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Guide of buyer

TERMINOLOGY


OQOOD: Off-Plan (Under-Construction) Properties are registered in the OQOOD system. This is the off-plan counterpart of the Title Deed.
Title Deed: This is the ownership certificate. It is issued by Dubai Land Department on the transfer of a fully constructed property.
Owner Association: It is a non-profit organization comprising of all the owners of a jointly owned property. The association is responsible for Management, Operation and Maintenance of the jointly owned areas.
MOLLAK: It is an online registration system for Owners Associations which can be used for various purposes such as collecting maintenance charges, etc.
DLD: The Dubai Land Department is responsible for managing, regulating and promoting the real estate sector.
RT: Registration Trustees are appointed by the DLD to conduct real estate property transfers on its behalf.
Blocking: In case of a cash buyer and a mortgaged property, blocking is a service offered by DLD to protect buyers who agree to settle seller’s mortgage before transfer.
Things to Remember
1. The broker will be able to find you a suitable property only if you mention your needs accurately.
2. Viewing too many properties is the perfect recipe for confusion.
3. The NOC charges are usually payable by the seller.
4. The DLD transfer fees and RT registration fees are payable as agreed by the buyer and the seller.
5. A mortgaged property cannot be transferred unless the mortgage is settled.
6. Blocking a property with DLD protects the buyer against fraudulent sellers.
7. Pre-approval letter helps you in defining the buyer’s budget and also gets them more leverage during negotiations.
8. The buyer’s contribution to the purchase price should at least be 25%.
9. The 0.25% mortgage registration charges are payable by the buyer.
10. The original Title Deed will be held by the bank until the full loan amount is settled. In case of Islamic Banks, the Title Deed will be issued in the bank’s name and you will be mentioned as the tenant.


CASH BUYER - MORTGAGE FREE PROPERTY

Viewing Stage:
1. Contact a broker and sign Form B with him.
2. Describe your needs clearly. For example, type of property, number of rooms, location, etc.
2. The broker will then offer multiple options based on the needs you described.
3. Schedule a viewing of the property you feel to be best suited.
4. If you like the property, make an offer.
5. In case you’re not satisfied, ask the broker for another option.
6. Try not to view more than 3 options. The more properties you view, the more confused you will be.
Transfer Stage:
1. If the seller accepts your offer, you sign the property sales contract also known as Form F.
2. Handover a deposit cheque in the name of the seller. The industry standard is 10% of the selling price. The cheque is usually held by the seller’s broker till transfer.
3. The seller then obtains a No Objection Certificate (NOC) from the developer stating that all his dues are clear. The fee for NOC is usually paid by the seller.
4. Once you have the NOC, you can go to the Registration Trustee (RT) to transfer the ownership. RT will charge a registration fee of Dh4,000 (1088 $ / 970 €) for properties above Dh500,000 (136 121 $ / 121 341 €) and Dh2,000 (544 $ / 606 €) for properties below the said amount. It is payable as agreed by the buyer and the seller. During the transfer you have to carry the following in Manager’s cheques:
Full selling price payable to the seller
A part or whole of the 4% DLD transfer fees as agreed with the seller along with Dh580 (158 $ / 140 €)  as registration fees payable to DLD
Brokerage Cheque in the name of the company, if applicable
6. After completing these formalities, the original Title Deed will be issued by DLD. The seller will then hand over the keys and access cards for the property.


CASH BUYER - MORTGAGED PROPERTY

Viewing Stage:
1. Contact a broker and sign Form B with him.
2. Describe your needs clearly. For example, type of property, number of rooms, location, etc.
2. The broker will then offer multiple options based on the needs you described.
3. Schedule a viewing of the property you feel to be best suited.
4. If you like the property, make an offer.
5. In case you’re not satisfied, ask the broker for another option.
6. Try not to view more than 3 options. The more properties you view, the more confused you will be.
Blocking Stage:
1. If the seller accepts your offer, sign the property sales contract also known as Form F.
2. A mortgaged property can only be transferred after the loan is settled. To ensure that you’re protected while paying the seller’s mortgage, you can block the property at RT office. You have to submit the following documents:

  • Signed Form F
  • Liability letter from the seller’s bank
  • Copy of the title deed
  • Manager’s cheque for the liability amount mentioned in the letter payable to the seller’s bank
  • Manager’s cheque for 4% DLD transfer fees as agreed between you and the seller along with Dh580 (158 $ / 140 €) registration fees payable to DLD
  • A cheque for Dh1,520 (413 $ / 368 €)  blocking fee payable to DLD
  • A cheque for the remaining amount payable to the seller
  • Brokerage Cheque in the name of the company, if applicable

3. After you submit these documents, DLD hands over the liability amount cheque to the seller so that he can clear the mortgage and get the original Title Deed.
Transfer Stage:
1. The next step is to obtain a No Objection Certificate (NOC) from the developer stating that all the seller’s dues are clear. The fee for NOC is usually paid by the seller.
2. Once you have the NOC, you can go to the Registration Trustee (RT) to transfer the ownership. The RT will charge a registration fee of Dh4,000 (1088 $ / 970 €) for properties above Dh500,000 (136 121 $ / 121 341 €) and Dh2,000 (544 $ / 485 €) for properties below the said amount. It is payable as agreed by the buyer and the seller.
3. After completing these formalities, the original Title Deed will be issued by DLD. The seller will then hand over the keys and access cards for the property.

MORTGAGE BUYER - MORTGAGE FREE PROPERTY

Viewing Stage:
1. Obtain a pre-approval letter from your bank with the maximum amount they can lend. With this letter, you can aim for a particular price range. It also gives you leverage while negotiating with the sellers.
2. Contact a broker and sign Form B with him.
3. Describe your needs clearly. For example, type of property, number of rooms, location, etc.
4. The broker will then offer multiple options based on the needs you described.
5. Schedule a viewing of the property you feel to be best suited.
6. If you like the property, make an offer.
7. In case you’re not satisfied, ask the broker for another option.
8. Try not to view more than 3 options. The more properties you view, the more confused you will be.
Valuation Stage:
1. If the seller accepts your offer, sign the property sales contract also known as Form F.
2. After the contract is signed, the bank will evaluate the property value. It usually costs between Dh2,500 (680 $ / 606 €) to Dh3,500 (952 $ / 849 €).
3. If the evaluated price of the property is more or equal to the purchasing price, the bank will issue a Final Offer Letter (FOL). Once the FOL is signed and you issue the security cheques needed by the bank, the Transfer stage starts.
Transfer Stage:
1. The next step is to obtain a No Objection Certificate (NOC) from the developer stating that all the seller’s dues are clear. The fee for NOC is usually paid by the seller.
2. Once you have the NOC, your bank will schedule an appointment with the Registration Trustee (RT) to transfer the ownership. RT will charge a registration fee of Dh4,000 (1088 $ / 970 €) for properties above Dh500,000 (136 121 $ / 121 341 €) and Dh2,000 (544 $ / 606 €)  for properties below the said amount. It is payable as agreed by the buyer and the seller. You also have to carry the following in Manager’s cheques:
Contribution to the purchase price payable to the seller (Should at least be 25% as prescribed by UAE Central Bank regulations
Part or whole of the 4% DLD transfer as agreed along with Dh580 (158 $ / 140 €)  registration fees payable to DLD
0.25% mortgage registration fees plus Dh1,290 (351$ / 313 €) payable to DLD
Brokerage fees payable to the company, if applicable
3. After completing these formalities, the original Title Deed will be issued by DLD. The seller will then hand over the keys and access cards for the property.


MORTGAGE BUYER - MORTGAGED PROPERTY

Viewing Stage:
1. Obtain a pre-approval letter from your bank with the maximum amount they can lend. With this letter, you can aim for a particular price range. It also gives you leverage while negotiating with the sellers.
2. Contact a broker and sign Form B with him.
3. Describe your needs clearly. For example, type of property, number of rooms, location, etc.
4. The broker will then offer multiple options based on the needs you described.
5. Schedule a viewing of the property you feel to be best suited.
6. If you like the property, make an offer.
7. In case you’re not satisfied, ask the broker for another option.
8. Try not to view more than 3 options. The more properties you view, the more confused you will be.
Valuation Stage:
1. If the seller accepts your offer, sign the property sales contract also known as Form F.
2. After the contract is signed, your bank will evaluate the property value. It usually costs between Dh2,500 (680 $ / 606 €) to Dh3,500 (952 $ / 849 €).
3. If the evaluated price of the property is more or equal to the purchasing price, your bank will issue a Final Offer Letter (FOL).
4. The seller will then obtain a Liability letter from his lending bank and this letter will then be sent to buyer’s bank for settling the debt and obtaining the clearance letter along with the original Title Deed.
Transfer Stage:
1. The next step is to obtain a No Objection Certificate (NOC) from the developer stating that all the seller’s dues are clear. The fee for NOC is usually paid by the seller.
2. Once you have the NOC, your bank will schedule an appointment with the Registration Trustee (RT) to transfer the ownership. RT will charge a registration fee of Dh4,000 (1088 $ / 970 €) for properties above Dh500,000 (136 121 $ / 121 341 €) and Dh2,000 (544 $ / 485 €) for below the said amount. It is payable as agreed by the buyer and the seller. You also have to carry the following in Manager’s cheques:
Contribution to the purchase price payable to the seller (Should at least be 25% as prescribed by UAE Central Bank regulations
Part or whole of the 4% DLD transfer as agreed along with Dh580 registration fees payable to DLD
0.25% mortgage registration fees plus Dh1,290 (351$ / 313 €) payable to DLD
Brokerage fees payable to the company, if applicable
3. Your bank will issue a cheque of the difference amount payable to the seller.
4. After completing these formalities, the original Title Deed will be issued by DLD. The seller will then hand over the keys and access cards for the property.

Dubaiproperties.pro
Office 502B, Prime Business Centre Jumeirah village circle 784 Dubai
+971 55 583 50 40info@dubaiproperties.pro