Selling an off-plan property before its completion, known as an assignment of sale, is a common practice in Dubai's real estate market. This process allows the original buyer (assignor) to transfer their rights and obligations under the sales agreement to a new buyer (assignee). Here’s a step-by-step guide on how you can sell an off-plan property before it’s completed:

1. Review the Sales Agreement

• Developer's Terms: The first step is to review the sales agreement you signed with the developer. Many developers include clauses that outline the conditions under which you can sell the property before its completion. Some developers may require a specific percentage of the property to be paid off before allowing an assignment.
  
  

• Transfer Fees: Check for any fees associated with the transfer or assignment of the contract. Typically, developers charge a transfer fee, which can range from 1% to 5% of the property value.

2. Obtain Developer Approval

• Formal Request: Before proceeding, you need to obtain formal approval from the developer to sell the off-plan property. This usually involves submitting a request along with the details of the new buyer.
  
  

• Developer’s Consent: The developer will need to consent to the sale, and this may involve meeting certain conditions, such as ensuring that the buyer is financially capable of taking over the contract.

3. Find a New Buyer

• Market the Property: Engage a real estate agent or list the property on popular real estate platforms to attract potential buyers. The agent can help you negotiate the terms and handle inquiries from prospective buyers.
  
  

• Negotiation: Once you find an interested buyer, you’ll need to agree on the sale terms, including the price and payment schedule. The buyer typically pays you the amount you’ve already paid to the developer, plus any premium or profit, if applicable.

4. Draft and Sign an Assignment Agreement

• Legal Documentation: An assignment agreement must be drafted, detailing the transfer of all rights and obligations from the original buyer to the new buyer. Both parties, along with the developer, need to sign this agreement.
  
  

• Include All Details: The agreement should include all essential details such as the total amount paid to date, the amount being transferred, and the remaining payment schedule.

5. Register the Transaction with the Dubai Land Department (DLD)

• DLD Registration: The assignment of sale must be registered with the Dubai Land Department (DLD). The DLD will issue a new sale contract in the name of the new buyer.
  
  

• Transfer Fees: The DLD will charge a transfer fee, typically 1-4% of the property’s value, which may be paid by the buyer or split between both parties, depending on the agreement.

6. Completion and Transfer of Ownership

• Final Steps: After the registration, the new buyer assumes all responsibilities for the property, including any future payments to the developer and the final ownership once the property is completed.
  
  

• Payment of Outstanding Amounts: Ensure that all payments due to the developer and any associated fees are settled before completing the transfer.

When reassigning a property contract in Dubai (often referred to as a property assignment), even if the property is not yet completed, you may still be required to pay certain fees, including a transfer fee. Here’s what you need to know:

Key Points:

1. Transfer Fee:

   • Yes, a transfer fee is typically required when you reassign a property contract. This fee is paid to the developer to facilitate the transfer of the contract from the original buyer (assignor) to the new buyer (assignee). The fee is usually calculated as a percentage of the original property price and varies depending on the developer's policies.
     
     

   • The transfer fee can range from 1% to 4% of the property's original purchase price, although this percentage may differ depending on the developer and the terms of the original sales and purchase agreement (SPA).
     
     

2. Developer’s Administration Fee:

   • In addition to the transfer fee, developers may also charge an administration fee for processing the assignment. This fee is typically a fixed amount and covers the administrative work involved in changing the contract details.
     
     

3. No Dubai Land Department (DLD) Fee for Off-Plan Properties:

   • For off-plan properties (properties that are still under construction), the Dubai Land Department (DLD) transfer fee is generally not applicable until the property is completed and the title deed is issued. However, this does not exempt you from paying the developer's transfer fee during the assignment process.
     
     

4. Importance of Checking the SPA:

   • It’s crucial to review the Sales and Purchase Agreement (SPA) for any specific clauses related to the assignment of the contract. The SPA will outline the exact fees and conditions that apply to the assignment.

Conclusion:

When reassigning an off-plan property in Dubai, you are generally required to pay a transfer fee to the developer. The exact fee amount can vary, so it’s important to consult your developer and review the SPA carefully to understand all applicable charges.

For the most accurate and up-to-date information, always consult with your real estate agent or legal advisor before proceeding with an assignment.