Selling a property comes with numerous advantages. Many individuals sell properties for enhanced financial returns or to secure a profit. They also sell units to invest in other assets. Speaking of Sharjah, it is an appealing option for property owners, where sellers can benefit from profitable and efficient transactions. When it comes to selling, there are certain contracts and documentation for selling a property in Sharjah. These steps ensure a smooth selling process that complies with the emirate’s real estate regulations.
Let’s go through the legal procedures to sell property in Sharjah.
Benefits of selling a property in Sharjah
Before we discuss the contracts and documentation for selling a property in Sharjah, here are some reasons to proceed with the selling process.
Healthy Rental Yields
Properties in Sharjah such as villas or apartments, often offer healthy rental yields, making them attractive to investors. Highlighting this to potential buyers helps enhance the property’s appeal and chances of a profitable sale.
No Capital Gains Tax
Selling a property in Sharjah comes with no capital gains tax. It allows sellers to keep more of their profits. This usually results in a more financially beneficial transaction.
Proximity to Megacity
Sharjah’s proximity to Dubai provides residents with easy access to economic opportunities and amenities of Dubai. On the other hand, property sellers also benefit from the lower living costs in Sharjah. This makes buying properties an attractive solution for those looking for more affordable options when moving to Sharjah from Dubai.
Ongoing Development and Growth
Sharjah is continually investing in infrastructure and cultural and economic development. This ongoing growth has boosted property values and made investing in Sharjah’s real estate a sound choice. This strategy attracts more buyers and offers good returns for sellers.
Requirements and Legal Process of Selling Your Own Sharjah Property
Selling a property in the UAE involves several key steps. Here are the details of the contracts and documentation for selling a property in Sharjah. By adhering to these requirements and legalities, you can complete the selling process smoothly.
Pre-Sale Preparation
First things first, before selling a property, make sure that it is evaluated properly. This process for Sharjah properties is quite similar to that of property valuation in Dubai. It includes the following steps:
- Property Valuation: Hire a professional valuation of the property to set a competitive price.
- Property Inspection: Ensure the property is in good condition, fixing any issues that might deter buyers.
Listing the Property
The next step is to list the property. You can do so easily with reliable platforms like dubizzle that help you spread the word effectively. Moreover, you can engage a licenced real estate agent who is familiar with the Sharjah market. For marketing, opt for high-quality photos and detailed descriptions, highlighting the key aspects of your property.
Required Documents
Here are the documents required for selling property in Sharjah.
- Title Deed: A title deed proves ownership of the property.
- Sales Agreement (MOU): A Memorandum of Understanding outlining the terms and conditions of the sale.
- Seller’s Passport and Visa: Copies of the seller’s identification documents.
- No Objection Certificate (NOC): Issued by the developer, an NOC confirms no outstanding dues.
- Service Charge Clearance Certificate: It is proof that all service charges are paid up to date.
- Power of Attorney: If someone else is handling the sale on behalf of the owner.
- Tenancy Contract (if applicable): The existing tenancy contract must be provided if the property is rented.
Set a Deal
It’s crucial to ensure that the buyer has the financial capability to proceed with the purchase. It is usually demonstrated through a mortgage pre-approval or proof of funds. Once financial credibility is established, the next step is to negotiate and agree on the price and terms of the sale. Doing so affirms that both parties are satisfied with the transaction’s conditions.
Sale Agreement and Deposit
Another of the requirements for selling Sharjah real estate is the sale agreement. Both parties must sign the MOU or Sale Agreement. Moreover, 10% of the purchase price is paid as a deposit.
Obtain the NOC from Developer
The seller must obtain the NOC from the property developer in Sharjah. It will confirm that there are no outstanding dues.
Finalise the Sale
After you have compiled the necessary contracts and documentation for selling a property in Sharjah, it is time to seal the deal. Once you have obtained the NOC, schedule an appointment at the Sharjah Real Estate Registration Department (SREDA). The buyer will then pay the remaining amount of the purchase price. Moreover, at the SREDA, both parties sign the final sale contract and can request the title transfer in Sharjah to the buyer’s name.
Fees and Costs
Around 2% of the purchase price is included in the cost of hiring a real estate agent in Sharjah. In addition, usually, 2% of the property price is paid to the SREDA. NOC fees are paid to the developer, ranging from AED 500 to AED 5,000. If the mortgage registration fee is applicable, then it is 0.25% of the loan amount.
FAQs
Can I own a property in Sharjah?
Yes, both UAE nationals and foreigners can own and buy property in Sharjah.
How much is the municipality tax in Sharjah?
Sharjah municipality tax is 5% of the rental contract value.
What is the tenancy contract fee in Sharjah?
Sharjah tenancy contract fee is AED 100 for the form and 4% of annual rent (minimum AED 500).
That is all on the contracts and documentation for selling a property in Sharjah. The requirements detailed above help make the selling process secure for both parties.
However, if you are on the other side of the transaction, looking to invest in Sharjah’s real estate, here are some options:
To learn more about UAE’s real estate and market trends, stay tuned to dubizzle’s property blog.
