What Are The Costs Of Selling Property In Dubai?

Choosing to sell your property is a big decision and it's important to be prepared. A key part of this is understanding the costs that you will incur in the process. 

Here, we break down the costs of selling a property in Dubai, including the extra costs you can expect if your property is mortgaged or off-plan. 

No Objection Certificate (NOC) fees in Dubai

The first cost that you should expect to pay is the cost to issue a No-Objection Certificate (NOC). This is a requirement to allow for the transfer of the property. The developer of the property will issue the NOC to confirm that they have no objection to its sale. It also confirms that the seller has no outstanding service charges or other fees to pay. The cost of a NOC varies depending on the developer and property type but usually ranges from AED 500 to AED 5,000. 

Agency fees

It’s crucial to work with a reputable real estate agency when selling your property. This can increase your property's visibility and attract the best buyers. The agency fees in Dubai are usually 2% (+VAT) of the sale price of the property.  You should agree on this with your agent when you sign the electronic Form A document to list the property.

DLD fees

Another cost of selling a property in Dubai is the Dubai Land Department Fees. The Dubai Land Department oversee all real estate transactions in Dubai. This fee is based on the final selling price of the property and is usually 4% + AED 580. Usually, the buyer pays this fee in full, but sometimes the buyer and seller may agree to split the fee.

Sales progression fees

Given the complex nature of property transactions, you should use a conveyancer. A conveyancer will oversee the legal transfer of a property from you to the buyer. This includes drafting and reviewing the terms of the contract and carrying out the various complex legal, financial and administrative duties required. Schedule a call with a Conveyancer to discuss the fees involved in sales progression. 

Transfer of ownership fees

A charge for administering the transfer of property ownership must be paid to the registration trustee offices of the DLD. Depending on the agreement, the buyer may pay this fee in full or the buyer and seller could split it. The transfer fee varies depending on the sale price of the property. For properties sold for less than AED 500,000, the fee is AED 2,100. For properties sold for over AED 500,000, the fee is AED 4,200. 

Fees for selling a mortgaged property

Early settlement fees

When you settle a mortgage earlier than scheduled, you must pay early settlement fees. Due to changes to the UAE mortgage laws, early settlement fees are capped at 1% of the remaining balance or AED 10,000, whichever is less.

Mortgage release fee

You usually must pay a mortgage release fee to exit your existing mortgage. For commercial finance, the release fee is AED 1,605 while for Islamic finance, the mortgage release fee is AED 1,875.

Blocking fees

Another cost you should expect when selling a mortgaged property in Dubai is blocking fees.  At the time of signing the form F the buyer and the seller agree who will  pay blocking fees of AED 1,545.

Fees for selling an off-plan property

If you are considering selling an off-plan property then it is important to speak with the developer to understand any conditions that may apply to selling the property before its completion. It is common for there to be restrictions or fees you pay to sell a property before a certain percentage of the payment plan has been paid. 

Whilst this covers the main costs of selling a property in Dubai, there may be extra costs depending on your circumstances. For more information about selling your property, visit our seller’s guide or contact us for a free appraisal.