Buying Resale Property (freehold) - steps

1. Viewing of the property - Make sure to use a Professional agent, and avoid visiting the same property with multiple real estate agents as this can lead to a dispute over which agent deserves the commission. The seller must have a valid title deed to the property. The Dubai Land Department offers ownership authentication services, if these are required.

2. Agreement of Sale or MOU between buyer and seller At this point, an Holding deposit (usually 10% of the sale value) is paid in the name of the seller. If the purchase is made directly from the developer, the brokerage fees will typically not be charged.

3. Financing to be secured Any mortgage or outstanding payment against the property must be cleared before the sale can be finalised (this includes any mortgage cancellation fees). If the property is being purchased with a fresh mortgage, the buyer’s bank will likely inspect the property in order to carry out a valuation. Typically, a down payment of 25% is required from foreign buyers.

4. No Objection Certificate to be secured A NOC from the developer is a mandatory requirement when transferring a property to a new owner. The seller will apply the NOC and ensure all maintenance/service fees and bills are cleared in order to obtain this document. The NOC may be subject to a nominal fee, to be paid by the seller. The developer may also require to pay a refundable deposit to be returned when a copy of the new title deed is presented.

5. Registration with Dubai Land Department (DLD) Both buyer and seller must be present in person to complete the transaction. A power of attorney may represent the individual in case they are unable to attend.

6. The final payment for the property (made in the name of the seller) and any additional fees should be cleared at this point. The following fees typically need to be paid: a. 2% brokerage fee to the real estate agent b. 4% transfer fee to the DLD (typically split as 2% from the buyer and 2% from the seller) c. approx. AED 4,000 fee to DLD for registration of property (for properties over AED 500,000 in value) d. approx. AED 580 fee to DLD for issuance of the title deed e. Mortgage registration fees to DLD (if applicable – the fee is 0.25% of the loan value)

In addition, buyers must be prepared to pay any necessary maintenance or service fees to the developer/ owner’s association on an annual or pro rata basis.

7. Issuance of the title deed in the name of the buyer The title deed is the recognized certificate of ownership in Dubai and issued by the DLD. Once the title deed is issued, the keys are handed over to the buyer.

After the purchase is complete, an application should be made to update the ownership records with DEWA – the Dubai Electricity and Water Authority. The seller’s signature may be required for this application, and a new connection fee will apply.