Dubai has become a popular city for foreign investors and expats. In recent years changes to the law have opened up the Dubai property market to foreigners and this region has become the hotspot for investors.
It is now relatively straightforward to purchase property, provided that you have your legal papers and finances updated. You can buy properties from estate agents or from property developers but that involves certain risk factors too!
You should always check that the developer you are considering is registered and licensed with the RERA.
Estate agents generally sell resale properties- properties that have been built and have previous owners. Developers sell off-plan properties, which may be still under-construction.
There are 4 major steps to buying a property so read on to find out more.
1) Establishing Buyer and Seller agreement:
The first step is to negotiate and outline the terms of the sale with the seller. Do your research and speak to the agents if necessary to get a better insight, It is highly advisable to enlist the services of a reputable Dubai real estate consultancy beforehand so that they can help you to know and choose better! For properties that are still under construction, ensure that the agreement includes a completion date
2) Understand the Investment Process in Dubai:
In Dubai, property can be purchased either ‘off-plan’ from a developer or ‘resale’ from a private seller. When purchasing off-plan property, expats will need to submit their passport, along with a reservation form that outlines the terms and conditions of the deal. A reservation fee, of between 5 to 15% is then paid to draw up the Sales and Purchase Agreement (SPA), that commits both parties to the deal.
3) Conduct Property Survey:
Upkeep of a property is the responsibility of the owner so before purchasing, have the desired property surveyed by registered agencies; surveyors can assess the property in question by doing a thorough check of the premises and can alert potential buyers to the risk of any future high-maintenance bills particularly for large properties which may sometimes need repairing due to vacancy! Once you take possession of the property, its maintenance then becomes your responsibility so, as a buyer, you want to make sure you don’t inherit any major problems down the line and you can save up on this way as well.
4) Check Liability on a Property:
When purchasing a property, ensure that you will be receiving the ownership that is free from any liabilities or debt. It is the seller’s primary responsibility to obtain an N.O.C. (no objection certificate) from the developer’s office. Developers usually conduct checks on the property to ensure that it is free from any liability and will then issue the N.O.C. confirming that the said property is ready to be transferred at the Dubai Land Department.
5) Visit Dubai:
Internet will help you extensively but you should physically visit Dubai to know more about the location and the property! Do not solely trust vendors you have met online! This might lead to scams and losses. Speak to the people in the neighbourhood and make sure to interrogate and address issues!
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