When the talks are underway, sales advancement is often an afterthought, and then all of a sudden, you’re ready to process the transaction!
So, how do you go about selling a property in Dubai?
A financing to finance sale evolution is a time-consuming process that frequently causes uncertainty and worry for both sides. Using the experience of a sales progression team is highly recommended.
Please contact us if you want to sell your property in Dubai.
Step 1: Sign the Documents
Once the buyer and seller have reached an agreement on the price, both will sign a Unified Form F and an Agreement of Sale, which are enforceable agreements between the buyer and seller defining the terms and specifics of an understanding, including each party’s duties and responsibilities.
At this point, the buyer should ideally have pre-approval in place. Typically, sellers will insist on this before agreeing to a transaction.
Step 2: Property Appraisal
After the contracts are signed and the buyer has received pre-approval, the buyer must pay for the property to be appraised by the bank that is giving their mortgage. The bank will instruct the valuation after this fee has been paid.
Mortgage lenders conduct property appraisals to ensure that the property is adequate collateral for a loan and that the market value is sufficient to satisfy the mortgage in the event of a forced sale.
The bank will hire a valuation firm to conduct the value on their behalf. The valuer must have access to the property. The vendor is responsible for ensuring that this access is available. Although neither party is required to attend the property value, the real estate agent is frequently present.
The property valuer will subsequently send a report to the bank, stating the price at which the property was appraised. After that, the bank will move on with the final mortgage offer.
Step 3: Receive Final Mortgage Approval
When the mortgage lender approves the loan, the buyer must submit a number of documents needed by their bank in order to receive final mortgage approval.
This approach will center on their money, and the bank may request credit card statements or other private financial data.
The bank may take up to 7 calendar days to release the mortgage final offer letter, depending on the conditions.
If there is no sales progression officer in place at this time, the buyer seller will most likely need to be made aware of the current quo as well as the processes and schedule.
Step 4: Write a Liability Letter
Once the Final Mortgage Approval letter has been issued, the seller can apply to their bank for the responsibility letter. A obligation letter will detail the precise amount payable to the Seller’s bank on the remaining mortgage.
The responsibility letter must include property information, including plot number, and will be mailed to the buyer’s bank.
The timing is critical here! A liability letter can take up to 14 days from today to issue and may be valid for only 7-15 days in total.
Step 5: Liability Resolution
The buyer must take the obligation letter to their bank once it is ready. After that, the bank will draft a managers cheque to pay off the seller’s mortgage. The seller may be required to attend the settlement, which must be clarified before proceeding.
The buyer must ensure that copies of the checks submitted as proof of responsibility settlement are obtained.
Step 6. Clearance Documents
The clearance documentation will now be released by the seller’s bank. Depending on the conditions, this might take anywhere from 1 to 4 weeks. The original title deed, a letter to the Dubai Land Department, a letter to the developer, and a letter addressed to the seller are all included.
Each letter will mention the same thing: that the mortgage on the property has been discharged and that the property may be sold.
It is the buyer’s bank’s obligation to acquire the paperwork from the seller’s bank. Neither the buyer nor the seller may do this.
Step 7: The NOC
Ensure that all of your documentation are ready and organized before approaching the developer for a No Objection Certificate (NOC). The NOC is a document issued by the developer stating that all costs have been cleared and that the property is ready to be sold.
Any service charges must be paid in full by the vendor at least a quarter in advance. These fees will be refunded by the buyer when the property is transferred.
Each developer procedure is slightly different and may involve various documentation, as well as the presence of both the buyer and seller at the NOC.
8th Step: Transfer
Once the NOC is obtained, a copy must be forwarded to the buyer’s bank so that the property transfer date may be scheduled.
To minimize issues on the day of the transfer, the buyer and seller should determine how much money they will be paying out and receiving. It is also critical to have all cheques drawn out before to the transfer and to double-check that all facts on the cheques are correct.