Understanding the Selling Process of Dubai Property


Zishan M. Khan

New Member
The Process

Once the seller has an oral offer from a buyer and upon acceptance of this oral offer, a formal sales contract is drafted (MOU/Form “F”) and agreed upon between the parties. A 10% deposit is made by the buyer and given to the seller’s agent, usually in the form of a cheque. In most cases this deposit is non encashable and is held in trust by the seller's agent. It is to be noted here that a single agent/agency can represent both the parties. Full and final payment is made by the Buyers on the deed transfer date.

The protocol differs slightly depending on whether the property is an “off-plan” property or a "ready" property. Here we will talk specifically about a ready property.

Selling a Ready Property

After the acceptance of the oral offer, the sales agreement (Form F) stipulating the terms and conditions is drafted. Once agreed by both parties the 'Form F' is signed by both the parties. Normally the Buyer signs the Form F before the seller, thus establishing the seriousness of his offer.

Note: 'Form F' is now a mandatory agreement issued by Dubai Land Department. Prior to the Form F, a MOU drafted by the Real Estate agency was the main agreement.

A 10% deposit is put down by the Buyer. This deposit is usually non-encashable and is held in trust with the Seller’s agency.

If the Buyer is seeking a finance from a bank for the purchase of the property then the bank will raise a request for a property evaluation by contacting one of the independent property valuator registered on its panel. The Property valuation fee is borne by the Buyer.

Note: Regardless of the selling price mentioned on the Form F, the bank gives financing solely on the amount quoted by the Property valuator. Incase the valuation amount is more than the mentioned selling price, the financing is provided on the mentioned selling price.

If the property being sold was bought using financing from a bank, the Seller will request his bank to issue a Liability Letter if there is an outstanding amount on the finance or a “No Liability Letter” if there is no outstanding amount on the finance.

Note: The validity of the Liability Letter is for 15 days only, hence the application for the letter should be timed accordingly.

It is to be noted here that clearing of the current liability, if any, is the responsibility of the Seller. But in some cases the Seller requests that the Buyer or the Buyer’s bank (if applicable) settles the liability. Both the options are possible upon mutual agreement.

Once the existing liability (is cleared) the bank will issue 2 sets “No Liability Letters”. The first letter is in the name of the developer of the property and the second letter is in the name of Dubai Land Department.

Both the Seller and the Buyer take an appointment at the developer’s (of the property) office to apply for a No Objection Certificate. An NOC is issued by the developer stating that it has no objection in the Seller selling the property to the Buyer.

Note: The NOC is Buyer specific, i.e. an NOC is issued specifically for a particular Buyer.

The developer takes 3 -8 days to issue an NOC.
  • The following documents are required to apply for an NOC:
  • a) Buyer’s Original Passport and Copies
  • b) Seller’s Original Passport and Copies
  • c) Copy of the MOU/Form F
  • d) Proof of clearance of the quarterly maintenance fees
  • e) No Liability Letter from the bank (If applicable)
  • f) Final Approval of the new financing from the bank (if applicable)

Both the Buyer and Seller meet at the Registrar’s Office and all payments are made to the Seller or his POA in the form of a Manager’s Cheque.

The property is transferred and the new Title Deed is issued in the name of Buyer.
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