Seller's Handbook

Sell

Terminology

OQOOD: Off-Plan (Under-Construction) Properties are registered in the OQOOD system. This is the off-plan counterpart of the Title Deed.

Title Deed: This is the ownership certificate. It is issued by Dubai Land Department on the transfer of a fully constructed property.

Owner Association: It is a non-profit organization comprising of all the owners of a jointly owned property. The association is responsible for Management, Operation and Maintenance of the jointly owned areas.

MOLLAK: It is an online registration system for Owners Associations which can be used for various purposes such as collecting maintenance charges, etc.

DLD: The Dubai Land Department is responsible for managing, regulating and promoting the real estate sector.

RT: Registration Trustees are appointed by the DLD to conduct real estate property transfers on its behalf.

Blocking: In case of a cash buyer and a mortgaged property, blocking is a service offered by DLD to protect buyers who agree to settle seller’s mortgage before transfer.

Things To Remember

01.

Ask the broker to find the market price by using CMA.

02.

Provide all the necessary information about the property.

03.

The NOC charges are usually payable by the seller.

04.

The DLD transfer fees and RT registration fees are payable as agreed by the buyer and the seller.

05.

A mortgaged property cannot be transferred unless the mortgage is settled.

06.

Blocking a property with DLD protects both the parties.

07.

The seller has to check the buyer’s mortgage pre-approval.

08.

The buyer’s contribution to the purchase price should at least be 25%.

09.

Dh1,290 mortgage release fees is paid by the seller.

Buying Process

Type I
Type II
Type III
Type IV

Cash Buyer - Mortgage Free Property

Viewing Stage:

1. List your property with a broker and sign Form A with him.
2. Describe your desired price and ask the broker to find out the market price using CMA.
3. Once you agree on an asking price, mention other terms such as viewing arrangements, the scope for negotiations, Power of Attorney (if any), rental status, etc.
4. The broker will then propose the best-suited marketing plan and start showing the property.
5. Eventually, the broker will start sharing offers with you.
6. Once you’re satisfied with an offer, you can accept and move to the transfer stage.

Transfer Stage:

1. The first step is to sign the property sales contract also known as Form F with the buyer. There can’t be two Form F signed for the same property.
2. The next step is for the broker to collect a security deposit cheque (industry norm is 10%) from the buyer and a cheque of equivalent value payable to the buyer from the seller. The broker holds both the cheques till transfer.
3. The next step is to obtain a No Objection Certificate (NOC) from the developer stating that all the seller’s dues are clear. The fee for NOC is usually paid by the seller.
4. Once you have the NOC, you can go to the Registration Trustee (RT) to transfer the ownership. RT will charge a registration fee of Dh4,000 for properties above Dh500,000 and Dh2,000 for properties below the said amount. It is payable as agreed by the seller and the buyer. During the transfer you have to carry the following in Manager’s cheques:

Cash Buyer - Mortgaged Property

Viewing Stage:

1. List your property with a broker and sign Form A with him.
2. Describe your desired price and ask the broker to find out the market price using CMA.
3. Once you agree on an asking price, mention other terms such as viewing arrangements, the scope for negotiations, Power of Attorney (if any), rental status, etc.
4. The broker will then propose the best-suited marketing plan and start showing the property.
5. Eventually, the broker will start sharing offers with you.
6. Once you’re satisfied with an offer, you can accept it.

Blocking Stage:

1. The first step is to sign the property sales contract also known as Form F with the buyer. There can’t be two Form F signed for the same property.
2. A mortgaged property can only be transferred after the loan is settled. At the time of selling, the buyer may settle your debt. DLD provides a service called “Blocking” to protect both parties in such cases. You have to submit the following documents at the RT office:

Signed Form F.
Liability letter from the seller’s bank.
Copy of the title deed.
Manager’s cheque from the buyer for the liability amount mentioned in the letter payable to the seller’s bank.
Manager’s cheque for the 4% DLD transfer fees as agreed between the buyer and the seller along with Dh580 registration fees payable to DLD.
A cheque for Dh1,520 blocking fee from buyer payable to DLD.
A cheque for the remaining amount from buyer payable to the seller.
Brokerage Cheque in the name of the company, if applicable.
Mortgage release fees Dh1,290 payable to DLD from the seller.

Transfer Stage:

1. The next step is to obtain a No Objection Certificate (NOC) from the developer stating that all the seller’s dues are clear. The fee for NOC is usually paid by the seller.
2. Once you have the NOC, you can go back to the RT to transfer the ownership. The RT will charge a registration fee of Dh4,000 for properties above Dh500,000 and Dh2,000 for properties below the said amount. It is payable as agreed by the buyer and the seller. The seller will now receive the manager’s cheque for the balance amount submitted earlier to the RT.
3. After completing these formalities, the original Title Deed will be issued by DLD and you will hand over the keys and access cards for the property.

Mortgage Buyer - Mortgage Free Property

Viewing Stage:

1. List your property with a broker and sign Form A with him.
2. Describe your desired price and ask the broker to find out the market price using CMA.
3. Once you agree on an asking price, mention other terms such as viewing arrangements, the scope for negotiations, Power of Attorney (if any), rental status, etc.
4. The broker will then propose the best-suited marketing plan and start showing the property.
5. Eventually, the broker will start sharing offers with you.
6. Once you’re satisfied with an offer, you can accept it after checking the buyer’s pre-approval letter.

Valuation Stage:

1. The first step is to sign the property sales contract also known as Form F with the buyer. There can’t be two Form F signed for the same property.
2. After the contract is signed, the bank will evaluate the property value. It usually costs between Dh2,500 to Dh3,500.
3. If the evaluated price of the property is more or equal to the purchasing price, the bank will issue a Final Offer Letter (FOL). Once the FOL is signed and you issue the security cheques needed by the bank, the Transfer stage starts.

Transfer Stage:

1. Now, obtain a No Objection Certificate (NOC) from the developer stating that all the seller’s dues are clear. The fee for NOC is usually paid by the seller.
2. Once you have the NOC, your bank will schedule an appointment with the Registration Trustee (RT) to transfer the ownership. RT will charge a registration fee of Dh4,000 for properties above Dh500,000 and Dh2,000 for properties below the said amount. It is payable as agreed by the buyer and the seller. You also have to carry the following in Manager’s cheques:

Mortgage Buyer - Mortgaged Property

Viewing Stage:

1. List your property with a broker and sign Form A with him.
2. Describe your desired price and ask the broker to find out the market price using CMA.
3. Once you agree on an asking price, mention other terms such as viewing arrangements, the scope for negotiations, Power of Attorney (if any), rental status, etc. Also mention details about your mortgage like the borrowed amount, outstanding amount, lending bank, etc.
4. The broker will then propose the best-suited marketing plan and start showing the property.
5. Eventually, the broker will start sharing offers with you.
6. Once you’re satisfied with an offer, you can accept it after checking the buyer’s pre-approval letter.

Valuation Stage:

1. The first step is to sign the property sales contract also known as Form F with the buyer. There can’t be two Form F signed for the same property.
2. After the contract is signed, the bank will evaluate the property value. It usually costs between Dh2,500 to Dh3,500.
3. If the evaluated price of the property is more or equal to the purchasing price, the bank will issue a Final Offer Letter (FOL).
4. The seller will then obtain a Liability letter from his lending bank and this letter will then be sent to buyer’s bank for settling the debt and obtaining the clearance letter along with the original Title Deed.

Transfer Stage:

1. The next step is to obtain a No Objection Certificate (NOC) from the developer stating that all the seller’s dues are clear. The fee for NOC is usually paid by the seller.
2. Once you have the NOC, your bank will schedule an appointment with the Registration Trustee (RT) to transfer the ownership. RT will charge a registration fee of Dh4,000 for properties above Dh500,000 and Dh2,000 for properties below the said amount. It is payable as agreed by the buyer and the seller. You also have to carry the following in Manager’s cheques:

INSIGHTS

Contact

SEARCH

Sell