Exaggerated fees!
Waleed Al Zarouni
January 24, 2023
Some real estate developers exaggerate the “no-objection” fee, which is paid in exchange for obtaining a letter from the developer, so that the buyer can offer his real estate unit for sale again.
A "No Objection Letter", commonly abbreviated to "NOC", is a type of legal document issued by an organization or individual stating that there are no objections to the points made in the document.
As for the real estate sector, when buying a property in the UAE, a “no-objection” certificate is usually required from the developer, who gives a clear document for the property, and shows that all service fees and utilities have been paid.
In this case, the letter states that there is no objection from the developer to another person purchasing the property.
Therefore, making the letter available must come within the facilities provided by the real estate developer, as the greater the developer’s after-sales incentives, the greater his competitiveness in a market full of real estate developers, and this requires every real estate developer to be prepared for this competition by providing incentives and services. After the sale, it makes it easier for buyers to deal.
And the “after-sales” services include: reducing fees, other facilities, and what is related to procedural matters, such as: clearing the papers related to the property after the completion of the purchase process, from transfer of ownership and so on, at a time when these procedures are considered difficult for some, including others. The “No Objection Letter” is one of the very important tools for the movement of the real estate market. The lower its fees, the easier it is to re-sale operations within the market, and helps in revitalizing the project for the interest of the real estate developer who is constructing the project, and strengthens its position at the forefront of the trading movement within the real estate market continuously. Its projects have a continuous movement, which enhances the confidence of those dealing with the developer, and encourages investors to deal with it in future projects.
It is noticeable that the category of large real estate developers in the market contributes to issuing a “no-objection letter” and makes it easier for customers. the recipient.
In light of the major role played by the Land Department in consolidating the concept of real estate security in the Emirate of Dubai, as it is an independent party from both the real estate developer and the investor, the matter requires directing attention to after-sales services, to facilitate the movement of the real estate sector as a whole, and to address any real estate developer that obstructs services after-sales, and exaggerates the fees for the "letter of no objection", and increases its price, which in some companies reached 10 thousand dirhams, which causes the cancellation of real estate sales in some of its stages, as you pay amounts for a service that must be provided for free.
• "No objection" fees paid in return for obtaining a letter from the developer, so that the buyer can offer his real estate unit for sale again.
Real estate expert and lecturer accredited by the Real Estate Regulatory Agency
walid.alzarooni@gmail.com
@WalidAlzarooni
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