To what extent does the sale of a home in Dubai affect one's finances?
The choice to sell your home is a major one, and it requires careful preparation, from deciding on an agent to work with to searching for the ideal buyer. Additionally, many homeowners looking to sell their home in Dubai are unaware of the supplementary expenses that typically come with doing so. In this article, we will examine the costs associated with selling completed, under construction, and mortgaged properties in Dubai. These are the typical outlays a seller might anticipate; nevertheless, some homes may incur further expenditures.
How much does it all cost?
The NOC in Dubai comes with a price tag, and that's something vendors need to account for in their budgets. Transferring ownership of a property requires requesting and paying for a "No Objection Certificate" (NOC) from the property's developer. The new buyer can now take possession of the property. The Dubai-based builder issues the NOC, which confirms the seller has no debts. Furthermore, it confirms that the developer does not object to the sale of the property. The seller normally covers the cost of the NOC in Dubai, which is between AED 500 and AED 5,000.
The commission of the seller's agent is an additional expense when selling a property in Dubai. If you're trying to sell your home in Dubai, it's in your best interest to work with a real estate agency. In Dubai, the commission paid to the selling agent is typically 2% of the sales price. Sellers must utilize Form A, one of the RERA forms, to name a seller's agent and to specify the percentage of the sale price that will go to the agent.
Taxes Collected by the Dubai Land Department (DLD)
When selling a property in Dubai, sellers must account for the Dubai Land Department Fees in addition to the NOC and agent expenses. Typically, this fee is 4% of the sale price and is split evenly between the buyer and seller. All real estate deals in Dubai are regulated by the Dubai Land Department, which receives this fee. However, the agreement between the seller and the buyer will detail the specifics of the sale split.
Ownership Transfer Costs
As part of the expenses involved in selling real estate in Dubai, a final payment for managing the transfer of ownership must be paid to the registration trustee offices of the DLD. This is another one of the costs associated with selling a property in Dubai, and it can either be covered entirely by the buyer or split between them and the seller. However, the transfer charge will change based on the sale price of the property. If the sale price of the property is less than AED 500,000, the commission is AED 2,100. If the sale price of the property is over AED 500,000, the fee will be AED 4,200.
When selling off-plan property in Dubai, it is crucial to check with the developer to see whether there are any restrictions on selling before the property is finished. If the property is sold before a certain milestone in the payment plan is met, there may be limits or additional expenses. It's possible, though, that these limitations and prerequisites will shift from developer to developer.
Extra Charges for an Early Settlement
It's one of the costs of selling a home in Dubai before the mortgage is paid off. While this may seem like a lot, sellers now only have to pay 1% of the remaining amount, or a maximum of AED 10,000, to cover early settlement charges.
Intercepting and Rejecting Voltage
Selling a mortgaged home in Dubai comes with additional costs, including the blocking fees. To transfer ownership of the property from the seller to the buyer before the buyer pays off the seller's mortgage, the seller will pay this fee. This cost, which normally falls within the range of AED 1,020 and AED 1,520, is paid to protect the buyer by prohibiting the property from being sold to anyone else before the buyer has paid off the seller's debt.
Settlement Cost to Release Mortgage
The seller is responsible for this expense in order to pay off the existing mortgage, as well as any additional expenses to the registration trustee. The release cost for a conventional mortgage is AED 1,290, whereas the release cost for an Islamic mortgage is AED 1,560.