What Is the Cost of Selling a Property in Dubai?
Selling a property in Dubai is not always as easy as some advertisements say! You might think the process involves putting up a picture of the property online, receiving calls from interested buyers and settling for an agreement with the best option. Well, the reality is a bit different. Navigating the Dubai property market can be challenging if you’re not prepared. Part of that preparation is understanding the cost of selling property in Dubai.
This guide will explain all the charges for selling a ready, mortgaged, or still-under-construction property in Dubai.
COST OF SELLING PROPERTY IN DUBAI
Are you thinking about selling your Dubai property? Avoid sticker shock! Here’s a breakdown of the actual cost of selling property in Dubai so you can confidently navigate the entire process.
1. NOC FEES IN DUBAI
Before selling your property in Dubai, you’ll need a No Objection Certificate (NOC) from the developer. Other than showing that the developer has no objection to selling the property, the certificate confirms that they have settled any outstanding or pending service charges, paving the way for a smooth sale. The NOC typically costs between AED 500 and AED 5,000 + VAT and is usually borne by the seller. But first, you need to know how to acquire a No Objection Certificate UAE.
2. AGENCY FEES
Another fee you have to pay when selling a property in Dubai is the seller’s agent’s fees. While online portals are great, navigating the market with an experienced real estate agent can be a game-changer. They bring expertise and smooth the process for a successful sale. Typically, they charge a fee, known as a commission, for the services they render to the seller to achieve the best possible outcome.
For sellers, working with a real estate agency in Dubai can significantly increase their property’s visibility and attract quality buyers. The selling agents in Dubai usually charge 2% of the property sale price + 5% VAT, unless specified otherwise in the contract.
In Dubai, sellers use Form A, one of the RERA forms, to officially appoint a seller’s agent. This form also outlines the commission percentage you’ll pay the agent upon a successful sale.
Tip: Review and understand the terms before signing!
3. DUBAI LAND DEPARTMENT FEES
Dubai Land Department (DLD) fee is another selling property in Dubai fees that the seller must consider. This fee is usually 4% of the sale value and is typically split between the buyer and seller. The fee is paid to the Dubai Land Department, the authority overseeing all real estate transactions in the city. Nevertheless, the percentage payable by each party depends on the sale and purchase agreement between the seller and buyer.
4. SALES PROGRESSION FEES IN DUBAI
In Dubai, buyers and sellers contribute AED 7,500 towards a sales progression fee. This cost of selling your home in Dubai covers the services of a dedicated sales progression officer who expertly manages the property transfer process on your behalf. Consider it an investment in a smooth and efficient transaction, as this professional handles all the behind-the-scenes legwork once you’ve provided the necessary documents.
5. TRANSFER OF OWNERSHIP / ADMIN FEES
The last fees to sell property in Dubai include the admin or transfer of ownership fee, payable to the DLD’s registration trustee offices. Again, this is one of the costs of selling property in Dubai, which is either paid in full by the buyer or split between the buyer and seller, depending on the agreement.
However, the transfer fee will vary depending on the sale price of the property:
- If the sale price of the property is below AED 500,000: AED 2,100
- If the sale price of the property is above AED 500,000: AED 4,200
The above are the usual fees for selling property in Dubai that is ready and not on mortgage. These are the usual selling costs most Dubai property sellers will encounter. However, depending on your situation, you may have additional fees.
FEES TO SELL MORTGAGED PROPERTY IN DUBAI
To answer, can I sell a mortgaged property – you can, with some additional costs during the process. Aside from the cost of selling a property in Dubai mentioned above, there will be fees for early settlement of the mortgage, blocking the property and more.
Here are some of the fees for selling mortgaged property in Dubai:
1. EARLY SETTLEMENT FEES
As the name suggests, this is one of the fees to sell property in Dubai when the mortgage is settled earlier than scheduled. However, homeowners and investors will be happy to note that the reduced early settlement fees mean the seller only has to pay 1% of the remaining amount or AED 10,000, whichever is lower.
2. BLOCKING CHARGES
Sellers selling a mortgaged property in Dubai will incur blocking charges. This fee, typically ranging from AED 1,020 to AED 1,520, is paid to register the property in the buyer’s name for a short period. This protects the buyer’s interest in ensuring the property cannot be sold to another party while they finalise the seller’s mortgage payoff.
3. MORTGAGE RELEASE FEE
Sellers with existing mortgages in Dubai may incur this fee if their mortgage is settled before the scheduled completion date. There’s also a separate fee payable to the registration trustee. The mortgage release fee is AED 1,290 for conventional mortgages and AED 1,560 for Islamic mortgages.
FEES TO SELL OFF-PLAN PROPERTY IN DUBAI
Because they offer customised fixtures and top-notch facilities, off-plan properties in Dubai are always in demand. If you plan to sell an off-plan property in Dubai, it’s crucial to review the terms and conditions set by the developer. In some cases, selling properties in the development phase can come with extra costs.
Often, developers have levied fines for selling an off-plan property before its completion or reaching a certain payment milestone in the plan. To avoid these fines, the seller must abide by the rules and conditions set by the developer. These rules and requirements vary from one developer to another, so it’s important to plan accordingly!
FAQS
WHAT ARE THE HIDDEN COSTS OF SELLING A HOUSE IN DUBAI?
Home selling costs are not uniform across the emirate. Fees associated with selling a house in Dubai often depend on the type of property. Most of these fees are listed and explained above.
WHAT STEPS SHOULD I TAKE TO SELL MY PROPERTY IN DUBAI?
If this is your first time selling a property in Dubai, review our guide on how to sell a property in Dubai. The post covers steps such as putting up your property for sale, finding the correct buyer and what documents and forms to sign.
SHOULD I INVEST IN OFF-PLAN PROJECTS IN DUBAI?
Off-plan projects offer investors a great chance to own premium property directly from developers. From lower prices and flexible payment plans to high rental yields, there are several reasons to invest in off-plan property in Dubai.
That concludes our guide to the real cost of selling property in Dubai. For more info on the cost of selling a house in Dubai, consider the official website of the Dubai Land Department. Home selling costs can vary from one property to another. Therefore, you have to do your research to ensure you factor in all the hidden costs of selling properties in Dubai, where applicable.
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