wish to use finance for your purchase you must first obtain a preapproval (a mortgage in principle). Our consultants will put you in touch with our in-house mortgage advisors who will take you through the stage of pre-approval.
Buying your Property
Leasehold and Freehold property in Dubai. The majority of developments that WBYP handles are freehold, though there is a mixture of leaseholds ranging from 30-99 years.
An average property transaction in Dubai takes 30 business days to complete from the date on which the Agreement of Sale is signed.
The procedures for purchasing real estate in Dubai are straightforward, for the most part.
Buyer and seller agree terms
- A Memorandum of Understanding (MOU) is signed and a deposit (usually 10%) is paid into an Escrow account.
- The parties meet at the offices of the developer to apply for a No Objection Certificate (‘NOC’) to sell the property.
- The developer will usually issue the NOC against a payment of a fee once the developer is satisfied that any amount due to the developer in the form of service charges have been settled in full.
- Once the NOC is issued, the parties are able to go to the office of the Dubai Land Department to officially transfer ownership. The Dubai Land Department will insist on payment of the purchase price being made in the form of a manager’s cheque made payable to the seller on the date of transfer. Once formalities are completed, a new Title Deed will be issued in the name of the buyer.
- If the buyer is purchasing with a mortgage then the bank’s involvement will be required. If the seller has a mortgage on the property the buyer is required to settle the seller’s mortgage in full prior to the NOC application. This increases the risk for the buyer and means the transaction is more complicated.
- Original Passport
The following fees will generally apply to the sale and purchase of real estate in Dubai:
- NOC fees – these can range between AED 500 and AED 5,000 and are payable to the developer, usually by the seller. Certain developers also levy a refundable deposit upon the buyer which is only refunded when the buyer presents the new title deed at the developer’s office and their records are updated.
- Real Estate Agent’s commission is 2% of the purchase price
- Transfer fees – these are calculated at 4% of the purchase price with an additional amount paid towards admin fees which currently is not in excess of AED 5,000 and is paid to the Dubai Land Department.
- Mortgage registration fees (if applicable) are calculated at a rate of 0.25% of the registered loan amount and paid to the Dubai Land Department,
- Developers ask for their annual service charges to be paid in advance and buyers should therefore account for their pro rata share upfront.