How to Buy A House in UAE

One of the most significant decisions a person may make in a lifetime is purchasing a home. Purchasing a home requires careful planning and attention to make sure that all demands are addressed.

The real estate market in the UAE has always been pretty good. It was slightly shaken by the first shot of the Covid-19 pandemic wave. However, it has recaptured its glorious reputation once again. The property and real estate investment market in the UAE have now reached a new high. Experts credit the country's handling of the crisis, assistance measures to increase business ease, and long-term residency restrictions as key causes of the recovery.

Major metropolitan cities in the UAE like Dubai, Sharjah and Abu Dhabi are regarded as the safest cities in the world. In terms of logistics and other facilities, the United Arab Emirates has a lot to offer. It is quite normal for you to wish to buy a property in Abu Dhabi or an apartment in Dubai.

With simple mortgage loans in Dubai and other regions of the UAE, you can now start thinking about investing in real estate. The perfect website to browse through numerous home loans in the UAE offered by the leading financial institutions in the nation is Policybazaar UAE. Through our website, you can apply for these loans and make monthly payments. Let's get to our subject without further ado.

Best Practices to Buy A House in the UAE

When you plan to invest, you have to do a lot of research. You must tap the market, evaluate various deals, compare available home loans in the UAE, and then make a decision. Buying a house requires a thorough and systematic approach. The following practices will help you understand the steps of buying a house in UAE.

1. Assess your objective and research accordingly

Make sure you are aware of the particular requirements and the kind of house you are looking for. It is crucial to have a solid understanding of actual property costs and the aspects that affect this pricing, such as venue, outlook, facilities, and the sort of neighbourhood the property is in, whether it is a residential building, luxury apartment or standalone mansion.

2. Contact the right person

Finding the best agent to work with is essential while looking for a new home. You need a guide who can efficiently take you through the procedure and who fully comprehends what you want. Unquestionably, the agent should be completely licensed and have a successful track record. For financial assistance such as the best mortgage loan in Dubai and home loans in the UAE, visit our website. You can also browse through bank-specific schemes and loans on Policybazaar UAE. 

3. Understand lease financing for rental apartments

Lease financing is a crucial source of long and medium-term financing where the owner of an asset gives another person the right to use that asset against periodical payments. Although it might sound that grasping the concept of lease financing is no harder than a stroll around the park, it is in reality a bit more complicated. On the contrary, there are innumerable clauses, laws, rules and legal procedures associated with leasing along with the financial aspects.  

4. Evaluate legal papers

Buying a house requires a lot of paperwork. A majority of the documents require legal transactions. You should always go through the legal documents carefully, particularly the clauses mentioned. Legal papers are points of reference for any future dispute. Talk to an expert lawyer and take advice before you invest in buying a home. You should also go through the legal matters regarding a home loan if you have applied for one. Overall, you should never be caught with your guard down when it comes to legal aspects.   

Protocols related to buying a house in the UAE

Protocols related to buying a house or a property in the UAE are well-defined. You must have a clear idea about the process flow of buying property.

Find a step-by-step guide to buying a house in the UAE below:

• A Contract for Sale and/or a Memorandum of Understanding must be signed once the buyer and seller have reached an understanding (MOU). A payment, often 10%, is also needed at this point to demonstrate commitment.
• The seller must then pay any unpaid fees to the builder, such as service fees, and apply for a No Objection Certificate (NOC), which allows the seller to sell the property in exchange for a one-time deposit.
• The financing institution will be a part of this process if the buyer is obtaining a loan. The buyer must pay off the seller's mortgage in full before submitting the NOC application in case the seller has a mortgage on the property.
• After issuing the NOC, ownership can be transferred formally. Both sides should be present at this meeting, which takes place at the offices of the Dubai Land Department (DLD) for Dubai-based properties. 
• On the date of transfer, the purchase price must be paid using a manager's check made payable to the seller. A new title deed in the buyer's name will be issued after these formalities are finished.

Check the documents and seek legal advice

Make sure you have the appropriate paperwork on hand so that you can stay on schedule. The ensuing paperwork is necessary for a seamless connection. Please refer to the following documents for a better understanding.

• A real estate title deed
• Buyer and seller IDs
• No Objection Certificate from builder
• Bank offer letter to the buyer (if the buyer has a mortgage sanctioned by a bank)
• Proof of mortgage settlement
• Seller service charge clearance letter
• Final bills: DEWA, A/C, etc.

Stay updated on all fees

Be careful to calculate fees and expenses for figuring out an optimal budget. Here are some crucial factors to take into account:

• The price changes for a NOC can be substantial and range from AED 500 to AED 5,000. (Excluding VAT). 
• It's important to keep in mind that some builders will additionally request a further refundable deposit. This deposit is refunded once the buyer delivers the new title deeds at the builder's office.
• A further payment of AED580 is needed to cover administration expenses in addition to the transfer fees, which are calculated at 4% of the purchase price.

The final action is a fruitful closure, which occurs after all transactions are concluded, payments are made, and agreement between all parties has been established. The much-anticipated milestone of completion day, when the home finally becomes yours, comes after all the financial dues and legal aspects have been clarified. 

Home loan in the UAE

Policybazaar UAE is the ultimate solution for all of your home loan-related inquiries. You can explore the best home loans in UAE on our website. You can locate top financial institutions including Emirates NBD, Standard Chartered UAE, RAKBANK, HSBC UAE, and others offering their best home loans. Have a quick look at mortgage loans available in the UAE along with pertinent information such as eligibility, interest rate, reduction rate, down payment, tenure and documents needed.

If you apply for a loan through our website, we will allocate a representative to you. The representative will run you through the nitty gritty of the loan. You will also receive additional support from Policybazaar UAE.