Property Sales Process

Introduction

The resale market is largely untested in Dubai, as the majority of new developments have not been completed yet. Also, there are very few small, local real estate agencies in the country. Most local deals are done through informal networks.

The majority of foreign investors looking to buy property in Dubai go through the big real estate brokers. It is worthwhile finding our about the resale services offered by the agent or developer you purchase from.

An alternative for sellers is to advertise online as the internet opens your property up to buyers in the local market and the overseas market.

Selling Costs

There are minimal costs associated with selling property in Dubai.

Sale registration fee - Paid to the Land Department of the Government of Dubai at a rate of 1% each for buyer and seller.
Real estate broker's fee - The broker's fee ranges from 1% to 5% of purchase price, depending on the type of property and the overall purchase price.

Legal requirements

Sellers must ensure they possess relevant property ownership documents and make sure they have paid any outstanding tax or utility bills on their property.

The seller is obliged to sell the property free from defects. The seller is liable for defects, which reduce the value of the property, or prevent the use of the property for a particular purpose. If the property lacks a particular characteristic which the vendor claimed it possessed, he/she is liable.

Marketing your property

If you used an agent to buy your Dubai property, it could make sense to use the same one to sell it, as they will already know the property. Before you take on their services, you should check carefully what they will and will not do in terms of marketing and what they will charge as commission – make sure you shop around to get the best service! As the Dubai resale market is still developing, it is definitely advisable to appoint to agent to act on your behalf.

The offer

Once you have someone interested in the property, an oral offer will usually be made. At this stage, it is good practice to obtain a booking deposit from the prospective buyer or have the buyer sign a reservation form.

The contract

Once the verbal offer has been accepted, an initial real estate contract is drawn up and signed by both parties. To secure the property a holding deposit of anything from £1,000-£3,000 is paid. In the second stage, the purchase contract stipulating the payment schedule is drawn up. This deposit is non-refundable unless the seller of the property in unable to sell to the buyer for some reason.

Buyer checks

Your buyer will want to check that everything is legal, so you should expect a slight delay at this stage as the relevant legal checks are carried out. Ensure that you have all the documents that the buyer will want to see readily available in order to minimise the delays.

Completion

Once the checks are completed and the buyer is satisfied, the contracts can be signed. A letter is then submitted to the Dubai Land and Properties Department on behalf of the buyer, stating that all payments have been completed. Only after this letter has been accepted will the property be registered in the buyer’s name.

Registration of title

Once the buyer has fulfilled his obligations in terms of the sale agreement, you must transfer a clear and unencumbered freehold title for the property to the purchaser at the Lands Department as soon as reasonably possible after the completion date.

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