Dubai is well-known for many good reasons. State-of-the-art infrastructure, diversity and monuments all contribute to making the City of Gold more appealing to people around the globe. All the facilities also do good for the property market – a booming industry in the city.
The Emirate observes a myriad of property dealings from investors, home buyers and sellers. Property sellers, in particular, earn nice profits. However, the selling process can be stressful with all the paperwork and efforts involved. Moreover, there are some additional costs attached to selling a property in Dubai that everyone should consider.
We will do a detailed overview of the cost of selling property in Dubai to help sellers better understand the entire process.
Actual Cost of Selling Property in Dubai
Dubai allows a plethora of facilities to make property dealings a breeze. From selling a property in Dubai from abroad to converting your property into a holiday home, there is something for everyone.
However, whether selling a property from within the Emirates or abroad, consider the additional costs involved. This can help sellers better manage their finances by adjusting the expenses in the sales price. Letโs now take a closer look at the cost of selling property in Dubai.
AGENCY FEES
Hiring a real estate agency is an important part of selling a property in any part of the world. Although there are ways to sell an apartment without a broker in Dubai, hiring a real estate agency can ease and pace up the entire sales process.
However, all these services come at a cost. Real estate agencies usually charge a 2% amount of the property sale price. Property sellers must use RERA form A – it serves as a contract between sellers and agencies including all the agreed terms and conditions.
DUBAI LAND DEPARTMENT (DLD) FEE
The DLD charges are also among the selling property fees in Dubai. Dubai Land Department (DLD) administers all property transactions in the city. The DLD charges are usually 4% of the property selling price.
Usually property sellers and buyers share these charges. However, the shared percentage depends upon the sale and purchase agreement signed by the parties.
NON-OBJECTION CERTIFICATE (NOC) CHARGES
A Non-Objection Certificate is compulsory to initiate a property sale in Dubai. The developers issue this certificate which ensures there are no unpaid charges or fees on the said property. Additionally, the certificate indicates the developer has no objection to the property being sold.
The NOC charges are usually paid by the seller and depend on the developer and the type of property. Typically these charges range between anything from AED 500 to AED 5,000 + VAT.
SALES PROGRESSION FEES
This is another additional cost of selling property in Dubai and comes with hiring a conveyancer. Just like the many benefits of hiring a real estate agent, a conveyancer also comes with many advantages.
The legal complexities and transactions can be hard to interpret unless you are a professional. A conveyancer ensures a smooth process by overseeing all the legal, administrative and financial tasks. In most cases, both buyers and sellers bear these charges which may vary depending on the conveyancer and property value.
OWNERSHIP TRANSFER FEES
After completing all the aforementioned proceedings, then comes the transfer of ownership fee. It is another major cost of selling property in Dubai payable to the DLD that people should bring into consideration.
The transfer of property ownership in Dubai has a fee depending on the sale price of the property. Instead of charging a percentage amount, DLD has specified the fee.
- AED 2,100 – For properties priced above AED 500,000
- AED 4,200 – For properties priced below AED 500,000
These percentage shares for buyers and sellers depend on the agreed terms in the contract.
Cost of Selling Property in Dubai that is Mortgaged
The different types of mortgages in Dubai allow people to conveniently buy properties in the city. However, for selling a mortgaged property there are some additional costs to consider in addition to the typical fees mentioned above.
Listed below are the costs of selling a mortgaged property in Dubai.
MORTGAGE DISCHARGE FEES
This fee relinquishes the seller from their current mortgage. These charges are paid to the registration trustee. The charges vary depending on the type of mortgage.
- For conventional mortgage – AED 1,290
- For Islamic mortgage – AED 1,560
EARLY SETTLEMENT CHARGES
When ending a mortgage agreement prematurely, parties are to pay early settlement charges. Fortunately, as per the new rules, sellers only have to pay AED 10,000 or 1% of the remaining amount, whichever is lesser.
BLOCKING CHARGES
This is another cost of selling property in Dubai if the unit is on mortgage. The charges for mortgage transfer in Dubai guarantee buyer protection as sellers cannot sell the property to anyone else. The blocking may vary depending on several factors, however, they usually range from AED 1,020 to AED 1,520.
Cost of Selling Off-Plan Properties in Dubai
Buying and investing in off-plan properties in Dubai comes with a plethora of benefits. Nonetheless, there are some additional costs associated with selling such properties. There may be some additional charges, terms and conditions associated with selling properties that are not yet to be completed.
It is best to consult with the developer beforehand to know about the associated costs and restrictions – if any. Moreover, the conditions for selling off-plan properties may vary from developer to developer.
Thatโs a wrap on the selling property costs in Dubai. The city holds a noticeable position when it comes to the property market. High rental income and great returns on investment among many more make property owning in the city highly attractive. Consider the aforementioned costs of selling property in Dubai to get a broader overview of the selling process.
Additionally, go through our guide on selling property in Dubai to get comprehensive details on the entire proceedings.
People looking for a property for sale in Dubai or wanting to sell one can list their properties on dubizzle and avail the many remarkable features the platform offers.
Stay tuned to dubizzleโs property blog for information about the costs associated with selling properties in Dubai and other Emirates.
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