Guide to Selling Your Property in Dubai
If you are planning to sell property in Dubai for the first time, we have compiled a step-by-step guide to address all the important details to help you with the process. Whether an apartment or investment property, steps need to be followed when it comes to properties for sale in Dubai. Let’s go through the details.
Steps to Follow Before Initiating Your Property for Sale
According to the dubizzle 2022 Dubai annual property sale market report, the real estate market of the Emirate is thriving. That said, many things need to be considered before putting properties for sale in Dubai. Usually, people selling properties for the first time aren’t sure about where to begin and how to proceed.
We’ve compiled a list of steps to follow during the entire process. Let’s begin with the important steps to follow before you sell property in Dubai.
Find a good real estate agent
To start the process, find a good real estate agent in Dubai. Make sure they are RERA approved. The agents market and manage your apartment for sale in Dubai. They also take care of villas for sale in Dubai.
All real estate agents approved by RERA in Dubai adhere to the real estate business ethics of the Dubai Land Department (DLD). This means that the agents are professional, honest and trustworthy. Before finalising an agent, go through their RERA card.
That said, consider these things to identify which agent is right for your properties for sale in Dubai:
- Do they have the expertise and insight in the area of your interest? For example, for those willing to sell apartments in Jumeirah Lake Tower (JLT), the ideal agent is the one with a useful record of closing property deals in JLT and connecting areas.
- Consider if you get along with the agent professionally. This is necessary because you want an agent who gives thorough details before putting your property for sale on the market. You should also be comfortable addressing all your concerns to them and look for professional advice where needed.
- A property agent in Dubai who follows the above-mentioned criteria will guide you through the process, help you decide on a realistic selling price, define a marketing strategy thoroughly for your property and help you sell property in Dubai.
Benefits of hiring a good real estate agent in Dubai
Following are the benefits of hiring a real estate agent in Dubai.
- Hiring a real estate agent in Dubai saves time and money. They stage your properties for sale, take potential buyers for property tours, have discussions and hire brokers where needed.
- Good real estate agents have connections, which help find a suitable buyer for your property for sale in Dubai.
- They help set a proper price for your properties for sale in Dubai based on real comparative market analysis data.
- Real estate agents take care of all the required paperwork to make the process of selling property in Dubai easy.
- They help identify all the necessary maintenance before starting the process of selling the property.
- Real estate agents help you through the entire process of selling property in Dubai.
Once you decide on a real estate agent to sell property in Dubai, sign an agreement with them. One of the RERA Forms – Form A is required to formally mandate the marketing and brokering of your property to the agent.
The form includes property details, agent commission, service charges, payment schedules, mortgage status (if there is any) and details of the listings. After FORM A is signed, to get approved it is given to the DLD’s Trakheesi system. Once approved, you are issued a permit number to carry on with the property advertisement.
Advertising your property
To sell a property in any part of the world, it needs to be advertised and Dubai is no different. To attract potential buyers, ads for properties need to include the necessary details, photos and videos. Real estate agents take care of listing properties on the correct online platforms including dubizzle and bayut.
You can also place ads yourself, and go through these real estate photography tips for listing properties online. Newspaper adverts and ads on social media also help in property sales.
That said, it is always useful to evaluate your property in Dubai before placing an ad for its sale.
After advertising, make sure your property is prepared for sale.
Steps to follow after finalising a buyer
The following steps need to be considered once you finalise a buyer for your property in Dubai.
Signing Form F
Also known as the Memorandum of Understanding (MOU), Form F is the sales contract between the property buyer and seller. The form includes all the terms and conditions agreed upon by both parties, including property details, price, selling costs, names of both parties, the transfer date and other important contract details.
A dated FORM F is a legally binding contract after the buyer and the seller put their initials on it, with an agent as a witness. Make sure you read through the details thoroughly and check the accuracy of all details mentioned in the form. When signing FORM F, the buyer also makes the down payment as a commitment to the purchase.
Getting the NOC
A No Objection Certificate (NOC) is a requirement to sell property in Dubai. The Dubai Land Department needs a NOC from the property developer to complete the property sale. The NOC includes a declaration by the developer that the seller cleared all debt or liabilities towards them and has no objections to the sale.
The charges for issuance of NOC vary from developer to developer. Generally, the charges range between AED 500 and AED 5,000. The fee of NOC adds up to the cost of selling property in Dubai. It usually takes about five to seven working days for the NOC to be issued. Important documents required to apply for the NOC include:
- The Title Deed/Oqood (for off-plan properties)
- Your Emirates ID or passport with a valid residency visa
- Copy of FORM F
Ownership Transfer at Dubai Land Department
The ownership transfer is the last step for property sales in Dubai. to transfer ownership, all concerned parties including the seller, the buyer and the agent(s) have to visit the nearest DLD trustee’s office and follow the steps:
- The buyer pays the purchase price remaining amount
- The seller pays the transfer fees to the DLD
- A new Title Deed is issued in the buyer’s name
Moreover, for a smooth Dubai property ownership transfer process, carry the following documents:
- Form F (MOU)
- NOC from the developer
- Copy of the title deed
- A cheque to the seller (this has the balance amount of the purchase price)
- A cheque to the Dubai Land Department
- Original passport, visa and Emirates ID of the buyer and the seller
Steps Necessary for Mortgage Sellers
In the case of a mortgage sale, the buyer needs to settle the seller’s mortgage before the NOC is issued. This requires the involvement of the bank. For time-saving, it is recommended to start the process with your bank or lender on the day the MOU is signed. Upon request, they will issue a liability letter.
This usually takes about 2 weeks with certain banks. For cash-paying buyers, there is a process to block the property at the Dubai Land Department Trustee office to protect the buyer from clearing the seller’s mortgage.
That said, if the buyer is planning to obtain finance, their bank will coordinate with the seller’s bank directly to facilitate a smooth process. Here are a few more details on requesting a sales registration of a mortgaged property in Dubai.
Fee for Selling Property in Dubai
Following are the details about the cost of selling property in Dubai for ready, mortgaged and off-plan properties.
NOC Fees: This is among the upfront fees that sellers have to pay for selling property in Dubai. The charges usually range from AED 500 to AED 5,000.
Agency Fees: Another fee to sell property in the Emirate is the agency fee. The fee for selling agents in Dubai is usually 2% of the property’s sale price. The details of the sale price percentage to be paid to the agent is mentioned in FORM A.
Dubai Land Department Fees: The Dubai Land Department fee is typically 4% of property’s sale price. This percentage is usually split between the buyers and sellers. That said, the percentage payable by each party depends on the sale purchase agreement between the buyer and the seller.
Transfer of Ownership or Admin Fees: Another important fee to consider for selling property in Dubai is the transfer of ownership or admin fees. This fee is payable to the DLD’s registration trustee offices. This cost is either paid by the buyer in full or is divided between the buyer and seller, depending on their agreement.
That said, the fee for transfer of ownership depends on the property’s sale price:
- If the property’s sale price is less than AED 500,000, the transfer fee is AED 2,100
- If the property’s sale price is over AED 500,000, the transfer fee is AED 4,200
This is the general fee structure for ready properties in Dubai that are not on mortgage.
Fee to Sell Off-Plan Property in Dubai
For off-plan property sale in Dubai, it is necessary to check with the developers about all the terms and conditions applicable for selling a property before its completion. There maybe some additional fees to be paid when selling a property before meeting a certain percentage of the payment plan. That said, these conditions vary from developer to developer.
Fee to Sell Mortgaged Property in Dubai
In addition to the aforementioned fee for selling properties in Dubai, there will be an additional fee for mortgaged properties. These include:
Early Settlement Fee: Evident from its name, this is the fee for selling property in Dubai when the mortgage is settled earlier than scheduled. That said, the sellers only have to pay 1% of the remaining amount or AED 10,000, whichever is lesser as the early settlement fees.
Blocking Charges: Another cost associated with selling mortgaged property in Dubai is of the blocking charges. This fee is paid by the seller to block the property in the buyer’s name before clearing the seller’s mortgage. The charges usually range between AED 1,020 to AED 1,520. This fee is paid to protect the buyer to make sure the property cannot be sold to anyone else but them while they pay off the seller’s mortgage.
Mortgage Release Fee: Alongside the additional fee to be paid to the registration trustee, this fee has to be paid by the seller to release their existing mortgage. The release fee for a normal mortgage is AED 1,290 while for an Islamic mortgage the fee is AED 1,560.
This is everything you need to know to sell your Dubai property. The process of selling off-plan properties in Dubai is a little different.
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