HOW TO BUY a properties IN DUBAI

Legal Aspects of Buying a House in Dubai

Having a realtor you can trust is paramount when buying property in Dubai. They will guide you step by step through the entire process, whether you are buying off plan or listing an existing villa or apartment.

Any person of any nationality can buy property in Dubai as long as the property is located in designated areas authorized by the ruler of the emirate of Dubai. You do not need to be a full resident to buy a property, so if you live abroad, you can still buy a property to rent or use as a private residence when you are in the UAE.

Should I consider ownership or lease when buying property in Dubai?

As in many other cities around the world, there are two main types of ownership: freehold (where you own the entire property) and lease (where you buy property to rent for a specific period of 30 to 99 years).

Keep in mind that if you choose to rent a property (which can be a bit cheaper than a freehold property, especially in the city center of Dubai), you will have to consider additional costs such as land rent, service fee and maintenance fee.

How long does it take?

Once a SPA (Sell - Purchase - Agreement) concluded, it usually takes about 30 days, so it is very similar to buying in other countries such as the UK.

Once you have found a property or villa in Dubai that you like, MOU (memorandums of understanding) are implied and deposits are accepted (usually around 10%).

For next step, the buyer and seller apply for NOC (certificates of non-objection), this is required for resell and for brand new properties not applicable.

The developer will be happy to issue this after clearance for accounts, and if he is sure that the buyer has the necessary funds to purchase the property. Therefore, if you need money to buy property in Dubai, be sure that you have it, the sooner the process begins. In this case, your NOC may be denied and the sale will fail.

Once you have received the NOC, you can list with the Dubai Land Department and transfer ownership of the property.

You will be required to pay the purchase price in the form of a manager's check applicable to the private seller on the day of transfer. In additional, the buyer pay on purchasing price DLD (dubai land department) fees and transfer Charges.

After all this is completed, you will be issued a land deed in your name for the property.

Buying property with a mortgage in Dubai

If you are buying a property in Dubai with a mortgage, NOC will not be issued if your bank or lender does not have sufficient funds allocated to pay for the property. If you are buying with a mortgage, the terms may be slightly longer and longer than if you are buying with cash.

Costs and fees when buying a house in Dubai

In addition to the value of the property you are buying, you will need to budget for many other fees and charges.

• NOC Fees – The cost of a No Objection Certificate ranges from USD 136 to USD 1,360 depending on the value of the property. Usually they are paid by the seller to the developer. You may also be charged an additional fee from the developer, but this is a refundable deposit that is refundable once you submit new title deeds and they update their records.

• Real estate agent commission - usually around 2% of the purchase price for reselling, for new properties free of commission.

• Transfer fee of approximately 4% of the purchase price and an additional fee of not more than USD 1,360, payable to the Dubai Land Department.

• Mortgage Loan Registration Fees. If you buy a property with a mortgage, you may be charged a mortgage registration fee of 0.25% of the loan amount, which, again, is payable to the Dubai Land Department.

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