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The Property Buying Guide - 2024
Congratulations on your decision to buy a home in UAE! The city offers a unique blend of luxury living and vibrant culture, making it an attractive destination for homeowners. The administrative, financial and legal steps to buying a house or an apartment can vary wildly from country to country and may seem daunting. But, with the right guidance, your journey to owning a property in Dubai can be seamless. Our handy 10-step buyer’s guide is designed to walk you through the process of buying property in Dubai to make your move as easy as possible.
Set a budget & choose a location
The first and most important thing to do is set a budget. If you are a cash buyer, you also need to ensure that the funds are UAE-accessible when the time comes to transfer. Factor in the property price, a 2% agency fee, a 4% transfer fee and potential mortgage interest (around 3-4%). After setting a budget, think about the different areas you would like to reside in United Arab Emirates. Remember, not all properties in UAE are accessible for purchase by foreign passport holders. Keep your search to freehold areas like Dubai Marina, Downtown, and many others. Freehold properties grant you complete ownership of the property and the land the property is built on. You can easily browse properties for sale in the UAE here, and even look inside any residence you like with professional photos and videos.
Get a mortgage
If you need a mortgage, then having a reputable mortgage advisor on your side is a must. They can arrange bank pre-approval, which will dictate your spending limit. Don’t forget that a minimum 20% deposit is required for mortgage approval to buy property in the UAE if the property value is under AED 5 million. For properties that are priced higher than AED 5 million, you’ll need a minimum of a 30% deposit. To schedule a call with one of our trusted mortgage advisors, or to try our mortgage calculator while you contact us.
Your on-call independent broker
Securing financing can be a complex process. If it’s your first time investing in the UAE real estate market, having an experienced mortgage advisor by your side is a must.
We guarantee a personalised experience from the initial enquiry right through to mortgage approval. You'll get access to specialised market and financing knowledge, exclusive rates, and step-by-step support spanning the buying process, fees, timescales and borrowing limits.
Find a RERA qualified broker
Once you’ve set your budget, find a trustworthy RERA-qualified broker (ask to see customer testimonials as well) who can find your dream home or investment property. A RERA-qualified broker is a real estate agent in Dubai and Sharjah who has been certified by the Real Estate Regulatory Authority (RERA). You will need to sign a Form B contract with your broker to formalise offer negotiation representation. The Dubai Land Department (DLD) offers a free online resource to verify an agent's credentials. Simply visit their website or download the "Dubai Brokers App" to search for brokers by name, company, or their unique Base Registration Number (BRN). Don't hesitate to ask to see the agent's physical RERA card as well, to confirm the BRN matches the information you find online.
A Comprehensive Guide To The Role Of RERA In Dubai
Better Informed - 20 July 2024
The Real Estate Regulatory Agency (RERA) is a government body responsible for overseeing the real estate industry in Dubai. It was established by the Dubai Land Department on July 31, 2007, by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai. In this blog, we will discuss the role of RERA in Dubai's real estate and how it regulates property dealings in the sector.
Core Functions of RERA
RERA plays several key roles in the Dubai real estate market, including:
1. Making rules and regulations for real estate brokers and property owners.
2. Setting guidelines for the training and certification of real estate agents.
3. Issuing licences and monitoring activities related to property transactions in Dubai.
4. Approving banks and financial institutions that can manage escrow accounts for real estate projects.
5. Regulating and legalising rental agreements.
6. Creating reports and educating people about the real estate market in Dubai.
7. Helping clients understand property values based on established standards.
8. Introducing programmes that encourage people to work in the real estate sector.
9. Setting rules for the rights and responsibilities of everyone involved in buying, selling, or renting properties.
Settling disputes among buyers, sellers, and developers
RERA Forms for Real Estate Transactions
RERA has created forms to simplify and ensure consistency in real estate transactions. These include:
Form A: A form to outline terms between real estate agents and property owners/sellers.
Form B: A form that defines terms between real estate agents and property buyers.
Form I: A contract between the agents representing the buyer and the seller.
Form F: A purchase agreement, also known as a Memorandum of Understanding (MoU), signed by the buyer and seller.
Form U: A form used to terminate a deal or contract between the buyer and seller, with signatures from the agent.
Notable Initiatives by RERA
RERA has launched several initiatives in collaboration with the Dubai Land Department (DLD) to streamline real estate activities in Dubai. They are:
Dubai REST App
The Dubai REST app, available on Android and iOS, simplifies real estate activity management in Dubai. It updates project progress, escrow account details, and payment schedules. Users can buy, sell, mortgage, or rent properties and access services like dispute resolution and certification applications.
RERA Rent Calculator
On March 1, 2024, RERA updated its rent calculator to help tenants better understand rental adjustments upon lease renewal. The calculator shows results based on location, property type, current rent, and number of rooms and tells whether or not the property is eligible for a rent increase. The methodology also includes comparing properties with similar ones nearby.
Using the RERA rent calculator is simple:
> Go to the Dubai Land Department's official website and open the RERA Rental Index.
> Select the property type
> Fill in the required fields based on the property type
> Confirm the "Captcha" Verification and click "Calculate."
Dubai Broker App
Real estate brokers and owners must get certified, so the Dubai Broker App makes it easy for them to register online. The app uses real-time data to distinguish property brokers depending on their performance, specialisations, and accomplishments.
Ejari System
Ejari, which means 'My Rent,' is a system introduced by RERA in Dubai to regulate rental agreements. It lets tenants check the history of landlords and properties, ensures the lease contract is properly managed, and helps prevent fraud. Ejari also helps create laws that promote a fair and positive relationship between landlords and tenants.
Smart Judge Service
It is an efficient alternative to traditional legal proceedings for resolving real estate disputes related to real estate like property sales, leasing, and maintenance. This service allows a customer to obtain free legal advice, known as the rights of parties of the tenancy relationship, before initiating the case.
Trakheesi System
Trakheesi is an online platform that facilitates the registration and regulation of real estate brokers and developers. It offers a streamlined process for licence and permit applications.
No Objection Certificate (NOC) Initiative
The purpose of this initiative is to mandate developers to secure an NOC from RERA before selling off-plan properties.
Smart Investment Map (SIM)
The Smart Investment Map (SIM) is a digital platform designed to showcase and explore available properties for sale and rent in Dubai. SIM has a user-friendly interface incorporating various e-services, enabling users to easily select properties, engage with property owners, and conduct online transactions. It also provides investors with real-time data on market trends and regulatory updates.
Conclusion
The Real Estate Regulatory Agency (RERA) is a key player in Dubai's real estate market. It plays a crucial role in creating and enforcing rules, protecting consumers, resolving disputes, and conducting market research. RERA also builds international partnerships to strengthen the real estate industry. As Dubai continues to grow as a major global hub for real estate investment and development, RERA's work is vital in maintaining the integrity and success of the sector.
Make an offer
Get mortgage pre-approval and have your 10% unit deposit ready, so you can fast-track negotiations once you’ve found the perfect property and are ready to make an offer. This deposit is usually held in escrow by the agent until the sale is finalised.
Pay the deposit
Once both parties agree on the price, they will enter into a legally binding Memorandum of Understanding (MoU), which RERA calls Form F. The MoU must include full details of the contract you are entering into (such as rent paid or service charges due) as well as the agreed length of time until formal transfer. This is done via the Dubai Brokers App and you will also need to hand over a current dated cheque made out to the seller for 10% of the total unit price. A post-dated commission cheque made out to the brokerage you are using is also required at this stage. Be aware that there is a 14-day cooling-off period after signing the MoU, allowing you to withdraw from the purchase if needed.
Hire a conveyancer
Professional conveyancing services are usually required to assist with the sales process. A good conveyancer will hold your hand every step of the way and is responsible for conducting thorough checks on the property's title deed to verify ownership and identify any restrictions to ultimately facilitate the legal transfer of property from the current owner to the buyer.
The Conveyancing Process Explained: What Buyers and Sellers Need to Know
Better Informed - 18 Mar, 2024
Buying and selling a property is not an easy process, especially in a city like Dubai. In this process, there are always a few things that take time and require concentration from both sellers and buyers. If not handled correctly, the whole buying and selling process can be at risk. When you are selling or buying a property in Dubai, several steps need to be followed. For that purpose, you need someone trained and experienced on your side who can deal with government bodies, lenders, and developers and handle all the necessary procedures, requirements, processes, and policies. In this blog, we will explain what conveyancing is and how it works.
What is Conveyancing?
Conveyancing is the process of legally transferring property from one person to another. There are two stages involved in this process. The first stage is when both parties sign the contract, and the deal becomes final. The second stage is when the transfer of the property from one person to another is complete, and the buyer legally becomes the owner.
The legal matters involved in conveyancing, such as various financial and administrative duties, are complex tasks that need to be handled correctly. So, the right conveyancer will help you avoid the pitfalls and potential risks in this process. Hiring a conveyancer in Dubai is extremely important to understand the real estate market and get the right advice throughout the process.
What are The Responsibilities of A Conveyancer?
The major responsibility of a conveyancer is to oversee the purchasing process. Most of the home buyers and sellers do not know the documentation, work, and details involved in the selling process. Whether you are buying or selling the property, there are a lot of legalities involved, which a conveyancer can help you navigate. The responsibilities of a conveyancer include:
1. Preparation, review, and clarification of the legal documentation such as power of attorney (POA), memorandum of understanding (MOU), or contract of sale and purchase (SPA).
2. Inspect the property and its title certificates, checking the easement, title type, and other related information.
3. Calculate fees and taxes related to property purchase.
4. A conveyancer will deal with the financial institution or bank if the mortgage is involved in the property.
5. Communicate with the facilities management company or developers on your behalf to get the NOC for the property transfer.
6. Act as your power of attorney to represent your interests in front of other involved parties.
Handles the payment and completes the property transfer securely
The Process of Conveyancing
When the buyer and seller decide on the basic terms and conditions and agree on the property transfer, the conveyancing starts. A real estate agent or representative of the seller will draft the contract according to the format given by the Dubai Land Department (DLD), in which conditions of sale, the terms of the deal, the transfer date, and any outstanding particulars are mentioned. In this part of the process, it is important to verify the property and check the rights of both parties to avoid any problems.
After that, both buyer and seller have to negotiate the terms of the draft contract, which is usually done under the supervision of a real estate agent. The contract will be finalised and signed by both parties after they agree on the terms and conditions of the deal.
If you are applying for a mortgage to buy the property, it must be mentioned in the contract. The completion of the contract depends on successfully getting a mortgage from the bank. But, if the mortgage is delayed, it can affect the transfer date of the property.
The buyer and seller must exchange the contracts after signing and cannot back out from the deal. Otherwise, it will become a financial loss, and the affected party must be compensated. The buyer must pay the seller or its representative 10% of the property price to secure the deal. If the buyer backs out, the seller will retain the deposit, and if the seller fails to comply, a compensation price must also be paid to the buyer.
On the transfer day, both parties must be present at the Registration Trustee Office of DLD. If a buyer or seller is unable to attend personally, they have the right to give Power of Attorney to a lawyer or conveyancer to represent them at the time of the transfer. The buyer has to hand over the payment to the trustee officer in the form of a manager cheque.
After a successful transfer, the trustee officer will hand over the new title deed and keys to the buyer and a manager cheque to the seller. Having a conveyancer on your side will help ensure that there are no fraudulent activities and that the transfer is completed legally and in a timely manner.
Costs and Fees Associated with Conveyancing
The conveyancing process involves various costs and fees that buyers and sellers need to be aware of. Let's have a look at them.
1. Legal fees of a conveyancer
2. Registration fees for the transfer of ownership with the Dubai Land Department
3. Government charges such as obtaining clearances, approvals, and no-objection certificates (NOCs)
4. Buying property through a mortgage includes bank fees, such as application, valuation, and administrative fees.
The property transfer in Dubai can take up to 10 weeks. You cannot do anything to speed up the process. But if you have all the necessary documents in place, a ready pre-approval mortgage, and an expert conveyancer on your side, it will save you a valuable amount of time. If you are thinking about buying a house and looking for expert and trained conveyance professionals, contact us and get your work done without being stressed.
Obtain the NOC
Prior to the purchase, the seller will need to obtain a No Objection Certificate (NOC) from the developer who built the property. This is your assurance that the property is free from any outstanding service charges.
Block the property
If there is already a mortgage on the property you are purchasing, you will need to go through a ‘blocking’ process. The seller is obligated to obtain a liability letter from their bank, after which you will visit the Dubai Land Department (DLD) to ‘block’ the property. This is done through four cheques: one in the name of the seller’s bank for the outstanding mortgage; one in the name of the seller for the remainder of the purchase price; one in the name of DLD to cover the 4% transfer fee; and a final manager’s cheque* made out to the agency. *A manager’s cheque is a secure payment order (cheque) issued by the bank to an individual who has purchased said cheque.
Transfer the property
On property transfer day, you will meet at the broker’s office, along with your conveyancer and the seller. Property purchases can only be made in cash or by manager’s cheques, so don’t forget to have these ready. You will also need the 4% transfer fee cheque for DLD. Once the transfer is completed and the sale is DLD registered, you will receive your new title deed and property keys/access cards. For more information on legal steps and fees related to buying property in Dubai contact us.
Understanding the Legal Steps for Purchasing Real Estate in Dubai
Better Informed - 19 Nov, 2023
Buying real estate in Dubai is a complex process that requires careful consideration and understanding of the legal steps. If you want to purchase a property in Dubai, you must follow specific regulations for a successful and smooth purchase. The real estate sector in Dubai is governed by the Real Estate Regulatory Authority (RERA). RERA is responsible for protecting investors and ensuring fair practices within the real estate market. It regulates all the activities related to buying, selling, leasing, and mortgaging of a property. In this blog post, we provide an overview of the legal steps involved in purchasing a property in Dubai.
Laws For Buying Property
The Real Estate Law No. 7 of 2006: Land Registration Law regulates the legal aspects of buying properties in Dubai. Article (7) of this law narrates who can buy and own the property in Dubai. It states that you can purchase a property anywhere in Dubai if you are
A UAE Citizen
A GCC Citizen
According to this law, those who are not a UAE or GCC Citizen can also purchase real estate in Dubai, but only in certain areas that are designated for foreign ownership. The Ruler of the Emirate of Dubai determines the designated areas by way of decrees and regulations issued from time to time. The Dubai Land Department (DLD) enforces this law in the Emirate.
Designated Areas For Foreign Ownership Of Real Estate
The Dubai Land Authority publishes a list of areas where expats are allowed to purchase properties. They can purchase properties located in the designated freehold areas. It is important to check the local authorities and Dubai Land Department before signing any contract for a real estate purchase. Here is a list of some of the popular designated areas where a foreigner can buy a property:
Dubai Marina
Jumeirah Lake Towers (JLT)
Business Bay
Downtown Dubai
Emirates Hills
DAMAC Hills
The Legal Steps To Buy a Property in Dubai
There are 4 legal steps involved in buying a property in Dubai. You should follow these steps for a successful real estate purchase.
1 - Agree The Terms Of Sale
Once you have found your ideal property in Dubai, it is time to begin negotiations with the seller to agree the terms of the sale. It is strongly recommended that you use a qualified real estate agent because they will negotiate on your behalf to ensure that you get the best deal. At this stage you should agree on the purchase price, payment method (whether it will be a cash purchase or using a mortgage) and other important details like whether any furniture is included in the sale, to avoid any problems further down the line.
2 - Sign The Memorandum of Understanding
With all the key terms agreed, it's time to sign a Form F, which is also known as the Memorandum Of Understanding. This document can be obtained from the official website of the Dubai Land Department (DLD). This document will be used as the basis of the contract, but it can be amended to include the buyer and/or seller's own terms. If you are new to the Dubai real estate market, or there are complexities to the sale, then using a conveyancer can be a good idea to ensure that the agreement is legally compliant and has your best interests in mind.
Once the Form F is finalised, it should be signed by both the buyer and seller in front of a witness. This is usually done at the Registration Trustee’s office. At the time of signing, you should pay a standard 10% security deposit on the property, which is returned to you once the property transfer is complete.
3 - Applying For NOC From the Developer
After signing the MOU, it is necessary to apply for a No Objection Certificate (NOC) from the developer. The buyer, seller, and real estate agent need to meet at the developer's office. This document will confirm that there are no outstanding service charge payments due on the property.
4 - Transferring Ownership At DLD Office
Now, both parties need to go to the Dubai Land Department office to transfer the ownership of the property. Before visiting the DLD office, make sure you have the following documents ready:
1. A cheque for the property price, payable to the seller
2. The original identification documents of the buyer and seller (Emirates ID, passport)
3. The original NOC issued by the developer
4. Signed Form F (MOU)
The transfer of the property is done is a few short steps:
1. Submission of the above documents
2. The data is verified
3. Payment of the necessary fees (outlined below)
4. Confirmation received by email and new title deed issued
The transfer can take place in a single day, with a confirmation email sent to the buyer as well as the issuance of a new title deed in their name to confirm that they are the new owner.
Fees & Costs Associated with Buying A Property in Dubai
The costs and additional fees associated with the purchase of the property in Dubai are given below:
DLD Fees
When buying a property, there is a DLD fee to be paid, which is usually paid by the buyer. This fee is 4% of the purchase price plus AED 580.
Registration Fees
For properties under AED 500,000, there is a registration fee of AED 2000 + 5% VAT. For properties where the purchase price is over 500,000, the registration fee is AED 4000 + 5% VAT.
Mortgage Registration Fees
If you are purchasing the property using a mortgage then there is a mortgage registration fee of 0.25% of the loan amount + AED 290.
Agent Fees
A qualified real estate agent will typically charge a fee of 2% of the purchase price + 5% VAT.
Conveyancing Fees
Using a conveyancer is recommended to ensure a smooth and legally compliant transaction. Conveyancing fees range from AED 6000-10,000.
NOC fees
NOC fees vary depending on the developer but typically cost from AED 500 to AED 5000
Buyers must ensure that they clearly understand the rules and regulations of buying a property in Dubai. But, the legal steps involved in the buying process can be followed easily with the guidance of a qualified real estate agent and a conveyancer. If you are considering buying a property in Dubai, it is advisable to research thoroughly before committing to a purchase.
Congratulations and final steps
Congratulations, you are now a homeowner! One final task is to make sure all utilities are registered under your name; this includes things like gas, water, electricity and AC. Learn more about setting up utilities contact us.
How to set up your utilities in Dubai
Better Informed - 19 Nov, 2022
Dubai continues to attract thousands of new residents every month with its high salaries, low taxes and the scope of affordable properties. If you have just rented or bought a property, you will need to set up your utilities before you can truly enjoy your new space.
How to set up your utilities
Setting up your utilities in Dubai is a simple process. Both water and electricity come from the same company called DEWA (Dubai Electricity & Water Authority). It takes a few minutes to complete the online application form and pay the required fees. Alternatively, you can visit DEWA’s Customer Happiness Center and set your utilities up.
What documents/personal details do I need to provide?
Valid EJARI Number (for tenants).
Title deed (for owners).
Trade license for Non-Department of Economic Development Customer only (for commercial and industrial customers)
Passport Image/Emirates ID NO. for (GCC Nationals/Investors)
How much does it cost to set it all up?
DEWA activation charges:
AED 100 for connecting electricity and water (small meters).
AED 300 for connecting Electricity and water meters (large meters)
AED 10 for registration.
AED 10 for knowledge fee.
AED 10 for innovation fee.
*VAT will be charged as applicable
Security Deposit:
AED 2,000 for a Flat (Residential Premises).
AED 4,000 for a Villa (Residential Premises).
How soon will the service be activated?
DEWA will be activated within 24 hours of registration and security deposit payment.
Empower
If you live in a community where Empower (empower.ae) chiller services registration is required. You can register online with Empower e-Services, and the request process time will be 1 – 3 working days.
Owners will need:
Title deed or Sales & Purchase Agreement.
Passport copy with signature page.
Tenant will need:
Tenancy contract / Ejari.
Emirates id copy (front & back sides)
Copy of the VISA page.
Regarding the cost, there is a one-time connection fee of Dhs2,000 and an administration charge of Dhs1,000. The security deposit will cost Dhs2,000 for an apartment and Dhs3,000 for a villa.
If you have any further questions feel free to contact us by email at info@ansarikv.com or by phone on +971 50 6789 325. We’re available to help seven days a week!
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