Fees Involved with Selling a Property in Dubai

Selling a property in Dubai can be a complex process, with several fees and charges that need to be considered. Many sellers are unaware of the additional costs involved with selling a property in Dubai, which can come as a surprise later in the process. Whether you are a resident or a foreigner, it is important to understand the various costs involved to ensure a smooth and successful property sale. This blog will provide an overview of the fees associated with selling a property in Dubai.

Fees Associated with selling a property in Dubai

When selling a property in Dubai, there are several fees that should be considered. These fees can vary depending on the type of property, the value of the property, and the specific circumstances of the sale. It is essential to understand these fees to avoid any surprises and to accurately calculate the total cost of selling your property.

NOC Charges

One of the fees involved in selling a property in Dubai is the NOC (No Objection Certificate) fee. This fee is payable to the property developer to obtain permission to sell the property and to confirm that there are no outstanding service charges or other fees to be paid by the seller. The NOC charges can range from AED 500 to AED 5,000, depending on the developer and the location of the property. It is important to check with the developer to determine the exact amount of the NOC charges.

DLD Fees

Another significant fee when selling a property in Dubai is the DLD (Dubai Land Department) fee. These fees are payable to the DLD based on the property value. The DLD fees consist of several components that include a transfer fee, a mortgage registration fee, and an administration fee. The transfer fee is typically 4% of the property value, while the mortgage registration fee is 0.25% of the mortgage amount. The administration fee is a fixed amount of AED 4,000. It is important to note that these fees are subject to change, so it is advisable to check the DLD website for the most up-to-date information.

Agency Fees

When selling a property in Dubai, many owners work with a real estate agency to market and sell their property. The agency fees are typically a percentage of the property value and can range from 1% to 5%. These fees cover the services provided by the agency, such as property valuation, marketing, viewings, negotiations, management, and paperwork.

Sellers will need to use Form A, one of the RERA forms, to appoint a real estate agency, which will include details of the percentage of the sale price to be paid to the agency. It is important to carefully review the terms and conditions of the agency agreement to understand the exact amount of the agency fees and any additional charges that may apply.

Ownership Transfer Fees

The ownership transfer fee is the last fee that needs to be considered when selling a property in Dubai. These fees are payable to the DLD's registration trustee offices to transfer the ownership of the property to the buyer. The ownership transfer fee is either paid in full by the buyer or split between the buyer and seller according to the contract. The fees can vary depending on the location and the value of the property. If the property price is below AED 500,000, the transfer fee is AED 2,100. Otherwise, the ownership transfer fee is AED 4,200. These charges are for the ready properties and not on the mortgage.

Cost of Selling Mortgaged Property in Dubai

If you are selling a mortgaged property in Dubai, some additional fees and charges must be considered. These charges can vary depending on the mortgage terms. Let's have a look at them.

Early Settlement Fees

One of the fees associated with selling a mortgaged property in Dubai is the early settlement fee. This fee is payable to the mortgage provider if you pay off your mortgage before the end of the agreed term. The early settlement fee can vary depending on the mortgage provider and the terms of the mortgage, but it is commonly around 1% of the outstanding amount or AED 10,000, whichever is lesser. 

Blocking Charges

There may also be blocking charges when selling a mortgaged property in Dubai. Blocking charges are fees payable to the mortgage provider to remove the mortgage from the property title deed. These charges are around AED 1,020 to AED 1,520 and are paid to protect the buyer so that the property cannot be sold to anyone but them while they pay off the seller's mortgage.

Mortgage Release Fees

The seller has to pay the mortgage release fees when selling a mortgaged property in Dubai. These fees are payable to the mortgage provider to release the mortgage and transfer the property ownership to the buyer, with additional fees to be paid to the registration trustee. If you are selling the property with a normal mortgage plan, the release fee is AED 1,290, and for an Islamic mortgage, the cost is AED 1,560.

Selling a property in Dubai involves various fees and charges that need to be considered. Whether you are selling a simple property or a mortgaged property, it is important to understand these costs to accurately calculate the total cost of selling your property. You can ensure a smooth and successful property sale in Dubai by knowing the fees involved in this process.