What are the costs of selling property in Dubai?

Preparing to sell your home is a huge decision that involves planning, from selecting an agent to deal with to finding the perfect buyer. In addition, a lot of sellers aren’t aware of the additional costs related to selling a home in Dubai. We’ll look at the expenses involved insellingready, off-plan, and mortgaged homes in Dubai today. These are the usual costs that any seller might expect; however, additional costs might apply depending on the house.

What are the costs?

NOC Fees

One of the upfront costs that sellers should budget for is the price of the No-Objection Certificate (NOC) in Dubai. To enable the transfer of ownership, you must apply for and pay for a NOC from the property’s developer. This will allow the new buyer to take possession of the property. The NOC, which attests that the seller has no outstanding debts, is issued by the developer in Dubai. Additionally, it states that the developer has no issues with the property being sold. NOC fees in Dubai are typically paid by the seller and range from AED 500 to AED 5,000 on average.

Agency Fees

Another charge to sell property in Dubai is the seller’s agent’s commission. Working with a real estate agency in Dubai greatly increases the visibility of a home and draws in qualified buyers. The standard selling agent commission in Dubai is 2% of the property’s selling price. Form A, one of the RERA forms, must be used by sellers to name a seller’s agent and specifies the percentage of the sale price that will go to the agent.

Dubai Land Department (DLD) Fees

Along with the NOC and agency costs, sellers need to include the Dubai Land Department Fees when selling property in Dubai. This charge is normally 4% of the property’s selling price and is shared between the buyer and seller. It is paid to the Dubai Land Department, which controls all real estate transactions in the city. But the sale and purchase agreement between the seller and the buyer specifies the portion that each party owes.

Transfer of ownership Fees

A final charge for administering the transfer of ownership must be paid to the registration trustee offices of the DLD as part of the costs associated with selling real estate in Dubai. Again, depending on the agreement, this is one of the charges of selling property in Dubai that is either paid in whole by the buyer or shared between the buyer and seller. The transfer fee, however, will vary depending on the sale price of the property. If the property is sold for less than AED 500,000, the fee is AED 2,100. It will be AED 4,200 if the property is sold for more than AED 500,000.

Off-plan costs

Verifying any restrictions on selling before the property is finished with the developer is essential when sellingoff-planproperty in Dubai. There might be restrictions or additional fees if the property is sold before a specific point in the payment plan has been reached. These restrictions and specifications, however, might change depending on the developer.

Mortgage Costs

Early Settlement Fees

This is one of the expenses to sell property in Dubai when the mortgageis settled sooner than expected. Homeowners and investors, on the other hand, will be relieved to learn that the decreased early settlement costs require sellers to pay only 1% of the remaining amount or AED 10,000, whichever is less.

Blocking charges

The blocking fees are yet another expense associated with selling a mortgaged home in Dubai. The seller pays this to put the property in the buyer’s name before they pay off the seller’s mortgage. This fee, which typically ranges from AED 1,020 to AED 1,520, is paid to protect the buyer by preventing the sale of the property to anyone else until they have settled the seller’s debt.

Mortgage Release Fee

In addition to additional fees to the registration trustee, this is a cost that the seller must cover in order to pay off their existing mortgage. A conventional mortgage has a release cost of AED 1,290, whereas an Islamic mortgage has a release cost of AED 1,560.