Decide On What You Want To Buy
A person may want purchase a home to live in, or residential property to sublet. Also, one should further decide on the kind of house or houses they want such as a villa or apartment. The type of property chosen will depend on with an individual’s need and, of course, what they can afford. One should find a listed property agent to advise on different aspects involved in acquiring and owning property in Dubai. If you are a single and can’t pay much for rent, then rent a bed space in Dubai is a most suitable solution where your room will be shared with others as well. In this case, Rentbedspace.com can help you in finding your bed space & if you want to rent room justrental.com should be first place to go.
Understand The Procedure Involved
The buyer and seller should discuss and agree on terms. The relevant documents such as reservation fees (in the case of off-plan property) should be paid before a sales agreement is made. The buyer and seller then meet in the offices of the developer to apply for a No Objection Certificate (NOC), issued for a fee. Having obtained the certificate, the investor and developer will proceed to the office of the Dubai Land Department for the official transfer of ownership. After completion of the required procedures, the buyer will be issued with a new title deed, in his name. In the case where the nature of the transaction is a purchase of resale property, a memorandum of understanding document (MOU) should be drafted. In case the purchase involves a mortgage, the buyer’s bank will conduct a valuation of the property to ensure that it is security enough for the bank to lend.
In the off-plan property sale, the fees for the No Objection Certificate will cost between AED500 to AED5000 and is paid to the developer. However, some developers require a refundable deposit amount which shall be refunded to the buyer at when he (the purchaser) obtains a new title deed at the lands office, and the records are updated.
When buying a property from locals, expats may be required to pay a 5%-15% deposit on the property, and an additional 1%-7% transfer fee may be levied. If the services of a real estate agent are used, a fee of 2% to 3% may be incurred. In the case where the mortgage is involved, mortgage registration fee of 0.25% of the registered loan amount is paid to the Dubai Land Department.
It is important to note that the real estate property business in Dubai is on peak and there may be more changes to property law that may be enacted. The introduction of freehold property ownership meant that nonlocals could own property for more than the period that is stipulated in lease agreements. However, investors should acquaint themselves further with the law on freeholds as it does not give full freedoms to investors. There are guidelines especially for villa owners on what can be done and what cannot be done. Attention can be paid to the following laws; Concerning Mortgages in the Emirate of Dubai, Guarantee Accounts of Real Estate Developments in the Emirate of Dubai No.8 of 2007.