Buying a property off plan has its many benefits, but it can be a cause of concern if the process is unclear, which is why we would like to detail the steps for you below.
Before we get into the process, let us take a quick look at the reasons why you should be considering buying off-plan.
- This is your opportunity to buy the best unit(s) at the lowest possible price for the project, and in turn maximizing the returns on your investment.
- There is an opportunity to be had at selling second hand, before the project is completed even, at a considerable profit on the assumption that the project proves popular and the market is performing well.
- Better payment plans are available for off-plan properties, with usually lower upfront costs.
Making the decision on what type of property to buy then comes down to budget and needs. A great step in this process is to work with an experienced agent / agency who will be able to show you the right opportunities as they arise, as they will be registered with off-plan projects and developers in the market.
What comes next?
- Select the typical investment – When it comes to choosing an off-plan property, whether you are an investor or home buyer, it is very important to compare your budget and needs with market availability in various projects.This is where having a trusted and experienced Agent plays a big part in increasing the chances of gaining the maximum return on your investment.
- Viewing – You next step will be a visit to the developer sales boutique to get a complete understanding of the project advantages, as well as every component of your future property and project in the form of demonstration tools such as Project Miniature Model, Brochures or Virtual Tour. Some developers will have a Show Property available for you to visit as well.
- Booking – Once you have chosen the unit type, you will need to pay booking fees to make sure it will be removed from the availability list for others.Most developers ask for a 5-10% booking fee, along with signing the booking form for the selected unit.
- First installment & DLD Fees – After you complete the booking process, you will be requested to complete your first installment: “Down payment” along with paying the Government Registration Fees: usually 4%, but some developers offer DLD waivers or some other form of discount.
- Signing the SPA – Whether you are residing inside or outside the country, the developer will send you the “Sales and Purchase Agreement” to obtain your signature before you will receive the dually signed copy after getting it signed by the authorized signatory from developer’s end.
- Oqood registration – (This step is highly important to guarantee your purchase is already registered in the governmental authorities)After completing this step you should receive your initial contract of sale issued via the Dubai Land Department.
- Settle Due Installments – Pursuant to the agreed payment plan, you will be requested to settle a particular percentage of the purchase value before you become eligible for handing over your property.
- Project Completion Date – As per the clause stated in the SPA regarding the project completion date, the developer will be obligated to deliver the same and complete the construction, then send the completion notice to all clients together.
- Inspection & Handover – Once you settled the required payment for handover, you will be invited to inspect your apartment on a certain selected date in coordination with the handover team representing the developer. Here; if you can appoint a Professional Snagging team to complete this step,it will give you a massive difference with your unit condition and quality for the future usage.
Now it is time to move into your property! Nothing will be remaining to do here if you have completed all previous steps in a professional, timely and accurate way except for enjoying the new lifestyle you have chosen carefully.