This is the first step in the actual selling process. The seller needs to sign an FORM “F” with the buyer (Note – as per DLD new law “MOU – memorandum of understanding, are no longer legal) through a real estate agent. Once the FORM F has been signed, the bank that is financing the buyer will conduct an independent evaluation of the property. So it’s your responsibility as the owner to provide access to the property so that the bank can conduct this evaluation, which is basically to determine how much the bank will lend the buyer.

This is again an important step and involves both the parties and their respective mortgage providers.

Once the evaluation is completed by the buyer’s bank, it will then formulate the final offer letter for the buyer and that’s when the process of paying off the seller’s mortgage begins. At this time Agent will request Sellers to produce a liability letter from the bank towards the outstanding mortgage amount on their property. Do note that all liability letters are valid for only 15-day; so don’t rush in ordering one; until the evaluation is done (bank will charge Seller for each a liability letter is asked).

Depending on the agreed selling price & outstanding amount to bank; in most of the cases buyer’s bank pays off the seller’s mortgage based on the liability letter provided to them. At this stage, the seller may have to sign some documents but he/she will be advised by the buyer’s bank or the mortgage consultant whether this is necessary.

The documents the seller may be asked to sign are the authority for his/her bank to accept the settlement of the loan and instruction to the bank to release the documents regarding the property once the mortgage is settled.

Once the buyer’s bank pays off the Sellers mortgage; then the seller’s bank will issue the “No Liability” letter; i.e. the clearance documentation. This generally takes five working days.

Once the seller’s mortgage has been paid off, he or she must then go to the developer’s office accompanied by the buyer and the real estate agent to get a no objection certificate (NOC). Sellers need to produce their identification and property documents in order to apply for an NOC. Developers generally charge for an NOC (depending on negotiations the charges can be paid by seller or buyer). The Normal NOC charges as per Dubai law varies between AED 500/- to AED 5,000/-. The NOC is issued in five to seven working days.

The next step is to submit a copy of the NOC to the buyer’s bank. The bank will then take about two to three working days to prepare the final documentation for the transfer of the property. Once the property is ready for transfer then the buyer, the seller, the buyer’s bank, the real estate agent and the bank’s mortgage consultant will all meet at the Transfer Center to initiate the transfer.

Please note that most of the time Sellers get their balance money cheque on the date of transfer (through Managers cheque); however in some incidences banks issue a guarantee letter to the seller stating: ‘We will pay you the remaining amount once the transfer has been fully completed’.

To get the best quote & advise while selling the property; please contact our experts who are always ready to offer an unbiased advice with a smile.