COSTS ON SELLING A MORTGAGED PROPERTY IN DUBAI
Mortgaged properties are also some of which you can sell in Dubai/. While it is possible
to sell these types of property, sellers can expect additional costs during the process.
Aside from the cost of selling a property in Dubai mentioned above, there will be fees
for early settlement of the mortgage, blocking the property and more.
Here are some of the fees for selling mortgaged property in Dubai:
1. EARLY SETTLEMENT FEES
As the name suggests, this is one of the fees to sell property in Dubai when the
mortgage is settled earlier than scheduled. However, homeowners and investors will
be happy to note that the reduced early settlement fees mean that sellers only have
to pay 1% of the remaining amount or AED 10,000, whichever is lesser.
2. BLOCKING CHARGES
Another one of the costs of selling a house in Dubai that is mortgaged is the blocking
charges. This is paid by the seller to block the property in the buyer’s name before they
clear the seller’s mortgage. This usually ranges between AED 1,020 – AED 1,520 and is
paid to protect the buyer so that the property cannot be sold to anyone but them
while they pay off the seller’s mortgage.
3. MORTGAGE RELEASE FEE
This is a charge that must be paid by the seller to release their existing mortgage,
along with additional fees to be paid to the registration trustee. For a normal
mortgage, the release fee is AED 1,290 while for an Islamic mortgage, the charge is
AED 1,560.
These are some of the fees for selling a house in Dubai whether it’s a ready, off-plan or
mortgaged property. However, it’s important to note that there may be additional
charges depending on the circumstances, or depending on the agent and/or
developer of the project.