HOW TO RESELL OFF-PLAN PROPERTY IN DUBAI
Before reselling an off-plan property, the owner must pay the developer a certain percentage of the property’s value. This typically ranges from 30%–40%
HOW TO RESELL OFF-PLAN PROPERTY IN DUBAI
Before reselling an off-plan property, the owner must pay the developer a certain percentage of the property’s value. This typically ranges from 30%–40%, unless the Sales and Purchase Agreement (SPA) states otherwise.
RESALE PROCESS
➊ The agent showcases the property on real estate platforms: Bayut, Property Finder, etc.
➋ Once a potential buyer emerges, the transaction process begins
➌ The seller obtains the No-Objection Certificate (NOC) from the developer
➍ The buyer and seller sign contracts:
✓ Form F or Memorandum of Understanding (MOU), an Agreement Between the Parties
✓ Separate Contracts With the Representing Agent
➎ Upon MOU signing, the buyer secures their interest with a 10% deposit
➏ The deal is finalized at the Trustees Centre: payment and registration
➐ Once the transfer is complete, the buyer becomes responsible all outstanding payments, including:
✓ Service Charges
✓ Remaining Instalments
SELLER’S EXPENSES
✓ NOC Charges: $1,400
✓ Agency Commission: 2%
✓ POA (Power of Attorney) for remote deals: $550
IMPORTANT
If the mandatory percentage isn’t paid to the developer, a new buyer can cover it for the seller, but they must have compelling incentives:
✓ Low Price
✓ Property in High Demand
✓ Unique offer
IS IT PROFITABLE? Yes, especially with payment plan. It is better to use payment plan, in which less than 50% is paid during construction, and the remaining part is paid upon handover.
For example, you buy a $1 million apartment at launch time and invest 40% ($400,000). Later, you resell it for $1.2 million.
The return is: 200,000 ÷ 400,000 = 50%.
❗️Risks of the strategy – the reselling process may take time. You might need to fully finance the property while awaiting the right buyer or market conditions.
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