Selling property in Dubai can be profitable, but it also comes with costs and obligations.. Knowing the legal fees is key for a smooth sale. This blog will cover the legal costs of selling property in Dubai, including fees and important factors to consider.
The Dubai real estate market has grown, attracting buyers and sellers. The Dubai Land Department (DLD) oversees property transactions. Legal costs for selling a property in Dubai depend on the sale price, property type, and any debts.
This blog will explain common legal costs and obligations for sellers. It will also offer tips to manage these fees and avoid surprises.
Dubai Land Department (DLD) Fees
The DLD is key in Dubai property deals. Sellers must pay a transfer fee when selling a property. This fee is a big part of the legal costs.
DLD Transfer Fee
The DLD charges a 4% transfer fee on the sale price. This fee is usually split between buyer and seller. The fee is based on the sale price, so higher prices mean higher fees.
For example, selling a property worth AED 1,000,000 would cost AED 40,000 in DLD fees. If split, each party pays AED 20,000.
Administrative Fees
Sellers also pay administrative charges to the DLD. These fees are between AED 2,100 to AED 4,200. They cover document processing, ownership verification, and registering the transfer in DLD records.
Real Estate Agent Commission
A real estate agent is key in selling a property. You don’t have to hire one, but it’s smart to save time. Service providers like “Jaxtox Real Estate” handle marketing, negotiating, and legal paperwork efficiently.
Agent’s Commission Fee
Agents in Dubai charge about 2% of the sale price. This fee is paid after the sale. It’s split between the seller’s and buyer’s agents.
For example, on an AED 1,000,000 sale, the agent’s fee is AED 20,000. This fee can be talked about, but it’s a big part of selling costs.
No Objection Certificate (NOC)
To sell a property in Dubai, you need a No Objection Certificate (NOC). It shows the property is clear for sale. This includes no unpaid fees or fines.
Cost of the NOC
The NOC cost varies. It’s usually between AED 500 to AED 5,000. Sellers usually pay this, but buyers might sometimes.
NOC for Mortgaged Properties
For mortgaged properties, you need a bank NOC. It confirms the mortgage is settled. The cost is AED 500 to AED 2,000, depending on the bank.
Mortgage Transfer Fees
There are extra costs for selling a mortgaged property. These are for transferring the mortgage or settling it early. Banks handle these costs.
Fees for Mortgage Transfer
Mortgage transfer fees are AED 1,000 to AED 2,000. If you pay off the mortgage, the cost depends on the loan and lender. Sometimes, the buyer takes over the mortgage, and the lender charges AED 1,000 to AED 1,500.
Outstanding Service Charges and Utility Fees
Make sure all service and utility fees are paid before selling. Unpaid fees can delay the sale and cause legal issues.
Service Charges
Service fees cover building maintenance. They are billed yearly and must be paid before selling. Sellers pay any outstanding fees.
Utility Fees
Utility fees for water, electricity, and more must be settled before selling. Sellers pay all bills up to the sale date to avoid delays.
Legal Fees
Sellers might choose to hire a lawyer for selling a property. This is not required but can be helpful. It’s good for complex deals, like high-value properties or sales to international buyers.
Legal Fees for Property Sale
Hiring a lawyer can cost between AED 3,000 to AED 5,000. They help with the sale agreement, document review, and legal compliance in Dubai.
Additional Costs to Consider
There are other costs sellers should remember:
- Property Valuation Fees: Sellers might need a valuation report for the bank. This costs AED 1,000 to AED 3,000.
- Capital Gains Tax: Dubai doesn’t have a capital gains tax. This makes Dubai great for property investors.
- Early Termination Fees (For Mortgaged Properties): Paying off a mortgage early might cost a fee. The fee depends on the mortgage agreement.
Conclusion
Selling property in Dubai has legal and financial steps. Knowing the costs is key for a smooth sale. From DLD fees to No Objection Certificate costs, each step has its charges.
These costs are part of the process. They ensure the sale is legal and follows Dubai’s rules. Knowing these fees helps plan and budget for a smooth sale.
