NAVI® Selling Guide
The Market Appraisal
The Role Of The Real Estate Agent
Choosing Your Real Estate Agent
Types Of Agency Agreements
Different Selling Options
What Is Your Property Worth
Marketing Your Property
Negotiating And Accepting An Offer
After The Sale
Your Agent For Life
Property Law
We understand your property is important to you. You have shared life, love and laughter within its walls. This is why you need the support and understanding of a professional real estate agent. NAVI® agents are professionals who deliver. We will individually market your property in the most professional and cost-effective way.
Our great strength lies in our knowledge and market research as we continue to grow with you.
Your NAVI® agent will ensure you receive the best possible price for your valuable asset in the shortest possible time.
With this goal in mind, this guide is designed to provide you with an overview of the selling process and the options available to you. Your NAVI® agent is always available to answer any queries you might have along the way.Once you have decided to sell, the next step is to seek a market appraisal from your NAVI® real estate agent. This information will help determine a likely price range and the method of sale.
In addition, conduct your own research by checking property results in your local paper, searching the internet and attending auctions to determine the strength of the market.
Your NAVI® agent experience in the local area will give you sound advice as to where your property sits in the market.
The Role Of The Real Estate Agent
The role of your NAVI® agent is essentially to sell your Dubai property at the best price in the shortest possible time frame.NAVI® agents work with your interest in mind, providing services such as:
• Local and Informed - Advice on the likely selling price of your property
• Expertise - Market research
• Accuracy - Comparables in the marketplace
• Knowledge - What has been sold and is for sale
• Exposure - Marketing your property to the most likely buyers
• Higher Offers - Attracting buyers to inspect, become serious and make an offer
• Maximizing your Asset - Negotiating the selling price between yourself and buyers
• Make it Easy - Facilitating the actual sale and legal steps involved in selling
• Less Stress - Making the move easier
• Be Informed - Keeping in contact with you throughout the selling process
• Maintain a relationship with you beyond the sale
Choosing Your Real Estate Agent
The real estate agent of your choice will make a difference to the likely outcome of the selling process. Always choose an agent in your local area, as they have solid knowledge of local prices and will have potential buyers on hand who are looking to buy in the area.Your agent will be able to advise you on the selling method best suited to your property and your needs, the type of buyer you are looking for and improvements that can increase the value of your property.
Be wary of agents providing top estimates for your property, as they could be trying to buy your business with unrealistic price expectations. A qualified agent can give you accurate advice on the real estate market, and NAVI® agents are the only real estate agents with access to our dedicated in-house research department. Average property prices, sales activity, rental returns and population growth are just some of the types of information you can discuss with your NAVI® real estate agent.
Once you have chosen your agent, it is time to decide what is the best method to sell your home. Essentially, there are two methods of selling a Dubai property:
Exclusive Agency/Exclusive Listing: Only one real estate agent or office sells your property.
Within an exclusive agency agreement, you have several options available: auction, private treaty, multilist, tender and expressions of interest.
Properties sold under exclusive agreements usually sell for the best price in a shorter time.
The exclusive agency method is recommended over the open listing method because the sale of the property is in the hands of only one party.
- Saving the seller the confusion of having to liaise with more than one agent.
- Saving the seller time and money involved in advertising and marketing costs when a number of agents are trying to sell the property.
- NAVI® agent full focus and commitment is guaranteed.
Open/General Listing: Listing your property with several real estate agents.
Properties sold under open/general listing often take longer to sell and don't always produce the best result.
Your NAVI® agent will discuss all the options with you, and advise you which one would best suit your needs.
Different Options In Selling Your Home
Auction Benefits
There are numerous benefits of selling your property at auction:
- The set sales date allows you to make plans for the future. It forces buyers to act within a specific timeframe or they risk losing the property.
- The absence of a set price attracts buyers from all price ranges, with each having a different opinion as to what they would pay for your property.
- Placing buyers into an open competitive situation will usually achieve the best results.
- At all times you are protected by your confidential reserve price, with the help of your NAVI® agent. Only you can change this reserve price.
An auction on the property is legally binding. Once your property has been sold under the hammer, the sale conditions are set in concrete.
Private Treaty Benefits
When you set the price at which your property is to be sold to the public, you are selling by Private Treaty.
One agent is appointed on an exclusive basis for a set period to work hard to market your property to the buying public.
- Without a set sales date, you have time to consider all offers by potential buyers.
- All negotiations are private and in a time sequence to suit you.
- Only one price is being quoted, and your exclusive agent has the freedom to work with everyone in the area.
- With regular, honest feedback provided to you, you are able to gauge the success of the marketing campaign as well as the acceptance of the asking price.
- Many buyers are unwilling to buy at auction because they require conditions. Eg: finance.
Remember, no selling agency fee is paid by you, unless your exclusive agent negotiates an offer from a buyer that you will accept.
Setting the price is one of the most important decisions you have to make when selling your property. Features such as location, size, age and unique attributes will help determine the figure, as will checking sales prices on similar properties in your area.
Setting the right price for your home is the single biggest factor that will determine the success or failure of your property or home sale.
The consequences of making the wrong decisions are painful. If you price your home too low you will literally give away thousands of dollars that could have been in your pocket. Price it too high and your home will sit unsold for months, developing the reputation of a problem property requiring a price reduction and further time delays.
Our in-house Research Department gives NAVI® agents access to property information such as average property prices, demographics, sales activity and rental returns. Such information will help you set the asking or reserve price of your property.
Pricing Guidelines
- The market determines the value.
- What you paid for your property does not affect its value.
- The amount of money you need to get out of the sale of your property does not affect its value.
- What you think it should be worth has no effect on the value.
What Is For Sale?
When selling your property, you have the option of relocating or leaving sentimental or expensive fixed items known as "chattels". Items such as light fittings, dishwashers, curtains, awnings, and above ground pools, that you wish to take with you, must be noted in your contract as being excluded from what is being sold.
Including or excluding these "chattels" may affect the price of your property.
When selling a property you have options of how you would like to market your property. You have the choice of selling with a marketing and advertising budget or without.
Marketing
Selling your property with a well-planned marketing program ensures your property receives maximum exposure, and ultimately achieve the best price.
There are several marketing options available:
- Signboards
- Press Advertising
- Online Advertising
- Virtual Tours
- Database Mail Outs
- Open For Inspections
- Window Displays
- Letterbox Drops
- Brochures and Window Cards
- Professional Photography
Your NAVI® agent will give your property a thorough, memorable exposure over the allocated period, reaching as many people as possible. We will develop a marketing plan best suited to your property and your needs.
We are aware that your marketing budget is important to you, so we are careful to utilize your budget to its best advantage. However, it is worth remembering that an agent working with too a tight a budget might not be able to provide all the trimmings they feel is necessary to sell in the shortest possible time.
Progress Reports
As part of the marketing of your property you will be regularly informed of the progress being made. Your agent is committed to ensure an expedient sale. At all times this feedback will be honest and balanced. Regular progress reports help you work with your agent to make the right decision for your property.
Negotiating And Accepting An Offer
Your NAVI® agent will facilitate all aspects of the negotiation process. They will present all offers in writing, leaving you with the option to accept, or provide a counter offer. If the buyer does not accept your counter offer, they have the right to withdraw their original offer.
When deciding on an offer, you should also consider settlement date, suitability of deposit and whether terms/finance are arranged. Your NAVI® agent will be able to provide advice on such considerations.
Found A Buyer, What Now?
Private: Once you have reached an agreed selling price with the buyer, you need to sign the contract. The buyer pays a deposit, usually 10%, with the balance to be paid on settlement date.
Auction: With auctions, there is no cooling off period. The deposit is paid and the contract signed on the fall on the hammer.
After, the contract is unconditional, it is legally binding and the process of transfer can begin. A solicitor or conveyancer usually handles the transfer with stamp duty (if applicable) being paid by the buyer. On settlement day, the keys are handed over to the buyer and the property becomes their responsibility, thus it is important to note that until settlement day, you are responsible for insurance etc.
(The legal process varies, so consult with your solicitor and NAVI® agent).
With your property sold, NAVI® will supervise all legal and financial matters to ensure everything proceeds smoothly.
Our attention to detail and follow-up service provides you with support and feedback right through to settlement.
We are happy to assist you with locating another property, recommending movers and suggesting items to be organized for your new property - such as gas, electricity, post, telephone etc.
We remain at your service until every matter is finalized.
Property knowledge and excellence in service are the cornerstones of our business and we believe our relationship does not end with the sale of our property but is merely the beginning of a long term association based on our commitment to achieving the best results for you in all your property dealings.
Law no. (7) of 2006 concerning real estate property registration in the Emirate of Dubai (the ‘dubai property law’) was signed by His Highness Sheikh Mohammed bin Rashid al Maktoum, Vice President of UAE and Ruler of Dubai, on 13th march 2006 and came into force on 1st april 2006.
According to the Dubai property law, The Lands Department will be the only authority recognised as being able to register real estate property rights for property in Dubai. Real estate property rights capable of registration include rights of freehold ownership, rights of usufruct, long leases of up to 99 years, rights of musataha and also collateral rights such as easements, restrictions and mortgages over real estate property.
A couple of the above concepts explained:
- The ‘right of usufruct’ is a concept that is found in our federal civil code. it is the right to use and exploit property belonging to another person. it is a ‘right in rem’, in other words, it is a real estate property right. A lease is very similar. it also grants the right to use and take advantage of property belonging to another person, but according to our federal civil code, a tenant does not acquire a property right through a lease, he just acquires a personal right, a right that is enforceable through a contract between himself and the landlord.
- The distinction between the ‘right of usufruct’ and a leasehold right is important in the context of foreigners’ property rights in dubai and will be discussed in further detail hereunder. for uae and gcc nationals, there is really very little practical distinction between the ‘right of usufruct’ and a lease. both give a tenant the same rights, namely the right to use and exploit a property and both can be registered.
- The ‘right of musataha’ is similar to the ‘right of usufruct’. it is the right to use and exploit land belonging to another person along with the right to build on that land. it is the right that we commonly see granted to a tenant through a ‘ground development lease’
Ownership by UAE and GCC Nationals
According to article 4 of the Dubai Property Law, uae and gcc nationals and companies wholly owned by such nationals have the right to own any property interest in the emirate of dubai, and to have such rights registered at the lands department. UAE or GCC Nationals can therefore own property rights in all areas of dubai, and so can their companies. this includes limited liability companies and private joint stock companies in which all the shareholders are UAE or GCC Nationals.
If a company is incorporated in the UAE or in any of the other GCC countries and has foreign shareholders, it will not be considered a UAE or GCC Nationals for the purpose of owning property. the only exception to this is public joint stock companies, companies such as Emaar and Union Properties, that are listed on the Dubai financial market. These companies allow their shares to be bought by foreigners but are still considered to be UAE Nationals and can own property anywhere in Dubai.
Ownership by Nationals other than UAE and GCC Nationals
According to article 4 of the Dubai property law, all nationalities other than UAE or GCC Nationals are granted the right to own a freehold interest, a right of usufruct or a long lease of up to 99 years in ‘designated areas’of Dubai as approved by the ruler.
Regulation no. 3 of 2006 was signed by the ruler and published in the government’s official gazette on july 3rd 2006. this regulation provides at article 3 that “non-locals may own properties as freehold not limited by time, or may have the usufruct right or hire right for a period not exceeding (99) years in the plot or plots shown opposite each of the under-mentioned areas according to the maps issued by the department and attached with this regulation”. the maps were not published with the regulation. article 3 lists 23 designated areas and specifies the applicable plots by their plot numbers.
Foreign companies, as well as individuals, can own a freehold title, long lease or a usufruct right of up to 99 years in the designated areas. it is understood that The Land Department will impose no restrictions on this and it will therefore make no difference whether the company is registered in the Cayman Islands, England, Hong Kong or any other foreign jurisdiction, provided that evidence of lawful existence in the country of incorporation is given.
Status of long leases granted to foreigners outside designated areas
Long leases, sold in areas which are not designated areas, fall outside the ambit of the dubai property law, but nonetheless are not illegal in any way. they do not contravene this law or any federal law. however, such unregistered leases are treated in a different way for some purposes:
- unregistered leases remain personal rights, not rights in rem or property rights;
- unregistered leases are still capable of being inherited;
- disputes arising between a landlord and a tenant of an unregistered long lease will still be adjudicated by the rents committee.
Void arrangements
Article 26 (1) of the Dubai Property Law provides that, “any agreement or disposal made in violation to the provisions of this law or with the intent to circumvent its provisions shall be null and void”. article 26 (2) gives any interested third party, the lands department and the public prosecution the right to request the court to declare such a transaction void. this is directed at so called ‘sham arrangements’. this provision is not saying, for example, that long leases granted to foreigners in areas that are not designated areas are illegal. What this provision is aimed at, are those agreements that purport to give a property ownership right to someone who is not entitled to own it and is not entitled to register it. What would be void, for example, is a sale & purchase agreement for the sale of a freehold right in favour of a foreigner in respect of a property in Deira, as foreigners do not have the right to own freehold property in Deira, that is an obvious example.
A more subtle example might be the ‘nominee ownership’ type arrangements that we sometimes see, where a foreigner who wishes to own property will reach an arrangement with a uae national, wherein the uae national will hold title to the property at the lands department, but for all intents and purpose the foreigner considers himself to be the property owner. The best advice to any foreigner wishing to ‘own’ property in a location which is not approved for foreign ownership, is to take a long lease of the property. Whilst the lease cannot be registered, the foreigner would at least have contractual rights pursuant to the lease, which can be enforced and a lease arrangement is not illegal or invalid.
How does a person prove his ownership?
Regarding proof of ownership of property, in terms of articles 5, 22 and 24 of the dubai property law, if a purchaser considers that he is the owner of a property, the contract or other agreement by which he acquires that ownership is insufficient to prove it. The purchaser needs to take the contract to the lands department and apply for ownership to be registered in his name. If the application is in order, The Land Department will register his ownership in the property register and issue him with a ‘title certificate’. This is the document which proves his ownership.
If title certificates are conclusive evidence of property ownership, what if they have been issued incorrectly or contain incorrect information? Article 7 of the Dubai Property Law allows objections to the data recorded in the property register ‘on the grounds of fraud or forgery’. Further, article 13 authorises the lands department to correct errors in the property register on its own initiative or at the request of an interested party.
In conclusion, it is the property register itself that at any point in time is the conclusive source of information regarding property rights, and the title certificates contain a mirror record of that information as of the date that they are issued. if some time has passed since a title certificate was issued, and a party wishes to rely on the information that it contains, he should go to the lands department and check it against the property register. The information may have changed since the title certificate was issued, perhaps because the lands department has rectified the register pursuant to article 7 or article 13. or maybe subsequent entries have been made in the property register without the co-operation of the title holder, and therefore without amendment to his title certificate, for example, some form of third party interest or a court judgment.
Registration of third party interests
Article 24(2) of the Dubai Property Law provides for third party interests, any conditions, undertakings, encumbrances or any other liabilities related to real estate property rights to be registered in the designated folio (page) of the real estate property unit.
Many of the new private communities that we see in Dubai are managed and maintained through a master community declaration and multi-owned buildings are managed through a constitution of the co-owners association. these two documents contain a number of covenants and easements, such as the promise to pay service charges and so on. The Land Department has confirmed to us that the third party interests contained in these documents will be registered on the individual property titles.
Dealing with property disputes
In the case of a property dispute, article 10 of the Dubai property law provides that the liability for breaching an undertaking to transfer any real property right shall be limited to payment of indemnity, whether or not such undertaking provides for an indemnity. therefore if a seller defaults on his obligations under a sale & purchase agreement and fails to transfer the property to the purchaser, the purchaser can claim damages from the seller for his losses suffered, but cannot force the seller to transfer the property to him. In other words, specific performance is not available as a remedy.
The question arises as to which forum should be utilised for settling disputes arising under this law? article 27 of the law specifically repeals a decree dated 6th november 1977. That 1977 decree prevented any property related disputes from being filed at court unless the case was referred to it by the lands department. Now that decree has been repealed and any aggrieved party can now file a claim direct with the dubai courts or implement any agreed arbitration process.
