Step-by-Step Guide to Buying Real Estate in Dubai

1. Assess Your Budget

   Before making a property purchase, it’s essential to determine what you can afford. Keep in mind that for buyers, there’s a 2% agency fee and a 4% transfer fee to consider. If you plan to finance the purchase with a mortgage, you'll need at least 25% of the property’s value as a down payment. Additionally, you'll be paying interest on your loan, typically ranging from 3-4% depending on the loan term and the bank. Take these factors into account while setting your budget, and don't hesitate to seek guidance from your agent.

2. Mortgage Pre-Approval

   Getting pre-approved for a mortgage not only confirms your budget but also strengthens your position as a buyer. The pre-approval process involves a bank reviewing your application and providing a letter or email stating the approved loan amount, which is usually valid for 60 days

3. Choose a Trusted Real Estate Agent

   Partner with an experienced agent who understands your budget, needs, and preferences. Providing as many details as possible from the start will help streamline the process and ensure you find the right property more quickly. A trusted agent will work diligently to match you with options that fit your criteria..

4. Start Viewing Properties

   Your agent will showcase properties and communities within your budget and requirements. Take the time to visit multiple properties to get a feel for your options before making your decision.

5. Offer and Negotiation

   To increase your chances of acceptance, submit your offer in writing along with a 10% deposit cheque and copies of the passports and Emirates IDs of all individuals who will be listed on the title deed.

6. Sign the Memorandum of Understanding (MOU)

   Once your offer is accepted, your agent will draft the Memorandum of Understanding (MOU), also known as Form F. You’ll review and sign the MOU along with handing over the 10% deposit cheque.

7. Sales Progression Process

   If you’re purchasing with a mortgage, the bank will need to conduct a property valuation and issue a final offer letter. If the seller has a mortgage on the property, the buyer must settle it in full before applying for the No Objection Certificate (NOC). After signing the MOU, the seller should request a mortgage settlement statement from their bank, which can take up to two weeks. This entire process can take anywhere from 6-10 weeks depending on the bank

8. Apply for the NOC

   Both parties will visit the developer’s office to apply for the NOC, which allows the property to be sold. The developer will issue the NOC once it’s confirmed that all outstanding service charges are paid and any modifications meet the developer's guidelines. Some developers may also require a refundable deposit from the buyer, which will be refunded once the buyer presents the updated title deed at the developer’s office. The NOC application can take up to 5 working days to process.

9. Transfer of Ownership

   After the NOC is issued, all parties will proceed to the Dubai Land Department (DLD) to complete the official transfer of ownership. At the DLD, payment of the purchase price will be made through a manager’s cheque to the seller, along with manager’s cheques for the 4% transfer fee and an administrative fee not exceeding AED 4,000. After all formalities are completed, a new title deed will be issued in the buyer’s name, and any overpaid service charges will be settled on a pro-rata basis with the seller.