Dubai Property| Off-Plan and Re-Sale Property
In 2002, Dubai’s crown prince issued the Freehold Decree, a formal legislation that allows foreigners to buy property, sell property, and rent or lease property at their own discretion. The purpose of decree was to increase international investment in U.A.E real estate and set emirate as a global hot spot.
After the freehold decree announcement, buying property in Dubai became easy and potentially profitable for foreign investors. With the rising rental cost in Dubai, and a robust property market that is continuously growing, buying property in U.A.E is becoming an increasingly attractive option for expats living in Dubai.
The purchasing process
It is really important to understand the process of purchasing property and also the rules of property ownership in Dubai. In order to buy property in Dubai, the buyer must be over 21 years of age. The first step is making a verbal offer to the seller. Once the offer is accepted, agreed parties makes a draft of sales contract; a deposit is made, the buyer attains financing, the seller confirm that the property is not charged or debit by anything that goes against what has been contracted, final payment is made or a payment schedule plan is fixed, and finally the deed is transferred.
The property purchased from a developer is called an “off-plan” purchase, and property purchased from a private seller is called a “resale” purchase.
Purchasing “off-plan” property in Dubai
When purchasing an off-plan property directly from the developer, buyers will need to submit a reservation form with their passport. The reservation form typically summarizes the buyers and seller’s personal details, all terms and conditions of the sales agreement, and the details of the payment plan.
Initially a reservation deposit, between 5% – 15 % or what has been otherwise agreed, is paid along with a drafted formal sales and purchase agreement.
If the purchasing property has to be completed by a developer, make sure the agreement includes the completion date of the property and also the ratio of compensation if the property is not completed within given time period. Moreover, if the property is to be furnished by developer, determine an appropriate deadline for furnishing the property.
The final step of the process of buying property in Dubai -the buyer must transfer the deeds and pay total cost of the property. If the property has yet to be completed then the property deeds will be transferred at the developer’s office, and if the property is already registered then this will be done at the Land Department offices in Deira.
Buying an off-plan property is very common in Dubai, if you are considering buying off-plan property, consult Greenhouse Real Estate now!
Purchasing “resale” property in Dubai
When purchasing a resale property from a private seller, a Memorandum of Understanding (MOU) will be agreed by the buyer and seller, it’s a document that summarizes the basic terms and conditions of the agreement. This document also mentions the date of the final transfer of money from the buyer to the seller.
After the agreement settlement, the buyer hand over a deposit, usually 10 percent amount of the property price, or else whatever amount has been decided. Deposit is often non-refundable, unless for some cases in which the seller is no longer able to sell the property to the buyer.
Now buyer must obtain financing, then formal transfer of deeds can take place. Buyer must pay 100 percent cost of the property before this can happen.
Contact us now!
Greenhouse Real Estate is a registered firm specialized in dealing sales and purchase of all kind of properties across Dubai and UAE. We offer a huge range of freehold properties, from spacious apartments, huge villas, luxury penthouses, warehouses and office spaces for sale and rent. For more information, call us now!