How to Sell Off-Plan Property
One of the main reasons why investors choose to buy off-plan property is the profitability it can bring even before the project reaches completion. Provided the market performs as expected, buyers can stand to gain a handsome profit by cashing in on capital growth that has accrued during construction. Here’s a helpful guide with useful information on the ins and outs of selling off-plan property.
Developers typically have resale restrictions in place for off-plan projects in Dubai, wherein you are only allowed to sell the property upon payment of a specific percentage of the purchase price. Depending on your SPA with the property developer, the usual requirement is about 30-40% of the property value. Subject to the terms of the contract, this percentage can run even higher and the resale restrictions can either be restrictive or permissive.
The selling process may also be hampered by a few pitfalls. Your property may not fare well in the market particularly in cases where the developer still has available supply and has generous payment plans on offer. Should you decide to sell your property, it is important to do your own research on the current market prices and enlist the services of property experts who have the experience, skill and market reach to get you the best deal possible.
Registration and Transfer
Once you’re able to find a buyer, you must then secure a No Objection Certificate (NOC) from the developer. This usually costs around 5,000 AED and is commonly paid by the buyer. After which, the agent and the buyer will proceed to the trustee office. From there, you will be able to get the selling price of your shares in the property by way of a manager’s cheque from the buyer.
For the transfer fees, the cost will also be paid by the buyer. Properties priced over AED 500,000 will incur a fee of AED 5,000. For properties with a value of below 500,000, the transfer fee is AED 3,500. Registration fees are also applicable. The cost of which amounts to 4% of the total property value.