Tuesday, February 18, 2014

Whether being local resident, expat or overseas investor, if you want to buy a residential property in Dubai, you will need to consider few basic things in order to avoid becoming the victim of scams. Its better consider taking professional legal advice to understand legal requirements of buying assets in the city.

Is buying property abroad is what you really want to do?

Being a multifaceted process, buying properties in Dubai is a huge process. Buyers are allowed to purchase assets in off plan projects and secondary developments that have been completed. Especially if you are an overseas investor or expat living and working in the city have to think carefully as buying asset in another country is a big decision which essentially requires special attention. You may get allured with luxury lifestyle of the city but actually don’t want to buy a house to live forever. Unnecessary enthusiasm and urgency in making decision for buying a house abroad may not be happy decision for everyone. It’s better identifying the needs and personal interest before making such decisions. Is buying a house abroad is what you really want to do?

How to buy off-plan residential property in Dubai?

Buying an off-plan asset is an easiest way to become the homeowner in Dubai. Online registration is the first step of process. If you got yourself registered successfully, then next step is to visit developer sales center on pre-decided date and time to choose unit after paying initial deposit of 15 percent of the total cost of unit. After fulfilling these steps, you need to wait for two to three years to get the keys of your house. This duration depends on project size and construction time.

How to buy assets in secondary markets?

Despite its speed, buying assets in secondary market depends on several crucial factors like finances. Having sufficient finances is not only important from buyers viewpoint rather it is also an important aspect for seller. Financial status of seller is also very important. If he has mortgage on an asset which he wants to sell, then buyer or investor, who want to buy assets with unpaid mortgages are required to clear remaining mortgages in order to get title deed for that asset from Dubai Land Department. In fact the buying process is simple and easy. There are certain other factors that can complicate buying process. Leased units, unpaid mortgages, overseas homeowners are the few factors complicating the process. Incase homeowner is living abroad; prospective buyers will essentially need attested power of attorneys. First time buyers or sellers entering in the market should consider consulting RERA authorized brokers and real estate agents to get reliable support during the process. Buyer’s careful attitude and concern to research on his own is also a vital factor for successfully buying residential assets. Asking questions with seller and neighbours of the unit you are going to buy will proffer you sufficient information that let you make informed decision.

Signing the Contract

As soon as the buyer offer has been accepted, the seller agent produces memorandum of understanding or in other words contract that outlines everything from cost to responsibilities of both the parties. At this stage 10 percent of the total property value is being deposited in the name of seller while seller agent usually detained the cheque. Whether being purchased via mortgage or cash, buyer bank will carry out valuation with the help of an external chartered surveyor company. Detail property inspection is done and findings are reported to the bank. Once the buyer obtains final approval, application will be submitted to developer in order to get (NOC) No Objection Certificate by seller. It takes seven days to be completed. NOC will be only valid for two weeks only.

Time frame of buying Dubai property

After getting final approvals, NOC and bank clearance letters from sellers (if required), buyer and seller decided and fix appointment at the land department to complete transfer. Complete buying process takes 10 to 14 days including everything from offer to get keys. In case there are unpaid mortgages then it takes almost 45 days to complete process of buying. Buyer and seller meet at land department in the presence of agents and bank representatives to complete the process of transfer. After having all the process registered and paying 2 percent plus Dh 315 to land department, property purchase price to seller and commission to agent buyer is enable to get title deed along keys and access cards.

Following this stepwise guide of buying Dubai property, you will successfully become the proud owner or investor.

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