The procedure for purchasing real estate in the United Arab Emirates may seem complicated, especially for those who are faced with it for the first time. In this article, we will look at the key stages of purchasing real estate in 2024 on both the primary and secondary markets in the UAE. Understanding all the steps in the process, from choosing the right property to obtaining a certificate of title, will help you avoid potential mistakes and make the purchase as smooth and secure as possible.
Purchase of a property on the primary market – Off Plan projects
- The buyer contacts a real estate broker who selects properties in the UAE based on the client’s criteria such as location, size, budget, and other preferences. Communication often occurs via messaging apps like WhatsApp, Telegram, or Botim.
- The broker presents suitable options to the client and once approved, requests a Reservation form from the Developer for the client to sign.
- Upon receiving the signed Reservation form, the broker arranges for the initial deposit payment, typically 5% to 10% of the property price.
- The client pays a Land Department fee (2% or 4% depending on the Emirate) to the Developer, facilitated by the broker.
- The Developer prepares a Sales and Purchase Agreement (SPA) within 2 to 4 weeks, sending it for client signature.
- Once all parties sign the SPA, one copy is returned to the client, and the broker receives their commission from the Developer.
- Payments are made according to the SPA’s schedule to the Developer.
- Upon project registration with the Municipality, the client receives an OQOOD certificate.
- After full payment, property inspection, and acceptance, the Developer hands over the keys.
- The Developer completes necessary documentation with the Land Department to issue a Title Deed, which is sent to the client.
Purchase of a property on the secondary market in the UAE
- The buyer engages a real estate broker who selects properties matching the client’s requirements.
- Suitable options are presented to the client, and viewings are arranged either physically or via video call.
- Upon client approval, a buyer’s representative agreement (Form B) is electronically signed.
- The broker obtains the seller’s documents (Title Deed or Oqood) and ensures Form A is signed electronically by the seller.
- Both parties then sign Form F (MOU) electronically at the Land Department system.
- The buyer pays an initial deposit (10%) via a local UAE bank manager’s cheque or other approved methods.
- The seller settles outstanding debts and obtains a NOC from the Developer.
- The transfer of ownership occurs at a licensed Trustee office, with all necessary documents signed electronically at the Land Department.
- The buyer pays a 4% fee to the Land Department via a manager’s cheque.
- The buyer receives the Title Deed, and settles the real estate commission (2% of the property price + VAT 5%) according to the brokerage agency’s invoice.
