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What you need to know

When doing any type of real estate business in Dubai, investors need to be up-to-date with relation to the changes and new regulatory requirements concerning property transactions in the Emirate. This website shall keep all new information posted on "latest News and Updates".

The Real Estate Regulatory Agency has implemented the transitional process to fully regulate the property industry. Ultimately, this process shall lead to a safer, more secure property investment environment. Our aim is to ensure all investors are protected and have confidence in their decision to invest in Dubai.

During this period of transition, some issues shall emerge. Investors are asked to bring their concerns to RERA along with their documentation and if necessary, seek RERA intervention to alleviate any concerns.

The Government of Dubai as well as the private sector of property developers and real estate industry brokers and agents, are strongly supportive of the RERA’s progress and the direction that RERA is steering the industry. The fact that the Real Estate Regulatory Agency (RERA) is less than 12 months old, gives an indication of the strength, collective knowledge, experience and courage of RERA to get the job done with little disruption to the market.

It is expected that once RERA’s strategies are fully implemented and the industry has adjusted to the new practices, the Buyers and Sellers in Dubai shall benefit from RERA’s sound and well planned approach to ensure fair and transparent property transactions in Dubai.

If you are a Seller in Dubai and are contemplating the sale of your property, RERA offer to you a number of points for consideration and to assist you prepare in advance.

There are a number of option available to you

  • List with a Local Registered Broker office Registered Agent
  • Use other representation (beware see notes below)
  • Undertake the process yourself and sell privately
  • Take the property to Auction (a method of sale)

Our team of consultants have decades of experience in the international property market giving them excellent local market knowledge and strong relationships with the major developers, Investors and other well established Agencies. Through our network of contacts we will sell your property for you.

Listing with a registered broker

When listing with a registered broker, it will be beneficial to read the brokers section in this website. We have covered the registration process so that consumers can see that RERA do vet the applications and are working to ensure that no unacceptable people are able to able to operate in the industry. In addition, we have noted many pointers in the section a good agent for you as the consumer to open your mind about whom you are contemplating dealing with as your elected agent.

When listing your property, there are 3 types of Agent’s appointment

  • Open Listed which means that you list the property with 1 or more agents and you can if you wish, sell the property yourself and the agent’s commission is payable only to the agent who completes the transaction. It is recommended that you don’t appoint any more than 3 agents, otherwise none of them will sell it and the Buyer will look for the cheapest thus you get less money.
  • Sole Agent you can appoint only one (1) agent and still you may sell the property yourself, however if you do sell it yourself then you do not owe the agent a fee.
  • Exclusive Agent this is when you appoint an exclusive agent to totally look after the sale process. Even if you find a willing buyer, you will have to refer them to your exclusive agent whilst you have a current agreement.

It should be noted that if an agent introduces a Buyer, and you later deal with them direct without the Agent, then the Agent may apply to RERA to claim their loss of fee and costs if it be proven that the Buyer was introduced by the Agent and the two parties left the Agent out of the transaction. Both Buyers and Sellers are also expected to be trustworthy.

Use Other representation

In Dubai, freelancers are a thing of the past. They are highly illegal and buyers and sellers are advised NOT TO DEAL WITH THEM. Ask to see official borker ID before proceeding with any agent. Other representation could be a cousin, son, daughter or friend. If you use these people, do be aware that any person advertising, marketing or in discussion about a property transaction other than the owner of the property, is breaking the law unless he/she has a registered Power of Attorney in the UAE acceptable format in your name approving of their involvement.

Always bear in mind that if something goes wrong - This is as we remind people, your single greatest investment in your life.

Private Sale

This can be done but is often not advised for the feint hearted. You do need to be prepared. The property must be ready. That is well presented so that a buyer will want to buy. You need to think about advertising and the cost. Then when the phone rings, you then have to sift through so many that are only lookers and not serious buyers. This can be very exasperating and very frustrating.

Once you have found the buyer, then comes the negotiating process and the paperwork. This is not easy. If all the essential documents and paperwork is not in order the property transfer may not be possible on the final day of settlement of the transaction. When banks are involved for mortgage discharge or an application for finance for the property, this is another serious consideration and can be rather complex.

If you are contemplating selling privately, it is highly recommended that you use a lawyer for the legal aspects. Dubai property market is not the same as in days gone by, and what was a simple transaction in the past, is certainly not the case now.

Two very simple and powerful words for Buyers who want to buy privately Buyers Beware!

Never pass money to anyone if you do not have absolute proof of their ownership, authority to do the transaction and if you have any doubts. When you get a "sick" feeling in your stomach when handing monies over, this is usually to forewarn you of danger in what your doing. This is your intuition speaking to you, so listen to it please.

Do not deal with an unregistered broker or agent, always ask for their Brokers Registration card. When speaking with a Seller, ask for the documents to prove that they own the property. Ask for a copy of their passport and match the signatures. If the property is in two or more names, all of these parties must sign the sale agreement in full.

Buyers should use a Buyer’s Agent. Please refer to RERA website in the Brokers web pages, there is a list of the Registered Brokers. DO have your finance fully "pre-approved: before you commence looking for a property.

When buying "off-the-plan" only pay into a RERA approved trust account. The cheque and receipt must read in the name of the project. If you pay your monies into the developer, agent, or any other account, the person or company you are dealing with is breaking the law. PROTECT yourself and seek advise before proceeding. It is not as easy as you think.

Costs Buyers must take into account

  • 4% - transfer fee to Land Department + AED540 title deed fee - managers cheque in name of seller
  • 3% - Agency fee to Broker (some charge 2%) - managers cheque in name of Real Estate Company
  • AED4,000 - Transfer agency fee - cash on day of transfer
  • AED5,000 - NOC from developer - Cheque or cash to developer when NOC applied for. Prices may vary from developer.

Financing a property has become the norm here in Dubai. However there is an absolute maze of different packages available to property investors. Your first step toward securing finance is preparation and comparisons to select the right bank and the right financing option for you.

Don’t be shy, look around, look at the bank and their reputation, their service, and their quality of property financing products. You are after all, buying money. Speak to as many property lenders and ask the right questions to all and compare the answers.

Ask for a breakdown of the costs involved and most important, make sure they commit to the timeframe for approval once you submit the contract when you have selected and secured your property subject to and conditional upon finance.

In very simple terms, there are two primary or preliminary assessments that the property financiers undertake before approving finance.

Firstly a property financier will look at the applicant (the person/s). They will examine your credit history and your credit rating. If you have had bad credit history or have not paid a past debt, you may well have a problem. So do ensure you have settled all outstanding old debts before you apply. The bank will also look at your ability to save monies (i.e. your budget control), your income level and they, assess the stability of your employment and your income which determines your ability to re-pay in the long term. As a guideline, your mortgage repayment should only be about 35% of your net income. Don’t over commit yourself, you will end up regretting and this is a fast way to compromise your standard of living. Your deposit or rather the level of your own funds you have to contribute, will heavily influence your borrowing capacity.

Secondly, the property financer will look closely at the property to ensure their monies are not at risk. This often means that the lender will require a professional property valuation on the property which represents the bulk of the cost of finance to the borrower. Each financier will have differing charges for valuations

When the bank engages the professional to value the property, they are assessing the bank’s risk in lending the monies. The loan amount approval is linked to the value of the property as the banks in most circumstances will only permit 70% or 80% or sometimes up to 90% of the value of the property. If you have paid too much for the property and signed a contract to buy subject to finance approval, then the loan will be rejected as the bank's investment with you and the property will be high risk, sometimes too high. This is the reason why when you sell a property, you cannot oversell it when the buyer requires finance.

Another interesting point, the whole process can be a little stressful if the bank delays in processing the loan application. Therefore, from the onset, ask for a list of all documents required, keep a copy yourself, and ask the Bank to sign that they have received all that they have asked for, in the event one document goes astray, you have proof you have submitted and also a copy.

Your contract original must be given to the Bank. The dates and milestones to be achieved as the contract takes it's natural course, should be noted to the Bank, if using an Agent, ask them to write a letter for you and give a copy to your bank, so the Bank is fully aware of the dates you need to advise the Seller of the finance approval. If you have obtained pre-finance approval and have a letter from your Bank stating the same, then the whole process is actually easier and smoother, as the Bank is prepared, you are prepared, and you allow for this in the contract in the time commitment to gain the formal approval for the loan. You and the Bank also need to agree on how long it will take once the loan has been approved, till they are ready to draw the loan amount ready for settlement. Therefore, make sure there is sufficient time to complete the transaction and keep checking with the Bank. When using an Agent, they can be very helpful at this point. The Buyer's Agent has had lots of experience and generally keeps good contact with the loan provider if you permit.

The mortgage industry here in Dubai has grown considerably over the past few years. The loan process, the range of mortgage packages and the finance companies ability to process and complete applications shall be second to none in the world providing the borrower submits all the necessary documents required on time and with the new Standard Contract and Real Estate practices in place. Purchasing property in Dubai shall be easier in the new regulated environment.

RERA will be hosting for finance companies and property finance institutions, workshops on the new standard contract, how it works and help familiarize all finance institutions, with adapting to the changes. Interested finance people should visit our Workshops, Seminars and Events page to see the workshop timetables.

Established in Dubai in 2007, Emirates Conveyancing was the first licensed Conveyancing firm in the United Arab Emirates. It is recognised as the leading conveyancing company within the United Arab Emirates for local and international clients. They provide a "property transfer service and ancillary services" for individual buyers and sellers and Developers of property projects within the United Arab Emirates.

Emirates Conveyancing are licensed specialists who handle the contractual, legal and financial aspects needed to safely transfer a property sale from seller to buyer. The team of qualified professionals bring their practical knowledge from many jurisdictions and they have extensive experience dealing with banks and finance companies both in the UAE and internationally.

Services

Property title transfer between buyer and seller, including preparation of contracts, management of transfer process and holding of monies(funds) into their client account

Handover services for Developers, including collection of final payments, management of initial title registration, default and termination management.

Contract management for Developers, including the preparation of Sales and Purchase Agreements, collection of payments and transfer of title to buyers.

No objection certificate (NOC) management and safe keeping of files for Developers and Owners Associations, including checking of all documents, preparation of NOC's, signing of undertaking letters and management and safekeeping of all files.

Incorporation of Companies: including the incorporation of free-zone companies as well as free-zone "offshore" companies which are a secure way to purchase property in a Company name in the UAE. Service includes the initial set up of the Company, opening bank accounts and the option to have nominee directors as required.

For more information please contact

Aimee Garraway CeMAP
Aimee Garraway CeMAP
Sales Manager

P: +9714­338­8952
M: +9715­0871­2942
E: aimeeg@emiratesconveyancing.com
www.emiratesconveyancing.com

A Person may not carry on the Brokerage activity in the Emirate unless he is licensed by the Real Estate Regulatory Agency within the Dubai Land Department and registered in the Brokers’ Register.

Class (A)

The people of expertise who are registered in the List, unlicensed by the competent authorities and certified by the Chairman as exempted from the registration requirements.

Class (B)

The people who carry on the Brokerage activity under a license issued by the competent authorities. Real Estate Broker offices and Agencies must register. Conditions of Registration in the Brokers’ Register for the people from Class (B) who wish to carry on the Brokerage activity in the Emirate shall submit to the Division an application on the prescribed form to be registered in the Register. The application shall include the following documents:

  • Complete design and execution of residential, leisure, retail and office spaces
  • A valid trade license issued by the competent authorities.
  • A membership certificate in the Dubai Chamber of Commerce & Industry
  • A copy of the applicant’s license/applicants’ passport with regard to the sole proprietorships or companies.
  • An exact copy of the ownership certificate of the Brokerage shop or its lease contract.
  • A certificate of good conduct for the establishment’s owner and the senior manager or senior managers of the company.
  • None of the company’s directors or the partners authorised to run the company shall previously have been declared bankrupt or convicted of a crime violating honour or trust.
  • Obtaining certificates in courses specialized in the real estate field from educational institutions accredited by the Department.
  • Passing the Brokerage profession test prepared by the Department. Pass mark is 75% and above and is renewed annually.