When the negotiations are in process, the sales advancement is sometimes put off until you’re suddenly prepared to complete the transaction.
So, how do you process the sale of a property in Dubai?
A finance to finance sale progression is a lengthy, time consuming process which can often bring confusion and stress to both parties. It is highly advisable to use the expertise of a sales progression team.
Step 1. Sign the Paperwork
Both parties will sign a Unified Form F and an Agreement of Sale, which are legally binding agreements between the buyer and seller that outline the terms and contents of an understanding, including each party’s needs and responsibilities, once the price has been agreed upon.
At this point, the buyer should ideally have a pre-approval in place. Before approving a sale, sellers frequently make this a condition.
Step 2. Property Valuation
The buyer will be required to pay for the property to be valued by the bank granting their mortgage after the contracts are signed and the buyers’ pre-approval is in place. The bank will give the valuation instructions once this fee has been paid.
Mortgage lenders conduct property appraisals to make sure the home is an appropriate collateral for a loan and that the market worth would be sufficient to pay off the mortgage in the event of a forced sale.
A valuation firm will be hired by the bank to conduct the valuation on their behalf. Access to the property will be necessary for the valuer. The vendor shall make reasonable efforts to make such access available. The real estate agent will frequently attend the property valuation even if neither party is required to be there.
The property valuer will subsequently deliver a report to the bank that includes the property’s valuation. The final mortgage offer will then move forward with the bank.
Step 3. Final Mortgage Approval
Once the mortgage lender has approved the loan, the buyer must submit the necessary paperwork to their bank in order to receive the final mortgage approval.
The bank may request credit card statements or other private financial information as part of this process, which will be centered upon their finances.
The bank may need up to 7 calendar days to release the mortgage final offer letter, depending on the situation.
If there isn’t a sales progression officer in place at this point, the buyer and seller will probably need to be informed of the current situation, the procedures, and the timetable.
Step 4. Liability Letter
Once the Final Mortgage Approval letter has been released, the seller can apply for the liability letter from their bank. A liability letter will outline the exact amount of the remaining mortgage owed to the Sellers bank.
The liability letter must include the property details including the plot no and will be addressed to the buyers bank.
The timing here is key! A liability letter can take up to 14 calendar days to be issued and then may only be valid for 7-15 calendar days.
Step 5. Liability Settlement
The buyer must take the responsibility letter to their bank as soon as it is available. In order to pay off the seller’s mortgage, the bank will subsequently create a managers check. Before the settlement takes place, it must be made clear whether the seller will need to be present.
The purchaser must take copies of any checks used as evidence of liability settlement.
Step 6. Clearance Documents
The clearance documentation will now be made available by the sellers’ bank. Depending on the situation, this can take a week or more. The original title deed, a letter to the developer, a letter to the seller, and a letter to Dubai Land Department are among them.
The same information will be stated in every letter, namely that the property’s mortgage has been freed and that it is now available for sale.
The buyer’s bank is in charge of obtaining the paperwork from the seller’s bank. Neither the buyer nor the seller are able to accomplish this.
Step 7. NOC
Make sure all of your paperwork is prepared and organized before asking the developer for a No Objection Certificate (NOC). The developer issues the NOC as proof that all debts have been paid and that they are content for the property to be sold.
Any servicing fees must be paid by the vendor at least a quarter in advance. The buyer will then pay back these fees when the property is transferred.
Each developer’s procedure may differ somewhat, call for various papers, and even mandate that the buyer and seller be present at the NOC.
Step 8. Transfer
The buyer’s bank must obtain a copy of the NOC after it has been received in order for them to schedule the date for the property transfer.
In order to avoid any issues on the transfer day, it is a good idea for the buyer and seller to calculate how much money they will be paying out and getting. It is also crucial to write out all checks before the transfer and to confirm in advance that all of the information on the checks is accurate.
