Selling Out Offplan Property

Real Estate Jargons – Selling out Offplan property

Today’s topic is about one of the fast-emerging question in the market, if a property owner can sell an offplan property in the market?

Well, a short answer to the question is “yes” however there are a few terms that the seller needs to be meet to be able to sell the property, and the buyer needs to understand before deciding on it. Although, generally the offplan investors tend to keep the property until it becomes ready, and then transact at a higher appreciated value. However, in the current market that has been booming, many offplan investors who have already met their targets are readily selling off properties as offplan too.

The first and foremost thing that the seller needs to verify the minimum payment against the property upon which the transfer becomes viable. This although varies from one developer to another and from one project to another, generally this minimum amount ranges from 30% to 40% of the property value upon which the NOC from the developer is issued to be transferred.

The process of selling an off-plan property is slightly different to a standard property sale but is rather simple nevertheless. In essence the new buyer pays the seller an amount equal to what they have already paid off to the developer (+/- any difference agreed on).

The new buyer then simply takes over the existing payment plan if approved by the developer to be carried forward to the new buyer, otherwise the buyer has to pay all future due installments directly to the developer as one-off payment.

Once the NOC is sorted and payment plan is agreed upon this offplan property transfer is now very similar to the secondary property transfer, where the new buyer would need to pay the property registration fees of 4% and other associated charges after which a new oqood or initial contract of sale is issued under the name of the new buyer.

In a market like Dubai’s the demand of the property has been ever increasing which has been affecting on the prices significantly. To learn more about the property selling compliance and procedures, or to avail a free property evaluation report of your property, please feel free to get in touch with our advisors at Homes 4 Life.