Down the Horizon

The first time dealing with a big purchase can be frustrating, but a good learning experience.

Being prepared, starting to collect the info beforehand, and building knowledge on this topic is crucial. The best thing is not to blindly rely on “experienced” real estate agents, “professionals” and trust me there are too many of “those”.

Here are the basic steps to follow when searching for your place that not so many people had covered and shared:

1. Don’t trust an agent who doesn’t share all basic information
   
   Ok, so you met in front of the building you saw the apartment you expressed interest in. The agent is there, said hi and without much explanation, he showed you the apartment with a tenant inside. You start questioning him about the yearly maintenance fee, what type of cooling system it has, whether is it central AC or what…and the agent doesn’t know anything. So the agent cannot provide you even with the basic info. What is he there for, you ask yourself and start getting frustrated. What he is insisting on is getting the deposit of 10% right there on the spot.
   This means- run away and block this contact.
   Tip: Try to look for an apartment that is free and has no tenants at that moment.
   
2. Work with an agent that is transparent, answers your phone and messages in a short time, and answers you directly and straightforwardly the question.
   
   Once you meet “the right person” he/she should be an easygoing agent keeping a professional attitude by answering your questions without improvisations, that might lead you into wondering whether this agent is trying to hide something. The right agent is cooperative and willing to decrease their agent fees if the apartment is smaller, and should also be able to decrease the apartment price in case you are paying cash. Basically, the agent is supposed to work for you not the seller. The seller has his own agent, to whom the seller also paid around let’s say 3.000 aed fee for the advertisement and the agency. And your agent will take from you probably the standard 2.5% of the apartment selling price. It can be around 10.000 aed depending on the selling price.
   
3. The whole process should be explained verbally and in text using for example Excel
   
   The agent with whom you can build trust without having difficulties understanding the process of your first major transaction should be able to explain to you in detail the full process and send you an excel sheet with the steps and amounts you need to pay, where the transaction will be done, how to prepare manager’s cheques, literally everything, preferably in advance.
   
   For your own preparation, here are the basic steps you need to understand:
   
   
   *First thing after you mutually agreed on the final decreased apartment price through the agent, you will be sent some forms to sign electronically. The same day, just before the contract signing you will write and hand over to your broker a normal cheque called a deposit cheque that will be without the date and signature. This cheque is 10% of the selling price you agreed upon and it will be returned to you on the day of the ownership transfer. Now you must have all important seller’s documents provided to you by the agent: Title deed, passport, BRN of the broker (his license card). If possible, have them before that (don’t be shy to push).
   
   *Now back to the contracts. Those are B form and F form or MOF (Memorandum of Understanding). Once the agent makes them on the DLD website (Dubai Land Department) you will get an email and SMS with the link. You need to wait around 1-2 min for the token password to be generated that you will enter. Once you read all info on the contracts carefully (double check your name, passport number, etc.) you will agree with the contract. If there are two future owners, then the agent has to prepare 2 B forms. B form is the form between the Buyer and the Broker. MOU is the contract between the Buyer and the Seller.
   
   *Let’s say you will be paying half with the cash you have in your savings account and half with the personal loan you will apply for 2 weeks in advance. You will immediately take the Proof of Funds for both. Proof of funds is crucial so that the seller you are paying to with your cash can claim this money and transfer it to his account in a foreign country since here he is not a resident and has no bank account.
   
   *Now that you took the cash out with proofs, the next thing the Agent will ask you to prepare about 1 week before the scheduled appointment in one of the Trustee offices, are the manager’s cheques. The manager’s cheque is equivalent to cash, meaning it will be immediately deducted from your bank account once you apply for it. It takes around 30 min for the bank to issue those cheques. You will apply for them by filling out the forms (your data, who is beneficiary, the amount in letters and numbers…) and then they will issue the cheques. The first cheque is for the agency the broker is working for and the second one is for the DLD (they take 4% of the selling price plus VAT and other minor fees). Like I said, the agent should give you the info about this in form of an excel sheet (all the costs).
   
   *Additional fee is the trustee appointment fee paid in the trustee office your agent proposed and it’s around 2.100 aed. You can pay that one with cash on the spot. But if you have never heard of the trustee office, let me explain a little bit. So trustee offices are all around Dubai where the transfers are done and they work under Dubai Land Department. Make sure you check the list of them on the DLD website. Also there is one very important app you will need which is REST where you can check your title deed. And RERA (real estate regulatory agency) is the place where all contracts come from.
   
   *So to resume all, this is what you have to bring with you on your transfer appointment date:
   -cash (if you are paying in cash)
   -ID, passport (agent will have all copies with him/her)
   -any cash that the seller had prepaid regarding the maintenance fee
   -Proof of Funds (for the seller to provide to the exchange office-bank-western union)

*You can pay with cash or through online payment, there are options.


YOU got your title need, you became an owner. What now?

Once you are finished with docs and payments at the trustee’s office, there is only 20 min left until you receive an email with the link that will get you to your new Title Deed.

What now?

1. You will go with the agent and the seller with your new title deed to the cooling system provider. The previous owner now has to pay whatever he owes to the company so he can cancel the contract and transfer the obligations to the new owner. You are now registering there as a new owner of the unit. The next day you may come and make a deposit with the cooling provider and start the AC. Basically, whether you use it or not, there is a standard monthly payment of around 100 aed for the cooling system. You can go to one of the offices of the provider and get all info.

2. The seller (now previous owner) has to do the same with the DEWA- he needs to cancel the subscription with Dubai Electricity & Water Authority. You, on the other side can then register with DEWA through their app (no need to go anywhere physically).

3. Agent can help you with the internet provider if you need any assistance with that.

4. The maintenance services you can get from the building itself.


The whole process lasts a maximum of one month and is actually really smooth when having good supportive agents you can rely on.

Enjoy the rest, the hard part has been done.