Buying a property in Dubai is relatively straightforward, regardless of whether you want the perfect home to live in or a lucrative investment.
The process of buying property in Dubai involves four primary legal steps. To answer how to buy a property in Dubai, we will chronologically break down the legal aspects.
1. FORMULATING A CONTRACT BETWEEN THE BUYER AND THE SELLER
When it comes to purchasing property in Dubai and the UAE, you have two options: pay cash or apply for a mortgage. The ability to negotiate is perhaps the biggest benefit you have when you buy a property on cash vs mortgage. Cash buyers have a better idea of their budget and that’s why they can barter for a lower price.
You can complete this stage without the assistance of a real estate agent or a lawyer. The rest should be handled by any reputable Dubai real estate agency or legal compliance firm.
2. SIGNING THE AGREEMENT OF SALE
Signing the sale agreement, also called the Memorandum of Understanding (MOU), is the second legal step in buying property in Dubai.
The MOU or Form F is one of the RERA real estate forms in Dubai. Form/Contract F is available on the official website of the Dubai Land Department. Usually, the real estate agent will get the contract ready for you.
Once the contract is ready, both the buyer and the seller have to sign it before a witness (usually the agent) at the Registration Trustee office.
The buyer also needs to pay a standard 10% security deposit on the property to the Registration Trustee, which is returned once the property transfer is finalized.
3. APPLICATION FOR A NO OBJECTION CERTIFICATE
Your next step is to meet with the developer, the seller, and the real estate agent. The objective of this meeting is to apply and pay for a No Objection Certificate (NOC) to transfer the ownership. The developer will issue the NOC only if there are no outstanding service charges on the property.
4. EFFECTING THE OWNERSHIP TRANSFER WITH DLD
Once you’ve obtained the NOC, the last legal step of buying a property in Dubai is meeting the seller at the Dubai Land Department office for the transfer to become effective.
For the property transfer to take effect, you must have the following documents ready with you before visiting the DLD office:
- A manager’s cheque for the property price payable to the seller
- The original identification documents of buyer and seller (Emirates ID, passport and visa)
- The original NOC issued by the developer
- Signed Contract F (MOU)
The new title deed will be issued in your name after the formalities have been completed, and you will become an official property owner in Dubai.