Ready Properties
What is a Ready Property?
Ready properties are ideal for investors seeking immediate rental income and buyers looking to move into a new home soon. The main benefits include a variety of properties available in urban, beachfront, and nature settings, a high loan-to-value (LTV) ratio that makes it easier for residents and non-residents to secure a mortgage, and the opportunity for buyers to visit the properties before making a decision.
Step-by-step guide for purchasing ready properties
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Research the Market:
Research the market and decide on the type of property you would like to invest in and its location. -
Hire a Real Estate Agent:
Find a licensed and reputable real estate agent who can assist you in the property search and negotiation process. You will need to sign a Form B contract with your broker to formalize the offer negotiation representation. The buyer usually pays a 2% commission. -
Obtain Financing:
Secure pre-approval for a mortgage or other financing options, such as cash or a personal loan, to determine your budget. -
View the Properties:
Check the physical condition of the property. Evaluate the potential need for renovations. Look for the facilities and amenities provided. -
Conduct Due Diligence:
Review the property’s legal documents, conduct inspections, and ensure the property is free from any encumbrances or issues. -
Negotiate and Agree on the Terms with the Seller:
The buyer and the seller agree on the terms of the sale and the property price. -
Sign a Memorandum of Understanding (MOU):
Both buyer and seller sign a Memorandum of Understanding (MOU) before proceeding with the property’s conveyance, outlining the terms of the agreement. The MOU must be registered with the DLD. A 10% deposit is paid at this time. -
Get an NOC:
Both parties must apply for a No Objection Certificate (NOC) from the developer so the property can be transferred. There is a fee for the NOC issuance. -
Register with DLD:
The transfer of the property must be officially registered with the DLD, and a transfer fee of 4% must be paid at this time. As per DLD regulations, the buyer must pay in the form of the manager’s cheques payable to the seller on the property transfer date. -
Complete the Purchase Process:
Once all the above formalities have been completed, a new title deed is issued in the name of the buyer, and the property is officially transferred from the seller to the buyer.