STEP BY STEP GUIDE TO SELLING REAL ESTATE IN DUBAI
1 The Presentation of Property.
Placing high priority on the best Presentation of Property (making the property look as presentable as possible) gives you the best chance of selling in a timely and profitable manner. This increases your chances of getting offers and the highest possible price for your property. We recommend that you make sure any cracks, defects or maintenance issues are dealt with before listing your property. We also recommend that you invest in a fresh coat of paint if need be and a full clean of the property along with ensuring that you have a tidy garden, if it is a villa.
2 Carrying out a market appraisal.
Your real estate consultant will come to your property to carry out a market appraisal. Proper pricing of the property will have the most influence on selling your property, so getting it right is key. Our agents will carry out a study to give you guidelines on pricing based on development, location and property type, along with planning a strategy for the best possible sale of your home.
3 Listing your property for sale.
In order to list your property, you will be required to sign a Form A and handover a copy of your title deed and passport. Form A is a contract between seller and broker outlining all the terms and must be in place by law in order to sell or market any home.
4 Marketing your home.
Marketing your home right is very crucial in order to get a sale. Roughly 70% of homes sell in their first 4 weeks of coming onto the market. Professional photos and descriptions in listings that are made premium and featured on all available portals will secure to get the widest audience possible. We also generate leads from social media and email campaigns with extended smart reach. This leaves no stone unturned in promoting your home to its fullest extent.
5 Showing the property to potential buyers.
Your property consultant will arrange for viewings of the property with potential buyers. As an industry specialist, your agent will not only show the property, but be able to offer information and answers to questions about the property, community, price, and all related factors around selling your property. Your agent will report back to you on solid leads, and facilitate negotiations on your behalf (and with your blessing on price range) with potential clients.
6 Seller and buyer agreement terms.
Once there is a serious buyer, both parties would be required to sign a memorandum of understanding (also known as an MOU and Form F). The buyer will also issue a 10% security deposit for the property.
7 What if you are a mortgage seller?
The buyer will be required to settle the seller’s mortgage prior to the NOC being issued. This will require bank involvement. To save time with this step, we recommend starting the process with your bank or lender the day you sign an MOU. They will issue a statement off accounts. This can take up to 2 weeks with certain banks.
8 Applying for the NOC.
All parties will meet at the offices of the developer to apply for a No Objection Certificate (NOC) to sell the property. The developer will usually issue the NOC against a payment of a fee (AED500-5000 depending on the developer) once the developer is satisfied that any amount due the developer in the form of service charges have been settled in full along with ensuring that any modifications the seller may have made have been completed as per the developer’s guidelines. Usually someone from the developer’s office will come and view the property once an NOC is applied for. Certain developers will also require a refundable deposit made by the buyer that is only returned once the buyer presents the new title deed at the developer’s office and their records are updated. (Processing can take up to 5 working days)
9 Arranging for utilities disconnection.
Speak with your utility providers and start the process of disconnection. By now all parties should know a date for transfer and finalizing. Doing so promptly can save any further delays should they arise.
10 Receiving the NOC.
Once the NOC is issued, all parties are able to go to the office of the Dubai Land Department to officially transfer ownership. The DLD will insist on the payment of purchase price in the form of a manager’s cheque made payable to the seller on the date of transfer, along with manager’s cheques for the 4% transfer fee and an admin fee not in excess of AED 4,000. Once formalities are completed, a new title deed will be issued in the name of the buyer. At this time, the buyer will settle any overpaid service charges with the seller worked out pro rata.
Frequently Asked Questions
In most instances, the transaction process goes as follows:
- Buyer chooses the property.
- Buyer and seller sign the sales and purchase agreement, where all the terms and conditions of the deal are mentioned: the purchase price, additional expenses (agency fee, transfer fee at the DLD, developer's fee, service charge refund, etc), the transfer date of the deal at the DLD, terms of payment and clearly-defined responsibilities and penalties for both parties in case they fail to uphold the conditions set out in the agreement.
- On signing the agreement, the buyer pays the deposit. This is usually 10% of the purchase price.
- The seller applies for a no-objection certificate (NOC) from the developer in order to sell the property. The NOC is required for the transfer process at the DLD.
- Once the NOC is ready, the buyer and seller can transfer the property and register it on the buyer's name. Usually, payments need to be made at the time of registration.
For the most part, real estate deals are made through agencies in Dubai (like everywhere else in the world). Realty agents are market experts and have up-to-date information on the industry and can help both property owners and buyers or tenants find a deal that suits them best. That being said, it is possible to negotiate a deal without an agency.
As per Law No. 85 of 2006 regarding the regulation of real estate brokers, these are some of the requirements for brokerages in the emirate:
- Have an appropriate trade license from the Dubai Department of Economic Development;
- The brokerage company and all its brokers must be registered with the RERA. Upon registration, agency is given an Office Registration Number (ORN) and its agents are given a Broker Registration Numbers (BRN);
- In order to be registered with the RERA, all agents of a brokerage company need a certificate from the Dubai Real Estate Institute (DREI) and have to pass a professional test, administered by the RERA.
- Brokers are required to comply with a Code of Ethics, published by the RERA.
The Dubai market is a melting pot of cultures and it can be a daunting task to those new to the country. It is difficult to trace down who is responsible in the event that something goes wrong in a property deal. Real estate agencies act as intermediaries between buyers and sellers and as such, there is a clear account of who is responsible and both buyer and seller knows where to turn when something goes wrong. Not all agents in the market are registered and it is essential that homeowners and tenants make sure that they are dealing with a registered agent to safeguard their own assets.
As intermediaries, agencies are ethically obliged to work out a deal that is in the best interest of both parties. For example, the agency is responsible for collecting a deposit from the buyer and holding on to it until final payments are made to the seller. The buyer can be assured that he/she will receive the deposit back if something goes wrong with the deal on the part of the seller. Meanwhile, the seller is assured that they will be compensated if the deal is cancelled on the buyer's part.
FAQ for Seller
When you sell any type of property in Dubai, you face with many complications and each your step should be evaluated, so with our professional experience in the market we are ready to help you and perform the answers for some frequently asked questions, so that you will definitely know how to sell property.
When you sell the property, you will require the following documents:
- Original title deed about the property
- No Objection Certificate that has to be issued by the developer. The certificate is your guarantee that the property is free from any types of liabilities.
- An original of the passport
- In case of a real estate agency helps you to sell the property, you will be required Form A signed agreement
- Any other possible documents that will be required to conduct a deal
Selling property in Dubai, you should take into account that most of the banks perform opportunities to use multi-currency account, so that you can open Dirham account to make your money available for fast clearance. In fact, despite the fact that at the present days, most of the banks are accommodating when opening bank accounts, most of the financial institutions require a visa to open a bank account.
Empires Heights will offer you as a client, all the historical and factual market figures in order to support the correct price for the property. After that, a seller and an agency have to sign Form A, where a seller will accept and confirm to list the property for sale for a stipulated price.
For the most part, real estate deals are made through agencies in Dubai (like everywhere else in the world). Realty agents are market experts and have up-to-date information on the industry and can help both property owners and buyers or tenants find a deal that suits them best. That being said, it is possible to negotiate a deal without an agency.
It is necessary for you to be in person for the process, otherwise you can come to register your property any other people with a Power of Attorney from you, where it will be described all the power in details on an owners behalf such as to cover the registration process into the seller's name, to include the set up of the utility account and so on.
No, it is not necessary to involve a lawyer but you can if you hesitate concerning some part of the deal. Please note that you cannot give a Power of Attorney for an employee of a real estate agency. All the other documentation about the deal such as Contracts of Sale and others are prepared with the agency and should correspond to the Dubai Government regulations.
All the transfers concerning a deal should be handled with the help of the designated Dubai Land Department Trustee Offices, placed on the territory of Dubai. It is significant that all the parties pertaining to the financial transactions have to be present. Empires Heights agency always informs their clients about all necessary documents and payments which are required on the day of the transfer.