What are the costs involved in selling a property in Dubai?
Sellers should budget for several costs when selling property in Dubai, such as agent commissions (2% of the sale price), NOC fees (AED 500 - AED 5,000), and service charge settlements. If a mortgage is involved, it must be settled before the sale, possibly incurring an early settlement fee.
Sellers should budget for several additional costs when selling property in Dubai. These fees cover both administrative expenses and service charges:
- Real Estate Agent Commission: Agents typically charge 2% of the sale price for their services, including marketing, viewings, and managing negotiations. This fee is usually paid by the seller upon the successful transfer of ownership.
- No Objection Certificate (NOC) Fee: The NOC fee varies depending on the developer, ranging from AED 500 to AED 5,000, and confirms that there are no outstanding payments on the property.
- Service Charge Settlements: Before selling, the seller must ensure that any outstanding service charges or maintenance fees are paid. These fees depend on the property and are usually required to obtain the NOC.
- Mortgage Settlement (if applicable): If the seller has a mortgage on the property, it must be fully settled before the transfer can take place. Some banks charge an early settlement fee for closing the mortgage early.
Understanding these costs helps sellers avoid surprises and ensures a smooth transfer process.