In buying flat from a builder / developer, chances are high that your new home may not be yet built. However, the other basic types of property available off-plan in Dubai include apartments and villas.
Hire local estate agent
Once you find a suitable property that meets your desires, hire a trustworthy and known local estate legal agent and seek a legal advice before committing to any off-plan flat. Moreover, ask him/her to represent you in flat’s buying process and to complete the legal procedures involved in the off-plan Purchase.
Sign initial agreement
Visit the selected property and sign an agreement with the developer regarding the payment schedule of the installments of the under-developed flat. Make sure to bring your passport to the contract signing.
Pay the initial deposit
Upon signing the contract, pay the early deposit around 10% to 15% of the total cost of the property to the builder. Rest of the amount of the under-construction flat will be paid in several stages until the finishing date of project.
Most of the builders / developers in Dubai are trustworthy, but it always safe to pay the deposits and payments into Dubai’s Real Estate Regulation Agency (RERA)-approved securities account. In these accounts, the money is regularly transferred to the developer upon completion of construction stages. Moreover, make sure that opened account is in the name of the project, not the developer.
Pay Property transfer fee
Although there is no property purchase tax in Dubai as it is tax Free State, but you will have to pay fees for transferring property and stamp taxes on transferrals. These taxes amount can be between 1 to 7 percent of the flat’s purchase price.
Register the sale
Now register your Flat’s sale at Dubai's Land Department. The registration fee is 1.5% of the overall purchase price of the property. In case if you have a mortgage on your property, then you will be charged an extra 0.25% of the overall purchase price. The documents required for the registration of the sale include the initial agreement, your passport, and residence permit.