28/09/2022
HOW TO RESALE OFF-PLAN PROPERTY IN DUBAI
To start the selling process you must have:
✓ Certificate of ownership for property under construction – Oqood
It is received by the developer and sent to the buyer by email.
✓ No Objection Certificate (NOC) from the developer
You must pay a certain percentage of the property value. Usually, 30%, unless otherwise specified in the Sales and Purchase Agreement (SPA).
SALES PROCESS
The agent lists the property on real estate portals
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When a buyer appears, the transaction process starts
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Several documents are signed, and can be done remotely:
• Form F or MOU (Memorandum of Understanding) – an agreement between the seller and the buyer
• Agreement between the buyer and the agent, as well as between the seller and the agent
• Addendum to contact – an additional agreement where the costs of the parties are signed
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The buyer deposits 10% to guarantee the transaction
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Registration of NOC at the developer's office
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Registration of the transaction in the Trustee office – a licensed office where the sale, exchange of funds and re-registration takes place
SELLER'S EXPENSES
✓ Agent commission 2%
✓ NOC ~$1,400
✓ Power of attorney (POA), if the transaction takes place remotely ~$550
WHAT IF YOU HAVE NOT PAID THE REQUIRED % TO THE DEVELOPER
The buyer can pay it for the seller, however, the buyer must have a sufficient incentive:
✓ Low price
✓ High demanded unit
For example, you buy an apartment for $1 million at the launch, invest 40%, that is, $400,000, and resell it for $1.2 million at a later stage of construction.
Profitability: 200,000 ÷ 400,000 = 50%
But you should be financially prepared as reselling may take time. You might have to pay more than 30% or even full cost to the developer while you wait for a buyer or a good resell price.
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