how to sell a property in Dubai

Discussion in 'Dubai property' started by appletrees12, May 20, 2016.

  1. appletrees12

    appletrees12 New Member

    Hi - there's plenty advice about buying in Dubai but not much on selling. I want to sell a property and want to know the best way to do this. I do not want to pay agent's commission. My agent told me they would not charge me then found a buyer and said I would need to pay 2% commission to cover a third party agent, which I agreed as it was a good offer. This sale then fell through immediately and I doubt it was genuine. Then soon after - again another offer and again I would need to pay commission of 2% for third party agent. Now this agent is large and advertises on all the portals so why do they keep saying there is a third party agent involved? I do not know. Further more, I had signed the Form A to pay the commission on the first, higher offer and they gave me this figure again with the second offer. When I bought I actually paid 4% agent's commission plus I used a solicitor which was expensive and as the price has not risen much do not want to pay additional fees when selling. I am not in Dubai at the moment but it seems to me I have to go there and stay until the property is sold or I have to give a lawyer POA. How much will this cost? .Any advice appreciated.
     
  2. Dennis Cortez

    Dennis Cortez New Member

    Hi Appletrees, sellers don't usually pay 2% commission! It's the buyer who pays commission or they split 50:50 to pay the broker. That's Dubai! I'm from the UK and is currently in Dubai selling my clients property he bought in Damac. (moderated)!
     
    Last edited by a moderator: May 20, 2016
  3. Dennis Cortez

    Dennis Cortez New Member

    Also, you can go to the UAE Goverment property portal where you can sell your properties directly to the buyers with no brokers behind.

    Hope this helps. :)
     
  4. appletrees12

    appletrees12 New Member

    Thanks Dennis. Do you, or anyone, know how much is charged to give a Power of Attorney in Dubai? I know there are companies that do this only and I emailed 2 asking about their services, but had no reply. .
     
  5. Dennis Cortez

    Dennis Cortez New Member

    Hi, we have our lawyers back in UK doing this but POA is a simple document only which gives authority to a person to act on your behalf. I have some templates where you can use as a start and just add the name of the person or company you want and TRUST to act on your behalf. In UAE, this needs a company or lawyer stamp to make it official. This will save you loads of money and time! give me a shout!
     
  6. appletrees12

    appletrees12 New Member

    Thanks - I do know what a POA is - used them previously elsewhere.
    I'd just like to advise any property sellers in Dubai based on my experience so far -
    Don't sign the MOU ( Agreement of Sale) document before the buyer has signed it;
    Don't sign the Land Dept Form, Contract between Seller and Broker (A), known as Form A - before the buyer has signed the MOU
    Don't agree in writing that electronic copies of agreements, Form A are legal. Insist all document originals should be couriered to you.
    If you agree to the electronic documents it seems they cannot be cancelled until they expire which in my case is 3 months - so having agreed the commission on the first offer and been told to rush the documents by email attachment they cannot be "cancelled" as I presume other "uncancelled" copies can simply be brought up again and as the agency does its own conveyancing the chances are that that commission will be deducted from any other sale done through this agency. I am not too worried as I expect the market will be quiet over Ramadan and July and August - by when my agreement will have expired. Actually - how active is the market during this time?
     
  7. Dennis Cortez

    Dennis Cortez New Member

    Hi, the market is not really quiet during Ramadan. It's only for the locals. Mostly the buyers are foreigners as well as most of the brokers. However, the buyers attitude towards to the seller is that they are desperate to sell...

    For me, ss long as you agreed your minimum selling price you want for your property, net of all the commissions they top up then it would be fine. With regards to Form A, Land Dept Form, MOU etc. this is your appointed POA's job who can act on your behalf. Just be careful on what powers you will give on the POA as some are really naughty!
     
  8. Moaza Al Shamsi

    Moaza Al Shamsi New Member

    Dear Appletree,

    First I would like to tell you a lot of companies claim to manage and sell on behalf of the owner being aborad, they will then slam you with fees that are probably quarter of the price or no fee at all. I myself manage and own my 30 properties as well as other clients. We are a family owned business and locals. I hear a lot of stories of people living abroad and being scammed especially from the UK. If you need any advice contact me and I can help you out. And by the way a POA costs you 1500dhs through Public Notary and everything should be done through the Public Notary legally. Hope this helps you.
     
  9. appletrees12

    appletrees12 New Member

     
  10. Zishan M. Khan

    Zishan M. Khan New Member

    Hi Appletrees,

    First, let's get one thing very clear. Seller's in Dubai don't have to pay commission. It's the buyer who pays the commission, which in most cases is not more than 2%. There are no two ways about it.

    The only times a seller is expected to pay a commission, is when the assigned Real Estate company is expected to take care of any unresolved issues or disputes in relation to the property.

    .

    Buying and selling a property in Dubai is rather a simple procedure, as long as the documentation is all properly done.
    Although, its always easiest if the seller is present in Dubai at the time of transfer, POA is also an option.
    For the clients who are not based in Dubai, I normally ask my sellers to make a POA on the name of someone they know in Dubai. If the seller does not have any acquaintance/friend in Dubai then I allocate a person for the client on whose name a POA is made. Please note, that a real estate agent cannot get a POA on his name.

    POA Procedure:

    If the POA is made outside the UAE, it needs to be attested by the UAE Embassy in that country. Once the POA is couriered to Dubai, it needs to be attested by the Ministry of Foreign Affairs.

    You always have to ensure that the POA is property specific and job specific. Meaning, if you give a POA to someone solely for the purpose of selling, then this is the only power assigned to the user. It's a safe way of doing a transaction as the land department does not transfer the property to the new owner unless all the manager's cheques/banker's drafts of the total value of the property are in the name of the actual owner of the property.

    Normally the real estate company involved in the transaction does not charge for this service, unless agreed otherwise or there is some extra work that needs to be done.

    The other option is to hire a conveyancing company. A conveyancing company charges for this service. AED 5000 minimum upto a certain percentage of the sales value.

    I've noticed that there is not enough information on this blog regarding the selling procedures. I'll ensure that I put out a detailed articles on here.
     
    Last edited by a moderator: Jul 3, 2016
  11. Estate With Joe

    Estate With Joe New Member

    As per the Real Estate Regulatory Agency, the agency fees are whatever are agreed upon. It's absolutely not illegal to charge a seller 2% or more, and it's also not mandatory to charge.

    However, as a real estate agent, I definitely do charge my seller clients a minimum of 2%. Whenever there's a sales transaction, there's a seller's agent and a buyer's agent, which each get paid by their clients. Sometimes the same agent acts as both seller's and buyer's agent, and there are some cases where there's more than 2 agents involved. Either way, if an agent wants to work for free and charge no commission, it's their decision to do so, but it should also be obvious that this agent will not be very encouraged to collaborate with other agents as their pay would be cut in half.

    My view is that a property owner is hiring me to sell his property and my task will include the following:
    - Conduct a market study to determine a listing price that will generate enough interest and offers.
    - Take photos or hire a professional photographer to make it look as appealing as possible.
    - Write an appealing description or hire a copywriter to do that.
    - Advertise it online on as many portals as possible.
    - Call as many trusted agents whom I've worked with and who are also active in the area to tap into their buyers.
    - Call any clients that I have which are interested in a similar product or who might be interested in taking a look.
    - Show the apartment and sell it professionally to any prospective client, then handle the negotiations.
    - Take control of the process to make sure everything goes as smooth as possible.

    Every one of those tasks cost money, some directly as money coming out of my or my company's pocket, and some indirectly as phone bills or petrol or hired help. The value of the expertise on the processes isn't easily quantifiable but is also worth money.

    You can absolutely conduct all of those tasks yourself, but there's always a cost. When hiring a professional agent, the money is your cost. When you do it yourself then long time, low exposure (often leads to low sale price too), and possible errors during the actual sale is your cost.
     
  12. Rayie

    Rayie New Member

    Sellers who are educated on the important steps needed to sell their property can maximize their time while capitalizing financially on the sale. With Dubai being one of the most competitive markets in the world regarding real estate, selecting a qualified real estate agency is critical in receiving the highest return on the sale. Knowing the selling process and being able to identify an established agency is the most important information needed when selling property.
    /
     
    Last edited by a moderator: Feb 8, 2017
  13. Simon Petersen

    Simon Petersen New Member

    Hi Dennis, I cant seem to that web page, could you please send link. maybe recommend a decent broker... i need help :)
     
  14. Luci

    Luci New Member

    1.Choosing a Qualified Real Estate Agent
    2.Using Multiple Agencies at Once
    3.Provide Appropriate Documents
    4.Sign an MOU This is the first step in the actual selling process(memorandum of understanding)
     
  15. Shams Khaled

    Shams Khaled New Member

     
  16. Shams Khaled

    Shams Khaled New Member

    Hi Dennis, thank you for update. Could you plz introduced one of your uk lawyers, so I can start. Many thanks
     
  17. Bulldozer

    Bulldozer Hunter Gatherer ...

    hello Dennis. wonder if you could direct me to this property portal?? where would i find it?
    thanks
     
  18. John Scott

    John Scott New Member

    When selling a property in Dubai, you have to consider so many things. Find a good agent to make the process smooth and make sure that all the appropriate documents are available to proceed the selling process.
     
  19. kadirayoobuae

    kadirayoobuae New Member

    Find a reliable RERA certified real estate agent. I think you need to pay up to 20% down payment. Most real estate agents charge a 2% commission while some new platforms do offer 1% commission.
     
  20. sam888

    sam888 New Member

    I agree with the most of commenters here, a good estate agent may become the best solution. Some companies(Yeshomebuyers,for example) offer a house buying service, they buy houses and apartments in different conditions, even the oldest or most dilapidated properties. Later they just sell it again via other estate agents, I guess, but the pros are obvious: you get money for the deal almost immediately.
     
    Last edited: Apr 28, 2018
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