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CHECKLIST FOR BUYING REAL ESTATE IN UAE
Real estate investment in a fast-growing market such as the UAE, specifically property in Dubai, is thrilling and rewards a lot. However, it is important to note the fine details of real estate law and property law in UAE, more so before attempting to go into anything. To be a seasoned or first-time investor, it’s very prudent to understand the legal regime and follow the rules set out to regulate the conveyance of property.
This article shall take you in and out of the nitty-gritty involved in buying property in Dubai, hence providing you with the necessary insights to make the acquisition journey smooth. Acquiring property in the UAE demands a lot of consideration and due diligence. One has to know the land law and the relevant regulations in Dubai regarding property transactions to make informed decisions.
Purchasing real estate in the UAE for a new home, investment, or just a peaceful retreat is one of the major decisions in a person’s life. A person should, therefore, handle this issue wisely, and before turning it into a reality, a lot of research needs to go into it. The following guide shall help you sail through the complexities of property law so your foray into the UAE real estate market is no longer stressful but a success.
Alternate means of saving and acquiring property stressed in this checklist will help one reduce the burden associated with property purchases, if not all, by using this checklist, one would be able to relieve oneself of all the related stress when looking for a home in the UAE and, therefore, have an informed and smooth property-purchase process.
HOME BUYING CHECKLIST
- Market Research: Do enough market research and consider a few options. Avoid quick decisions and get advice on the value of the property from a real estate agent registered by RERA.
- More Savings, Less Spending: Have a good amount of savings for associated unpredictable expenses, and strive towards having higher deposits to reduce the monthly installments paid.
- Budgeting: It will be of much help if one bears in mind the 30% rent rule of thumb.
- Pre-approval of loan: A pre-approved loan makes the purchase faster while at the same time strengthening your negotiation power.
- Aware of the future: Be sure to check the proximity to hospitals, schools, or other shops.
- Negotiate more: Don’t hesitate to have your say in negotiating the terms until you are satisfied with what is written in the contract.
- Go to Open Houses. Ensure that you follow through with attending open houses and check each property well. Go there prepared with your questions and have a chance to take photos and notes.
- Team Up with Professional Real Estate Agents. A professional agent will guide you to avoid pitfalls and make the procedure less intimidating.
- Avoid A Drop in Your Credit Score. Keep employed, do not take a fresh bank account take fresh loans, or any large purchase during the purchase process
- Review your Contract. Make sure you read your agreement keenly and negotiate any disputes that may be there.
Ensure that the real estate development is registered with RERA. This will prevent you from falling into a fraudulent real estate scheme and will be compliant with localized laws. Verify the Authenticity of Off-Plan Projects and make sure that all the below attached documents are there.
- Passport
- Emirates ID
- Sales Contract (Form F/MOU)
- No Objection Certificate (NOC)
- Proof of Payment
- Original Title Deed
- Verification Documentation
- Power of Attorney (for remote transactions)
- Other documents (if funds sourced through a mortgage)
You will be safeguard against any legal or financial problems by making sure that all of these documents are in order and have been checked. Now let’s explore step-by-step process for buying a home in the UAE
- Get Your Budget Right: Before identifying a property, set how much money you are willing to spend for the same.
- Get Mortgage Pre-Approval: With a mortgage pre-approval, buying is done easily and hassle-free. If it isn’t arranged, one should get it proactively arranged from any bank.
- Real Estate Agent: Engage a RERA-qualified real estate agent to make things easier. A licensed broker shall be representing you in negotiations or simply helping you in finding a property that is suitable for your needs.
- Offer: The moment you shortlist a property, hurriedly make an offer. This leaves them with less time to weigh other engagements while negotiating for better terms.
- Deposit Payment: Once they agree on the price, the buyer and seller then commit to agreeing within the Memorandum of Understanding or, for the case of freehold property by RERA, by Form F, a document stipulating an agreement. They effect the payments through a 10% deposit of the property value by the buyer to the seller, a post-dated cheque for the broker’s commission.
- Hire a Conveyancer: A licensed conveyancer will help in the legal process of changing the property from the seller to the buyer.
- Get the NOC: The seller needs an NOC from the property developer, stating that there are no pending dues against him.
- Property Transfer: Transfer the property to the Dubai Land Department. One has to pay the DLD transfer fee, calculated as 4% of the property value, along with registration charges. After registration, a title deed would be returned to the new owner.
Buying real estate in the UAE, especially in Dubai, calls for planning, research, and adhering to the law. The checklist that follows will enable any potential buyer to confidently deal with all complexities that come with the market and ensure a smooth and successful acquisition. This includes researching the market, budgeting well, seeking a pre-approval letter from a bank or finance institution for the mortgage, and involving qualified professionals who will help you complete the process. All legal documents need to be in order and verified to avoid legal or financial pitfalls. With diligence and the right approach, buying property in Dubai can be rewarding and effortless.
