UAE is considered a haven that offers a welcome respite from the lockdowns that continue to appear around the world. The real estate market is achieving its goals by providing stimulus packages, visa reforms, and strong demand from end-users and stockholders. Purchasing a property in any part of the world is one of the most important decisions which requires extensive planning and reasonable consideration to confirm that all needs are met.
All the potential buyers need to know many things from the costs of the property, procedures to legalities, ahead of purchasing real estate in Dubai. There is a need to do extensive research and define an objective standard to get the property as per needs and requirements. The best buying guide for properties in UAE is as follows:
Get the right agent
Finding the right agent is vital before you start searching for a new property. Potential buyers need someone who comprehends exactly what they want. The right person will guide you the process more approperiately. However, it is vital to make sure that the property agent is fully committed to assisting in accomplishing goals, and they should be fully licensed as well.
Leasehold vs freehold
There is a significant dissimilarity among freehold and leasehold purchases. Freehold is a more attractive choice and grants ownership. It is essential to evade difficulties and possible disappointment by picking the best option. Make sure that the agent is well aware of all the preferences.
Authorized matters
If someone is not a UAE resident, they can purchase a property in a Dubai freehold area too. The Government of Dubai clearly defines that any person, regardless of nationality and location has the right to buy real estate in a freehold place.
Timeline and plans
In UAE, a standard property contract takes around 30 days to complete from the day of the Agreement. However, many different variables have the potential to affect these timelines. Such variables are the time of year as well as the type of buyer.
Buying procedures
When buyers and sellers finally agree on terms, they must have to sign the Agreement or Memorandum of Understanding (MOU). At this stage, 10 percent will be required as proof of assurance. The seller will have to pay an outstanding fee to the developer, including service charges, and apply for a No Objection Certificate (NOC). When the buyer is buying with a mortgage, then the lender bank will also be involved.
Ownership transfer
When NOC has been issued, possession will be automatically transferred. The whole procedure of transfer will take place at the Dubai Land Department (DLD), where both parties need to be present. The purchase payment will be made with a manager's cheque to the seller on the date of transfer. When all the will be completed, a new title will be issued in the buyer's name.
Be careful of all fees and costs
It is important to include factoring fees into the overall budget. The cost for NOC may fluctuate from AED500 to AED5,000 (plus VAT). The seller will pay this amount to the developer. However, some developers will also ask for a supplementary refundable deposit, which will be returned when the buyer has the new title deeds at the developer's office. The usual commission of a real estate agent is 2 percent, and the Transfer fee is calculated at 4 percent of the purchase price. In addition, the additional payment is also required as administration charges.
Success of completion
When every transaction has been finished, and both parties agree, the next step is completion and termination of the whole procedure. After what is likely to have been challenging, completion day is the much-awaited milestone, when the property finally becomes the buyer's possession. At this time, they just need to pick up the keys and enjoy this massive occasion.