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Frequently Asked Questions
Selling property in Dubai is far from a complicated process with the help of a qualified real estate agent. After finding a specialist, you will need to sign a ‘FORM A’, to formally mandate brokering and marketing with that agent. After the form has been submitted to the DLD’s Trakheesi system for a final approval your property will start being advertised on a number of platforms, both online and offline.
As soon as you find a buyer, you will have to sign a Memorandum of Understanding, or ‘FORM F’, which is a legally binding contract between the seller and the purchaser. Another necessary document that is needed during the selling process is an NOC letter from the developer, which can take 5-7 days to be issued.
The final step of concluding the sale is the ownership transfer, where the following must be provided: MOU, NOC, copy of the title deed, a cheque to the seller, 4% DLD fee and an original passport copy with a valid visa/Emirates ID.
When buying a freehold property in Dubai, the following documents are required:
A Valid Passport
Emirates ID (if resident of UAE)
Reservation Form
A credit card form as well if paying with card (usually for international clients)
A filled in CIF, i.e. Customer Information Form (in some cases)
The buyer and the seller sign an MOU if it is a property purchase from a reseller. The Memorandum of Understanding is an agreement between the reseller and the buyer about the terms and conditions of the sale transaction.
If buying a property directly from the developer, the SPA is signed. The Sales Purchase Agreement, or SPA, is an important document you sign with the developer that has all the agreed terms and conditions about the sale transaction.
- Filled Listing Sheet
- Title Deed or Oqood or (SPA) Sales Purchase Agreement
- Owner’s Passport Copy with signature
- Leasing Form signed by Owner
- Power of Attorney Document and POA’s Passport Copy with signature (if applicable)
- Filled Listing Sheet
- Title Deed or Oqood or (SPA) Sales Purchase Agreement
- Owner’s Passport Copy with signature
- Form A signed by Owner
- Power of Attorney Document and POA’s Passport Copy with signature (if applicable)
- Buyer chooses the property.
- Buyer and seller sign the sales and purchase agreement, where all the terms and conditions of the deal are mentioned: the purchase price, additional expenses (agency fee, transfer fee at the DLD, developer’s fee, service charge refund, etc), the transfer date of the deal at the DLD, terms of payment and clearly-defined responsibilities and penalties for both parties in case they fail to uphold the conditions set out in the agreement.
- On signing the agreement, the buyer pays the deposit. This is usually 10% of the purchase price.
- The seller applies for a no-objection certificate (NOC) from the developer in order to sell the property. The NOC is required for the transfer process at the DLD.
- Once the NOC is ready, the buyer and seller can transfer the property and register it on the buyer’s name. Usually, payments need to be made at the time of registration.
A property owner can appoint a licensed management company to manage his/her property, in which case the firm bears all responsibility of communicating with the tenant.
- Have an appropriate trade license from the Dubai Department of Economic Development;
- The brokerage company and all its brokers must be registered with the RERA. Upon registration, agency is given an Office Registration Number (ORN) and its agents are given a Broker Registration Numbers (BRN);
- In order to be registered with the RERA, all agents of a brokerage company need a certificate from the Dubai Real Estate Institute (DREI) and have to pass a professional test, administered by the RERA.
- Brokers are required to comply with a Code of Ethics, published by the RERA.
The Dubai market is a melting pot of cultures and it can be a daunting task to those new to the country. It is difficult to trace down who is responsible in the event that something goes wrong in a property deal. Real estate agencies act as intermediaries between buyers and sellers and as such, there is a clear account of who is responsible and both buyer and seller knows where to turn when something goes wrong. Not all agents in the market are registered and it is essential that homeowners and tenants make sure that they are dealing with a registered agent to safeguard their own assets.
As intermediaries, agencies are ethically obliged to work out a deal that is in the best interest of both parties. For example, the agency is responsible for collecting a deposit from the buyer and holding on to it until final payments are made to the seller. The buyer can be assured that he/she will receive the deposit back if something goes wrong with the deal on the part of the seller. Meanwhile, the seller is assured that they will be compensated if the deal is cancelled on the buyer’s part.
Off-plan property needs to be registered in the interim register through the Oqood system on receiving the initial sale contract. When the property is ready, a title deed will be issued in the name of the homeowner.
A registration fee of 4% of the property value needs to be paid along with a fixed amount for document preparation.