A property purchased permanently means that the property is registered under a specific property owner in the Dubai Land Department. The owner owns the property and owns the land forever. The owner has the right to sell or rent his property at his discretion. A freehold property area is a designated area for foreigners to purchase property, while a non-permanent property is a property limited to UAE nationals and GCC nationals.
You will have to provide a valid passport and should be at least 21 years of age with no mental illness.
The most important step is to ensure that the project is registered with RERA and that the developer has obtained registration documents and escrow accounts from relevant authorities. When you purchase a property directly from the developer, the buyer is required to submit a reservation form and a copy of the passport. The booking form usually summarizes the basic terms and conditions of the sales agreement, the details of the payment plan, and the personal information of the buyer and seller.
Dubai is one of the cities with the highest Return on Investment (ROI) in the global real estate market.
*Source: Dubai Land Department
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The registration fee for the title deed shall be shared by the buyer and the seller by the law by 2%, but it is technically paid by the buyer today. The standard fee is 4%, which is negotiated by both parties.
You are advised to conduct a property check if the property is ready. However, for a freehold property, if the property is new, the contractor will give a guarantee on the property structure. The warranty period for the property structure is 10 years, and the parts warranty period for the property configuration is 1 year. The owner then ensures that he/she has a preventive maintenance contract for the property.
Many mortgage-providing institutions offer a choice of “pre-approved financing,” which allows you to get approval before you choose to buy a Dubai property. This will speed up the entire loan process and meet the requirements of sellers who need financing before agreeing to sign a sale and purchase agreement. The pre-trial validity period for most banks is usually 30 days.
If you have a mortgage, you can resell it. Mortgage loans must be paid off to be approved by the bank (or by the other party to pay off for you, under the supervision of the Dubai Land Department). Terms and conditions will vary according to the bank.
RERA – The Real Estate Regulatory Authority of the Dubai Government Land Department, licenses real estate agents, brokers, and developers and oversees all real estate activities in Dubai.
In addition to the registration fee paid to the Dubai Land Department, there is also a fee for the broker. The property fee is stipulated by the owners' association (generally contains fees for building maintenance services). If the owner rents out the house, there is no need to pay any taxes. There is no VAT to sell the house, and there is no tax for investing in multiple houses.