Initial Agreement and Reservation Deposit
The process of acquiring a property starts with choosing an appropriate property and negotiating terms with the seller or developer. In order to reserve the property, buyers will normally pay a reservation deposit, which is typically around 5% of the price of acquisition. This deposit indicates genuine intention and keeps the property temporarily reserved off the market.
Signing the Sales Agreement or Memorandum of Understanding
After reservation, the buyer and seller execute the Sales Agreement or Memorandum of Understanding (MOU). This binding contract specifies all terms, such as payment terms, completion deadlines, and any particular conditions. It is strongly advisable to have a real estate attorney go over this agreement to safeguard your interests.
Application for Transfer of Ownership
When the Sales Agreement is signed, the buyer presents necessary documents to the Dubai Land Department (DLD) to effect the transfer of the property. Documents necessary include passports, Emirates IDs, original title deeds, and payment proof. The DLD authenticates documents, performs due diligence, and arranges for the transfer.
Payment of Transfer Fees and Registration
The purchaser must pay a 4% transfer charge on the purchase price of the property, as well as registration and administrative charges. In case the property is mortgaged, the mortgage should be registered as part of the procedure.
Issuance of Title Deed and Handover
Once successfully registered, the DLD presents the Title Deed to the buyer, formally confirming ownership. Subsequently, the seller or developer hands over possession, including keys and entry to the property. Buyers need to inspect the property one last time before they take possession, ensuring that the property is of agreed standards.
Significance of Professional Assistance
Navigating Dubai’s legal property process can be complex, especially for first-time buyers or expats. Utilizing licensed real estate agents and qualified legal advisors helps ensure all steps are followed correctly, minimizing risks and avoiding delays.