If you’re searching for a new city to call home, there’s nothing like the beautiful city of Dubai. Situated right in the UAE, the heart of the middle east, Dubai is a destination that can easily look and feel like a tropical paradise – albeit one located right along the Persian Gulf. Dubai is a major city, and it’s full of towering skyscrapers, stunning resorts, exciting museums, restaurants, and nightlife, and a wonderful community filled with people from all around the world. If you’re interested in buying property in Dubai, then it’s a good idea to keep a few things in mind.
In this short article, we’re going to provide you with everything you need to know to buy property in Dubai. Let’s take a look down below and get started.
Step #1: Set A Budget & Do Your Research
The first few steps of your home buying search in Dubai will begin the same as they do pretty much anywhere else. First, you’ll set a budget for yourself, then you’ll conduct research to determine where you want to live.
Step #2: Partner With An RERA Qualified Broker
Your broker is going to be your partner during all of your negotiations. Once you’ve found a property, gotten preapproved from a bank, and secured a mortgage if needed, you’ll want to partner with a RERA Qualified broker. This will ensure that they’re capable of legally negotiating on your behalf.
Not to mention, they’ll also aid in your home searching process. They’ll have access to listings, they’ll be able to schedule viewings, and they’ll help you identify things to look for in your new prospective home.
Step #3: Find Your Home, & Secure A Mortgage
Then, when you find a place that suits your needs, you purchase it or secure a mortgage. However, it’s important to remember that you’ll need to receive a pre-approval prior to actually securing a property. And lastly, you’ll need to be able to place at least 20% down in the form of a deposit on your property in order to qualify for a mortgage – which is quite a sum of money in Dubai.
Step #4: Pay Your Deposit, Sign the MOU, & Receive The NOC.
Next, you’ll agree on the terms with your broker, and then pay the deposit – which is 20% of the purchase price. From there, you’ll go through a special process where you’ll work with your real estate agent, who will assist and walk you through the sales process. They’ll also help you receive the NOC on the property from the developer and draft an MOU (Form F) between the buyer and the seller.
Step #5: The “Block” and Transfer
If there is an existing mortgage on the property from the previous owner, you’ll have to go through the “blocking,” stage. This stage essentially comes down to securing a letter from the seller’s bank, and a series of checks to pay off the previous mortgage, a check to the seller for whatever equity they had on the property, one for transfer fees, and one for the agencies.
Step #6: Transfer. Welcome To Your Home!
Once all of the above has been completed, you’ll sit down with your agent, and the seller on transfer day. From there, the home will be transferred into your name, checks will be exchanged, and you’ll receive the keys to your new home.