Dubai’s real estate market has grown and evolved significantly in previous decades. That said, the industry offers innovative ways to benefit both buyers and sellers. One such evolution is off-plan property which has garnered notable attention from both parties. Off-plan refers to any property that is booked on the basis of a blueprint while being under construction. The amount is paid in instalments, providing an edge to the buyers. Moreover, buyers also have the leverage to sell off-plan properties before possession at their convenience.
Let’s discuss the process and legalities involved in selling off-plan property in Dubai in detail.
How to Sell Off-Plan Property
Here is the complete process of reselling an off-plan property in Dubai. However, prior to initiating the selling process, verify the terms and conditions mentioned by the developer in the contract.
Once you have paid the limited amount and meet all the requirements set by the developer, you are ready to sell the off-plan property.
Get No-Objection Certificate
The first step in reselling the property is to get the No-Objection Certificate (NOC) from the developer. This service is charged and the amount is generally paid by the new buyer. Once you get the NOC, the next step is to visit the trustee’s office.
Receive Cheque
In the trustee’s office, you will receive a cheque equal to the amount that you have paid to the developer. New buyers will also have to pay the property transfer and registration fee to the Dubai Land Department (DLD).
Sign the Contract with the New Owner
Once the process is complete, the buyer becomes the new owner of the property. Some developers also necessitate the signing of a contract between the new and old owners in order to safeguard their rights.
Selling Off-Plan Property Before Completion
To sell off-plan property in Dubai, property owners are obligated to meet certain conditions and fulfil criteria set by the developers and the legal procedures implemented by the government.
Generally, buyers can sell off-plan property in Dubai after paying 30% to 40% of the total amount. This ratio can vary with the project and developer. Therefore, it is suggested to confirm the percentage if you are planning to sell your property. Moreover, the seller and buyer both may have to cater to the conditions mentioned in the developer’s contract.
Besides, here are some more things to consider when buying an off-plan property in Dubai.
Costs Involved in Reselling an Off-Plan Property
If you are planning to buy an off-plan property, consider the following expenses that buyers have to pay.
- Registration Fee: The registration fee consumes a major portion of the total cost incurred while purchasing an off-plan property. Buyers have to pay 4% of the total property cost as a registration fee to the Dubai Land Department (DLD).
- Transfer Fee: Buyers have to pay AED 3,500 transfer fee for the property valued under AED 500,000. Whereas the transfer fee is AED 5,000 for properties valued at more than AED 500,000.
- NOC Charges: The NOC certificate issued by the developer will cost around AED 5000. Generally, buyers are requested to pay this fee.
In case of involving an agent for sale or purchase, the agent’s charges will also be included in the above-mentioned cost. That said, involving an agent in the process can facilitate you in multiple ways, here are some of the pros of hiring a real estate agent in the Emirates.
Pros of Reselling Off-Plan Property
Dubai real estate is known for its ROI on properties, whether you purchase an apartment or villa for sale in Dubai. Similarly, purchasing an off-plan property will also provide you with multiple benefits mentioned below.
- Flexible Instalments: The first and foremost benefit of off-plan property is flexible pricing. A majority of developers agree to break down the total amount into monthly instalments as per the buyer’s budget. Read through these commonly offered Dubai off-plan payment plans that buyers can opt for.
- Varied Options: Dubai is one of the largest real estate hubs; therefore: a wide variety of properties are always available for purchase. This enables buyers to choose their desired property from the vast options available.
- Guaranteed Return of Investment (ROI): The initial cost of off-plan property is lesser and it increases gradually with the completion of the project. Also, developers provide special discounts on early bookings. Hence, financial gains and ROI are guaranteed in such projects.
FAQs
Can off-plan property get delayed?
Yes, delay in property handover can happen and usually, the developers are provided with a grace period to handover the property. After that period, buyers are allowed to proceed with legal actions.
What If I am unable to pay the instalments on time?
Buyers unable to clear their dues on time are charged with fines. However, if dues are not cleared for a certain time period, the buyer is declared defaulter and the property is sold out to another investor.
Will I get a mortgage to buy an off-plan property?
Yes, buyers can avail of a mortgage to buy an off-plan property. However, it is necessary to meet certain criteria set by the financial institute.
This was all about selling off-plan property in Dubai. The off-plan properties are generally considered a lucrative real estate investment. However, off-plan properties take some time to complete and developers can delay the handover. Therefore, if you are looking for an immediate residence, browse through these apartments for rent in Dubai.
Besides, here is how to deal with delays in off-plan property handover in the Emirate.
Stay tuned to dubizzle’s property blog to know how to sell commercial property in Dubai.
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