It is really important to know about Dubai Land Department (DLD) fees when you buy a property in Dubai. These costs can eat into your bottom line, and being informed can be the key to a seamless closing. Here is a full list of DLD fees and costs you need to know about.
The most significant levy on the purchase of property is the DLD Property Transfer Fee of 4% of the purchase price of the property. This cost is typically divided between the buyer and the seller, but in reality, the buyer pays the entire cost in most markets.
In addition to the transfer fee, there are registration fees. For properties below AED 500,000, the registration fee will be AED 2,000, along with 5% VAT. For properties over AED 500,000, the fee rises to AED 4,000 plus VAT.
A separate significant fee is the title deed issuance fee at AED 580 for properties up to AED 500,000. For properties priced more than that, the fee is AED 4,000.
These fees are to be paid to the Dubai Land Department upon the transfer of property, and failure to pay on time may result in delays.
There are also other costs to consider if you are financing your purchase with a mortgage. Your mortgage registration fee is 0.25% of the amount of the loan, plus an AED 290 flat administrative fee. Banks can also impose mortgage processing fees, ranging up to 1% of the loan amount, plus VAT.
Ejari registration fee for tenants: As a tenant, you need to pay the Ejari registration fee while registering a tenancy contract. The online registration fee is AED 155, and AED 219.75 when applying through a trustee center. This fee guarantees that your lease agreement is legally valid.
Estate agents in Dubai normally take a 2% commission on the sale value of the property, plus 5% VAT. This is a standard industry charge that is due after the transaction. The agent’s services, including showing properties and handling the paperwork for the transaction, are covered by the commission.
DLD charges can be made easily. Noqodi Dubai has its own payment gateway, Noqodi, exclusively for real estate. Other options are payment by manager’s cheque, credit or debit card, ePay, and Sadad online payment services.
Keep in mind that DLD fees are due within 60 days of the property transaction to avoid fines. If payments aren't made within the time frame, the transfer of ownership may be delayed, so making timely payment is essential.
Apart from this, there are some extra costs involved when buying off-plan properties. One of the main fees would be the Oqood registration fee, which is a one-time fee of 4% of the property value at the time you have purchased the unit. Moreover, many developers offer DLD fee reductions or waivers as part of their marketing blitz.
Understanding DLD fees and additional costs when you buy property in Dubai will help you plan your budget and have a hassle-free transaction. When buying or renting, you can make a better decision by understanding these fees and their methods of being paid. Knowing these costs, whether for a first-time buyer or an experienced investor, can help you navigate the property market in Dubai better. DDA Real Estate may also help you with that. If you want to buy an apartment in the UAE, contact us.
