If you’re planning to sell a property in Dubai and it’s your first time, we’ve put together a detailed guide covering all the crucial steps you’ll need to follow. This guide is helpful whether you’re selling an apartment or an investment property. Follow along as we dive into the specifics. 

Choose a Real Estate Agent

It’s advisable to work with a reputable real estate agent or agency that has a strong track record in Dubai’s property market. They can provide valuable insights, market your property effectively, and handle viewings. Seek out a reputable real estate broker in Dubai, ensuring they have certification from the Real Estate Regulatory Agency (RERA). These agents will handle the marketing and management of your apartment and villa sales in Dubai, ensuring a smooth transaction process.

Agents certified by RERA are bound by the Dubai Land Department’s (DLD) ethical standards, guaranteeing professionalism, integrity, and reliability. It’s essential to review their RERA identification to confirm their credentials. Upon selecting a suitable agent for your Dubai property sales, formalize your partnership through a contract. This involves completing an RERA Form – specifically, Form A – which officially assigns them the task of marketing and selling your property.

This form outlines essential details such as property specifics, commission rates, service fees, payment timelines, any existing mortgages, and listing information. Following the signing of FORM A, it must be submitted to the DLD’s Trakheesi system for approval. Approval grants you a permit number, allowing you to advertise your property.

When choosing the right agent for your Dubai property sales, consider the following:

• Ensure the agent has substantial experience and knowledge in your property’s location, such as Jumeirah Lake Tower (JLT), demonstrating a track record of successful transactions in that area.
• The agent’s professional rapport with you is crucial. You should feel confident in their ability to provide detailed information and advice, allowing you to comfortably discuss any concerns and seek guidance when necessary.

An agent meeting these criteria will effectively navigate you through the sales process, assist in setting a realistic price, formulate an effective marketing strategy, and facilitate the sale of your property in Dubai. We guarantee you’ll be in good hands working with any Livin’ Experts agent!

Advertising your property

To market a property anywhere in the world, advertising is essential, and this holds for Dubai as well. To capture the interest of potential buyers, property advertisements should encompass all necessary information, alongside photos and videos. Real estate brokers are responsible for posting listings on appropriate online platforms.

Individuals have the option to advertise on their own and can benefit from following these tips on real estate photography when listing properties online. Additionally, placing advertisements in newspapers and on social media platforms can also facilitate the sale of a property.

Furthermore, it’s always advisable to assess your property in Dubai before advertising it for sale. Once advertised, ensure your property is ready to be presented to potential buyers.

Showing the property to potential buyers

Your property consultant will organize tours of the property for interested parties. As an expert in the field, your agent will not only present the property but also provide detailed information and respond to inquiries regarding the property, the community, the asking price, and other aspects pertinent to the sale of your property. Your agent will keep you informed about promising prospects and handle negotiations on your behalf (with your approval regarding the price range) with potential buyers. It’s crucial to grant your agent easy and unrestricted access to ensure successful outcomes. A significant issue would arise if the agent and a prospective buyer were unable to enter the property due to a malfunctioning key or a lack of notification to security. Ensuring that your agent has all the required documents to show the property will increase its visibility to potential buyers and enhance the viewing experience for them.

Seller and buyer agreement terms

When a serious buyer emerges, both parties will negotiate the price and terms through their agents. This stage highlights the importance of a competent agent who can present a convincing argument for both the buyer and seller to agree on a price, using factual evidence and analysis of market trends. Often, offering a 10% deposit as part of the proposal can demonstrate the buyer’s commitment. Upon reaching an agreement, both parties are expected to sign a memorandum of understanding (MOU), also known as Form/Contract F.

This agreement can be created and signed digitally via SMS and one-time passwords (OTPs) to bypass the need for physical documents. Typically, the buyer provides a 10% security deposit for the property, held by the agency until the property transfer is complete, at which point it is exchanged for the full payment to the seller. The agency or its sales progression/conveyance department must provide a clear timeline and outline of the transaction steps, including a detailed agenda of what to anticipate and when to prevent any unexpected issues.

What if you are a mortgage seller?

In that case, the purchaser must clear your mortgage before receiving the No Objection Certificate (NOC). This involves the bank’s participation. To expedite this step, initiating the process with your bank or financial institution on the same day you agree to a Memorandum of Understanding (MOU) is advisable. You can request a liability letter from them, which might take up to two weeks for certain banks to issue. For buyers paying in cash, a specific procedure is available to temporarily hold the property at the Dubai Land Department Trustee office, ensuring the buyer’s security during the mortgage clearance of the seller. If the buyer intends to finance the purchase, their bank will work directly with the seller’s bank to ensure a seamless transaction.

Applying for the NOC

All participants will convene at the developer’s office to request a No Objection Certificate (NOC) to sell a property in Dubai. Some developers offer the option to apply online. The developer will verify any outstanding service charges or installments, which must be paid in full. The NOC request will be processed upon payment of a fee, typically ranging from AED 500-5000 plus VAT, as per the legal maximum. This fee varies based on the developer and the property’s status, whether it is completed or under construction. In specific communities, developers may conduct a physical inspection of the property to check for any unauthorized modifications, in line with the developer’s guidelines. Generally, a representative from the developer’s office will inspect the property following an NOC application.

If everything complies with the requirements, the NOC will be issued. Otherwise, the seller will be notified of any necessary adjustments, such as obtaining proper approvals or reverting the property to its original condition. Some developers might also ask for a refundable deposit from the buyer, which is returned upon presentation of the new title deed at the developer’s office, ensuring the records are up to date. The process typically takes up to 5 working days, though it may extend based on the property type, developer, and community involved.

Arranging for utility disconnection

Initiate the termination of utility services by contacting providers like DEWA (Dubai Electricity and Water Authority). All involved parties must be aware of the transfer and finalization date. Addressing this early can prevent any potential delays. Typically, this process can be completed online and requires 24-48 hours.

Receiving the NOC

Following the issuance of the NOC, all involved parties can proceed to the trustee’s office at the Dubai Land Department for the formal transfer of property rights against the agreed payment.

The DLD mandates that the purchase amount be settled through a manager’s cheque in the seller’s name on the transfer date. Also, manager’s cheques must pay a 4% transfer fee and an administrative fee, which should not surpass AED 4,000 plus VAT for properties valued over AED 500,000 or AED 5,000 plus VAT for off-plan properties. The fees are marginally reduced for properties with lower values. Upon completion of these procedures, the buyer will be issued a new title deed. Subsequently, the buyer is responsible for compensating the seller for any pre-arranged service charges or rents on a proportional basis.

Conclusion

To sell a property in Dubai successfully, you will most definitely need proper preparation and guidance. By understanding the market, preparing your property effectively, and navigating the legal and regulatory landscape, you can maximize your chances of a successful and profitable sale.