Selling a property, in Dubai or anywhere else for that matter, may seem easy since many believe it’s all about clicking pictures of your home and putting them online. The reality, however, is quite different.

In actuality, the process of selling a home in Dubai can prove to be quite daunting if you’re prepared for what’s about to come ahead. And this also includes knowing about the cost of selling property in Dubai.

Let’s delve deeper and find out what are the costs you will have to incur when selling a property in Dubai:

What’s Included in the Cost of Selling Property in Dubai?

NOC Fees

It is basically a fee paid to obtain a No Objection Certificate (NOC) from the property developer. Apart from demonstrating that the developer doesn’t have any objection to the sale of the said property, it also confirms there are no pending or outstanding charges.

What are the NOC Charges in Dubai?

The NOC fees in Dubai range between AED 500 and AED 5,000, depending upon the developer and the type of property.

Agency Fees

Despite the availability of property portals, you need the service of an experienced real estate agent to sell your home in Dubai. In fact, selling without an agent is a recipe for disaster. However, once they close the deal for you, they are entitled to earn a commission. That’s their fee.

Remember that you will have to use FORM A, one of the most important RERA Forms, to appoint an agent. Their remuneration (commission) to be paid on closing the deal is also mentioned on this form.

What is the Real Estate Agent’s Fee in Dubai?

Generally, real estate agents earn 2 per cent of the sale price as a commission.

DLD Fee

Next on the list of cost of selling property in Dubai is the DLD fee. For the uninitiated, DLD oversees every real estate transaction in the emirate.

What is the DLD fee in Dubai?

The DLD fee amounts to 4 per cent of the total sales price. However, it is usually split between both parties, i.e., the buyer and the seller. The share of each party is decided at the time of drafting the sales and purchase agreement.

Transfer of Ownership Fee

The cost of selling property in Dubai also includes the transfer of ownership fee, which is paid to the DLD’s registration trustee. It is either paid by either of both parties or split equally among them, depending on their agreement.

What is the Transfer of Ownership Fee in Dubai?

The transfer of ownership fee in Dubai is based on the property’s sale price. It is:

  • AED 2,100 for the property priced below AED 500,000
  • AED 4,200 for the property priced above AED 5,00,000

Cost of Selling Property in Dubai if the Property is Mortgaged

If you own a mortgaged property in Dubai and want to sell it, you will have to incur these additional charges:

Early Settlement Fees

The seller is required to settle the mortgage before it’s actually due for settlement if they want to sell their property in Dubai. To do this, they have to pay an early settlement fee.

What is the Early Settlement Fee in Dubai?

It is AED 10,000 or 1 per cent of the pending amount, whichever is lesser.

Blocking Charges

As the name suggests, this fee is paid to block the property for the buyer’s protection so that it cannot be sold to any other party while the seller clears their mortgage.

What are Blocking Charges in Dubai?

The blocking charges in Dubai to sell a home range between AED 1,020 and AED 1,520.

Mortgage Release Fee

Lastly, the cost of selling property in Dubai includes a mortgage release fee that’s paid by the seller to release the existing mortgage. It is deposited to the registration trustee.

What is the mortgage release fee in Dubai?

The mortgage release fee for a normal mortgage is AED 1,290. In case you have applied for an Islamic mortgage, the release fee will be AED 1,560. 

Wrapping Up

In all, it’s important to understand the right way to list and sell your home and be aware of the costs involved with it. Only then will you be able to sell it conveniently and at rates that will help you earn a high ROI. 

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