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Guide to Buying

The Home Buying Process

The following are designed to provide a basic, step–by–step guide to buying a home in Dubai. Please note, the processes are updated periodically by the Dubai Land Department, the developers, and the banks themselves.

Ultimately, PH Real Estate will be on hand to manage your home buying experience, ensuring your risk is controlled, and that you are in control throughout.

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Cash Buyer Purchasing from Cash Seller

Find a Property

Call PH Real Estate for expert advice and options.

Make an Offer

Once you’ve found your ideal home or investment your PH Real Estate consultant will manage the offer process to ensure you secure the best possible deal.

Sign the Contract

Both parties sign a legally binding contract, an Agreement Of Sale (also known as an MOU – Memorandum of Understanding). A 10% deposit is paid to PH Real Estate, held in trust on behalf of the Seller.

NOC

Both Buyer and Seller apply for a No Objection Certificate, both must be present (or their appointed Power Of Attorney). This process confirms the seller has no outstanding debt on the property. Typically, the Seller pays the service & maintenance fees owed for the whole calendar year, subsequently reimbursed pro-rata by Buyer on Transfer. The NOC is applied for in the developer’s office and takes approximately a week to be returned. Seller is responsible for paying the AED1,000 fee (Nakheel); or the AED1,500 – AED5,000 fee (Emaar – regular or express). In addition, Buyer pays AED5,000 refundable bond, this in repaid once copy of title deed in name of Buyer is registered with the developer.

Transfer

The property is transferred into the Buyer’s name. This process is completed in the Dubai Land Department (DLD), or one of it’s appointed transfer centres. All payments are made in cleared funds, (Manager Cheques) and the Title Deed confirming the Buyer as the recognized owner is issued immediately. Unless negotiated differently, the Buyer is responsible for DLD fees; 4% of purchase price + 315 admin fee + AED4000 transfer centre fee.

Cash Buyer Purchasing from Finance Seller

Find a Property

Call PH Real Estate for expert advice and options.

Make an Offer

Once you’ve found your ideal home or investment your PH Real Estate consultant will manage the offer process to ensure you secure the best possible deal.

sign the contract

Sign the Contract

Both parties sign a legally binding contract, an Agreement Of Sale (also known as an MOU – Memorandum of Understanding).  A 10% deposit is paid to PH Real Estate, held in trust on behalf of the Seller.

Seller Applies for Liability Letter
(Mortgage Statement)

The seller will request for the exact amount owing to their financial institution. This process typically takes approximately a week and has a shelf life of circa 14 days from date of issuance.  Seller pays the fee, circa AED1000.

Buyer Pays Finance off

Ordinarily, the Buyer settles the Seller’s finance, naturally, deducted from the purchase amount owed on Transfer. Prior to Buyer making payment, both parties (or their appointed Power Of Attorney), agree to meet in the DLD.  A ‘Manual Transfer’ is now executed.  This process requires the Buyer issuing payments (as Managers Cheques) to the Seller’s bank (liability amount), the outstanding balance payable to the Seller and all Transfer & Professional fees.  With the exception of the liability amount, all Managers Cheques remain in the custody of the DLD until transfer is complete.  The DLD now register the property in the name of the Buyer.  The Seller is now aware the Buyer has made all required payments, the Buyer is comfortable the property is now registered in their name – with Title Deed being released upon completion.  Both parties now visit the Seller’s bank and the Managers Cheque for the liability is released.  Clearance of Seller’s loan takes approximately one week, where after a clearance certificate is issued to the Buyer – this is required to apply for the NOC.  As with all stages of the home buying process, PH Real Estate and MAK Conveyancing will guide you, managing all of your exposure.

noc

NOC

Both Buyer and Seller apply for a No Objection Certificate, both must be present (or their appointed Power Of Attorney). This process confirms the seller has no outstanding debt on the property. Typically, the Seller pays the service & maintenance fees owed for the whole calendar year, subsequently reimbursed pro-rata by Buyer on Transfer.  The NOC is applied for in the developer’s office and takes approximately a week to be returned.  Seller is responsible for paying the AED1,000 fee (Nakheel); or the AED1,500 – AED5,000 fee (Emaar – regular or express).  In addition, Buyer pays AED5,000 refundable bond, this in repaid once copy of title deed in name of Buyer is registered with the developer.

transfer

Transfer

The property is transferred into the Buyer’s name.  This process is completed in the Dubai Land Department (DLD), or one of it’s appointed transfer centres.  All payments have already been made in cleared funds (Manager Cheques).  Once the NOC is supplied to the DLD, the Title Deed confirming the Buyer as the recognized owner is released immediately.  Unless negotiated differently, the Buyer is responsible for DLD fees; 4% of purchase price + 315 admin fee + AED4000 transfer centre fee.

Finance Buyer Purchasing from Cash Seller

Obtain Pre-Approval

This typically occurs prior to viewing properties. This is an agreement, in principle, between the Bank and the Buyer, establishing an amount which can be borrowed. Typically, subject to review, this can be up to 75% of the purchase amount, or 65% if the purchase amount exceeds AED5M.  To assist, PowerHouse have relationships with established, independent, mortgage specialists.

Find a Property

Call PH Real Estate for expert advice and options.

Make an Offer

Once you’ve found your ideal home or investment your PH Real Estate consultant will manage the offer process to ensure you secure the best possible deal.

Sign the Contract

Both parties sign a legally binding contract, an Agreement Of Sale (also known as an MOU – Memorandum of Understanding).  A 10% deposit is paid to PHP, held in trust on behalf of the Seller.

transfer

Valuation

Once your bank have the details of the property, they will instruct a valuation which is completed by one of their registered surveyors.  Valuations are designed to ensure the property you’re purchasing is worth the amount you have agreed to purchase it for, and that it is structurally sound – handy.

noc

Mortgage offer

Upon a satisfactory valuation, the next step is for the bank to formally offer you the mortgage on the property.  If not already in place, life insurance is now arranged.

NOC

Both Buyer and Seller apply for a No Objection Certificate, both must be present (or their appointed Power Of Attorney). This process confirms the seller has no outstanding debt on the property. Typically, the Seller pays the service & maintenance fees owed for the whole calendar year, subsequently reimbursed pro-rata by Buyer on Transfer.  The NOC is applied for in the developer’s office and takes approximately a week to be returned.  Seller is responsible for paying the AED1,000 fee (Nakheel); or the AED1,500 – AED5,000 fee (Emaar – regular or express).  In addition, Buyer pays AED5,000 refundable bond, this in repaid once copy of title deed in name of Buyer is registered with the developer.

Transfer

The property is transferred into the Buyer’s name.  This process is completed in the Dubai Land Department (DLD), or one of it’s appointed transfer centres.  All payments have already been made in cleared funds (Manager Cheques).  Once the NOC is supplied to the DLD, the Title Deed confirming the Buyer as the recognized owner is released immediately.  Unless negotiated differently, the Buyer is responsible for DLD fees; 4% of purchase price + 315 admin fee + AED4000 transfer centre fee.

Finance Buyer Purchasing from Finance Seller

Obtain Pre-Approval

This typically occurs prior to viewing properties. This is an agreement, in principle, between the Bank and the Buyer, establishing an amount which can be borrowed. Typically, subject to review, this can be up to 75% of the purchase amount, or 65% if the purchase amount exceeds AED5M.  To assist, PowerHouse have relationships with established, independent, mortgage specialists.

Find a Property

Call PH Real Estate for expert advice and options.

Make an Offer

Once you’ve found your ideal home or investment your PH Real Estate consultant will manage the offer process to ensure you secure the best possible deal.

Sign the Contract

Both parties sign a legally binding contract, an Agreement Of Sale (also known as an MOU – Memorandum of Understanding).  A 10% deposit is paid to PH Real Estate, held in trust on behalf of the Seller.

transfer

Valuation

Once your bank have the details of the property, they will instruct a valuation which is completed by one of their registered surveyors.  Valuations are designed to ensure the property you’re purchasing is worth the amount you have agreed to purchase it for, and that it is structurally sound – handy.

noc

Mortgage offer

Upon a satisfactory valuation, the next step is for the bank to formally you the mortgage on the property.  If not already in place, life insurance is now arranged.

transfer

Seller Applies for Liability Letter
(Mortgage Statement)

The seller will request for the exact amount owing to their financial institution. This process typically takes approximately a week and has a shelf life of circa 14 days from date of issuance.  Seller pays the fee, circa AED1000.

noc

Bank-to-Bank payment

The liability letter will be forwarded from the Seller’s bank to the Buyer’s bank, which coordinates to meet and pay down liability.  Buyer’s bank sends a representative with a physical Managers cheque (cleared funds) for the mortgage amount.  The settlement process typically takes a week, after which, the ownership documents are released to the Buyer’s bank – which are required for the next step in the process.

NOC

Both Buyer and Seller apply for a No Objection Certificate, both must be present (or their appointed Power Of Attorney). This process confirms the seller has no outstanding debt on the property. Typically, the Seller pays the service & maintenance fees owed for the whole calendar year, subsequently reimbursed pro-rata by Buyer on Transfer.  The NOC is applied for in the developer’s office and takes approximately a week to be returned.  Seller is responsible for paying the AED1,000 fee (Nakheel); or the AED1,500 – AED5,000 fee (Emaar – regular or express).  In addition, Buyer pays AED5,000 refundable bond, this in repaid once copy of title deed in name of Buyer is registered with the developer.

Transfer

The property is transferred into the Buyer’s name.  This process is completed in the Dubai Land Department (DLD), or one of it’s appointed transfer centres.  All payments have already been made in cleared funds (Manager Cheques).  Once the NOC is supplied to the DLD, the Title Deed confirming the Buyer as the recognized owner is released immediately.  Unless negotiated differently, the Buyer is responsible for DLD fees; 4% of purchase price + 315 admin fee + AED4000 transfer centre fee.