Buying a property in Dubai in haste is not a good idea. Consider a slew of factors beforehand so that the deal becomes a smooth affair. Know the factors.
Dubai has emerged as a hotspot for fabulous living. So, if you have already decided to purchase a property in the magnificent city, then you have done the right thing.
But, make sure you do not jump to buying the property straightaway. Wait a while and do the due diligence of analyzing a few factors beforehand, or else you might be prone to a headache after some time you buy the property.
You need to consider a lot of things before you finally take the plunge of buying a property in Dubai. So, you dig into what the factors are:
While buying off-plan, you need to submit your passport and a reservation form that also summarizes the deal's terms and conditions. Subsequently, you have to draw up the Sales and Purchase Agreement (SPA) by paying a reservation fee between 5 to 15 percent of the property value. The SPA commits both the seller and buyer to the deal. If you want to purchase an under-construction property, ensure that the agreement mentions a completion date, and detail any competition that might arise if the builder overruns the scheduled completion deadline.
If you intend to purchase a resale property from a private seller, get the Memorandum of Understanding (MoU) that outlines the deal's terms and conditions. After that, you need to deposit 10 percent of the property price to confirm your purchase. If you buy the property on financing, the deed transfer will take place after the financial institution approves your loan.
Become Clear Why You Want to Purchase Property
You need to make yourself clear about why you want to buy the property. It will help you to spot the right type of property. So, decide whether you wish to purchase a property for investment purposes or to occupy yourself.
If your objective is to rent it out, you should study the property market and determine the types of properties that entail the highest rental yield.
Do Due Diligence
Regardless of whether you buy off-plan or resale properties, you should do the due diligence of finding answers to the relevant questions about the developer or real estate agent.
If you buy from a developer, you should look at the developer's reputation about the quality of properties and timeliness of delivery.
Alternately, if you purchase from a real agent, buy from one that is registered with the Dubai Land Department.
Survey the Property
If you want to purchase an existing property from a seller on the secondary market, you should act a bit smartly. It will help if you hire the services of a registered and professional surveying company that will survey the property to check the premises to locate any risk of future high-maintenance costs. Keep in mind that once you take possession of the property, the onus of its maintenance falls on you. Therefore, make sure beforehand that you do not inherit its maintenance.
Seek Profesional Advice
It is a good idea for you to seek professional legal advice to know what steps you need to take during the purchasing process. However, it is not mandated by law. The bright side is that professional advice can help you to locate any potential future risks. Hire the services of a Conveying company under the Dubai Land Department. Such companies have in-house property lawyers and escrow facilities to ensure transparency of the entire process. In other words, these companies make the deal safe for both the buyer and seller. You then will have nothing to worry about.
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