Selling special types of property in Dubai

Think selling property in Dubai is easy? Wait until you see the fine print. Selling property in the UAE is not always as simple as it seems. While the basic process might appear straightforward, certain property types have their own rules and requirements. Off-plan units, mortgaged properties, and tenanted homes each involve extra steps that can affect the timeline and the paperwork needed to finalise the sale.

Understanding these nuances is key to a smooth transaction. In this blog, we’ll walk you through everything you need to know about selling these special property types in Dubai, so you can make sure you’re ready and avoid any bumps along the way. 
Let’s get started and make this process as stress-free as possible!

Key Takeaways

• You can’t sell an off-plan property right away, first complete the required payments and get the developer’s approval.
• To sell a mortgaged property, you must pay off the loan and get a release letter from the bank to proceed.
• When selling tenanted properties, the buyer takes over the lease, so clarify tenant arrangements and legal processes.
• If selling from abroad, appoint a trusted Power of Attorney (POA) to manage the sale and paperwork on your behalf.
• Always request the No Objection Certificate (NOC) early, as it’s essential for completing the sale without delays.

What are the Special Types of Properties in Dubai?

Selling property in the UAE is usually straightforward, but certain property types may require additional steps and specific requirements. Here’s a simple breakdown of the special types:

1. Off-Plan Properties

These are properties that you buy before they’re even built. You’re buying based on the developer’s plans, and you’ll get the property once construction is complete. The catch? You can’t sell it right away. You’ll need to make some payments and obtain developer approval before you can pass it on to a new buyer.

2. Mortgaged Properties

If you’ve taken a loan (mortgage) to buy the property, you can’t sell it until that loan is paid off. Before the sale can go through, you’ll need a release letter from the bank saying the mortgage is cleared. This extra step may take some time, but it’s necessary to move the sale forward.

3. Tenanted Properties

This is when someone is already living on your property. When you sell it, the new buyer becomes the landlord and takes over the lease. If the buyer wants to move in or make changes, they can do so only after the tenant has been legally notified to vacate. So, communication with the tenant is key.

4. Selling From Abroad

If you're not in Dubai but need to sell your property, you can do so with a Power of Attorney (POA). A trusted person, like a family member or lawyer, can handle all the details for you while you’re away.

These types of properties require a bit more planning, but with the right steps, they can be sold just as easily as a standard property.

5. Fractional Ownership & Managed Units

Fractional Ownership & Managed Units are property structures in which ownership and day-to-day control are clearly defined yet shared. Fractional ownership allows multiple owners to hold legally registered shares in a single unit, with each share recognised separately rather than through an informal agreement. Managed units, commonly found in hotel apartments, operate under a fixed management agreement in which an operator handles leasing, maintenance, and operations.

How Can Property Owners Sell Special Properties in Dubai?

The sale usually goes fine until one small approval holds everything up. That’s the part that gets annoying, because you feel ready, the buyer feels ready, and then you end up waiting on a developer, a bank, or paperwork. Handle those pieces early, and the rest feels much easier.

Off-plan unit resale in Dubai

Off-plan resales are less about finding a buyer and more about whether the developer allows the sale at that stage. Many owners only discover restrictions after accepting an offer, which is where frustration begins.

The first move should always be a quick eligibility check with the developer. Each project has a payment milestone that must be reached before resale is permitted. If installments or administrative charges are still outstanding, they must be cleared before anything else can proceed.

Once eligibility is confirmed, the seller must apply for resale approval or an NOC. Developers charge an NOC fee, between AED 500 and AED 5,000, and processing can take 3 to 7 business days. Many major freehold developers are now integrated with the Dubai REST App, which has made the NOC process far more straightforward. Instead of paperwork and long waits, sellers can apply for eNOCs that are issued digitally and verified instantly through the DLD Smart System.

Mortgaged property resale in Dubai

A mortgaged property can sell just as smoothly as a cash unit, but the bank controls the pace. The key is transparency and early preparation.

Before the property goes to market, request the settlement amount from the bank. This figure covers the remaining loan balance and the early settlement charge, 1% of the outstanding loan amount or AED 10,000, whichever is lower, depending on the bank. There is also a mortgage release fee of around AED 1,605. Knowing these numbers upfront prevents uncomfortable discussions later, particularly if the buyer is coordinating the loan clearance as part of the deal.

After the loan is cleared and all charges are paid, the bank issues the mortgage release letter. Without it, the transfer cannot proceed, even if all other documents are ready. Bank timelines vary and can feel slow, so setting buyer expectations early on fees and processing times makes the entire process far less stressful for everyone involved.

When costs are clear from the beginning, mortgaged property sales in Dubai proceed without last-minute surprises or pressure.

Tenanted property resale in Dubai

Selling a tenanted property is normal in Dubai, and experienced buyers are fine with it. What slows things down is not the tenant, but the lack of clear information.

One of the most misunderstood areas is the notice period. In Dubai, a tenant can be asked to vacate only for specific reasons, such as the sale of the property or the owner's occupation, and this requires 12 months' written notice served through a notary public or registered mail. This notice does not reset when the property changes ownership. If it has already been served by the seller, the buyer inherits it along with the property. If it has not been served, the buyer must wait until after the transfer to issue the notice and then allow the full 12 months. 

To avoid uncertainty, buyers expect to review key tenancy details early in the process, such as:

• Tenancy contract showing rent amount and payment schedule
• Ejari certificate confirming the lease is registered
• Contract expiry date and renewal terms
• Confirmation of whether any notice has already been served

Another area that needs early agreement is rent handling on transfer day. Rent in Dubai is usually paid in advance, so sellers and buyers must agree on how the rent will be adjusted. If the tenant has already paid rent covering months beyond the transfer date, the seller reimburses the buyer for the unused portion. These adjustments are simple, but only when discussed early and written clearly into the agreement.

When notice periods, tenancy documents, and rent adjustments are addressed upfront, tenanted property sales feel far less complicated. Most delays are not legal problems. They are simply the result of conversations that happened too late.

Selling Property from Abroad

Selling while outside Dubai is entirely possible, but it works best when representation is handled properly from the start.

A Power of Attorney (POA) should be prepared at the very beginning and drafted carefully. Even a minor wording issue can pause the transaction once a buyer is ready. Costs are also part of the process and are better understood upfront.

Common fees when selling from abroad are:

POA notarisation in Dubai: AED 2,000 to AED 4,000

POA issued outside the UAE: additional attestation and legalisation charges, AED 1,000 to AED 3,000, depending on the country

Courier and document handling costs: AED 200 to AED 500

Choosing a reliable representative is critical in this type of sale. Someone who responds quickly, attends trustee appointments, and follows up on approvals can prevent days of unnecessary waiting. A slow or unavailable representative becomes the quiet reason a sale drags on.

Sending title deeds, identification, and bank-related letters in advance also helps avoid last-minute scrambling when the transfer date approaches.

Fractional Ownership & Managed Units

Fractional ownership in Dubai is now fully regulated, particularly in hotel apartments. A single unit can have up to four owners, and each one holds a registered share rather than an informal agreement.

The selling process usually starts with notifying the developer or platform operator. Resale eligibility is confirmed, and any outstanding service charges or management dues must be cleared. Once a buyer is agreed, the seller applies for resale approval or an NOC, both of which are required before the transfer. Ownership is then transferred through the Dubai Land Department, based on the fractional share value.

For managed hotel units, the management agreement remains in place. The buyer assumes the existing operator's terms, with no option to opt out, so this should be made clear early.

Key Steps to Selling Special Property Types in Dubai

Selling off-plan, mortgaged, or tenanted property in Dubai can feel a bit “extra” compared to a normal sale, mainly because there are a few checkpoints that can’t be skipped. Here’s what you need to do:

• Pay the Required Amount for Off-Plan Properties: You can’t resell an off-plan unit the moment you decide to. Most developers will only allow it after you’ve paid a specific portion of the price, so check your payment milestone and get the developer’s go ahead before you promise anything to a buyer.
• Clear the Mortgage Before Selling: If there’s a mortgage, the transfer can’t happen until the loan is cleared and the bank issues a release letter. This step can take weeks, so starting early saves you that stressful “everything is ready, but we’re still waiting on the bank” moment.
• Prepare All Required Documents: Keep your title deed, IDs, and the NOC request process ready from day one, because nothing kills momentum like scrambling for documents when the buyer is already prepared to transfer.
• Inform Tenants and Follow Lease Terms: If the property is rented, the buyer will assume the landlord role, so be upfront about the lease terms and speak with the tenant calmly. Surprises here create tension, and clarity keeps the sale respectful and smooth.
• Power of Attorney if Selling from Abroad: If you’re outside Dubai, a trusted POA is your lifeline. Without it, simple signatures can lead to big delays, and it’s frustrating to lose time on matters that could’ve been handled locally.

Conclusion

Selling special property types in Dubai, such as off-plan units, mortgaged properties, or tenanted homes, requires specific steps. For off-plan properties, you must have made a certain number of payments and obtain approval from the developer before reselling. For mortgaged properties, you must get a release letter from the bank stating the mortgage is paid off before the sale can proceed. When selling tenanted properties, the buyer will inherit the lease agreement, and the sale depends on whether the tenant has been given notice to move out. Understanding these steps helps ensure a smoother sale, and working with the oldest real estate company in Dubai can provide the guidance needed for a seamless transaction.

If your property comes with unique conditions, it deserves a strategy that accounts for every detail. Our real estate professionals handle complex property sales in Dubai with clarity, care, and market insight. Reach out to discuss the right approach for your asset.