What is important for a foreign buyer to know?
Buying a property can be an exciting experience, especially if this is your first home abroad. Due to the high rents in Dubai, many people decide to buy their own housing. This is an important and incredibly crucial point, so it’s important to make sure everything is working as it should.
№1 Seller verification
Make sure in advance that the seller is bona fide and has property rights. You should ask for a title deed to verify that the owner’s name matches the passport details.
№ 2 Property verification
Make sure that there are no debts for the specific property in:
- Mortgage lending;
- Unpaid utility bills.
This is confirmed by a No Objection Certificate (NOC).
№ 3 Real estate broker verification
Make sure your real estate agent is bona fide. Ask him to show permit and check if it is actually on the record of the Dubai Land Department (DLD).
Each broker in Dubai must go through compulsory licensing and be on record of the Real Estate Regulatory Authority (RERA) and has to carry a valid broker’s ID.
№ 4 Take care of your financial cushion
The housing purchase is not the only waste associated with the buying and selling process. In addition, you will need to pay:
- Broker commission fee – about 2% of the property value;
- The presence of a deposit on a personal account – at least 25% of the value of the property;
- The fees for transfer of the real property – from 1 to 7% of the property value;
- Registration fees which account 1.5% of the purchase price.
Therefore, it is necessary to take care of the availability of a sufficient amount in advance.
№ 5 Carefully check the terms in the Memorandum of Understanding
A Memorandum of Understanding (MOU) document elaborates the terms of a sale agreement between two parties. You will have to make a small deposit at the time of signing (5%).
What information should be contained in the document:
- Detailed information about the property;
- Total cost of the purchase and payment terms and conditions;
- Time frame for transaction completion (including the NOC from the developer and the transfer of ownership);
- Consequences for non-fulfillment of the transaction.
Buying property in Dubai
Start searching for your dream apartment in Dubai today at Ax Capital! Experienced specialists will select several variants for property, according to your considerations. They are always ready to answer any questions concerning the purchase and sale transaction. In addition, the staff will take care of the procedure to go quickly and safely for you.