Resolution No. (13) of 2018 Introducing Fees for Auction Service of Movable and Immovable Property in the Emirate of Abu Dhabi

His Highness Sheikh Mansour bin Zayed Al Nahyan, in his capacity as the Chairman of the Judicial Department of Abu Dhabi, has issued Resolution No. 13 for 2018 introducing fees for auction service of movable and immovable properties sold in enforcement of judicial judgments and orders in the Emirate of Abu Dhabi (the “Resolution”).

The Resolution introduces new service fee for marketing and organising auction for sale of immovable, movable and vehicles following a final judgment or order from the Courts (“Service Fee”). The Resolution introduces a fee of 5% and 4% as service fee for the sale of movable and immovable properties, respectively without a cap on the fee.

The Resolution does not specify who will pay the Service Fee and when it will be paid. However, it indicates that the payment will be made from the proceeds of the sale and shall be borne by the Judgment Debtor.

It is to be noted that the prior to this, a judge usually requests the Judgment Creditor to deposit an amount to be determined by him against the cost and expenses of the auction including lawyer’s fees. These fees were set at 2% of the sale proceeds up to a maximum of AED 30,000, which is considerably less than the new fee.

The Resolution has come into effect upon its issuance on 24 April 2018 and will be published in the Official Gazette.

The Resolution is issued based on the powers vested on the Chairman of the Judicial Department of Abu Dhabi under Article (65) of Law No. 13 of 2017 concerning the Judicial Fees payable in the Emirate.

Of particular interest:

1. 5% of the value of the sale by auction shall be levied for the sale of immovable properties such as lands and buildings;
2. 4 % of the value of the sale of movable properties by auction such as vehicles.

For more information please contact our Litigation Practice.