The certain laws that severely limited foreign ownership in The Arab world, once characterized by unrest and uncertainty, which was an unpopular place for foreign investment in the real estate sector before to 2002. But when the Freehold Decree was presented as formal legislature permitting foreign nationals to buy, sell, lease or rent property, the Middle East and Dubai in particular, became a significantly popular destination for real estate investments. The buying process in Dubai is quite simple contrasted too many other countries in the world; but can be both an advantage as well as an obstacle to buyer, while the buying process is fairly straight forward in some cases.
Understand the buying process in Dubai – property can be obtained either ‘off-plan’ from a developer or ‘resale’ from a private seller. When buying off-plan, buyer will need to submit their passport, a reservation fee, whichever decided by the Sales and Purchase Agreement (SPA) that commits both parties to the agreement. For properties that are still under plan, ensure that the agreement includes a completing date and any compensation to be paid. When buying resale property from a private seller, outlines the terms and conditions of the agreement, after which the buyer usually puts down a 10% deposit of the property cost to ensure his purchase of the property, pending confirmed financing. Once financing is acquired, the transfer of deeds can take place.
Consider why you want to buy property – If the main purpose of buying property is for investment, most purchaser will be likely to rent out such a property. First to look at the property market and study the types of properties that have the top rental yield. Investing in a 1 or 2 bedroom apartment would be a good investment rather than funding in a villa purchase.
The importance of due diligence – it is important for buyers to ask number of questions to discover the position of either the developer or the real estate agent. Whether buying off-plan or resale properties, when buying from a developer, in most cases the unit you buy is not even ready so consider developer’s reputation particularly with respect to quality as well as being able to deliver on time. If you intend to buy through a real estate agent, find one that is authorized with the Dubai Land Department.
Have the property surveyed – if you want to buy an existing property from a private seller, it would be important to look the services of a registered, professional surveying company. Surveyors can analyse the property in question by doing a thorough check of the area and can inform potential buyers. You want to make sure you don’t inherit any big problems down the line. Once you take possession of the property in Dubai.
There are some other important things to keep in mind like; always seek specialist advice. It is highly recommended that buyers seek professional legal advice to help them with the buying process, although it is not mandatory by law to do so. If you intend to buy a property with a mortgage, it is necessary to request that an opt-out clause be added in the sale agreement or Memorandum of Understanding .When buying a property, ensure that you will be collecting a title that is free from any responsibility or debt. It is the seller’s duty to get an N.O.C from the developer’s office. Get ‘pre-approval’ from your bank before proceeding with any deal. This can save many hours for both the buyer as well as the real estate agents. keep in mind that there may be many other fees and costs linked with a property purchase transaction, like legal fees, developer fees or fees to be paid to real estate agent, land registration and maintenance fees may also apply. And last not the least, Read and understand the contract carefully.
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