Unsure as to How a Property Transfer Works? Read This!

When negotiations of a sale are well underway, sales progression ends up as an afterthought. The next thing you know, you're ready for the sale to be processed! So, how does a property in Dubai's sale get processed?

In truth, a finance-to-finance sale progression is a long, time-consuming process that can bring both parties stress and confusion. Calling on experts in a sales progression team will certainly help things along.

Paperwork Signing

Once an agreement on price has been met between seller and buyer, both parties will sign an Agreement of Sale and a Unified Form F that are binding agreements between the seller and buyer. These outline the details and terms of an understanding, which include the responsibilities and requirements of each party. Ideally, the buyer should have a pre-approval in place at that point. Sellers usually insist on that prior to agreeing to a sale.

Property Valuation

After contracts are signed and the buyers' pre-approval is set in place, the buyer needs to pay for the property to be better valued by the mortgage-issuing bank. The moment the fee is paid, the bank will instruct the valuation.

Mortgage lenders carry out property valuations to ensure the property is suitable security in terms of a loan and that the market value can cover the mortgage is a forced sale.

The bank will hire a company to appraise the property. The company will need to get access to the property, and the seller must help provide this access, which is sometimes done with an escort from the bank. The seller does not have to be present for the appraisal, but both parties are encouraged to be on good terms. The real estate agent can be present for the appraisal if desired.

The property valuer will submit a report to the bank containing the value they determine. 

Final Mortgage Approval

As soon as the mortgage lender gives the go-ahead for the mortgage, the buyer will then submit the documents requested by the bank. The process will revolve around finances; the bank could ask for private financial documents, such as credit card statements. 

The bank may take around seven calendar days to release the mortgage final offer letter. During that time, if no agent has been assigned to the case, the buyer or seller will probably be in contact with the bank to get an update on the status of our case.

The Liability Letter

The seller can apply for the liability letter from their bank upon release of the final mortgage approval letter. The liability letter outlines exactly how much mortgage is still owed to the seller's bank. It has to be addressed to the buyer's bank and contain the appropriate property details, like the plot number.

Conclusion

The processing of a property sale in Dubai is rather straightforward. Steps involved include paperwork signing, property valuation and final mortgage approval. It's also necessary to get the liability letter from the seller's bank addressed to the buyer's bank.

Need assistance with property management in Dubai? Reach out to Dacha Real Estate today! We're a top property agency in Dubai founded in 2004, providing high-quality real estate for lease and sale.