The UAE real estate industry presents one of the most lucrative investment opportunities in the current economy. As a result, it appeals to both foreign and domestic investors.
You can find abundant resources and guidance on real estate investment, property acquisition, and rental opportunities. However, real estate transfers require specific expertise. A seamless transfer between the seller and the buyer requires the proper guidance of a trusted advisor.
The transfer process of any real estate property is a legal procedure involving the transfer of ownership of the property. Hiring Dubai real estate lawyers can help you transfer property ownership without any setbacks.
Interested in learning more about the real estate transfer process? Here’s the step-by-step guide detailing each stage.
A Step-by-step Guide to Real Estate Transfers in the UAE
- Proper research and due diligence - Fact verification and thorough investigation are essential in property and real estate transactions. Under UAE law, it is necessary to register the real estate to ensure the legality of ownership transfer. Therefore, in Dubai for example, it is crucial to determine whether the property is registered in compliance with Dubai Law 7 of 2006.
- Sign the contract - This is a sales contract that outlines the agreed-upon terms between the buyer and the seller, also referred to as the “P&S” (purchase and sales agreement). It is strongly recommended to engage the services of Dubai real estate lawyers throughout this process. Hiring lawyers or attorneys will enable them to effectively represent your interests in the contract.
- Property valuation – The buyer generally bears the responsibility of paying the appraiser to conduct an evaluation of the property. The purpose of this evaluation is to assess whether the property provides sufficient security for a loan, if needed. In the event of a forced sale, it is important to ensure that the market value of the property is adequate to cover the outstanding mortgage amount.
- Mortgage approval - Getting approved for a mortgage can be complicated and overwhelming. Banks will conduct a thorough investigation into the buyer's financial situation and credit history. However, with the guidance and knowledge of experienced lawyers, the process can be more straightforward, making sure everything goes smoothly.
- Organise finances - Managing finances is a vital part of property transfer, and you have the option to hire escrow services in the UAE for this purpose. Escrow service providers establish a separate account held by a neutral third party, which holds the funds for the sale until all of the contract conditions are fulfilled. Throughout this process, it is the buyer's duty to keep the seller informed about the progress of securing financing and the estimated time needed for the same.
- Obtain NOC - To obtain the No Objection Certificate (NOC), a variety of documents must be submitted, including clearance documents. Once the financing for the transfer is finalized and all of the necessary documents are gathered and reviewed by legal and real estate professionals, it is time to acquire the NOC. The developer will examine the records to ensure that there are no outstanding bills associated with the property before issuing the NOC.
- Request for the transfer - Once you have received the NOC, you can forward it to the buyer's bank. The bank may then set the transfer date, during which the buyer and seller can ensure a smooth transfer of the property takes place.
Wrapping Up
The transfer of ownership in real estate transactions can be a complex undertaking. That's why it is advisable to engage the services of highly skilled Abu Dhabi and/or Dubai real estate lawyers to navigate the process successfully. It is worth considering hiring transactional lawyers in Dubai who specialize in real estate. With their expertise in handling legal transfers, they can assist in the negotiation of the P&S, and identify which terms are standard and which ones are subject to amendment. The lawyers can also assist in conducting comprehensive due diligence on the property and consolidating all necessary documents.
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