The sales progression process typically involves several key elements. While the specific steps may vary depending on the parties involved and the type of property being sold, set out below are the typical stages of a sales progression.
- Property Search: The buyer identifies potential properties based on their specific requirements, budget and desired location. This can involve researching online listings, engaging with real estate agents, or visiting property exhibitions.
- Offer and Negotiation: The buyer submits an offer to the seller, including proposed terms and conditions of the purchase. Negotiations may take place regarding the price, payment terms and other relevant factors until both parties reach an agreement.
- Reservation Agreement: Once the offer is accepted, a reservation agreement is typically signed. This document confirms the buyer’s intention to purchase the property and may require the payment of a reservation fee or a percentage of the purchase price as a deposit.
- Due Diligence and Documentation: The buyer conducts thorough due diligence on the property, which may include verifying the legal status, conducting surveys, and reviewing the property’s documentation. The seller is responsible for providing all relevant documentation such as title deeds, building completion certificates and relevant permits.
- Sale and Purchase Agreement (SPA): A Sale and Purchase Agreement is drafted, outlining the terms and conditions of the sale, including the purchase price, payment schedule, handover date and any other relevant provisions. Both parties review and sign the SPA, and the buyer usually pays a percentage of the purchase price as an initial down payment.
- No Objection Certificate (NOC) and Dubai Land Department (DLD) Approval: If the property being sold is located within a multi-unit property or a development under construction, the buyer needs to obtain a No Objection Certificate (NOC) from the developer and obtain approval from the Dubai Land Department (DLD).
- Payment and Transfer of Ownership: The buyer proceeds with the payment of the balance of the purchase price, either through self-financing or by securing a mortgage from a bank. Once the payment is completed, the property ownership is transferred to the buyer through a process called “transfer of title deed” at the DLD.
- Handover and Registration: The handover of the property takes place and the buyer inspects the property to ensure it matches the agreed-upon condition. Afterwards, the buyer registers the property with the DLD and pays the necessary fees to obtain the new title deed in their name.
- Post-Transaction Procedures: The buyer may need to handle additional post-transaction procedures, such as connecting utilities, obtaining Ejari (a tenancy contract registration) for rental properties and considering property insurance.
The above provides a general overview and specific processes and requirements may vary depending on the type of property, the involvement of real estate agents or brokers and any additional legal or financial considerations. Buyers and sellers alike should always consult with professionals familiar with the Dubai real estate market to ensure a smooth and successful transaction.