Buying a property in the UAE is a simple procedure but you must ensure that you understand what you are buying, and what the area has to offer and thoroughly understand the difference of Freehold and Free Zone properties. Our team of experts will explain these issues and answer any other queries you may have.

What is a Premium?
A premium is the capital growth asked by the seller of an off the plan project. When you purchase you will take over the existing sales agreement with the developer. You will need to pay the seller back the payments he has made to the developer so far plus a premium.

For Example: If the seller bought a 1,000 sq ft unit for AED 900 per sq ft. (Total price AED 900,000) and has already paid 20% of this to the developer.
(i) You pay the seller AED 900,000 @ 20% = AED 180,000,
(ii) If for instance the seller is selling at AED 920 per sq ft (a AED 20 per sq ft premium). You pay a premium of
AED 20 x 1,000 sq ft = AED 20,000.
Total due to the current owner/ seller would be AED 200,000.

The property is then transferred to you and you take over the contract and repayment plan with the developer.

Premiums are paid throughout the construction period from buyer to seller. They are simply the adjustment in value between the original purchase price and the current market value.

Finance
Major lending institutes such as First Gulf Bank www.fgb.com  Tamweel www.tamweel.ae and ADCB www.adcb.com ,will lend up to 90% on a property but more realistically 70% if you are a non resident.

With off plan sales the developer will often offer their own payment schedule, you pay the deposit and either make periodic installments usually every 3 months until completion, sometimes the developer will accept a deposit and take tha balance on completion.

Selling property in Dubai should be a simple affair but pick your agent carefully. Speak to the consultant who will actually be representing you in the sale. You may have no taxes to pay but check on any transfer fee that may be applicable and commissions to agents. Sometimes the seller pays, sometimes the purchaser, clear this up first.

For advice on the procedure please contact us at info@dynastyzarooni.com