International luxury real estate BUYER S GUIDE

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2 There is a lot to think about when you choose to buy a property. In this section, Oryx World advises you on a few areas you need to consider when purchasing a property. Understanding the requirements upfront can save you time and money. Our guide will help you to understand the process and is designed to reassure you of each step of your purchase. Finally the moving checklist will ensure you don t forget anything when it comes to the final stages of your property purchase. PROCESS Reason for purchase You will need to establish why you are buying, for example is it to live in or is it for capital appreciation or is it buy to let? Once you have clearly identified why you are buying this will influence the type of properties you decide to look at. It is worth advising your consultant of the reasons you are buying too. Property type You will need to identify the property type you are looking for, are you looking for an apartment or a villa? Freehold properties tend to be villas while leasehold properties tend to be apartments. Freehold property relates to property you own outright for an indefinite amount of time. Leasehold property relates to property you own outright for a specified period of time. Both freehold and leasehold property can be inherited. Location Begin your research by talking to friends or your consultant, you may need to consider distance to work and schools for you and your family. If it is an investment you will need to work out where properties let out the easiest and where you will achieve the best returns on your investment. Finance How will you be purchasing the property? Work out your budget whether paying by cash or if you are obtaining a mortgage. There are also various different fees involved when purchasing a property. Transfer fees are to be paid to the Dubai Land Department when transferring ownership;

3 this is in total 2% of the property price. If you are purchasing with a mortgage, there is also a mortgage registration fee to be paid to both the developer (this is usually around AED 1,000) and the Dubai Land Department (0.25% of the value of the loan). Oryx World Real Estate will charge 2% of the purchase price as an agency fee. For all completed properties, you will also need to factor in paying for maintenance fees/service charges for the property, this will be payable from the date of transfer. Service charges are collected by an Owners Association and are used to maintain common areas such as corridors, swimming pools and gardens. The amount charged depends on the size of the unit you own and also the area and type of facilities your property benefits from. There are no government taxes whatsoever when you purchase a property in Dubai. Consultant Your consultant will depend on the location you choose to buy in, and will be a complete expert in this area. They will listen to your requirements and work hard to broker a deal for you. As a buyer you will sign an agreement called Form B to work with them and so they can help to find a property for you. At this stage you will need to stipulate any conditions of the offer and should also state the position of the buyer, for example are you reliant on a mortgage or are you a cash buyer? At the offer stage if this is an individual purchase, you will need to provide passport copies for all buyers. If this is a company purchase, you will need to provide a Certificate of Incorporation, Memorandum and Articles of Association, Board Resolution, Power of Attorney and if the company is based overseas all these documents must be attested by the UAE embassy. All offers will then be forwarded to the seller for consideration. The seller will then review the offer and can choose whether to accept, counter offer or reject it, depending whether it meets their expectations. Counter offers may go back and forth between seller and buyer several times as part of the negotiation process. Viewings Your consultant will organise as many viewings as possible until you find the right property for you. Remember to look beyond the personal possessions and furniture of the existing person living there if the property is not empty, as it will look different when you / your tenants move in. Look closely if any repair work is needed and check how the building is maintained. Your consultant may know about properties which are not online yet, as well as open houses so it is worth making sure they know exactly what you are looking for so you can beat the rest of the market. Offer When you have found your dream property, your consultant will help you to make the right offer to secure the property at the right price. Establishing the right price to pay for the property will take into account various factors such as the current state of the local real estate market, what other comparable properties have sold for in the local area, who the developer of the property is and any improvements that have been made to the property.

4 Forms There are several forms to fill in throughout the process of making an offer on a property and the offer being accepted. Your consultant will guide you through this process and keep you informed throughout. Form B is a form the buyer will sign when you are searching for properties. It sets out the relationship with your consultant. Form F (the MOU) is the final contract the buyer and seller will both sign to agree the deal. Contract Once the offer has been accepted the MOU (Memorandum of Understanding) will be drawn up by the brokerage and payments will be collected. These payments include a deposit to secure the property, the brokerage fee and conveyancing fee, however these cheques will not be encashed until the transfer date of the property. Conveyance Our conveyance team will advise you of the next steps and prepare all documentation and keep you posted with when payments are due. The Oryx World Conveyance Team is a specialist, fully licensed property team that handle all transactions from the point the offer has been accepted until the successful transfer of the property. Having an experienced, dedicated team ensures we keep abreast of changing property regulations, in turn ensuring our clients are, at all times, protected. From the point of signing the contract of sale, a member of the Conveyance team will be a buyer or sellers first point of contact and will assist with all aspects of the transaction process from communicating with developers, to third party consultants, banks and the necessary governmental institutions. Whether you are a local or international property buyer or seller, an investor or developer, our highly experienced team of conveyancing professionals guarantee a smooth and successful transaction. Transfer This final stage will take place at the Dubai Land Department or one of their registered offices. This is where the ownership of the property changes hands. The following documents will be required: Title deed or OQOOD Valid passport copies of the buyer and seller or ID for Emirati Nationals The Sale Transaction Contract Form F, floor plan, site location plan and JOP Disclosure statement. The settlement cheques for the transaction made out to the seller, the Dubai Land Department fees (2% of the purchase price) as per the MOU and the buyers consultant s fee as per the MOU. Your Oryx World consultant will guide you through each step of the buying process and our in-house Transaction Manager will handle every aspect of your conveyance so you can be assured of a hassle free transaction.

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