UAE property buying guide
All the property J&JA Overseas Properties sells in the UAE is located in freehold areas. The property buying process for new build property in the UAE is very straightforward. The actual payment plans may vary slightly from developer to developer but on the whole you can expect similar terms.
As you may expect, payments are spread over the construction period. The percentage value of the instalments is generally 10%, but of course these can vary. Once you have selected the overseas property you wish to purchase, it begins with a booking deposit to be paid which will secure the property in your name. This is generally around 10% of the purchase price and is not refundable so needless to say you must be sure at this stage.
The rest of the price is payable as per the applicable payment terms, all detailed in your Sale Agreement, and of course to which you would have agreed beforehand. After the booking fee has been received by the developer you will be sent two copies of the Sale Agreement both must be signed and returned (either to us for forwarding on or directly to the developer). The developer will have these executed and will then send you a signed copy for your records.
Information on lawyers and fees
A high percentage of clients do not use lawyers when signing Sale Agreements in the UAE and the other Emirates, the main reason being that Sale Agreements are "non-negotiable".
Although Sale Agreements are written in English, and easy to follow with clear payment dates and general clauses, naturally it is your right to use the services of an independent lawyer to look at and advise you on your contract. As usual if you do not know any lawyers in the UAE, we can put you in touch with one. There is a good selection of international lawyers based in the region.
Upon completion of the development/property, the final contract/title deed is signed in front of a UAE Notary. The deeds are then recorded with the Lands Registry. Typically there are extra costs involved when purchasing property in the UAE, but happily not many compared to other countries.
- Land Registry: there is a fee of 2% payable on completion.
- Service charge: There will be service charge payable annually on apartments in towers/complexes, typically, a maximum of 15AED per square foot for the first three years. As it is freehold ownership, the overseas property owners have a say which the management company is. Therefore the management company will always charge competitive rates.
Capital gains and rental income is tax free unless the buyer is bringing the money back into the UK. Many overseas property investors get around this by setting up off shore accounts.
Selling property in the UAE before completion
Selling a property in Dubai before completion is permitted. However, the buyer must be given authority to do so by the developer and usually this is after 30% of the price has been paid. There will be a small charge levied (generally around 2%) which covers the administration cost of transfer of name. There will be a clause in the Sale Agreement to this effect stating the amount of the charge.
Resident Permit
A resident's permit is available through the developer of the project in which you buy and application for this is made at time of completion. All permits are sponsored by the developer and are renewable every three years at a small fee. Please note that the residency permit does NOT permit the buyer to work in the UAE, only reside there.Building Standards
The Dubai Municipality and the Civil Code of the UAE applies strict codes of standard to building standards, building permits and property sales contracts and developers must maintain these standards. Regulations issued by the Municipality with regards to building construction and safety issues are rigid. The contract will stipulate guarantee periods etc, often these are 10 years for construction and workmanship.It is now illegal for developers to build and hence to take funds from purchasers if they do not operate an Escrow Account. Please ensure that the developer from whom you are intending to purchase is RERA approved, and operates an Escrow Account.
You can rest assured that J&JA Overseas Properties only work with established and reputable developers in Dubai.
J&JA will take you through each step of your Dubai property investment in detail from reservation through to completion and beyond.
