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Abdallah Alamodi Real Estate Brokerage

The Legal Process of Buying an Off-Plan Property in Dubai

Real estate transactions, like any other company, have their own set of laws and regulations that must be followed to ensure a legal and flawless acquisition. To protect your investment in off-plan properties, you must take additional procedures. Therefore, the entire procedure needs a great deal of contemplation and research.

There is just one clear selling point for investing in off-plan property: you are purchasing a house that does not yet exist. You must have confidence in the developer because you will spend money in their project with a return on investment (ROI) expected only when development is complete. In off-plan deals, unlike ready homes, there is no third-party guarantee, thus the developer sets up an escrow account to ensure that the purchasers’ funds are secured and will only be released when the project is finished according to the agreed timeline.

Due to the fact that the investor purchases the property either before to or during the development phase, it is sometimes perceived as a risky investment strategy. Nevertheless, investing in Dubai real estate, particularly off-plan properties, has always proven profitable and useful in the long run. Not only does it give a high rate of return, but it is also resistant to inflation.

Before deciding to invest, you must conduct extensive research on the off-plan market in Dubai in order to make a wise decision. This consists of:

  • Analyzing the long-term market trends
  • Assessing the risks involved
  • Doing a background check on the developer
  • Calculating the estimated ROI
  • Selecting the right location

This article illuminates the legal processes you should be aware of if you intend to purchase a property prior to its completion.

Required Documents
  • Developer and Dubai Land Department registration requirements are as follows:
  • Passport and visa copy of the buyer
  • Emirates ID copy of the buyer
  • No Objection Certificate from the Employer (NOC)
  • title deed
  • sales contract
  • mortgage contract (if applicable)
  • occupancy certificate
  • Utility connection (electricity and water)
  • insurance policy
Reservation Form

Once you have supplied the relevant documentation to the developers, they will present you with a
Form for reserving a room. Use this form to reserve the unit you intend to purchase. It ought
Include all pertinent information, including the project’s name, unit type, number of units, and price.
and payment plan.

Choose the Developer

The initial and most important stage is to find the ideal developer. It is essential to examine their track record, financial health, and past projects to gauge their job quality and delivery timelines. You may also check online reviews and testimonials to learn about the experiences of other shoppers.

Sales Contract

After selecting a developer, the following step is to read and comprehend the sales agreement. Ensure that all terms and conditions are clearly disclosed and that you are aware of your rights and obligations. The contract should also include project-specific information, such as the anticipated completion date, handover date, number of units, unit type, and payment schedule.

Opening an account

After the contract has been signed, the escrow account must be established. This is a separate bank account into which your funds will be put and maintained until the project has been finished and you have received your funds. The monies in this account are only distributed to the developer based on a predetermined milestone schedule.

Transferring Funds

Next, the monies must be sent to the escrow account. You can complete the transaction through wire transfer or credit card. You must supply the developer with a copy of the receipt after the payments have been transferred.

Applying Mortgage

After construction is complete, you will need to submit a mortgage application. You must furnish the lender with your passport, visa, and bank statements if you are obtaining a loan to fund your purchase.

After the mortgage has been authorized, you must sign the final contract and pay the remaining sum. After signing the contract, the title deed will be changed to your name, and you will become the property’s owner.

Then, you must get an occupancy certificate. This certificate demonstrates that the property is suitable for human occupancy and satisfies all safety requirements.

The property must subsequently be registered with the Dubai Land Department. This is a legal obligation that must be met within sixty days of the property transfer.

After registering the property, you must secure a utility connection. Contact the appropriate utility provider and present them with your registration number.

Inspection and handover

After paying any required fees, the final step is to schedule a pre-delivery inspection (PDI). This is a very important step because it lets you check the property’s quality and make sure it was built according to the sales contract.

The PDI must be scheduled at least 7 days before the handover date. On the day of the transfer, you must sign the certificate of transfer. This legal document transfers ownership of the property from the builder to you.

Last but not least, you must insure the property. This is to safeguard your investment from unforeseen occurrences such as fire, flood, or accident.

Investing in pre-construction real estate may be a wise choice provided you do your research and find the correct developer. Follow the procedures outlined in the preceding section to guarantee a pleasant and trouble-free experience. At any moment, you may contact Alamodi Real Estate for extra information.

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