How to sell off-plan property in Dubai
If you are the lucky owner of off-plan property in Dubai but your circumstances dictate a premature resale, do not panic. There is always a bright side to selling your off-plan property before the project is completed. Below, we offer unbiased information on how to sell off-plan property in Dubai. Also, what happens if you do decide to sell before completion? What can you expect and how to get the best value? Read on.
If your financial circumstances change radically and are forcing you to sell, the good news is that you can do so, without penalties. However, if you happen to be an investor looking to sell purely for a profit, there is also the possibility of high returns, even before settlement. This can happen, especially if the value of the project is rising during construction phases.
Advantages of selling off-plan
You may still get the best out of your off-plan property, by becoming the seller on a rising market. If you buy early in the development stages, you will definitely enjoy special discounts from developers, along with the best price going. Therefore, when you decide to sell, it is most likely your off-plan property will sell quickly, with no loss. On the contrary, there is most potential for maximum profit on return on investment. For example, most buyers pay up to a 10% deposit for purchasing off-plan at a discount market value. If the initial purchase price is AED 1,000,000 including the deposit, the property will most definitely acquire additional value eight to twelve months later. Your property is now worth AED1,200,000, so your profit will be AED 250,000. That is pretty hard to resist, right?
How to sell off-plan property in Dubai before completion?
When you decide to sell before completion, some developers have certain criteria, terms, and conditions in place, which you will need to comply with. Make sure to check with the developer and be aware of all conditions involved. For example, conditions set by Emaar require the owner to have up to 40% of the property cost paid off. Therefore, this is the time to refer to the SPA–sale-purchase agreement, for any conditions and to see the exact amount you are liable to pay before resale. Having said that, buying off-plan is easier than selling off-plan prior to completion. The developer who once arranged discounts and even finance for the buyer now suddenly becomes the competitor.
It is normal to be doubtful and over-cautious when you really need to liquidate. However, in spite of facing competition from private vendors, you can still make the resale work in your favor.
What are the steps leading to a favorable resale?
Once you reach a final decision to sell, you need to obtain a NOC certificate from the developer. The no-objection certificate will be issued only after a certain percentage of the property will be paid off. To determine the percentage you need to clear, refer to the purchase agreement and have a chat with the developer. Expect having to pay off up to 30% or 40% of total property cost, before you can resale.
Once you found the buyer, they will have to pay you an amount equal to what you have already paid to the developer. Subsequently, the buyer will take over future installments and payment plan, as initially agreed by the developer. Once all parties observe this process and follow suit, you can finalize the agreement on the selling price. Furthermore, the developer will register the new buyer and draft the contract for all to sign. If all parties agree on the terms, the transfer of property will take place. The new owner takes over the remaining installments, making the payment directly to the developer.
Procedures
Once you find the right buyer and obtain the NOC from the developer, you can proceed to the trustee premises. The representing agent and the buyer will accompany you. The buyer will issue a manager cheque for you. It is important to note that the buyer is liable to pay the 4% registration fee to Dubai Land Department, as well as AED 5,000 to the developer for issuing the NOC. Furthermore, the buyer will also need to pay transfer fees of up to AED 5,000 or less, depending on the price of the property. However, there might be other costs involved, such as VAT and so, it is best to allow a property expert to assist you and take over the entire process.
