It’s a frequent question we agents face being in the Dubai real estate market and there’s a lot of contradicting information online and general ambiguity regarding what sellers are liable to pay when they want to sell their property in Dubai.
In this brief write up we’ll clear up exactly what a seller in the Emirate of Dubai pays when selling his residential, ready property.
No objection certificate (Commonly referred to as an NOC).
An NOC is confirmation from a developer that the seller can go ahead and sell a property in their development. Emaar and Nakheel are Dubai’s biggest developers. They both charge AED 500 + VAT. The fee varies between other developers. A seller will successfully obtain an NOC from the developer as long as they don’t have any violations on the property such as unpaid service fees, non-permitted extensions and trees that cause damage to the properties like Damas trees.
Broker Fee
A real estate brokerage will typically charge 2% + VAT to sell a property in Dubai. There are sometimes circumstances where this is negotiated down slightly if the client is a long serving client of the companies and regularly provide them with business, or if the seller gives the broker the listing to sell on an exclusive basis. This fee is based on the final sale price.
Mortgage discharge fee (applicable for sellers with finance on their property)
This is exactly what it says on the tin. It’s a fee that is paid to release all your obligations to your mortgage provider. This fee is AED 1,605 or AED 1,875 depending on your type of mortgage and is split between the lender and the Dubai Land Department.
Early settlement of home loan fee (again, applicable for sellers with finance on their property)
This fee has changed a few times over the years but as of October 2019, this fee is 1% of the outstanding balance or AED 10,000, whichever is LESS.
Sales Progression / Conveyencing fee
This fee is paid to a real estate brokerage or a third party who handles the sale of the property between the point of sales contracts being signed and successful transfer. This fee ranges between AED 5,000 – AED 10,000 + VAT.
