Purchasing a resale property in Dubai can be an attractive option, offering immediate availability and the ability to physically inspect the property before buying. In Dubai, resale property transactions are commonly referred to as secondary market transactions. These properties are already completed and owned by individuals who are reselling them. In contrast, purchasing a new property directly from a developer is part of the primary market, often involving off-plan projects that are still under construction. If you’re interested in buying new properties, you can check out the buyer guide.
In this blog, we will focus on the resale property process. Understanding the resale property market in Dubai and following the necessary legal steps are crucial to making a well-informed purchase. Here’s a step-by-step guide that covers essential aspects such as costs, title deed considerations, and legal procedures.
Why Buy Resale Property in Dubai?
Resale properties in Dubai offer several advantages, including immediate ownership and the ability to occupy the property or rent it out right away. Unlike off-plan properties, resale properties provide you with a complete view of the home, neighborhood, and community. This clarity helps you make a more informed decision when compared to off-plan properties. Additionally, resale properties often come with more room for price negotiation and flexible payment terms. Whether you are buying for personal use or investment, resale property in Dubai provides a practical and profitable solution.
Understand the Dubai Property Resale Market
The first step in the procedure to buy a property in Dubai is understanding the resale property market. Dubai’s real estate sector offers a wide range of options, from luxury villas to affordable apartments. Market trends and neighborhood development play a significant role in determining the best time to buy. Keeping an eye on the market and working with experts can help you find the best investment opportunities. It’s also important to familiarize yourself with how to invest in Dubai real estate, as knowing the best investment strategies will guide your purchasing decision.
Hire a Registered Real Estate Agent
One of the most critical steps in buying property in Dubai process is working with a licensed real estate agent who is registered with the Real Estate Regulatory Agency (RERA). An experienced agent will help you identify the right resale properties, negotiate deals, and handle the paperwork efficiently. Your agent should have a solid understanding of the resale property market and guide you through each step.
Sales Agreement and Memorandum of Understanding (MOU)
Once you’ve selected a resale property, the buyer and seller must sign a Memorandum of Understanding (MOU), also known as Form F. This document outlines the terms and conditions of the sale, such as the price, payment schedule, and other relevant details. At this stage, you are required to pay a 10% deposit, securing the property in your name. Before signing, it is essential to read all the terms carefully and consult your agent or lawyer to ensure everything is correct.
Pay the Deposit
Upon signing the MOU, the buyer typically needs to pay a 10% deposit of the agreed price. It’s best to make this payment into an escrow account for added security.
Obtain a No Objection Certificate (NOC)
The seller must obtain a No Objection Certificate (NOC) from the property developer. This document confirms that all service charges and other dues have been settled. The NOC is necessary for the title transfer and is usually obtained within a few days.
Title Deed and Ownership Transfer at Dubai Land Department (DLD)
The most critical step in buying a house in Dubai’s resale market is transferring ownership at the Dubai Land Department (DLD). Both the buyer and seller (or their representatives) need to be present for the title transfer. At this stage, the remaining purchase price is paid, and the title deed is issued in the buyer’s name. Key costs involved in this step include:
- DLD fee: 4% of the property price.
- Title deed issuance fee: AED 250.
- Commission: Typically, 2% of the property price is paid to the real estate agent.
Mortgage Application (If Applicable)
If you plan to finance your resale property with a mortgage, finalize your loan application with the bank. Dubai offers various mortgage options for residents and non-residents alike. It’s advisable to obtain pre-approval before signing the MOU to avoid any delays. For more detailed information, you can check out the mortgage application requirements for UAE banks.
Final Steps: Utility Connections and Registration
Once the title deed has been issued, the final step is setting up utilities such as electricity, water, and internet services. Ensure that any outstanding service charges or fees with the developer are cleared before finalizing the transaction.
Resale vs. Off-Plan Property
Both resale and off-plan properties have their benefits. While resale properties offer immediate ownership and use, off-plan properties can be lucrative investments due to potential price appreciation during construction. Investors may want to explore both avenues. To further understand the difference, you can learn more about the off-plan property market in Dubai and make an informed decision.
Conclusion
Buying a resale property in Dubai can be an enriching experience if you follow the correct procedure. You can make a smart investment by understanding the resale property market, working with registered agents, and budgeting for all the associated fees like the DLD fee (4%) and title deed costs (AED 250). To explore additional property for sale in the UAE, it’s advisable to consult real estate professionals who can guide you through the process seamlessly.
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