Guide To Buying A Property In Dubai From A Developer

Dubai's rising Real Estate offerings have made it an attractive destination for property investments. Whether you're eyeing a sleek apartment still under construction or a newly built villa, purchasing a property in Dubai can be exciting opportunity to both live and invest in.

In this guide, we'll walk you through buying a primary market property from a developer in Dubai, ensuring a smooth and hassle-free experience.

Key Documents :

Before diving into the buying process, it's essential to have the following key documents  in place:

• Passport copy

• Resident Visa & Emirates ID, if available

• Email ID

• Phone number

• Residential address
  
  

The Buying Process:

1. Selecting the Property - Begin by dealing with a reputable broker who will assist you in locating the best property for your needs and budget. Dubai has many real estate possibilities, from modern flats in vibrant neighbourhoods to luxurious homes in serene estates.

2. Signing the Booking Agreement - Once you have chosen a property, you must sign an offer to purchase (OTP) contract and pay the booking amount. This agreement confirms your intent to buy the property and secures it in your name.

3. First Instalment Payment - After signing the booking form and paying the booking fees, you will be asked to pay the first instalment or down payment as per your chosen payment plan. You must also pay a 4% DLD registration cost and the OQOOD (Off-Plan Property Ownership Certificate) fee; this certificate provides legal protection and confirms your ownership, even if the property has yet to be fully purchased. This step is critical to register your purchase with the appropriate government agencies. Always ensure all payments are made only to the project's escrow account.

4. Sales and Purchase Agreement (SPA) - After the payment, the developer will prepare the Sales and Purchase Agreement (SPA) in your name. The SPA outlines the terms and conditions of the purchase, including payment schedules and delivery timelines. It is crucial to review the SPA thoroughly before signing it. Seek legal advice if needed.

5. Handover & Inspection - Once you have completed the payments, the developer will ask you to examine your property on a mutually agreed date. You should hire a third-party inspection team before taking over the keys. When you are satisfied with the property and your inspection team gives you the all-clear signal, the developer's handover team will hand you the keys. You can begin the move-in process. 

6. Title Deed - Once the property construction is complete and you have paid the total cost to the developer, a certificate of ownership for the ready property, known as the Title Deed, will be issued. This document is legal proof of your ownership of the property.

What to Expect?

• Swift Purchase Cycle: The purchasing process, excluding bank transfer wait times, typically takes 1 to 3 days.

• OQOOD Certificate: You can expect to receive the OQOOD certificate within three months.

• Title Deed: The issuance of the Title Deed usually takes between 1 to 14 days after completion and full payment.
  
  

Financing and Costs - 

Down payments for properties in Dubai are flexible, usually ranging from 10% to 30%. Developers also offer interest-free instalment plans for properties under construction, spanning an average period of 2 to 6 years, making the investment journey more manageable.

Here are some costs associated with buying a property in Dubai from a developer:

• Dubai Land Department (DLD) fee for property registration is up to 4% of the property price. However, developers sometimes partially or completely waive it as part of promotional offers.

• Administrative Fee: Expect to pay an administrative fee ranging from $400 to $1,400.

• A fee of AED 1000 is charged for issuing the OQOOD certificate.

• To issue a Title Deed fee is approximately AED 250.

• The agency commission is usually 0% when buying directly from the developer.

• The total transaction cost, including all the abovementioned fees, typically adds up to around 4.5% of the property price.
  
  
  

White & Co is your trusted advisor throughout the process, from starting the paperwork to getting the Title Deed. For more information on the Off Plan properties, contact us at 04 876 2333 or our area specialists. 

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