Found the Perfect Property in Dubai? Here Is What You Need To Know About Transferring It
Have you found your dream property after spending weeks or months searching for apartments or villas for sale in Dubai? If so, congratulations!
But that was only the first part of the work you had to do to take legal possession of the property. The other half is completing the procedures of transferring the property. Although this is a complicated process that sometimes takes significant time to finish, you can complete it expeditiously with enough knowledge.
This post shares the steps of the process of transferring your property.
Both Parties Need To Agree On a Certain Price
First, you and the property seller need to agree on a specific price for the property. Documents, which will act as proof of this agreement, include an Agreement of Sale and the Unified Form F. These documents will contain the terms and circumstances of the agreement between you and the seller, as well as the needs and obligations of the two parties.
Your Bank Values the Property If You Want To Take Out a Mortgage
If you want to take out a mortgage to purchase the property, which has become a norm, your bank comes into the picture. Once both of you have signed the documents, your bank values the property.
This is because banks want to ensure that a mortgage can be given against a property and that its market value will be enough to have their money repaid in case of a forced sale.
You Submit All the Necessary Documents to the Bank
Once your bank has valued and is satisfied with the property’s price, it is time for you to submit all the required documents to it. All these documents will be related to your financial condition and ability to pay off the mortgage.
It’s possible that you’ll have to provide further paperwork, such credit card statements. Then, you can expect to receive your mortgage offer letter from the bank within some working days.
Your Bank Issues a Liability Letter
Once the bank has processed your mortgage, there will be a liability letter for you to collect. This letter outlines every aspect of the property as well as the precise sum that must be paid to the seller’s bank.
Banks generally take around seven working days to process a liability letter. However, it is important to note that a liability letter remains valid for only 15 days from the date of its issuance.
Collect Your Liability Statement from the Seller’s Bank And Submit It To Your Bank
If you are wondering why banks deal with so many documents, they want to protect both parties’ rights. As the purchaser of the property, you must submit the liability statement to your bank within the validity period.
Once the bank completes its procedures, the property’s seller’s mortgage will be paid off by it. You should talk to your bank beforehand to learn if it wants the seller to be present during settlement. Another must-to-do thing on your end is to keep copies of all the checks issued by the bank.
These copies will be convenient if you need to demonstrate proof of liability settlement.
Your Bank Sends the Primary Clearance Documents to the Appropriate Recipients
Once the process of liability settlement is complete, the seller’s bank issues the primary clearance documents. The documents that should be issued include the following:
The title deed of the property.
Letter to the developer.
A letter to the DLD.
A letter to the seller.
By observing closely, you can see that all the parties become involved by issuing these documents. Although the pieces of information shared in all these documents are very similar, they intimate all the parties about the sale and purchase of the property.
It is important to note that neither you nor the seller need to submit the documents to the appropriate recipients. This aspect is entirely taken care of by the banks.
Collect a No Objection Certificate from the Developer of the Property
Before you can schedule a date for the property transfer, you need to obtain a NOC (No Objection Certificate) from the property developer. The NOC specifies that the developer has received the full price of the property, and it does not have any objection about the sale of the property.
Now, you only need to submit this NOC to your bank and schedule a date for transferring the property.
Closing Thoughts
If you follow the procedures of transferring the property correctly, it may not be as complicated as it seems. Still, if you have difficulty completing the process, consult an experienced real estate agency like fäm Properties.
Since the team has years of experience dealing with all kinds of properties, from apartments and townhouses to mansions, penthouses, and villas for sale in Dubai, you can rest assured of getting the best advice from it.
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