Buy a Property in Dubai as a Foreigner

In 2002 the regulation was approved for the foreigners so that they can buy a property in Dubai. Ever since the real-estate business is growing rapidly. The government introduced the free threshold zones where the foreigners can purchase the property irrespective of the work visa is issued or not. Freehold area is designated areas by the Ruler of Emirates where you can also buy the leasehold ranging from 30-99 years.

Timeframe

After the “Agreement of Sale” is signed, duration of 30 days is required to complete the property transaction.

Stepwise Procedure

The procedure is simple and detailed stepwise process is mentioned below

1.    The agreed terms and conditions between the seller and the buyer.

2.    A dully signed MOU (Memorandum of Understanding) with initial deposit i.e. 10% already paid.

3.    Both parties should be present at developer’s office in order to apply for “No Objection Certificate” to sale the property.

4.    NOC will be issued once all the dues outstanding are paid fully to the developer.

5.    Both buyer and seller can proceed to Dubai Land Authority to transfer the property.

6.    Once the entire price paid to the seller in the form of the cheque the new ownership will be issued by Dubai Land Department.

7.    In case the buyer is purchasing with a mortgage the involvement of bank is compulsory. While on the other hand if the seller has the mortgage the seller should settle the mortgage in full prior applying for the NOC.

Required Documents

Original Passport is required in order to purchase the new property.

Fees

The following fees will apply in case of sale or purchase of property

1.    The fee for the issuance of NOC which is usually between 500-5000 AED, which has to be paid to the developer by the seller. Some developers also impose the fees to buyers as well which will be refunded later once the new ownership is presented to the developer in order to update the land record.

2.    A commission of 2% is applied by the Real Estate Agent.

3.    A sum of 4% of the transfer fee is applied to the purchase price plus the admin fees which can go up to 5000 AED paid fully to the Dubai Land Department.

4.    The fee for the mortgage at the rate of 0.25% is applied to the registered loan amount payable to Dubai Land Department.

5.    The annual service charges to be paid in full to developers.