Buying a condo in UAE is way more different than in any other country in the world. Not only that UAE’s real estate market is very different than any other in the world, but there are specific rules and steps that you need to follow for the purchase to go smoothly and without any problems.
To begin, you will need to hire a trustworthy real estate agent that will guide you through the process. Not only he will take care of most of the paperwork, but he can help you find a condo in an area that will suit you the most.
The procedure for buying a condo in the UAE, or any type of real estate, is pretty straightforward, in most cases. In average, it doesn’t take more than 30 days to complete it. That is from the date on which both parties sign the agreement till the day you get to move in your condo.
Here are the usual steps to complete a real estate purchase in UAE:
- The buyer and the seller agree on terms.
- A 10% deposit is paid, and memorandum of understanding is signed.
- Both parties meet at the developer’s offices to fill in an application for a No Objection Certificate – NOC.
- Once the NOC is taken care of, both parties head to the office of the Land Department where they can make the transfer of ownership. The Land Department will ask the buyer to make the payment with a manager’s cheque payable to the seller featuring the exact date of the transfer. After all the formalities are done, the new title deed will be released with the name of the buyer.
- In case the condo has a mortgage attached to it, then the mortgage needs to be settled before issuing the NOC. In this case, the procedure can be a bit more complicated, but eventually, things will settle, and the purchase will be completed.
- Typically, the NOC fee can vary from AED 500 to 5,000, which is payable to the developer of the condo, and it needs to be covered by the seller.
- The real estate agent’s commission is 2% of the total purchase price for the condo.
- The transfer fees come to around 4% of the purchase price.
- Admin fees paid to the Land Department doesn’t exceed AED 5,000.
- If there is a mortgage attached to the condo, there is a mortgage registration fee set at 0.25% of the loan amount. This fee is also paid to the Land Department.
- Annual services charges paid to the developer.
At first, all this might look like a bit of an overkill. However, the key is getting the right real estate agent. He will guide you through the entire process and make sure that it all goes smoothly. Take care of that, and you won’t have to worry about buying a condo in UAE with all the paperwork in order. Nowadays, there are plenty of condos for sale in the United Arab Emirates. Starting from small studios to luxury five bedroom apartments, all that at your disposal. The only limit is your finances and geographical limitation.