SELLING PROCESS & FEES
The sales process for a property owner in Dubai selling their property involves various steps, including broker services and government fees. Here's a comprehensive overview of the process, including associated fees.
Determine Selling Objectives
Clarify your selling goals, including the desired sale price, timeline, and any specific conditions or requirements.
Engage a Real Estate Agent
Research and select a reputable real estate agent who specializes in your property type and location. The agent will provide guidance and assist throughout the selling process. The agent's commission is typically a percentage of the final sale price, ranging from 1% to 2.5% (plus VAT).
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Property Valuation
The real estate agent will evaluate your property's market value, usually free of charge, as part of their services.
Listing Agreement
Sign a listing agreement with the chosen real estate agent, which outlines the agent's responsibilities, the duration of the listing, and the agreed-upon commission
Marketing and Promotion
The agent will develop a marketing strategy to promote your property, including professional photography, online listings, advertisements, and other promotional activities. The associated costs are typically covered by the real estate agent.
Property Preparation
Prepare your property for showings, which may involve minor repairs, maintenance, staging, or other enhancements. The costs for property preparation vary depending on the required work.
Property Viewings
The real estate agent will schedule and conduct property viewings with potential buyers. There are no direct fees associated with property viewings.
Offer Acceptance and Negotiation
When an interested buyer submits an offer, the agent will present it to you for consideration. The agent will negotiate on your behalf to achieve favorable terms. The negotiation is part of the agent's services covered by their commission.
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Memorandum of Understanding (MOU) OR Sale and Purchase Agreement (SPA)
Once you and the buyer agree on the terms, a legal agreement is prepared, typically by a lawyer or a conveyancing company. The associated fees for legal services can range from 0.5% to 1% of the property value.
Dubai Land Department (DLD) Fees
To proceed with the sale, certain fees must be paid to the Dubai Land Department. The fees include
Transfer Fee
This fee is typically 4% of the property's sale price. However, it can vary depending on the property value and other factors.
NOC Fee
If your property is located in a master development, you may need a No Objection Certificate (NOC) from the developer, which incurs a fee. The NOC fee varies depending on the developer's policy and can range from AED 500 to AED 5,000 or more.
Mortgage Discharge Fee (if applicable)
If you have an existing mortgage on the property, a mortgage discharge fee is payable to the lender. The fee varies depending on the lender and can range from 0.25% to 1% of the outstanding mortgage amount.
Final Settlement
Prior to the completion of the sale, any outstanding service charges, utility bills, and other dues related to the property need to be settled.
Transfer of Ownership
At the completion stage, you and the buyer, along with your respective legal representatives, will meet to sign the final transfer documents. The buyer will provide the -upon payment, and the property's ownership will be officially transferred to the buyer.
Please note that the associated fees mentioned above are approximate and can vary based on the specifics of your property, location, and other factors. It's crucial to consult with professionals, including a real estate agent and legal advisor, to understand the exact fees and costs involved in your particular sale.