In the bustling city of Dubai, selling property can be a complex and costly venture.

With its ever-changing market, it is important for those looking to sell the property to be aware of the costs involved. 

From finding a broker to paying taxes to considering the exchange rate, many expenses must be considered when selling property in Dubai. 

This blog post will tell you about the various costs associated with selling property in Dubai.

Read on to learn more about what you need to consider when selling property in this vibrant, cosmopolitan city.

No Objection Certificate (NOC) fees

When selling property in Dubai, a fee is associated with obtaining a No Objection Certificate (NOC) from the relevant authorities.

This fee can vary depending on the type of property sold, the property’s size, and the location in Dubai. 

Generally, the NOC fee is calculated based on the property’s market value and can range from 0.25% to 1.5% of the total value of the property ranging between AED 500 to AED 5,000. 

The fees are usually paid upfront when the title deed is transferred, and they are generally higher if the transfer involves multiple owners.

It is vital to be aware of this fee when selling property in Dubai, as it is necessary to transfer ownership.

Additionally, it is the seller’s responsibility to ensure that the NOC fee has been paid before the sale is completed.

Agency Fees

Selling a property in Dubai can be financially beneficial, but it is important to be aware of the agency fees associated with the sale.

Typically, agency fees are charged by the real estate agent or broker who represents the seller in the transaction. 

These fees are usually a percentage of the overall property sale value and may range from as low as 2 percent to as high as 5 percent, depending on the party involved.

The agency fee is usually negotiable and can be adjusted according to the real estate agent’s services.

Additionally, administrative fees may be associated with the sale, such as advertising fees or document preparation fees, which should be discussed with the agent prior to the commencement of the sale process.

Dubai Land Department (DLD) fees

Selling a property in Dubai involves specific fees and charges that are payable to the Dubai Land Department (DLD).

Transfer fees is typically 4% paid by the buyer and seller doesn’t pay any DLD fees

This payment is made to the Dubai Land Department, which regulates all property transactions in the city.

The sale and purchase agreement determines the portion of the fee payable by each party.

Transfer of ownership fees

When selling property in Dubai, the registration trustee offices of the DLD will require payment of a transfer fee as part of the process.

Depending on the agreement, the buyer or seller (or both) may be responsible for this cost.

The fee depends on the property’s sale price – if it is sold for less than AED 500,000, the fee is AED 2,100, and AED 4,200 if the property is sold for more than AED 500,000.

Mortgage Discharge Fees

When selling property in Dubai, understanding the process of mortgage discharge fees is essential.

These fees are a vital part of the transaction and must be paid to the bank for the bank to release the mortgage on the property. 

Mortgage discharge fees are calculated based on the loan balance amount, the interest rate, and the remaining term of the loan.

The fees must be paid before the title deed can be transferred to the new owner.

The mortgage discharge fees can vary depending on the bank and the loan agreement, but typically they are a percentage of the loan balance, ranging from 0.5% to 1.5%.

The fee may also include any unpaid interest on the loan balance. 

A conventional mortgage has a fee associated with it of 1,290 AED, compared to Islamic mortgage charges amounting to 1,560 AED.

Early Settlement Fees

When it comes to selling property in Dubai, the early settlement of a mortgage can reduce the expenses for sellers.

Homeowners and investors can benefit from the decreased costs, typically requiring just 1% of the remaining amount or AED 10,000, whichever is less.

Blocking charges

When selling a mortgaged property in Dubai, the seller must cover the Blocking Fee, which serves as a protection for the buyer, preventing the property from sale to anyone else until the seller’s debt is paid off.

This fee generally ranges between AED 1,020 to AED 1,520 and should be taken into account when budgeting for the sale of a mortgaged property.

Conclusion

In conclusion, the cost of selling property in Dubai is relatively inexpensive when compared to other major cities in the world.

With a number of options for buyers, sellers, and brokers, the process of buying and selling property in Dubai is relatively straightforward.

Additionally, the Dubai Land Department’s regulations and laws ensure that the process is efficient and fair.

Ultimately, the cost of selling property in Dubai is worth the effort to secure the best deal possible