Dubai is a popular destination for real estate investments. However, when renting or buying property in Dubai, you may come across a term called “property blocking fee”. This fee is an important aspect to consider and understand before making any property transactions in the city.
Definition of property blocking fee
A property blocking fee is a non-refundable fee paid by potential renters or buyers to secure a property in Dubai. It is also known as a booking fee or reservation fee. This fee ensures that the property is temporarily taken off the market while the necessary paperwork and negotiations are being carried out.
Purpose and benefits of property blocking fee
The property blocking fee serves several purposes:
- Ensuring property availability: By paying the blocking fee, you reserve the property for a specific period, giving you time to complete the necessary documentation.
- Avoiding competition: Paying the fee prevents other potential renters or buyers from making offers on the property during the blocking period.
- Showcasing serious interest: Paying the blocking fee demonstrates your commitment to renting or buying the property, which may positively affect negotiations.
Amount and duration of the property blocking fee
The amount of the blocking fee varies depending on the property and the real estate agent or developer involved. It can range from a few thousand Dirhams to a percentage of the property’s total value. The blocking fee is usually valid for a specific period, typically ranging from a few days to a few weeks.
Important considerations
Before paying a property blocking fee in Dubai, it is crucial to consider the following:
- Read the terms and conditions: Understand the terms associated with the blocking fee, including refund policies and any additional charges.
- Consult a real estate professional: Seek advice from a reputable real estate agent or lawyer to ensure you fully comprehend the implications of paying the blocking fee.
The property blocking fee in Dubai is a non-refundable fee paid to secure a property before completing the necessary paperwork and negotiations. It plays a significant role in ensuring property availability and showcasing serious interest. However, it is essential to review the terms and conditions and seek professional guidance before submitting the blocking fee.