DUBAI

OFF-PLAN SALES
MAJOR DEVELOPERS
(Semi Government & Private)

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 DEVELOPER – LISTING
STOCK AVAILABILITY & DEVELOPER RELATIONSHIPS

Most of the developers have online portals to

access the stock.

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DEVELOPER DISCOUNTS & NEGOTIATION

1. Varies from developer to developer

2. Prime developers do not negotiate much on the

pricing they stick to the promotions they are
running.

3. We are there to advise which developers will

negotiate but it is important that before you
engage with your clients you should be aware
as well.

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 DEVELOPER BOOKING PROCESS

1. Initial Deposit – Payment by credit card, normal Cheque or bank transfer.

2. Reservation form issued by the developer for buyer signatures which is followed by signing SPA (SALES

& PURCHASE AGREEMENT).

3. Post SPA signing, the developer starts the process of registering the buyer into DLD system and
Oqood is generated.

Oqood – Oqood is an Arabic word and is also called initial contract of sale. Once the property is completed and the buyer has fulfilled all his

payment obligations, with a small admin fee the same Oqood is converted to the title deed.

4. Additional Charges – DLD fees 4% of the purchase price + miscellaneous admin charges up to
AED 3000/-

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 SELLING OFF PLAN

1. Slightly easier then resell as once you convince the

client and he is ready to purchase all the paperwork is
done by developer.

2. Awareness about all the new project launches.

3. Developers arrange briefings when they launch new

projects make sure you attend those.

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 OFF PLAN MORTGAGES

1. Majority of the banks will only finance the Prime developers;

private small developers will be case to case basis.

2. Most of the off-plan buyers when they are booking will not
worry about the mortgage as the validity of any pre-approval
mortgage is maximum between 1 to 3 months.

3. Bank will finance max up to 60% subject to valuation of the

property.

4. Banks will only make payments to the developer on

completion, so we must make sure the payment plan of the
property is accordingly.

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 OFF PLAN MORTGAGES

5. Generally, finance will be an option for buyers for the only projects
which are completion within 6 months to one year as they can make the
final payment by opting finance from the bank subject to the developer
being approved by the particular bank.

6. Off-plan properties which are on an installment plan where the

completion is 3 years, buyers don’t need any pre-approval, the only thing
to confirm that banks will finance the project.

7. Notice of completion – For example - the buyer purchased a property

where completion is Dec 2020 and his installment is 10% July – 10% Aug
- 10% Sept - 10% Oct - 10% Nov – 50% on completion. Closer to
completion developer will issue a handover notice, with that handover
notice subject to the developer is approved with the bank. Bank will make
50% of his final installment directly to the developer (Generally agent is
not involved in the process).

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 OFF PLAN – RESALE

1. It is like selling any ready property with title deed.

2. You need NOC from the developer – No Objection certificate,

once the developer’s issues NOC it means the seller has no
outstanding liabilities or installments outstanding which were due.
NOC fees can vary from AED 3000 to AED 5000, as per law it
should be payable by the seller but sometimes depending on the
agreement buyer pays it. So important to remember while making
an offer to seller you clarify his expenses. Also, as per law, you can
charge fees to buyer and seller it is not a crime but a negotiation
skill

3. Buyer and seller meet at the trustee’s office with NOC, funds and
the property is transferred to the new buyer, and payments are
made to the seller (Managers Cheque is the preferred mode of
payments).

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 OFF PLAN – RESALE

4. When purchasing the property seller paid DLD fees of

4% but that was for registration when you resell buyer
still need to pay the transfer fee of 4%, trustee fees of
AED 5000 + 5% vat + Agency fees

5. Once the property is transferred buyer continues the

installment plan till completion directly with the
developer.

6. While the property is under an installment plan during

the time of NOC subject to developer policy before
issuing NOC developer will demand the next installment
in advance (Due to market scenario no developers are doing
at the moment but the developer has right to do so)

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