1. THE COSTS ARE AS FOLLOWS:
1. Dubai Land Department (DLD) Fees – 4% of the purchase price + AED 580 admin fee for apartments or AED 430 for land transactions or AED 40 for an oﬀ- plan property
Usually, this entire cost is borne by the buyer, but it’s actually expected that both the buyer and seller are expected to equally pitch in for the DLD fee.
2. Property Registration Fee – For properties valued below AED 500,000, you will need to pay AED 2,000 +5% VAT For properties valued above AED 500,000, the price is AED 4,000 + 5% VAT
3. Mortgage Registration Fees (if the property is on a mortgage) – 0.25% of the loan amount + AED 290
2. SERVICE FEES
Service fees are composed of mainly your broker fee to the real estate agent and conveyancing fees. A conveyancer is an entity that ensures that the buyer’s interests are protected during the time of sale and in accordance with UAE laws and regulations.
The costs are as follows:
1. Real Estate Agent Fee – 2% of the purchase price + 5% VAT
2. Conveyance Fee – Approximately AED 6,000 to AED 10,000 (depending on the conveyancer)
3. MORTGAGE FEES (APPLICABLE ONLY IF YOU HAVE A MORTGAGE)
1. Bank Mortgage Arrangement Fee – 1% of the loan amount + 5% VAT
2. Property Valuation Fee – Between AED 2,500 – AED 3,500 + 5% VAT
In the event that the property you are buying is already mortgaged, you will need to pay oﬀ the seller’s mortgage either by settling the amount yourself or through the bank. Once the mortgage is paid oﬀ, you need to get an NOC in order to proceed with transfer.
You also have the option to include these fees as well as the DLD fee to oﬀset the financial commitment needed then and there. These fees are topped up with the loan amount.
4. HOME INSURANCE (OPTIONAL)
Home insurance is important, especially if you are purchasing an end-use property and want to protect your interests. Though not compulsory, it is highly recommended and relatively not too expensive. The costs are as follows:
1. Home & Contents Insurance – Approximately AED 1,000
2. Life Insurance – Approximately 0.4-0.8% per annum on the decreasing loan balance (this is a compulsory cost if you are purchasing a property on mortgage basis and will be arranged through the mortgage provider).
OTHER COSTS TO CONSIDER
Property deposit – In order to reserve your property, you will need to deposit 10% of the agreed transaction value on a cheque in the seller’s name, which is held by the real estate agent appointed till the property has transferred.
Service fees – A running annual cost, service fees vary from development to development. These are the charges for the development that you live in and should form part of our property purchase considerations.