The purchase of real estate in Dubai includes several stages, which include the selection of an object, making an expression of interest (deposit), booking, signing a contract of sale, and transfer of payment. We tell you what you need to take into account when concluding a transaction and what ways you can pay the seller.
- Purchase procedure
- Payment methods
There are two forms of real estate ownership provided for foreigners in Dubai:
- "Freehold" is a form of ownership in which real estate can be disposed of freely, that is, the buyer has the right to sell a residential unit, donate, lease, leave as an inheritance. The emirate authorities have identified a list of freehold districts. These include such prestigious locations as Dubai Marina, Palm Jumeirah, Emirates Hills and others.
- In the territories of leasehold, it is possible to own property on the terms of a long-term lease, whose maximum period is 99 years.
Before entering into an agreement with the seller to purchase an apartment in Dubai, you need to make sure that the proposed object corresponds to the form of ownership you have chosen.
The investor has the opportunity to choose a residential property, the sale of which has not yet been announced. About a week before the start of sales, realtors will learn about the most interesting offers. Agents can tell buyers, among other things, about those residential projects that are just getting ready to enter the market.
Making an expression of interest, i.e., a deposit, makes it possible to choose an apartment before the announcement of the start of sales. The amount of the deposit is usually at least 5% of the cost of housing. The most interesting objects are disassembled even before the presentation of the project.
The deposit is accepted by a real estate agency, which holds it until the transaction is registered with the Dubai Land Department. Such a scheme guarantees the buyer a refund if the seller breaks the agreement.
Currently there are two ways to transfer money to Dubai: through unauthorized international banks and cryptocurrency. We will tell you more about each of them in the corresponding section.
By the time the booking agreement is signed, the buyer must familiarize with the following documents:
- real estate agency registration certificate;
- developer's registration certificate;
- power of attorney;
- certificate of ownership of real estate or a permit for the construction of a house;
- the layout of the apartments in an apartment building and the apartment plan, which indicates the dimensions of all rooms;
- template of the main agreement that you will sign in the future.
After signing the reservation contract, the buyer transfers from 14 to 24% of the cost of housing to the developer's account.
The main contract requires the attention of a lawyer. The document contains a standard form established by the Dubai Land Department and additional conditions governing the relationship of the new owner with the developer.
When buying real estate under construction, the contract additionally prescribes the conditions for completion of work and the responsibility that the developer will bear in case of a delay in the commissioning of the property.
The parties to the transaction must submit this document to the Dubai Land Department in order to transfer ownership to the new owner.
As a rule, registration takes place on the day of application. If the purchased object is still under construction, then it is registered in the temporary register of the department. In this case, the buyer will receive not a certificate of registration, but an initial purchase and sale agreement. After putting the facility into operation on the basis of this document, the owner is issued a registration certificate.
You can pay for the purchase in cash, as well as by using a special link that contains the seller's data and the invoice. The client clicks on it, enters the card details and confirms the payment.
To pay for real estate directly in the bank, the buyer must choose a financial institution that is not under sanctions. The developer provides an invoice to the bank specified by the client. The buyer transfers funds according to this invoice.
Cryptocurrency is an electronic means of payment. An analogue of money that cannot be forged, since all data on transactions performed is recorded by the blockchain system.
The unit of payment (coin) is a coin, which is extracted using the computing power of computer systems. Another important concept closely related to cryptocurrency is a token. This is a digital certificate confirming the ownership of an asset.
Currently, three types of cryptocurrencies are widely used in the real estate market of the United Arab Emirates:
To make a purchase and sale transaction, the seller and the buyer need to have crypto wallets. Both an individual and a legal entity can register such a wallet. To pay the developer with cryptocurrency, you need to log in to your wallet, specify the developer's crypto address, the transaction amount, as well as the transfer fee.
At the stage of discussing the cost of housing, the price is recalculated at the rate of the cryptocurrency that will participate in the transaction. This amount is spelled out in the agreement and is no longer being reviewed. No further fluctuations in the exchange rate affect the final cost of an apartment or villa in Dubai.
Usually, home sellers work with a certain list of verified exchangers. The entire transfer of money to cryptocurrency takes about 30 minutes.
In the list of the largest companies with which you can pay with cryptocurrency, there are Emaar properties, frame properties and select a group.