A Guide To Dubai Land Department Transfer Fees
You will be subject to Dubai Land Department transfer fees if you purchase a property in Dubai, no matter whether this is a residential property, an industrial building, or some land. Over the past year or so, the Dubai Land Department has cracked the whip on those that have not been complying with their regulations, so it is really important to know what is required of you.
Firstly, it is crucial to know that not all property transfer fees are the same. This depends on the nature of the transfer. For example, the fee for Ejara ownership contracts, which is a modification of lease to own, is 1,000 Dirhams. The fee increases to 2,000 Dirhams for an Oqoodi contract, which relates to properties that are sold off-plan or are under construction. You will be charged four per cent for the registration of sale/purchase real estate transactions. This does not cover service fees, which will need to be paid on top to the real estate transfer firm you liaise with.
Not only do you need to pay the fees mentioned above, but they all need to be documented and registered at the Dubai Land Department. You can do this in person, or an estate agent can register this on your behalf. Nevertheless, it is imperative to do so, otherwise you can find yourself in big trouble. This year, the Dubai Land Department released a statement on their website, informing people that they would face fines if they did not register their transactions. The fine could be anything from 10,000 Dirhams to twice the fee prescribed, meaning for sale/purchase property transactions you will be paying an eight per cent registration fee as opposed to the standard four per cent.
Hopefully, you now have a better understanding of Dubai Land Department transfer fees, and why it is so important to register all of the transactions made.