How Much Are the Transfer Fees for Selling a Property in Dubai?

Understand the property transfer fees in Dubai, including Dubai Land Department (DLD) charges, agent commissions, and additional costs. A must-read for buyers and sellers in the Dubai real estate market.

Article Overview

Introduction

1. What Are Property Transfer Fees in Dubai?

DLD Transfer Fee: 4% of the Property Price

2. Breakdown of Property Transfer Fees in Dubai

3. Additional Costs for Sellers in Dubai Property Transactions

A. NOC (No Objection Certificate) Fee

B. Early Settlement Fee (If There is a Mortgage)

C. Service Charge Clearance Certificate

4. Mortgage Registration Fee for Buyers

5. Real Estate Agent Commission

6. Who Pays the Transfer Fees – Buyer or Seller?

7. Process of Paying the Transfer Fees

Step 1: Obtain the NOC from the Developer

Step 2: Sign the Sale Agreement (Form F)

Step 3: Transfer of Ownership at the Trustee Office

Step 4: Receive the New Title Deed

8. Why Understanding Transfer Fees Matters?

9. Get Expert Guidance with GoDubai Portal

Conclusion

Introduction

Selling a property in Dubai involves several financial considerations, with transfer fees being one of the most significant. Whether you are selling a villa, apartment, or commercial property, understanding the Dubai property transaction fees is essential to ensure a smooth transfer process.

This article provides a comprehensive breakdown of transfer fees, seller costs, buyer obligations, and additional charges that impact the final transaction.

1. What Are Property Transfer Fees in Dubai?

Property transfer fees in Dubai are charges levied by the Dubai Land Department (DLD) when ownership of a property changes hands. These fees are mandatory for all real estate transactions, whether for properties for sale in Dubai, off-plan properties, or investment properties.

DLD Transfer Fee: 4% of the Property Price

✔ The Dubai Land Department (DLD) mandates a standard transfer fee of 4% of the property's sale value.
✔ Typically, the buyer covers the full 4% fee, but in some cases, the cost is shared between buyer and seller based on negotiations.
✔ This applies to villas for sale in Dubai, townhouses, apartments, and commercial properties.

🔗 Dubai Land Department Official Fees

2. Breakdown of Property Transfer Fees in Dubai

Total estimated transaction costs for buyers: 6% – 7% of the property price.

3. Additional Costs for Sellers in Dubai Property Transactions

If you are a seller, you also need to account for the following expenses:

A. NOC (No Objection Certificate) Fee

✔ Before selling a freehold or leasehold property, the developer must issue an NOC to confirm no outstanding payments.
✔ Fees range from AED 500 to AED 5,000, depending on the developer.

🔗 Dubai Freehold Property Guidelines

B. Early Settlement Fee (If There is a Mortgage)

✔ If the property has an active mortgage, sellers must clear the loan before transferring ownership.
✔ Mortgage prepayment penalties range from 1% to 3% of the outstanding loan amount.

🔗 Mortgage Prepayment Regulations in Dubai

C. Service Charge Clearance Certificate

✔ Sellers must obtain a clearance letter from the Dubai Land Department (DLD) and property management company to confirm there are no outstanding service charges.
✔ Cost varies depending on the developer and community fees.

🔗 Dubai Property Service Charges

4. Mortgage Registration Fee for Buyers

If a buyer is financing the purchase through a mortgage, additional mortgage registration fees apply:

✔ 0.25% of the loan amount + AED 290 administration fee (paid to the Dubai Land Department).
✔ Paid at the Dubai Land Department Trustee Office during the final sale registration.

🔗 Mortgage Registration Guidelines in Dubai

5. Real Estate Agent Commission

✔ The real estate broker fee in Dubai is typically 2% of the property sale price, plus 5% VAT.
✔ In some cases, buyers and sellers negotiate and split the cost.
✔ Broker commissions are paid upon successful completion of the sale.

🔗 Find a Certified RERA Broker

6. Who Pays the Transfer Fees – Buyer or Seller?

✔ Buyers usually cover the 4% DLD transfer fee, title deed fees, and mortgage-related fees.
✔ Sellers cover the NOC fees, outstanding service charges, and mortgage settlement penalties (if applicable).
✔ Real estate agent commissions are negotiable, but typically paid by the buyer.

However, during negotiations, buyers and sellers can agree to split certain costs.

7. Process of Paying the Transfer Fees

Step 1: Obtain the NOC from the Developer

✔ Sellers must request a No Objection Certificate (NOC) from the property developer to confirm there are no outstanding fees.

Step 2: Sign the Sale Agreement (Form F)

✔ The buyer and seller sign Form F, a legally binding sales contract registered with the Dubai Land Department (DLD).

Step 3: Transfer of Ownership at the Trustee Office

✔ Both parties visit a DLD Trustee Office to finalize the transfer.
✔ Buyers pay the 4% DLD transfer fee, trustee office fees, and title deed issuance fees.
✔ Sellers clear any service charge payments.

Step 4: Receive the New Title Deed

✔ The buyer receives a new title deed in their name, confirming the legal transfer of ownership.

🔗 Dubai Land Department Property Transfer Process

8. Why Understanding Transfer Fees Matters?

✔ Prevents unexpected costs – Buyers and sellers can plan their finances accordingly.
✔ Ensures compliance – Avoids delays in the Dubai real estate market.
✔ Improves negotiation power – Helps both parties discuss and allocate expenses fairly.

9. Get Expert Guidance with GoDubai Portal

Navigating Dubai property transaction fees can be complex. Whether you are buying, selling, or investing in Dubai real estate, having access to expert brokers and up-to-date market insights is crucial.

🔹 Find verified real estate brokers to assist with your transaction.
🔹 Access a database of off-plan properties, luxury villas, and investment properties.
🔹 Stay updated on Dubai Land Department (DLD) regulations and property market trends.

🔗 Subscribe to GoDubai Portal for exclusive insights and real estate services.

Conclusion

Understanding the transfer fees for selling a property in Dubai is essential for buyers and sellers alike. The 4% DLD transfer fee, NOC charges, service fee clearance, and agent commissions are key costs that must be accounted for when planning a property transaction.

By staying informed and working with certified brokers and platforms like GoDubai Portal, property sellers and buyers can ensure a smooth, cost-effective, and legally compliant transaction in the Dubai real estate market.