SELLING WITH ORYX WORLD The Conveyancing...

The Conveyancing ProcessSELLING WITH ORYX WORLD

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SELLING WITH ORYX WORLDTHE CONVEYANCING PROCESS

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Thank you for choosing to sell your property with Oryx World Real Estate Brokers. As a Seller, here is what you

can expect when working with Oryx World.

When appointing your Oryx World consultant to sell your property the following documents should be provided. If they were not given to Oryx World at that point, they must be provided before the property can be sold, in order to draft the Memorandum of Understanding (MOU).

The documents required are:• Passportcopy/copiesofpropertyowner/sor

company documents (if applicable).• ProofofOwnership-eitheracopyoftheTitle

Deed or a Certificate of Registration in OQOOD.• Detailsofoutstandingfinance(ifapplicable).• CopyoforiginalSalesandPurchaseAgreement

(SPA).

As soon as your Oryx World consultant receives an offer for your property, negotiations will take place between you the Seller and the Buyer. The Buyer will issue a formal offer in writing

and your consultant will takes this to you for a response. You will notify your consultant of your decision ASAP, usuallywithin 24 hours.You can choose whether to accept, counter offer or reject the offer. Counter offers can go back and forth several times as part of the negotiation process.

Once both parties agree to the net selling price, your consultant will refer you to our Transaction Manager at Oryx World, who will draft the Memorandum of Understanding (MOU). It is the Conveyance team’s responsibility to liaise with both the Seller and the Buyer/ Buyer’sconsultant to ensure all information and documentation is collated prior to the drafting of the MOU.

The MOU is then taken to the Buyer/ Buyer’s Power of Attorney (POA)/ for their signature and also to receive the following:• 10%depositchequetoreservetheproperty,

payable to the Seller but held with the




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consultant until the completion of the transfer, when it will be returned. Your consultant will forward a scanned copy of the cheque foryour records.

• AchequefortheBrokeragefees/conveyancefeespaidbywayofapostdatedcheque(thedate must be the date of transfer).

Only when we have received the signed MOU and deposit cheque from the Buyer, will you the Seller, be asked to countersign. Your Oryx World consultant will contact you to either:• CometoourofficetosigntheMOU.• ArrangetotaketheMOUtoyoutosignor.• To send a soft copy by email for the Seller/

Seller’s POA to print off, sign and return toOryx World.

Each party including their respective consultants will be given a copy of the MOU. All duplicates / copies of signatures will be considered as original and legally binding as per most agreements otherwise original signatures will be required.

The transfer date will be agreed by all parties and confirmed in the MOU. (The date of transferwill dependonwhether aPOAorfinanceisrequired).

The Conveyance team should have the following additional documents from both parties if not already received:• Clear passport copies of both parties and

contact details.• If applicable, a Power of Attorney (POA)

document including passport and visa page copy of the POA. This document must besigned by a Notary Public, attested by theDubai Court and is only valid for 2 years. If it has expired, the original document must be re-validatedattheDubaiCourt.

• SignedFormA(SellerandBroker’sagreementas per RERA’s regulations; if not already provided)FormB(AgenttoBuyerAgreement)orFormI(AgenttoAgentAgreement).

• If Seller or Buyer is a company, then allcompany documents must be submitted (thesearealsorequiredtobelegallytranslatedintoArabic).ForBuyersthatareaJebelAliFreeZone Authority (JAFZA) company, theymustapply for a JAFZA No Objection Certificate(NOC), which must be submitted on the day of transfer.

Oryx World also charges a Conveyance Fee as we liaise with the Seller, Buyer, Developer and the Institutions and Authorities to ensure a smooth transaction. These fees can be paid at the same time as our BrokerageFees.

Additional Costs:• IfaPOA is required tocomplete the transfer

andthedocumentofPOAoriginatesoutsidethe UAE, the document, which must be in Arabic and English, must be signed by a NotaryPublicandattestedatthenearestUAEEmbassy of that country. Once the document is received in Dubai the document must also be stamped at the Ministry of Affairs in Dubai. TheychargeafeeofapproximatelyAED1,500.IfthePOAdocumentoriginatesinDubaithenthe procedure is simplified and everything is concluded at the Dubai Court at a cost of approxAED300.

• IftheSellerisinaCompanyname,theSeller

will bear the cost of legal translation of all documents into Arabic.

• Iffinanceisinvolved,theremaybefeesleviedby the Financial Institution andDeveloper todischarge a mortgage.

• Dubai LandDepartment levies a fee of AED1010tode-registeramortgage.Thismustbepaid by a Manager’s cheque made payableto the Dubai Land Department prior to thetransfer date.

• DLD fees such as blocking fees are alsochargeable. If a Seller has an outstanding mortgage,theBuyerwillberequestedtopaythe remaining liability prior to application to the Developer for their NOC. To secure the Buyer’s

Conveyance Charges – Payable to Oryx World Real Estate Brokers LLC

AED1,750forApartmentsAED3,500forVillas SplitbetweenBuyerandSellerAED5,000forpropertyoverAED10million

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risk thePropertycanbeblockedat theDLDwhich prevents any further transactions on the Property.ThefeetoblockandthenunblockisAED1010plusAED4,000.

• Transfer fees must be paid at a rate of 4%of the net selling price plus an admin fee of AED540payableasaManager’scheque tothe Dubai Land Department. This is usuallynegotiated as a split between Buyer and Seller at2%plusAED270each.

• Servicechargeswillbeproratedfromthedateof transfer to be reimbursed to the Buyer if applicable.

• Rentalamountswillbeproratedfromthedateof transfer and paid by the Seller to the Buyer if applicable.

• Transfer administration fees are payable atany one of the registered Transfer Centres, totallingAED4,000.Thiscanbepaidincashor by Manager’s cheque. This obligation isnegotiated in the MOU.

Developer’s No Objection Certificate (NOC)TheSellerisrequiredtopaytheDeveloper’sNOCfees before the transfer date. The cost for their NOC and procedure will vary from Developer to Developer.InthecaseofEmaarPropertiesbothSellerandBuyer/ortheirPOA’smustbepresentat the Developer’s office to apply for the NOC.

Documents to be produced include:• OriginalSaleAgreement(ifapplicable).• CopyofTitleDeedissuedbyDLD(ifapplicable).• Currentowner(s)andproposednewowner(s)

passport copies with original to verify.• Bank’s Discharge of Mortgage Clearance

Letter.ThisisissuedonlywhentheSellerhaspaid the remaining outstanding mortgage or the Buyer has paid the Seller’s liability (if applicable).

• Copy of Bank’s Offer Letter/ Mortgageconfirmation from Buyer’s Bank if purchasing with a mortgage (if applicable).

• CopyoftheCompanydocumentslegalised(ifapplicable).

• Companystamp(ifapplicable).• Copy of the POA along with the Attorney’s

passport visa copy with original (if applicable)• MOUbetweentheSellerandBuyer.• Latestmonth–DEWAbillandpaymentreceipt.

All payments to the Developer can be paid either by cash or by visa card.

In the case of completed properties, the Seller also has to ensure service charges for the full year have been paid prior to applying for the NOC. This will be prorated from the date of transfer and the Buyer will reimburse the funds to the Seller on the day of transfer.

IfthePropertyistenanted,theSellerwillgivetherentaldepositamountasachequetotheBuyerin full, in addition to the remaining rent prorated from the date of transfer. For Off Plan Properties:

For Emaar:The Seller must apply for the OQOOD Registration first by taking the following documents to Emaar, Building 2 Ground Floor, Emaar Square. Any person can do this:1. PassportcopyofSeller.2. Copy of first page of the original Sales and

PurchaseAgreement(SPA).3. DLDreceiptofAED3,000issuedatthetimeof

purchase.

Once the documents have been submitted and details have been entered on their system, it will typically take 2-3 working days before theapplication of NOC for transfer can be done with both Seller and Buyer present. The Buyer may be requested topay theDeveloper acceleratedpayments according to the Developer’s payment plan on the same day as applying for the NOC. If this is the case, payment must be made by way ofaManager’scheque.OnceallpaymentsfortheNOC have been made, the Developer will contact theSellertocollecttheNOC,usuallybetween5-7workingdayslater.(Emaar–NOCfeesareAED1,500forcompletedprojectsandAED5,000for




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SUMMARY OF WHEN PAYMENTS ARE TO BE MADE

BUYER / SELLER’S OBLIGATIONWHEN YOU NEED TO MAKE PAYMENT

PAYMENT DETAILS BENEFICIARY

BUYER-UponSeller’swrittenconfirmationtosell to Buyer.

BUYER-WhenSigningMOU

BUYER-WhenapplyingforNOC

SELLER-WhenapplyingforNOC

SELLER-AfterreceivingNOC,taketoDLDand pay the OQOOD fees.

SELLER-BeforeTransferDate

Transfer DateBUYER/SELLER-NEGOTIABLE

TransferDate-BUYER

Transfer Date -BUYER

TransferDate-BUYER

10%depositofnetsellingpriceasacurrentdatedchq.

Brokerage fees plus Conveyance fees, post dated to date of transfer.

Accelerated payment as per Developer’s payment plan.

Developer’s NOC fee.

4%oforiginalprice+40dhsplus AED1,000cash.

DischargeofmortgagefeeAED1,010

4%ofnewnetsellingpriceplusadminfeeofAED540.

FullamounttoSellerasaManager’schq.DepositchqwillbereturnedtoSeller.

Manager’schqtoreplacethebroker’schq.

0.25%ofloanamountplusadminfeeAED10toregistermortgage.

Seller’s name

Seller/Buyer’sRealEstateBrokers.

Developer’s Escrow Account name/Developer.

Developer’s Named Account

TheDubaiLandDepartment



Seller’s name

Name of the Real Estate companies.


off plan. To expedite the NOC to 2 working days the charge isAED5,000). Emaarwill notify theSeller when the NOC is ready for collection at theDLD.Once thishasbeenreceivedOQOODregistration is the next process.

The Seller is required to have a Manager’scheque made out in the name of “The DubaiLandDepartment” for theOQOOD fees (4%ofthe original price plusAED40) andAED1,000cash.PaymentmustbemadeattheDLD.OncetheOQOODfeeshavebeenpaidtheAED1,000cash is paid at the bank kiosk on the ground floor. The receipt must then be taken to the OQOOD department where they will issue the OQOOD certificate.

This original OQOOD certificate along with the Developer’soriginalNOCisrequiredforthedayof transfer of ownership. For all properties thatare only registered on the OQOOD system i.e. do not have title deed, then these transfers have to take place at the DLD. If the Property has title

deed then transfers have to be done at one of the registeredtransfercentresandnotattheDLD.

The DLD and all their transfer centre’sadministration fees are AED 4,000 payable ascash or as aManager’s cheque on the day oftransfer.

It will be the Transaction Manager’s responsibility to send the Buyer an email as a reminder for payments throughout the whole transaction process and to the Seller to bring the necessary original documents on the day of transfer.

PERSONS PRESENT ON THE DAY OF TRANSFER:• Joy Kirby - Transaction Manager of Oryx World.• OryxWorldConsultant.• Seller/Seller’sPOA.• Buyer/Buyer’sPOA.• Buyer’s Bank’s representative (if purchasing with a mortgage).




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Time Scale for Completion:

This will vary depending on if the following applies:1. Finance.2. PowerofAttorney(POA)–POAdocumentsneed to be attested and stamped at the nearest UAE Embassy in the country of origin and stamped again at Dubai’s Ministry of ForeignAffairs.IfthePOAdocumentsandbothpartiesareinDubai,thisisonlyrequiredtobestampedbyaNotaryPublicattheDubaiCourt.

Pleasenotifyyourconsultantshouldanyoftheabove apply prior to drafting the MOU as these transfers take longer to complete.

If it is a straight forward purchase with cash funds being available, the Seller has the original title deed and both parties are in Dubai, then it can be completed as soon as the Seller receives theDeveloper’sNOCwhich takesapprox5-7working days.

If the title deed is not yet available for the property but the OQOOD fees have been paid and registered with the OQOOD department at theDLD,Developer’sNOChasbeen receivedthentransfercantakeplaceattheDLDwithoutappointment.

Oryx World’s Transaction Manager will manage the entire process as transfers must be completed before the Developer’s NOC expires. MostDeveloper’sNOCexpireswithin15days.

It is imperative that both parties have a current original passport in their possession at all times from the point of signing the MOU to the date of the transfer which must be presented on the day of applying for the NOC and at the LandDept.

When Finance is involved: If finance is required by the Buyer from a

financial institution, then a pre-approvalletterisrequiredfromthemthebankpriortoapplying for the Developer’s NOC.

• Thebankwillrequireacopyofthetitledeed,floor plan and a copy of the agreement in order to evaluate the property as well as the clientprior to the issueof thepre-approvaldocument.

• Thetimetakenwhenbanksarequalifyingtheapplicantvariesfrombanktobank.Fromthepointwhenanapplicantsubmitsallrequireddocuments to receiving their pre-approvalcouldtakeupto10-14workingdays.

• DLD charges a mortgage registration feeof 0.25% of the loan amount plus AED10 on the date of transfer. This is payable




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as Manager’s cheque to the Dubai LandDepartment.

If the Seller has an outstanding mortgage:• The Buyer / Buyer’s financier if applicable

may be asked to clear the outstanding mortgage in which case the Seller issues a securitychqpayabletotheBuyer/financierfor the same amount. This will be lodged with the Broker and returned on the date of transfer.

• OnceallliabilitieshavebeenclearedfromtheSeller’s side a Bank’s Discharge of Mortgage Clearance Letter is then required prior toapplying for the Developer’s NOC.

• The original title deed is either held withthe broker or with the incoming financier if applicable until the date of transfer. It is not released to the Seller. This is an agreement signed by both Seller and Buyer and issued to the Seller’s bank.

• Some Developers charge a mortgageregistration fee and a discharge of mortgage fee whichever is applicable.

• ThereisalsoamortgagedischargefeeofAED1010payabletoDubaiLandDepartmentaseither cash or a Manager’s cheque beforethe date of transfer.

• If the property is tenanted then paymentsowed to the Buyer from the date of transfer will be calculated, prorated and paid to the Buyerwith a cheque on completion oftransfer. This will also apply to the buildings service charges, which will be calculated in the same way.

Note: Most NOC’s expire after 15 days inwhich time transfer must be completed. If not the Seller would have to pay the full fees again.

Finance to finance deals:Abank’spre-approvalforamortgagewillexpiretypicallyafter30days.TheSeller’sbankmustissue a current liability letter for the Buyer’s bank to clear the mortgage. The liability letter is only valid for 2 weeks in which time the Buyer’s bank must clear the Seller’s mortgage before a Discharge of Mortgage Clearance letter is issued. The Developer’s NOC must also be applied for and received before coordinating with both Seller and Buyer to be present with their original documents at one of the registered transfer centres. Finance deals quite often

requireat least45daysprior to transferdate.We would certainly advise to have an extension clause in the MOU should it run past the date of transfer.

The timing of the whole process is therefore of utmost importance and is managed by the Buyer’s Broker along with Oryx World’s Transaction Manager to ensure the transfer is completed smoothly.

By providing this guide we hope to give you more clarity with regards the process of selling a property in Dubai. With over ten years experience in Dubai’s real estate sector, Oryx World, will be sure to take the very best care of you during each step of the journey.




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SELLING WITH ORYX WORLD The Conveyancing...

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