Simplifying real estate: What is Sales Progression?

Simplifying real estate: What is Sales Progression?

Friday 04 August 2023Wed 16 Feb
Simplifying real estate: What is Sales Progression?

Are you currently in the middle of your first sale or first of many sales?

You might know a finance-to-finance sale can be hectic, lengthy and stressful - from back and forth agreements, sales negotiations and the list goes on - and who doesn’t want a break from that?

Most of us in the midst of chaos - while the sale is half-way through, realise this sale can be processed much easily if a sales progression professional is involved!

So, the question here is what is sales progression and how do you process the sale of a property in Dubai?

Let us break it all down for you…

What is sales progression?

Sales progression is the process of monitoring and understanding the timely progress of property transactions which takes place from the time an offer is accepted on a property right through to completion.

How do you process a sale of a property in Dubai?

It's quite simple, given both parties - here are the top steps you’d need to follow to have a seamless property transfer in Dubai.

Sign the sales agreement

The first step to a seamless transfer is that once a buyer and seller have reached an agreement on the terms of the property sale, a sales agreement is drafted.

Both parties will sign a Unified Form F and an Agreement of Sale which are binding agreements between the buyer and seller outlining the terms and details of an understanding, including each parties' requirements and responsibilities. The agreement outlines the terms and conditions, purchase price, payment schedule, and other relevant details. It is recommended to involve a lawyer and sales progression expert to review and ensure the agreement's legality and fairness.

Do your own due diligence

If you’re a buyer, we suggest conducting a thorough due diligence on the property, including verifying the legal status, ownership, and any outstanding debts or liabilities. This step may involve obtaining property documents, such as title deeds, survey reports, and No Objection Certificates (NOCs).

Escrow account

In Dubai, it is common for property transactions to involve an escrow account. The buyer deposits the agreed-upon amount into the escrow account, which acts as a neutral intermediary. The funds are given to the seller upon fulfilling the contracts rules, ensuring a secure and transparent transaction.

Property transfer application

The buyer then prepares and submits the necessary documents and applications to the Dubai Land Department (DLD) for the property transfer. This includes completing the relevant forms, paying the transfer fees, and providing supporting documents.

For the property transfer, ensure buyers have the following documents ready:

A manager’s cheque for the property price which is payable to the seller The original identification documents of the buyer and seller (Emirates ID, passport) The original NOC issued by the developer Signed Contract F (MOU)

Mortgage clearances (if applicable)

If the property is mortgaged, the buyer and seller coordinate with the mortgage lender to clear the outstanding loan amount on the property. This step involves obtaining a mortgage clearance certificate from the lender.

When the mortgage lender has given the go ahead for the mortgage, the buyer will submit a number of documents requested by their bank to get their final mortgage approval. This process will revolve around their finances and the bank may ask for credit card statements or other private financial documents.

Depending on circumstances, the bank can take around 7 calendar days to release the mortgage final offer letter.

The documents requested by the bank from the buyer are:

A copy of your visa and passport A copy of your Emirates ID A salary certificate for proof of employment Proof of residence (copy of tenancy contract or DEWA bill) Pay slips and bank statements for the past six months The latest statements of your credit cards

Final payment and title deed transfer:

Upon completion of all required procedures and approvals, the buyer makes the final payment to the seller. Once the payment and receipt of payment is received, the transfer of ownership is executed, and the seller transfers the title deed to the buyer.

No Objection Certificates (NOCs):

If the property is part of a gated community or a building with shared facilities, the buyer may need to obtain NOCs from the relevant homeowners' association or developer. These NOCs confirm that there are no outstanding fees or obligations associated with the property.

The seller must settle any service charges at least a quarter in advance (if any on the property) These charges will then be reimbursed by the buyer at transfer of the property.

It's just a way to clear up any doubts or financial restrictions on the property.

Handover and possession

The seller hands over the property keys and any relevant access cards, remotes, or documentation to the buyer. The buyer then takes possession of the property, and any associated utilities or services are transferred to their name.

Once done, ensure you obtain a moving in permit from the developer.

How simple was that?

If you’d like any further guidance on how to manoeuvre your next sale - get in touch with our sales progression team!

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