Thinking of buying a ready property? Paying for your property upfront without finance? Here are the steps, documents and fees explained from start to finish…
Note: This post is specific to READY properties and NOT OFF-PLAN, we will cover off-plan and developer payment plans in another blog post… coming soon.
What is cash to cash?
Prior to proceeding with this explanation, it's crucial to identify whether this process aligns with your specific circumstances. The term "cash to cash" signifies that the buyer is making the payment for the property in full, without any reliance on a mortgage. Likewise, it implies that the seller has no outstanding loans or mortgages associated with the property.
What is the time frame of this process?
As always, it depends on how quickly all parties move. It can be completed in as little as 2-3 days or can take up to two weeks depending on how quickly the NOC is obtained from the developer. Continue reading through the steps to find out more about the NOC.
What are the buyer fees involved and how do I pay?
Property Sale Price – this is the agreed price you will pay to the seller for the property (paid as a manager’s cheque).
Dubai Land Department Fee – this is 4% of the total sale price (paid as a manager’s cheque).
Agency Fee – this is 2% + VAT, paid to your agent’s brokerage (paid as manager’s cheque).
Trustee Fee – AED 4200 (debit/credit card payment).
Title Deed Fee – AED 580 (can be paid with debit/credit card or in the same managers cheque as the DLD fee).
Steps
1. Security Deposit & Sales Agreement (Form F).
Once the sales price has been agreed, a security deposit (10% of the sale price) is written by the buyer in the sellers name as a personal cheque and handed to the agent. This cheque is held by agency and returned to the buyer on the day of transfer. In addition, the Form A, B and F should be created:
Form A = Contract between agent and seller (this may already be in place for the listing).
Form B = Contract between agent and buyer. The agent will generate this form using your passport or Emirates ID and contact details. You will receive a link via email or text, click on the link, read through carefully checking all the details are correct, and then proceed to accept.
Form F = Sales Agreement between seller and buyer. The agent will generate this for you by merging the two forms, A and B, and a link will be sent for approval. Within this agreement there are terms and conditions which give information about the property and how the sale will proceed. Some clauses are written by law and others can be added.
Tip: This Form F is a legally binding contract. Once approved by both parties, if either party defaults then a 10% penalty will be paid.
2. Apply for the NOC for Transfer.
An NOC for Transfer is a Non-Objection Certificate. This is an important document to obtain from the developer, it states that they agree to the sale of the property and that there are no outstanding service charges or payments to be made. Advanced service charges will be paid by the seller. The buyer will reimburse the seller on a pro rata basis on the day of transfer. It is the responsibility of the seller to apply and pay for the NOC using the following documents:
- Property Title Deed
- Passport, visa and Emirates ID of both parties
- Form F
- Latest DEWA and utility bills
- Name, email, contact, address and signature of both parties
The processing time varies from developer to developer, it can vary from 1 day to 2 weeks.
3. Prepare the payments.
Once the NOC has been received, it is now time to prepare the fees and methods of payments correctly. You will need to visit your bank to obtain the various manager’s cheques, as stated above, and the money must be in your account to be able to do this. You will need to bring them on the day of transfer.
4. Go to Transfer
This is the final stage. The transfer will be booked at one of the government Trustee office locations and on this day the buyer, seller and agent(s) will meet.
Ensure you have your passport and Emirates ID with you, and the manager’s cheques/card/cash payments. The seller will bring the keys and access card with them if it is a vacant property, and this will be handed over to the buyer once everything is settled.
At the time of transfer all necessary identification documents will be collected, and payments will be processed. After this, you will need to remain on-site until the Title Deed is received, which will be delivered to you via email. Once the Title Deed is in your possession, you may take the keys and access card.
Additional notes:
If the property is tenanted, then it is commonly agreed that the rent and deposit will be reimbursed to the buyer on a pro-rata basis on the day of transfer unless stated otherwise.
CONGRATULATIONS, THE PROPERTY IS TRANSFERRED!
Coming Soon
Cash to Mortgage
Mortgage to Cash
Mortgage to Mortgage
Off-Plan Payment Plans
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