Residential Buyer’s Guide

Residential Buyer’s Guide

Buying a property in Dubai can be menacing. Our experienced & professional real estate agents can assist you in navigating the buying process and ensure you fully understand every step in depth. Dubai properties vary from apartments, villas, offices and retail, and we can assist you in finding the right property for your needs. With our channel partners our agents can not only assist you with Dubai properties but with properties across the world.

Please visit our below Sections, for answers to more frequently asked questions about buying property in Dubai.

Documents Required for Property

If you are looking for property investment in dubai , there are few important things you must be aware of and should have in place before starting the buying process. We have given a basic guideline to buying a property and it will assist you in getting one step ahead of the process. This process will change depending on the type of property; i.e.

  • Off-plan (under construction property)
  • Handed over property (with title deed or Oqood)
  • The process may further change if you are looking at self-financing the property or if you are looking at bank finance (mortgage).

    If you are self-financing the property; i.e. paying the total property price in CASH; then the process of both Off-plan & handed over property and employed or Self-Employed will be same.

    You would require below documents

  • Emirates ID of the applicant
  • Passport copies with visa page of applicant
  • Signed FORM F (between yourself & Seller); NOTE – “MOU” are not legal anymore as per DLD
  • Managers Cheque for the agreed amount from a local bank in UAE (cash is not accepted as per UAE law
  • If you taking the Bank finance; i.e. a bank is mortgaging the property; then depending on the type of property (Off-plan OR handed over property) the process will slightly change for employed or Self-Employed. The process of “How to get a mortgage in the UAE” is described below separately.

    If you are employed; it’s better to have below documents ready before applying for approval for mortgage for both (Off-plan OR handed over property).

  • Emirates ID of the applicant
  • Passport copies with visa page of applicant
  • Original salary certificate
  • Original pay slips for last 6 months (with company stamp if not carbonized pay slip)
  • Bank statements for last 6 months with bank stamp (banks don’t accept online statement)
  • If you own a credit card then prepare 3 months card statements (Some bank will take online statement)
  • Current month DEWA bill Copy
  • Tenancy contract Copy (if your residence)
  • Depending on bank; there might be additional documents required.
  • For in depth knowledge discuss your requirement with our Mortgage expert.
  • If you are self-employed; it’s better to have below documents ready before applying for an initial approval for mortgage for both (Off-plan OR handed over property).

  • Emirates ID of the applicant
  • Passport copies with visa page of applicant
  • Copy of Memorandum of Association (registered with Dubai court)
  • Trade License copy (company must be in at least 2 years operation)
  • 3 years audited accounts
  • 1 year company bank statement
  • Personal bank statements for last 6 months with bank stamp (banks don’t accept online statement)
  • If you own a credit card, then prepare 3 months card statements (Some bank will take online statement)
  • Current month DEWA bill Copy
  • Tenancy contract Copy (if your residence)
  • Depending on bank; there might be additional documents required.
  • For in depth knowledge discuss your requirement with our Mortgage expert.

How to get a mortgage in the UAE

This process requires couple of steps. To start with select a bank offering the best interest rates (Our mortgage expert can assist you in this) OR a bank you are currently banking with; to get a pre-approval for your mortgage. Here bank will assess your background, income, current financial commitments and keeping in mind 50% “Income to debt ratio” they will offer you a certain amount of money in form of a mortgage. Some bank may charge a pre-approval fee for this process; which is generally adjusted in your final approval amount. Most of the bank pre-approvals has validity (generally 90 days); ensure you select a property before the expiration; as extension will cost additional renewal fee.

You can then start the search for a property in your price range, as per the mortgage pre-approval. Once you found a suitable property which you want to buy, you need to sign a FORM “F” with the seller (NOTE – “MOU” are not legal anymore as per DLD) and your property agents. This is when a time frame for the property exchange / transfer is agreed and a deposit (usually 10%) is held with the seller’s agent, only to be cashed if the buyer pulls out of the deal. The buyer must then send the signed FORM “F” and relevant documents to the bank to get a final approval letter.

After this the Bank generally sends their evaluators to evaluate the property current value. The buyer then needs to issue cheques for the valuation fee. After receiving the valuation fee, they will issue the buyer with the final letter of approval to go ahead with purchase, with the whole process normally taking five to seven working days. The next step is to apply for a No Objection Certificate “NOC” for the developer of the property. There are charges for NOC and they are generally paid by buyer (unless agreed differently); as the price negotiated in Form “F” is net to seller. Once the NOC is received; Buyer along with seller and the representing Agent will go to a designated Transfer center to register the property in Buyers name. Here at the time of transfer all the cheque pertaining to the price of property & commission are paid; in the presence of Dubai Land Department “DLD” officer. After all payments are done; the buyer gains the access to house keys to their new home in Dubai.

NOTE – as per Dubai law; all cheques pertaining to property transaction must be “Manager Cheques”. A Manager cheque is a bank guaranteed cheque; also known as Bank Draft.

How much mortgage can one get on a property ?

  • For Ready Handed over property with either Title Deed or Oqood
    • If property is under AED 5million – The maximum amount of money you can borrow as a mortgage on a Ready Property with title deed or Oqood is 75% of the current market value of property.
    • If property is over AED 5million – The maximum amount of money you can borrow as a mortgage on a Ready Property with title deed or Oqood is 50% of the current market value of property.
  • For OFF-plan (Not Ready) properties with Oqood
    • A Maximum of 50% of total property value; based on the original price at which the developer has sold is offered. Irrespective of property value being above or below AED 5million.
  • Note – Not all projects & developers are supported by bank for property mortgage for OFF-Plan properties.
  • The maximum tenure an expat can take mortgage is for 25 years; depending on his age at which he is taking the borrowing

Extra Expenses (Transfer Fees, Transaction Fee, Agency Commission, Utilities, etc)

  • Most lenders will add on a 1% fee for processing the mortgage. If you are using a mortgage broker, they will charge a fee for their services.
  • Agency fees have to be paid upon completion of the deal; normally the amount is between 2% to 4% of selling price; depending on the negotiations.
  • Transfer Fee is 4% of property value; 2% is calculated on Purchase price & 2% is calculated on Selling price.
  • Transaction fee is AED 5000/-; taken by the transaction center; which are legal representatives of DLD. This fee is paid in cash.
  • Title Deed is AED 580/-; generally taken during the Transfer of ready property. This fee is paid in cash.
  • If the property you are buying is via mortgage, you need to pay 0.25% of the value as a mortgage registration fee.
  • Reconnecting utilities, such as DEWA, gas and Chiller, can vary, anything between AED 1000 to AED 5000.
  • If you are buying an off-plan property you will have to pay an additional 4% to the Dubai Land Department.

Property Laws

Disclaimer: This information is given for reference only. All stated above rules, regulation and procedure are governed by Dubai Land Department, and can be changed or/and updated by DLD at any time without any prior notice.

About Dubai

If you are looking to buy, sell or rent a property in Dubai you will find all the relevant information and guidelines on how the process work and the most up to date listings and market prices. Part of the La Capitale brand one of the fastest expanding real estate companies in U.A.E. Finding properties in Dubai if you are a first time buyer or a seasoned investor is never any easy task as the local market is always evolving and maturing with prices constantly changing. Our business model is different to many other companies, in La Capitale we focus on individual areas, so we can bring out the right property to our clients that truly offer value for money and return on investment (ROI) with this in mind we only focus on certain developments and developers that have a proven track record in giving the kind of returns and security that our clients are looking for when buying residential property contact us here for more information.

Whether you are looking to buy or sell villas or apartments in Dubai we have something for everyone with a database of over 5,000 properties to choose from that is constantly being updated. Our in house team of professional Dubai Property agents are always on hand to advise and cater for your needs in a relaxed environment giving you the time needed to make one of the most important decisions of your life and that is required in buying a new home. Some of our areas of focus are The Palm Jumeirah, Jumeirah Islands, Emirates Hills, Springs, Views, Lakes, Meadows, Jumeirah Beach Residence, Burj Khalifa, Burj Downtown, Old Town & Business Bay.

We have a number of Open Houses for sale & rent of handpicked villas and apartments which gives you the chance to actually go and see the property and get a feel for the area and the look and feel of the home which we feel is an ideal way to offer luxury properties in this day and age.