Buying Property Overseas

The purchasing process for property for sale Dubai Marina is fairly simple compared to many other countries in the world; this can be both an advantage as well as a hindrance to purchasers. While the purchasing process is fairly straight forward in some cases (when you buy on the secondary market from a seller who has no loan on the property), the relative immaturity of the legal system in Dubai makes it even more imperative that buyers exercise caution when undertaking such a major monetary transaction. It always pays to understand the purchasing process and to minimize any risks associated with what is usually the largest money-related transaction that most people will ever undertake

If you are looking to purchase Palm Jumeirah property from a private seller on the secondary market, it would be prudent to hire the services of a registered, professional surveying company. Up-keep of a property is the responsibility of the owner; surveyors can assess the property in question by doing a thorough check of the premises and can alert potential buyers to the risk of any future high-maintenance costs particularly for properties such as villas which may sometimes remain unoccupied for several months. Once you take possession of the property, its maintenance then becomes your responsibility so, as a buyer, you want to make sure you don’t inherit any major problems down the line.

5) Seek specialist advice

It is highly recommended that potential buyers seek professional legal advice to help them with the purchasing process, although it is not mandatory by law to do so. However, it is sound advice as doing so can underline any potential future risks. Enlist the services of a Dubai Land Department registered Conveying company, many of which have their in-house property lawyers and Escrow facilities to ensure that the entire process is transparent and safe for both the buyer and the seller.

6) ‘Opt-out’ clause

If you intend to purchase a property with a mortgage, it is essential to request that an opt-out clause be included in the sale agreement or Memorandum of Understanding (MoU). This clause essentially indemnifies the purchaser against the loss of the deposit money put down to secure a property, in the event that the bank evaluation for the property comes out to be lower than expected, resulting in the buyer having to put a larger down payment on the property. Without the opt-out clause, a buyer in this situation, who cannot come up with the larger down payment and opts not to go forward with the deal, would lose the deposit money. This is often 10% of the cost of the property and can result in the buyer being out-of-pocket on a large amount of money through no fault of his. Opt-out clauses should be specifically worded with the anticipated valuation amount so that there is no dispute later on.

7) Check liability on a property

When purchasing a property, ensure that you will be receiving a title that is free from any liabilities or debt. It is the seller’s responsibility to obtain an N.O.C. (no objection certificate) from the developer’s office. Developers will usually do several checks on the property to ensure that it is free from any liability and will then issue the N.O.C. confirming that the said property is ready to be transferred at the Dubai Land Department.