Tips to give to first-time real estate buyers

Getting referrals and doing research are key to owning your dream propertyImage Credit: Supplied

Planning for a property purchase here in the UAE is easy as long as you prepare all the requirements upfront. It is always recommended to seek the advice of a licenced real estate agent throughout the entire process to avoid difficult purchasing challenges while closing the deal as there is a multitude of factors which must be considered.

Deposit – For first purchase, expats must pay a 25 per cent down payment for properties priced below Dh5 million while locals only need to shell out 20 per cent. There are also agency, bank and registration fees, and other related charges.

Mortgage application – Secure a pre-approval prior to scouting for the right property. Banks usually charge a transfer fee and ask for a passport copy, copy of the Emirates ID, salary letter from the employer, salary slips, bank statements for the last six months, copy of recent credit card statements and proof of address.

Insurance – Aside from property insurance, you may also need to apply for a life insurance as a requirement from lenders. This may take three weeks to process.

Memorandum of understanding (MOU) – This will be signed by the seller and you, the buyer, stipulating the dates of transaction, cost and other important details as agreed within the deal.

Valuation and No Objection Certificate (NOC) – The NOC can be applied after the contract is signed. The final offer contract drawn by the bank can take two to seven days, while the NOC can take three to five days. Both copies will be presented by the buyer to the lender to schedule a transfer date.

Transfer and title deed – During the time of transfer, the buyer must produce non-bounceable manager’s cheques to the seller, the developer or the Dubai Land Department as soon as the bank is ready with the money for the transaction. After receiving the title deed, the property is all yours.

It is important to note that hiring an honest and legitimate real estate agent, getting referrals and doing research are key to owning your dream property.

Handy Hints:

* Protect your home with insurance to cover for any damages to the property

* Consider the price of the property, down payment and monthly repayments

* Hire a RERA-certified real estate agent to help you through the buying process

Source: Cleofi-Krista Capili, Special to Properties.


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