If you are looking to sell property in Dubai for the first time, we have put up a step-by-step guide to help you with the process. When it comes to properties for sale in Dubai, whether an apartment or an investment property, certain procedures must be followed. Let’s go over the specifics.
BEFORE POSTING YOUR PROPERTY FOR SALE, THESE ARE THE STEPS TO TAKE
The Emirate’s real estate industry is prospering, according to the PropertySearch 2022 Dubai annual property sale market report. Yet, numerous factors must be addressed before listing houses for sale in Dubai. Those selling their first home are often unsure about where to begin or how to proceed.
We’ve developed a list of actions to do during the procedure. Let’s start with the essential procedures to take before selling property in Dubai.
LOOK FOR A GOOD REAL ESTATE AGENT
Choose one good real estate agent in Dubai to begin the process. Check that they are RERA-approved. The agents promote and handle your Dubai apartment for sale. They also look after Dubai villas for sale.
All RERA-approved real estate agents in Dubai follow the Dubai Land Department’s real estate business ethics (DLD). This means that the agents are knowledgeable, trustworthy, and professional. Check an agent’s RERA card before hiring them.
To that end, consider the following factors when determining which agency is best for your Dubai property for sale:
- Do they have knowledge and expertise in the field of your choice? For those who are selling apartments in Jumeirah Lake Tower (JLT), for example, the perfect agent is one with a track record of finishing property sales in JLT and surrounding locations.
- Evaluate whether you and the agent get along professionally. This is crucial since you want an agent that provides detailed information before listing your house for sale. You should also feel at ease discussing all of your problems with them and seeking expert guidance as needed.
- A property agent in Dubai that adheres to the intended path will lead you through the process, assist you in determining a realistic selling price, completely develop a marketing plan for your house, and assist you in selling property in Dubai.
THE BENEFITS OF HIRING A GOOD DUBAI REAL ESTATE AGENT
The following are some of the benefits of collaborating with a real estate agent in Dubai.
- Hiring a Dubai real estate agent saves time and money. They will stage your real estate for sale, take possible buyers on property tours, have discussions, and, if necessary, employ brokers.
- Proficient real estate brokers have contacts that can help you locate a suitable buyer for your Dubai home for sale.
- They help you figure out an appropriate price for your Dubai homes for sale based on genuine comparative market analysis data.
- Real estate agents handle all of the necessary paperwork to make the process of selling property in Dubai as simple as possible.
- They assist in identifying any essential maintenance before beginning the process of selling the home.
- Real estate professionals guide you through the complete selling process in Dubai.
FORM A
Sign a contract with the real estate agency you choose to sell your home in Dubai. To legally mandate the marketing and brokering of your property to the agent, one of the RERA Forms – Form A – is necessary.
The form comprises property information, agent commission, service costs, payment schedules, mortgage status (if applicable), and listing information. When FORM A is signed, it is submitted to the DLD’s Trakheesi system for approval. If accepted, you will be given a permission number to continue advertising your property.
ADVERTISING YOUR PROPERTY
To advertise a property in any part of the world, it must be promoted, and Dubai is no different. Ads for homes must include all relevant data, images, and videos to entice possible buyers. Real estate agents are in charge of listing homes on the appropriate web platforms.
You may also publish your own advertising and learn about real estate photography strategies for listing properties online. Adverts in newspapers and on social media can also aid with property sales.
That being said, it is always a good idea to evaluate your property in Dubai before listing it for sale.
When you’ve advertised, make sure your property is ready to sell.
STEPS TO TAKE AFTER FINDING A BUYER
If you’ve found a buyer for your Dubai home, consider the next steps.
SIGNING FORM F
Form F, also known as the Memorandum of Understanding (MOU), is the sales contract between the buyer and seller of a property. The form contains all of the terms and conditions agreed upon by both parties, such as property data, price, selling charges, both parties’ names, the transfer date, and other relevant contract details.
A dated FORM F becomes a legally binding contract if the buyer and seller initial it and an agent witnesses it. Check the correctness of the details supplied in the form after properly reading over the details. The buyer pays the down payment as a commitment to the purchase by completing FORM F.
Obtaining the NOC
To sell property in Dubai, a No Objection Certificate (NOC) is required. To finalize the property transaction, the Dubai Land Department requires a NOC from the property developer. The NOC comprises the developer’s certification that the seller has cleared any debt or obligations owed to them and has no objections to the transaction.
The fees for issuing a NOC vary depending on the developer. The fees often vary between AED 500 and AED 5,000. The NOC fee adds to the cost of selling a home in Dubai. The NOC is typically provided within five to seven business hours. The following documents are necessary to apply for the NOC:
- The Title Deed/Oqood (for off-plan properties)
- Your Emirates ID or passport with a valid residency visa
- Copy of FORM F
TRANSFER OF OWNERSHIP IN DUBAI LAND DEPARTMENT
The final stage in the selling of a property in Dubai is the transfer of ownership. To transfer ownership, all parties involved, including the seller, buyer, and agent(s), must go to the local DLD trustee’s office and complete the following steps:
- The buyer pays the purchase price remaining amount
- The seller pays the transfer fees to the DLD
- A new Title Deed is issued in the buyer’s name
Moreover, for a smooth Dubai property ownership transfer process, carry the following documents:
- Form F (MOU)
- NOC from the developer
- Copy of the title deed
- A cheque to the seller (this has the balance amount of the purchase price)
- A cheque to the Dubai Land Department
- Original passport, visa and Emirates ID of the buyer and the seller
MORTGAGE SELLERS MUST TAKE THESE STEPS
Before the NOC is given in the case of a mortgage transaction, the buyer must satisfy the seller’s mortgage. The bank must be involved in this. To save time, it is best to begin the procedure with your bank or lender on the day the MOU is signed. They will provide a liability letter upon request.
With some banks, this can take up to two weeks. To safeguard the buyer from clearing the seller’s mortgage, cash-paying purchasers can have the property blocked at the Dubai Land Department Trustee office.
However, if the buyer intends to acquire financing, their bank will work directly with the seller’s bank to ensure a seamless transaction. Here are some further information about seeking a sales registration of a mortgaged property in Dubai.
DUBAI PROPERTY SELLING FEES
The costs of selling property in Dubai for ready, mortgaged, and off-plan properties are detailed below.
NOC Fees: One of the upfront payments that sellers must pay when selling property in Dubai. The fees often vary between AED 500 and AED 5,000.
Agency Fees: Another cost that must be paid when selling property in the Emirate is the agency fee. In Dubai, selling agents typically charge 2% of the property’s sale price. FORM A specifies the proportion of the sale price to be paid to the agent.
Dubai Land Department Fees: The Dubai Land Department charge is normally 4% of the sale price of the property. This portion is normally divided equally between buyers and sellers. However, the percentage due by each party is determined by the buyer-seller selling purchase agreement.
Transfer of Ownership or Admin Fees: The transfer of ownership or admin fees are another significant expense to consider when selling property in Dubai. This charge is payable to the registration trustee offices of the DLD. This fee is either paid in whole by the buyer or split between the buyer and seller, depending on their agreement.
Nevertheless, the charge for transferring ownership is determined by the sale price of the property:
- If the property’s sale price is less than AED 500,000, the transfer fee is AED 2,100
- If the property’s sale price is over AED 500,000, the transfer fee is AED 4,200
This is the general fee structure for ready properties in Dubai that are not on mortgage.
DUBAI OFF-PLAN PROPERTY SALE FEES
It is vital to confirm with the developers about all the terms and circumstances related to selling a home before its completion for off-plan property sale in Dubai. When selling a home before meeting a set proportion of the payment plan, there may be some extra costs to pay. Nevertheless, these parameters differ from developer to developer.
DUBAI FEES FOR SELLING MORTGAGED PROPERTY
There will be an extra cost for mortgaged homes in addition to the aforementioned fee for selling properties in Dubai. These are some examples:
Early Settlement Fee: As the name suggests, this is the charge for selling property in Dubai if the mortgage is settled early than expected. Nevertheless, as early settlement fees, the sellers are simply required to pay 1% of the remaining sum or AED 10,000, whichever is smaller.
Blocking Charges: Another cost involved with selling mortgaged property in Dubai is the blocking costs. The seller pays this charge to put the property in the buyer’s name before the seller’s mortgage is paid off. The fees typically vary between AED 1,020 and AED 1,520. This charge is paid to safeguard the buyer by ensuring that the property cannot be sold to anybody other than them until they pay off the seller’s mortgage.
Mortgage Release Fee: In addition to the registration trustee charge, the seller must pay this fee in order to release their current mortgage. The release cost for a conventional mortgage is AED 1,290, whereas the fee for an Islamic mortgage is AED 1,560.
This is all you need to know about selling a home in Dubai. The process of selling off-plan properties in Dubai is different.
Read More: Dubai real estate and property laws in 2023
