UAE is one of the secure places to live in the world, the comfort to live, and the government makes UAE attractive, many people wanted to live in UAE. If you are planning to buy a house in UAE, you can follow the procedures.
Here are the steps to buy a house in UAE:
- Once the buyer and seller have established an understanding (MOU), a Contract for Sale and/or a Memorandum of Understanding must be executed. A deposit, often 10%, is also required at this point to show commitment
- After that, the seller must pay any outstanding expenses to the builder, such as service charges, and submit an application for a No Objection Certificate (NOC), which enables the seller to sell the home in return for a one-time deposit
- In the event that the buyer is applying for a loan, the financing company will be involved in this procedure. In the event that the seller has a mortgage on the property, the buyer must pay off the seller’s debt in full before completing the NOC application
- Ownership can officially transfer after the NOC has been issued, The Dubai Land Department (DLD) offices, where this meeting would be held for properties based in Dubai, should be attended by representatives from both sides
- The manager’s cheque payable to the seller shall be used to pay the purchase price on the day of transfer. After these procedures are complete, a new title deed will be issued in the buyer’s name
Documents required buying a house in UAE
The following documents are needed to buy a house in UAE:
- Bank offer letter to the buyer (if buyers’ mortgage is sanctioned by bank)
- Buyer and seller IDS
- A real estate title deed
- No objection certificate from builder
- Proof of mortgage settlement
- Seller service charge clearance letter
- Final bills: DEWA, A/C etc
Keep track of all fees
When creating an ideal budget, be cautious to account for fees and other costs. There are some important considerations to make and they are as follows:
- The price adjustments for a NOC can be significant and range from AED 500 to AED 5,000 (VAT excluded)
- It’s vital to remember that some builders will also demand a second refundable deposit. Upon delivery of the new title deeds to the builder’s office by the buyer, the deposit is returned
- In addition to the transfer fees, which are estimated at 4% of the purchase price, a further payment of AED580 is necessary to cover administrative costs
How to buy property on Mortgage
If you’re taking out a mortgage to buy a property, the legal procedures will change a little. Before you are signing the selling contracts, you must obtain a mortgage pre-approval. Before requesting the NOC, the DLD must first approve the mortgage.
The Bank Mortgage Arrangement fee, which is 1% of the lent amount, is one example of additional costs. In addition, a Property Valuation cost of AED 2,500 to 3,500 + 5% VAT is charged.
Legal steps to buy a house in UAE
There are some legal procedures to be followed to buy a house in UAE and they are as follows:
- Make a contract between the buyer and the seller
- Sign the agreement of sale
- Application for no obligation certificate
- Effecting the ownership transfer with DLD
You have to follow all these steps and legal procedures and have to research about things to buy a house in UAE. Choose the right ones and live your life at comfort.