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Abdallah Alamodi Real Estate Brokerage

What Are The Costs Of Selling Property In Dubai?

It is essential to be well-prepared before deciding to sell your house. A crucial aspect of this is recognizing the expenses you will incur.

Here, we detail the costs associated with selling a house in Dubai, including the additional expenses you might anticipate if your property is mortgaged or off-plan.

No Objection Certificate (NOC) fees in Dubai

The first expense you should anticipate is the cost of obtaining a No-Objection Certificate (NOC). This is necessary to enable the transfer of the property. The NOC will be issued by the developer of the property to affirm that they have no objections to its sale. Additionally, it verifies that the vendor has no outstanding service charges or other expenses. The cost of a NOC varies according on the developer and kind of property, but is often between AED 500 and AED 5,000.

 Agency fees

When selling a house, it is essential to engage with a trustworthy real estate agent. This might boost the exposure of your home and attract the best purchasers. Typically, the agency costs in Dubai are 2% (+VAT) of the property’s selling price. This should be discussed with your agent before you sign the Form A listing paperwork electronically.

 DLD fees

Dubai Land Department Fees are an additional expense of selling a home in Dubai. Dubai’s Land Department supervises all real estate transactions. This charge is dependent on the final selling price of the property and is normally 4% + AED 580. Typically, the buyer pays the whole charge, however the buyer and seller may occasionally agree to divide the cost.

 Sales progression fees

Due to the complexity of real estate transactions, you should employ a conveyancer. A conveyancer will supervise the legal transfer of your property to the purchaser. This involves creating and evaluating the terms of the contract, as well as performing the necessary legal, financial, and administrative tasks. Schedule a conversation with a Conveyancer to discuss the sales progression costs.

Transfer of ownership fees

To oversee the transfer of property ownership, the DLD’s registration trustee offices need payment of a fee. Depending on the terms of the agreement, either the buyer or the seller may pay this charge in full. The transfer fee varies based on the property’s selling price. The charge for homes sold for less AED 500,000 is AED 2,100. The charge for homes sold for more over AED 500,000 is AED 4,200.

 Fees for selling a mortgaged property
Early settlement fees

When a mortgage is paid off ahead of schedule, early settlement costs must be paid. As a result of modifications to UAE mortgage rules, early settlement costs are limited to 1% of the outstanding debt or AED 10,000, whichever is less.

 Mortgage release fee

Typically, a mortgage release fee is required to cancel an existing mortgage. For conventional financing, the mortgage release cost is AED 1,605, whereas for Islamic finance it is AED 1,875.

 Blocking fees

Blocking fees are another expense to anticipate when selling a mortgaged home in Dubai. Before the buyer clears the mortgage, the seller pays blocking costs to prevent the property from being transferred into the buyer’s name. This costs AED 1,545 and this protects the buyer by prohibiting the property being sold to anybody else.

 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.

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