Guide to Buy Property in Dubai

Want to buy property in Dubai?




Estimate how much you can afford.

Buyers must remember to account for 2% agency fees and 4% transfer fees while doing a purchase. Do you intend to obtain a mortgage? Then you will likely require a down payment of at least 25 per cent of the property's purchase price. You will also be required to pay interest on your loan, which varies from 3-4% depending on the loan's length and the lending institution. You need to work carefully on your budget while making a purchase.



Get pre-approved as a finance buyer

Pre-approval not only confirms your budget, but also strengthens your purchasing position. Before providing a letter or email announcing the accepted loan amount, which is normally valid for 60 days, a bank will first assess your loan application.



Find a Professional real estate agent and company.

To effectively understand your financial limitations and personal preferences, it is recommended to seek out an experienced agency like Allegiance, who is willing to work closely with you. Sharing detailed information during the preparatory phase can significantly reduce the time it takes to find the perfect property. It is crucial to communicate your specific requirements to your agent to ensure they have a clear understanding of the type of property you are interested in buying.



Start exploring properties!

Your real estate agent will act as a property consultant, identifying neighborhoods and homes for sale that meet your financial constraints and other criteria. Make appointments to look at a number of different possibilities until you locate what it is you're looking for.



Make an offer for the property!

We strongly suggest placing your offer in writing, including a copy of a cheque for the 10% deposit, and including copies of the passports and Emirates IDs of all parties whose names will appear on the title deed. This will give you the best opportunity of having your offer accepted.



When you are satisfied with the offer, sign the MOU.

An MOU, which is an abbreviation for a Memorandum of Understanding and is also referred to as a Form F, will be drafted by your agency. You will go over the Memorandum of Understanding, and then both parties will sign the documents, after which you will pass over the cheque for the 10% deposit.



The process of progressing through sales.

If the buyer intends to finance the purchase with a mortgage, then the involvement of the bank will be required. The buyer is needed to have a bank perform an appraisal on the property, and the lender will need to provide the buyer with a final offer letter before the buyer can proceed with the possibility of obtaining a mortgage.

In the event that the seller holds a mortgage on the property, it is the responsibility of the buyer to pay off the seller's mortgage in full before applying for a No Objection Certificate (NOC). If this is the situation, make sure that after both parties have signed the MOU, the seller immediately contacts his or her bank to request a mortgage settlement statement. This process can take up to two weeks, so the seller must act quickly. (The length of time required for this procedure may differ from bank to bank, but we recommend budgeting an average of six to ten weeks).



Apply for the NOC

To obtain a NOC for selling a property, all parties involved must gather at the developer's office. Upon verifying that all outstanding service charges owed to the developer have been settled, and any alterations made by the seller comply with the developer's regulations, the developer will usually issue the NOC for a fee (ranging between AED 500-5,000, depending on the developer). In some cases, a representative from the developer's office may also inspect the property after the NOC has been requested. Some developers may require a refundable deposit from the buyer, which will be returned once the buyer provides the new title deed to the developer's office for correction (which may take up to five business days).




The transfer of ownership.

Once the NOC is granted, transferring ownership of the property is done officially by visiting the Dubai Land Department office. The payment of the purchase price is made through a manager's cheque, which is payable to the seller on the transfer date. To settle the 4% transfer fee owed to the DLD and an administrative fee of up to AED 4,000, manager's cheques are also required. Upon completion of all necessary procedures, a new title deed will be issued in the buyer's name. The buyer must then settle any overpaid service charges with the seller based on a pro rata calculation.

Want to invest in Dubai?

With more than 50 international roadshows and over 10 billion of Sales, Allegiance is ranked as the UAE's #1 Off-Plan Real Estate Advisory. Contact Us to know more.