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Selling a property in Dubai is relatively straightforward yet there is a series of checks and requirements that must be completed to ensure a successful sale.
The first step is to select a registered broker or agent. A good broker will conduct a thorough review of the property and present a proposed selling price and marketing/sales plan which should contain alternative approaches with an upfront disclosure of all costs, fees and charges.
Once you have identified a broker that you wish to appoint, fill out the RERA Form A (Brokers Contract/ Agreement Listing Form). This standard form formalises the agreement between the broker and seller and contains information like the broker’s registration number, property details and agreed commission rate. The agreement can be terminated any time by the buyer before a written offer is presented to him by the broker as long as he provides a seven-day notice. The notice is provided upon completion and delivery to the agent of the RERA Form U (Notice of Termination of Agreement).
When appointing a broker, conduct your own research as well for you to be more engaged in discussions with your broker. It will assist you in gaining an appreciation of products similar to yours, where these are located and their prices. It will also show whether your property is rare or highly available. This will affect your negotiating ability and the eventual price that you receive.
Your broker should complete all the necessary due diligence and documentation to ensure there are no impediments to a successful sale. The buyer or buyer’s agent will seek evidence of the property ownership status (whether it is mortgaged or not) and your availability to negotiate and conclude the transaction.
Be prepared to disrupt your usual routine to allow prospective buyers access to your property. This may involve scheduled and structured open houses, inspections by appointment only or a combination of both.
Your preparations for presenting your property are vital in ensuring you stand the best chance of having someone fall in love with it. Carry out some “staging.” This would include painting to freshen up your property, utilising plants externally and internally, arranging furniture to create perceptions of space, lighting certain spaces and making the most of the spaces available. Also, be prepared to declutter which involves being critical with regard to what items you actually need as part of your life.
Assuming you receive an offer you are happy with, you need to sign a memorandum of understanding (MOU) detailing the terms, costs and responsibilities of both parties as agreed. The buyer needs to provide a deposit of 10% of the purchase price; however, this is a recommended amount only.
Assuming the buyer has applied for a mortgage, his bank will be informed of the intention to purchase and will carry out a valuation. The inspection is typically carried out by a third party engaged by the bank to provide professional valuation. After the bank gives the go ahead, apply for a no objection certificate (NOC) from the developer.
An appointment is then made with the Dubai Land Department (DLD) to complete the transfer. The seller, buyer, their respective agents and bank representatives will formalise the transfer. All documents will be checked, details registered and you will receive payment for the property from the buyer. You need to pay the commission owed to your agency which is typically between 1% and 2%.
The buyer needs to pay the transfer fee of 4% to the DLD and, if the property was purchased using finance, an additional fee of .025% of the loan value must be paid and up to Dh4,000 plus Dh454 as admin and map issuance fees, if applicable.
Source: Mohanad Alwadiya, Special to Freehold
CEO, Harbor Real Estate