Final Steps to Complete Your Dubai Property Sale
What Happens After an Offer Is Accepted
After verbal agreement on a price, the deal is formalised by signing a Memorandum of Understanding (MOU), also known as RERA Form F. This is a legally binding sales contract between you and the buyer, outlining all terms and conditions of the sale, including property details, the agreed price, and key dates.
At this point, the buyer is required to pay a security deposit, typically 10% of the purchase price, which is held by the agent until the transfer is complete. It is crucial to read Form F carefully before signing to ensure all details are accurate and reflect the terms you have agreed upon.
How to Secure a No Objection Certificate (NOC)
A No Objection Certificate (NOC) is a mandatory document issued by your property's developer, and you cannot transfer ownership without it. The NOC confirms that you have settled all outstanding service charges and have no other liabilities with the developer. To apply, you must meet with the developer, pay any outstanding dues, and submit the required documents, which typically include:
- Title Deed or Oqood
- Copy of the signed Form F (MOU)
- Passport or Emirates ID copies for both buyer and seller
The developer charges a fee for issuing the NOC, which can range from AED 500 to AED 5,000, and this cost is borne by the seller. The certificate is usually issued within five to seven working days.
What if there is a mortgage on the property
If you have an existing mortgage on the property, it must be fully settled before the developer will issue the NOC. Your conveyancer or agent will coordinate with your bank to get a final settlement figure. In most cases, the buyer provides a cheque for the outstanding mortgage amount, which is paid to your bank. To protect the buyer's interest during this process, the property is "blocked" in their name at the DLD, preventing it from being sold to anyone else while the mortgage is being cleared.
The Final Step: The Property Transfer
The transfer of ownership is the concluding step of the sale, which takes place at the office of a government-approved Registration Trustee. Both the seller and buyer, or their legally appointed representatives, must be present. Your agent or a hired conveyancer will guide you through this process to ensure all paperwork is in order.
On the transfer day, the buyer will provide the final payment in the form of a manager's cheque, made payable to you. Once the payment is verified and all transfer fees are paid, the Registration Trustee finalises the transaction with the DLD. The DLD then issues the new Title Deed in the buyer’s name, officially completing the sale.
What Fees Must the Seller Pay
While the buyer covers the majority of the DLD fees, the seller is responsible for several costs to complete the transaction. Being aware of these expenses is crucial for accurately calculating your net proceeds from the sale.
- Real Estate Agency Fee: Typically 2% of the sale price (+ 5% VAT).
- NOC Fee: Varies by developer, generally between AED 500 and AED 5,000.
- Mortgage Discharge Fee: If applicable, this fee is charged by your bank and usually costs between AED 500 and AED 1,500.
- Conveyancing Fee: If you hire a conveyancer to manage the legal process, their fees will vary. This is an optional but highly recommended service.
Why a Conveyancer Is Highly Recommended
After an offer is accepted, it is highly advisable to hire a professional conveyancing service. For a fee, a conveyancer handles the intricate legal and administrative details of the property transfer process. They will coordinate with the developer to obtain the NOC, liaise with banks to clear mortgages, and manage all the necessary paperwork for the DLD.
Using a conveyancer provides peace of mind and ensures that every step is completed correctly and efficiently, preventing potential delays or complications. Their expertise is particularly valuable for sellers with outstanding mortgages or those who are unfamiliar with Dubai's property laws.
What are the most common mistakes to avoid
Sellers can sometimes make missteps that delay the sale or reduce their final profit. Key mistakes to avoid include:
- Not settling service charges in advance: This is a common reason for delays in getting the NOC.
- Misunderstanding the Form F: Failing to read the sales agreement thoroughly can lead to disputes later on.
- Trying to manage the process without an expert: A qualified agent or conveyancer is essential for navigating the complex legal requirements and ensuring a smooth closing.
