Selling a property in Dubai can be an exciting thing to do as an investor, but it’s essential to understand the financial implications involved during the entire process. From NOC charges to agency fees and mortgage-related expenses, there are several fees to consider when selling a property in Dubai. In this comprehensive guide, we’ll delve into the various fees associated with selling the property for sale in Dubai, providing you with the insights you need to navigate this process with confidence. After this guide, you would be able to do it without constantly calling your agent for help!
Are There Any Hidden Costs When Buying Property in Dubai That I Should Be Aware of?
Before diving into the specifics of each fee, it’s crucial to understand the broader picture of the costs involved in selling property in Dubai. Whether you’re a resident or a foreigner, being aware of these fees will ensure that you’re financially prepared for the selling process of property.
What Are The Costs Of Selling Property in Dubai?
NOC Charges: Obtaining Permission to Sell
The process of selling a property in Dubai typically begins with obtaining a No Objection Certificate (NOC) from the property developer. This certificate confirms that there are no outstanding dues on the property and grants permission for the sale to proceed. NOC charges can vary depending on the developer and location of the property, ranging from AED 500 to AED 5,000.
DLD Fees: Transferring Ownership
The Dubai Land Department (DLD) charges fees for transferring property ownership. These fees include a transfer fee, mortgage registration fee, and administration fee. The transfer fee is usually 4% of the property value, while the mortgage registration fee is 0.25% of the mortgage amount. Additionally, there’s a fixed administration fee of AED 4,000. It’s advisable to check the DLD website for the most up-to-date fee information.
Agency Fees: Partnering with Real Estate Professionals For Property For Sale In Dubai
Many property sellers in Dubai choose to work with real estate agencies to market and sell their properties. Agency fees typically range from 1% to 5% of the property value and cover a range of services, including property valuation, marketing, negotiations, and paperwork. It’s essential to review the terms and conditions of the agency agreement carefully to understand the exact fee structure and any additional charges.
If you choose to work with AZCO Real Estate Brokers LLC, you never have to worry about any hidden costs involved. We keep the process transparent for our valued clients and investors.
Ownership Transfer Fees: Finalizing the Sale
The ownership transfer fee is paid to the DLD’s registration trustee offices to transfer property ownership to the buyer. The fee varies depending on the property value, with charges of AED 2,100 for properties below AED 500,000 and AED 4,200 for properties above this threshold. These fees apply to ready properties and exclude properties with mortgages.
Additional Fees for Mortgaged Properties
If you’re selling a property with an existing mortgage, there are additional fees to consider:
- Early Settlement Fees: Payable to the mortgage provider for settling the mortgage before the agreed term ends, typically around 1% of the outstanding amount or AED 10,000, whichever is lesser.
- Blocking Charges: Fees to remove the mortgage from the property title deed, ranging from AED 1,020 to AED 1,520.
- Mortgage Release Fees: Charges for releasing the mortgage and transferring property ownership, varying from AED 1,290 for standard mortgages to AED 1,560 for Islamic mortgages.
How Long Does it Take to Sell Property in Dubai?
The average time to sell property in Dubai is approximately 40-60 days. It depends on many factors, and your time can be shorter or longer depending on it.
Conclusion: Selling a property for sale in Dubai involves various fees and charges, from NOC charges to agency fees and mortgage-related expenses. By understanding these costs upfront, sellers can accurately calculate the total expenses involved and ensure a smooth and successful property sale. Whether you’re selling a simple property or a mortgaged property, being aware of the fees involved is key to navigating the selling process with confidence and financial preparedness. For more informative articles, keep following AZCO Real Estate Brokers LLC.
