1) Work out your price range
The listing price is not the final price, factor in an agency fee, typically 2%, and a government transfer fee of around 4%. If you are looking to obtain a mortgage be aware a down payment of 25% is typical and the mortgage will likely carry an interest of 3-4% interest. This will vary depend on the repayment plan you arranged with your bank. Getting pre-approved strengthens any offers you put in and is a good way for you to grasp what properties will naturally fit in your budget. To do this, schedule a bank appointment, the bank will review your assets and provide a letter highlighting the loan amount. This letter is only valid for 60 days.
2) Start your search
Finding a trusting real estate agent with experience will make purchasing a property a breeze, take care in your choice. Talk through your budget, preferences, and lifestyle and paint a detailed picture of what you are looking for. At Seven Century, we will walk you through communities you might have been unaware of, top-selling high-return investments, and new projects. Then start with the viewings.
3) Narrow down your search
Typically, buyers view six or more properties before proceeding, and arranging a second viewing is common. At this stage consider utilizing a property snagging service
4) Place an offer
As mentioned previously, a pre-approval strengthens your offer. But so does putting the agreement in writing, a 10% deposit cheque, passport and Emirates ID copy of all persons who will be on the title deed.
5) Sign MOU
Once the offer is accepted, your real estate agent with prepare a Memorandum of Understanding, sometimes called ‘Form F’. Review this document then both you and the seller will sign. At this point, you are expected to provide the 10% deposit cheque.
6) Mortgage filings
If you are purchasing the property with a mortgage then the bank will need to conduct some due diligence. They will calculate the value of the property and will provide a final mortgage offer letter. If the seller of the property has an remaining mortgage, the buyer in this case you are to pay that mortgage in full prior to filing for the No Objection Certificate (NOC). If you are paying an existing mortgage, make sure both parties have signed the MOU and that following payment the seller requests a mortgage settlement statement from their bank (this can take several weeks).
7) Request NOC
At this stage, all stakeholders will have a meeting with the developer at their office to file a No Objection Certificate. The developer will charge for this session, the fee ranges from 500DHS- 5,000 DHS. The developer will check that there are no outstanding service charges on the property and will visit the property to make sure no modifications have been made, which are outside the developer guidelines. This verification is of course beneficial for you as the buyer because you won’t be liable for any unexpected costs. Some developers will ask for a refundable deposit until the new title deed is presented (typically 5 working days).
8) Dubai Land Department visit
After the issuing of the NOC, all stakeholders go to the Dubai Land Department office to complete the ownership transfer. The DLD expects the payment of the property to be in cheques made payable on the date of transfer. As well as, cheques of 4% transfer fee, made payable to DLD on the date of transfer. An admin fee is most likely needed, somewhere in the 4,000 DHS range. Your new title deed will be issued and keys will be handed over.