Selling property in Dubai involves several steps that require careful attention to detail to ensure a smooth transaction. This guide provides a thorough overview of the entire process, from selecting a real estate agent to finalizing the sale at the Dubai Land Department (DLD).
Initial Steps:
Choosing an Agent and Signing the Agreement
The first step in selling your property in Dubai is selecting a reputable real estate agent. The agent you choose should be registered with the Real Estate Regulatory Agency (RERA) and possess a strong understanding of the local market. Once you’ve selected an agent, formalize the arrangement by signing RERA Form A.
Form A: The Formal Agreement
Form A is a critical document that formally mandates the marketing and brokering of your property to the agent. It includes essential details such as property specifics, agent commission, service charges, payment schedules, mortgage status, and the scope of listings. After signing Form A, it is submitted to the DLD’s Trakheesi system for approval. Once approved, a permit number is issued, allowing the property to be advertised.
Advertising Your Property
Effective advertising is crucial for attracting potential buyers. In Dubai, property ads must include comprehensive details, high-quality photos, and videos. Your agent will typically handle the listing on major platforms like Dubizzle and Bayut. However, you can also place ads yourself, utilizing various channels such as newspaper adverts and social media.
Property Evaluation Before Advertising
Before placing an ad, it’s advisable to have your property evaluated to ensure it is accurately priced for the market. This evaluation will guide the marketing strategy, helping to position your property competitively.
Preparing Your Property for Sale
A well-prepared property is more likely to sell quickly and at a better price. This preparation involves:
- Deep Cleaning and Repairs: Ensure your property is spotless and all minor repairs are completed.
- Staging: Arrange the property to highlight its strengths and create a welcoming atmosphere.
- Professional Photography: High-quality images are essential for online listings.
Your agent may also suggest a 3D virtual tour or video to enhance the property’s appeal to potential buyers.
Negotiating and Securing a Buyer
Once your property attracts interest, the next step is to negotiate with potential buyers. The negotiation process involves assessing offers based on the buyer’s financial status and the terms they propose.
Finalizing the Agreement: Signing Form F
After agreeing on the sale terms, both parties sign Form F, also known as the Memorandum of Understanding (MOU). This document outlines the agreed terms, including the sale price, property details, selling costs, and the transfer date. Form F is legally binding once both parties sign it in the presence of an agent. At this stage, the buyer typically makes a down payment as a commitment to the purchase.
Obtaining the No Objection Certificate (NOC)
Before the sale can be finalized, you need to obtain a No Objection Certificate (NOC) from the property developer. This certificate confirms that all debts or liabilities related to the property have been cleared. The process of obtaining a NOC usually takes five to seven working days, and the fee ranges from AED 500 to AED 5,000, depending on the developer.
Documents Required for the NOC:
- Title Deed or Oqood (for off-plan properties)
- Emirates ID or passport with a valid residency visa
- Copy of Form F
Finalizing the Sale: Ownership Transfer at the Dubai Land Department
The final step in selling your property is the transfer of ownership at the Dubai Land Department. Both the buyer and seller, along with their agents, must visit a DLD trustee office to complete the transaction.
Obtaining the No Objection Certificate (NOC)
Steps for Ownership Transfer:
- The buyer pays the remaining balance of the purchase price.
- The seller pays the transfer fees, typically 4% of the sale price.
- A new Title Deed is issued in the buyer’s name.
Documents Required for Transfer:
- Signed Form F (MOU)
- NOC from the developer
- Original Title Deed
- Cheques for payment (balance amount and DLD transfer fee)
- Original passports, visas, and Emirates IDs of both the buyer and seller
Additional Considerations for Mortgage Sellers
If the property is mortgaged, the buyer must settle the seller’s mortgage before the NOC can be issued. This requires coordination with the bank, which typically takes about two weeks to process. For cash buyers, the property can be blocked at the DLD Trustee office to ensure the buyer’s interests are protected during the mortgage clearance process.
Fees Associated with Selling Property in Dubai
Several fees are associated with selling property in Dubai, including:
- NOC Fees: Ranging from AED 500 to AED 5,000.
- Agency Fees: Typically 2% of the sale price.
- Dubai Land Department Fees: Usually 4% of the sale price, often split between buyer and seller.
- Transfer Fees: AED 2,100 for properties under AED 500,000 and AED 4,200 for properties over AED 500,000.
Additional Fees for Off-Plan and Mortgaged Properties:
- Early Settlement Fee: 1% of the remaining mortgage or AED 10,000, whichever is lesser.
- Blocking Charges: AED 1,020 to AED 1,520 to protect the buyer during mortgage clearance.
- Mortgage Release Fee: AED 1,290 for a standard mortgage, AED 1,560 for an Islamic mortgage.
Final Steps and Post-Sale Considerations
After the sale is complete, ensure that all utility and service accounts are transferred or closed. Consult with a financial advisor regarding the proceeds from the sale, especially if you plan to reinvest in the Dubai real estate market. We offer consultations that are totally tailored to your needs. Whether you’re just starting to think about selling or ready to dive into an investment, we’ll sit down with you (or chat over the phone) to discuss your goals and how we can help you achieve them. Our advice is always based on real & accurate market data and years of experience, so you’ll walk away with clear, actionable insights.
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