Robbies

Hi

Trying to understand what the process is with regards to buying property in Dubai (not buying direct from the developer though)

From what I can gather, its along the lines of:

1) Negotiate with an seller, either direct or through an agent and come to agreement on price and exchange date (generally 6 to 8 weeks time)

2) Once you have come to an agreement, a memo of understanding (MEU) is drawn up, meaning the seller cannot increase the price or sell to anyone else.

3) Handover a deposit of X AED to the agent

4) You then have the 6 to 8 weeks (whatever was agreed) to come up with the mortgage funds (generally takes 2 to 3 weeks for the bank to do this)

Is there anything missing?

Thanks

Blue Cat

I don't know, not bought out here. Miss Eck has just bought, she will be around to tell you I a sure. Where you buying?

beebee

Thats just about it.. I would sort your mortgage first tho..

Robbies

Yes, we have a verbal confirmation on the mortgage - they just need evidence of what we gave them as details and they will give us the approval certificate. Any idea how long this takes to come through?

We're keen to get negotiating to come to an agreement, but the risk of the mortgage is holding us back a bit.... We've got a verbal number, but nothing on paper yet.

Location....

That's a secret until its all sorted - don't want to jinx it

Cham128

Robbies

Yes, my experience of banking here is not crash hot! But, if 2-3 weeks is unrealistic, surely less than 6 weeks is?? It's Barclays so hoping they are not as bad as some….

TA5

You forgot the most important part, buying a life insurance policy so when you lose all your investment in a worthless apartment you can kill yourself knowing your wife and kids will have some dosh...

Blue Cat

PMSL!!!

lionheart

Unless you already reside here, it would be wiser to check the location with us guys to make sure you are not being duped...also get legal advice to ensure you are buying from the real owner and that, like several apartment blocks in town, it won't be pulled down next month.

Robbies

Ah, my wife and I moved to Dubai about a month ago now, so we have been to see a number of houses now. We're just now in a position to go ahead (well, as soon as we have the mortgage confirmation)

Life assurance is required for the mortgage

Miss Eck

Hi

Once you get your mortgage approval then you can make your offer to the seller. When the sale price is agreed you sign the MoU. I have a copy of mine I can send to you if you want to peruse the content. I added in a few extra clauses. If you pull out, you lose your deposit. If the seller pulls out they must return the deposit and pay a penalty to you as well (generally of equal amount).

Upon signing the MoU, you hand over your deposit, usually 10% of the purchase price, but you can negotiate on this and the seller may accept 5% or even less. My deposit cheques were made payable to the seller and she cashed them immediately. You can also hand the deposit over to the agent.

If the seller already has a mortgage on the property then it draws out the process slightly. From viewing to doing the transfer the whole process has taken me about 5 weeks. I had my mortgage approval in place and getting that was pretty quick (around 7-10 days I think).

The only hiccups along the way were:
1) The bank kept misplacing paperwork and failed to ask for things in one fell swoop so I was continuously popping in to the branch.
2) The agent was useless and when we faced any hurdles they really did not know how to negotiate things with the seller.

Some lenders require you to have life insurance - this is for your peace of mind anyway if you have a joint mortgage.

Please feel free to PM me if you have further questions and if you require sight of the MoU, please send me your email ID.

Good luck with your purchase.

Sabi Star

Re - lawyers . I am considering buying in Dubai. Saw the list of lawyers on British Embassy web site for this area. Is James Berry & Associates the only firm dealing with private property purchases? Their fees seem to be a min. of £2,000 for "full" services - which includes checking who the vendor is
( helpful!). Also, any one know any good estate agents -I am looking for a re-sale or very near completion?! Thanks

Meow

You need to talk to me then!

UAE & UK authorised independent financial adviser - and highly qualified (unlike most). I may also be able to help with a mortgage.

Oh & I'm a nice person too -not a shark!

Blue Cat

I know Jim personally, I can't recommend him strongly enough