Elevate your Sale: Guide to selling property in Dubai

Introduction

If you’re considering selling your property in Dubai, whether it’s your first venture into the market or you’re a seasoned seller, understanding the intricate steps involved is crucial. The Dubai real estate market, is thriving. To guide you through the process, we’ve crafted a step-by-step guide covering everything you need to know for a successful property sale in this dynamic city. Selling property in Dubai involves a series of strategic steps to ensure a smooth and successful transaction, understanding the process is key. 

Before Putting Your Property for Sale in Dubai:

Initiating the process of selling property in Dubai can be daunting, especially for first-timers. The initial steps are crucial, so let’s delve into what needs to be done before you actually list your property.

1. Find a Good Real Estate Agent:

Embark on your journey by partnering with a reputable real estate agent in Dubai, ensuring they are RERA-approved. These agents play a pivotal role in marketing and managing your property sale, whether it’s an apartment or villa. Their RERA approval signifies professionalism, honesty, and trustworthiness. When selecting an agent, consider their expertise in your property’s location and ensure a professional rapport.

Benefits of Hiring a Real Estate Agent in Dubai:

• Time and cost savings.
• Access to a network of potential buyers.
• Assistance in setting an accurate property price.
• Handling paperwork efficiently.
• Identifying necessary maintenance before the selling process.
• Full guidance throughout the property sale journey.

Consider the following when selecting an agent:

• Expertise in your area of interest.
• Professional compatibility and effective communication.

A reliable agent like Al Ranim Properties will guide you through the selling process, helping determine a realistic selling price, devising a marketing strategy, and facilitating the sale of your property.

2. Sign FORM A:

Once you’ve selected a real estate agent, the next step is to sign an agreement with them using FORM A – a RERA form that formally authorizes the marketing and brokering of your property. This form includes essential details like 

• Property information
• Agent commission 
• Service charges 
• Payment schedules
• Mortgage status
• Listing details

After signing, FORM A is submitted to the Dubai Land Department’s Trakheesi system for approval, and you’ll receive a permit number for property advertisement.

Advertising Your Property:

Effective marketing is crucial for selling your property in Dubai. Your chosen real estate agent will handle the majority of this process, utilizing online listing portals, local newspapers, social media platforms, and more. Property staging is also vital – ensuring your property looks appealing in photos, videos, and 3D imagery.

For your property to attract potential buyers:

• Keep it clean and clutter-free.
• Allow natural light in to create a bright and airy atmosphere.
• Decorate to enhance visual appeal.
• Address any necessary repairs.

Once You Find the Buyer:

After the marketing efforts yield a potential buyer, specific steps need to be taken to finalize the sale.

1. Signing FORM F:

FORM F, also known as the Memorandum of Understanding (MOU), serves as the sales contract between the buyer and seller. This legally binding document outlines all terms and conditions agreed upon by both parties, including price, property details, selling costs, and the transfer date. Thoroughly review FORM F for accuracy before signing, as it becomes a binding contract once both parties sign it, with the agent(s) as witnesses. The buyer typically makes a down-payment at this stage as a commitment to the purchase.

2. Getting the NOC:

A No Objection Certificate (NOC) is required to sell property in Dubai. This document from the property developer declares that the seller has no remaining debt or liabilities, allowing for a smooth sale. NOC issuance involves fees that vary among developers, usually ranging from AED 500 to AED 5000. It takes approximately five to seven working days to obtain the NOC. Required documents for the application include the Title Deed/Oqood (for off-plan properties), Emirates ID or passport with a valid residency visa, and a copy of FORM F. 

3. Transfer of Ownership at Dubai Land Department:

The final step in the property sale process is the transfer of ownership. All concerned parties  the seller, buyer, and agent(s) – must visit the nearest Dubai Land Department trustee’s office. During this visit:

• The buyer pays the remaining purchase price.
• The seller pays the transfer fees to the Dubai Land Department.
• A new Title Deed is issued in the buyer’s name.

Documents required for a smooth ownership transfer:

• Form F (MOU)
• NOC from the developer
• Copy of the title deed
• A cheque to the seller (for the balance amount of the purchase price)
• A cheque to Dubai Land Department (typically for the 4% transfer fee)
• Original passport, visa, and Emirates ID (buyer and seller)

Special Considerations for Mortgage Sellers

In cases where the property being sold is under mortgage, additional considerations and steps come into play. 

1. Early Settlement Fee:

If the buyer plans to settle the seller’s mortgage earlier than scheduled, an early settlement fee is applicable. This fee is usually 1% of the remaining amount or AED 10,000, whichever is lesser. 

2. Blocking Charges:

Selling a mortgaged property involves blocking charges, a fee paid by the seller to reserve the property in the buyer’s name before clearing the seller’s mortgage. These charges typically range between AED 1,020 to AED 1,520, ensuring the property cannot be sold to anyone else while the buyer pays off the seller’s mortgage.

3. Mortgage Release Fee:

In addition to the general fees for selling properties in Dubai, there’s an extra fee for mortgaged properties known as the mortgage release fee. This fee, which is separate from the NOC and other fees, is paid by the seller to release their existing mortgage. For a typical mortgage, the release fee is AED 1,290, while for an Islamic mortgage, it’s AED 1,560.

Steps Necessary for Mortgage Sellers:

In the case of a mortgage sale, the buyer needs to settle the seller’s mortgage before the NOC is issued. This requires the involvement of the bank. For time-saving, it is recommended to start the process with your bank or lender on the day the MOU is signed. Upon request, they will issue a liability letter. This usually takes about 2 weeks with certain banks. For cash-paying buyers, there is a process to block the property at the Dubai Land Department Trustee office to protect the buyer from clearing the seller’s mortgage. If the buyer is planning to obtain finance, their bank will coordinate with the seller’s bank directly to facilitate a smooth process.

Selling property in Dubai demands a strategic approach, and this comprehensive guide has illuminates the path to a successful transaction. From choosing a reputable RERA-approved agent and initiating the marketing process with FORM A to finalizing the deal with FORM F and the No Objection Certificate, each step plays a crucial role. For mortgage sellers, navigating additional complexities involves early settlement fees, blocking charges, and mortgage release fees, all streamlined for a smooth process. As you embark on your real estate journey in this thriving market, armed with knowledge and a clear roadmap, you can navigate the intricacies with confidence, ensuring a successful and satisfying property sale experience.