To sell your property you will require a title deed on the property obtained through registration at the Dubai Land Department. You will also need a NOC (No Objection Certificate) from the developer to confirm that the property is free from any liabilities such as the outstanding mortgage or unpaid instalments or service fees. Your original passport would be required and any other documents and receipts pertaining to the original sale and current state of the property. If your property is rented you will need a copy of your tenancy agreement and if you have sold through a registered Real Estate Agency a signed sellers agreement known as a Form A would be needed.
The services of a lawyer are more usually engaged in other parts of the world when selling a property, however, this is not necessarily the case in Dubai. The contract of sale is a standard electronic document provided by the Government and known as Form F, also know as an MOU (Memorandum of Understanding). These are prepared via the agency handling your transaction and/or you can opt to employ a lawyer or conveyancing company.
All transfers are now handled through the designated Dubai Land Department Trustee Offices located throughout Dubai. All parties pertaining to the transaction must be present. This can include a Power of Attorney (POA) delegated by the Seller. When handling a transfer through Exclusive Links Dubai Real Estate Brokers we will advise you as the broker what documents and payments are required on the day of transfer.
For any off plan sales, land registration is now done with the developer in line with the original purchase of your property. The registration fees are 4% of the purchase price and this cost is exempt from VAT. In the case of secondary sales this 4%, known as the transfer fee, is paid at the time of transfer of ownership and can be divided between 2 parties, the Seller & the Buyer.
Having a valid tenancy contract on the property does not prevent you from selling. It will be part of your agreement with a Buyer to transfer the tenancy to the Buyer whom will automatically inherit the tenancy terms and replace Seller as the Landlord. You may have to consider a refund of future rent for the remaining period of the lease and you will have to transfer the Tenant's security deposit to the Buyer.
As a Seller, you are authorised to sell your fully paid for and completed property on the resale market at any time once you are in receipt of your Title Deed. If your property is not yet completed and final payment has not been made then the developer will need to be consulted on transferring the payment plan to the new owner and to confirm that your payment instalments are up to date in line with your original Contract of Sale. It may be included in your initial Purchase & Sales Contract that a certain amount of the total purchase price (e.g. 40%) must be paid before Developer will approve a resale. Additionally, for off-plan property sales, the developers may set an MSP (minimum selling price) so to not undercut their available primary sales.
Law 33 of 2008 Article 25 states a Landlord may demand eviction upon expiry of tenancy contract if the Owner of the property wishes to sell the leased unit but must notify the Tenant of the reason at least 12 months prior to determined eviction date and notification must be delivered by Notary Public or registered mail.
Sales Proceeds at transfer must be in a Dirham managers cheque made payable to the Owner/s names on the title deed. This can then be deposited and cleared in your home country bank account. Many overseas banks have a multi-currency account facility and you may consider opening a UAE Dirham account for quicker clearance. Whilst UAE banks are very accommodating when opening bank accounts, most banks will now require a UAE residents visa to open an account.
It can be misleading for Sellers to assess their property value from the marketing material that collective agencies promote. A listing price may not be the actual selling price. Owners also rely on their chosen agency to provide them with an assessment of the value, however, this could vary from agency to agency depending on their experience, professionalism and knowledge of the product. At Exclusive Links, we offer specialist sales client managers whom can provide historical and factual market figures to support the valuation and achieve the right price for your property. As a Seller your agency would be asking you to sign a Sellers Agreement Form A which confirms your instruction to list your property for sale.
The minimum period of 12 months for eviction will commence from the date the Tenant receives the notice. In the event this notice has been provided more than 90 days before expiry of the current tenancy contract then you can opt to request the renewal from tenancy contract expiry only until the date at the end of 12 month period. Any changes to the tenancy contract term must be done in writing at least 90 days before tenancy contract expiry unless otherwise agreed within tenancy terms.
