Dubai Land Department Transfer Fees Are Due on All Transfers of Real Estate

Dubai Land Department transfer fees must be paid every time there is a property transfer in Dubai. The Government
of Dubai has specified that all property transactions, be it land, industrial buildings or residential property, must be
processed through the Land Department or its agents. This Department must document and register all transactions via
its electronic systems following a detailed set of procedures. The registration process must be carried out in person by
all the parties involved, or by agents working on their behalf who can prove official power of attorney, and only on the
provision of a set of certain listed documents.

Are All Dubai Land Department Registration Fees the Same?

Not exactly. The Dubai Land Department registration fees are the same for the same type of transaction; however, the
fees for different types of transaction are different. As examples, the Dubai property transfer fee for registration of
sale/purchase property transactions is 4%. In theory, this should be split 50:50 between the buyer and the seller,
although this is often negotiated as part of the transaction and buyer pays 4%. The fee for Oqoodi, though, which
allows the sale of properties still under construction or sold off-plan, is 2,000 Dirhams. The fee for modification of
lease-to-own (Ejara) ownership contracts, for example by extending the period agreed to pay back a mortgage, is
1,000 Dirhams. Service fees are an additional cost. These fees are favorable, being set at far lower levels than in many
other jurisdictions. For all of these transactions, the application to register the change must be carried out in person.
You could be forgiven for thinking this might result in long queues at a central office, or that the Land Department
could need to open and maintain a number of different offices across Dubai. However, the Government of Dubai has
developed a different system to ensure the rapid and efficient registration of property transactions by establishing a
system of Registration Trustees. These are companies the Land Department has partnered with to facilitate property
transaction registration. They have access to the Land Department computer systems and can carry out registrations on
behalf of the Land Department.

Dubai Property Transfer Fee, Charges and Costs

Dubai property transfer fee and charges are levied on property bought, sold and transferred in Dubai. From a Dubai
legal perspective, removing or adding a person to a property deed is considered a transfer of ownership, thus the
normal sales procedures and fees apply in these situations. The Dubai Land Department (DLD) charges fees on these
transactions. The level of fees can depend on the terms of the transaction, as well as the value of the property.
Property transfer fees payable to the DLD are applicable when transferring ownership interests to a property between
parties, whether whole or partially. The most important thing to note in transferring property is in relation to Dubai
Land Department transfer fees. As buyers may be aware, if you have previously bought, sold or transferred property in
Dubai, the current fees for doing so are levied at 4% of the purchase price of the property, as well as an AED 540
admin fee. In relation to a “gift” of interest in a property, however, the transfer fees are much lower at just 0.125% of
the sales price, plus AED 530, totalling a minimum of AED 2,530. Similarly to sales, an admin fee of between AED
2,000 and AED 4,000 is also charged. In this case, it is dependent on whether the valuation is below or above a
valuation of AED 2,000,000. For example, if the property being transferred is valued at AED 1,000,000 the transfer
fee, payable to the Dubai Land Department, for gifting property would be a minimum of AED 2,530 plus the
additional AED 2,000. All this represents a significant reduction in fees when compared to a purchase/ sale. Here, the
equivalent applicable transfer fee would total AED 40,540 as well as the additional charge of AED 4,000.

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Real estate property transfer is often essential when shopping around in Dubai for a new investment opportunity. The
luxury end of the residential property market especially has boomed and seen consistent growth. However, when
buying, selling, transferring and registering property in Dubai, you are advised to seek the latest, unbiased market
updates and advice.
But what underpins the legal framework? Well, in brief, anyone, whether a Dubai resident or overseas investor, can
buy into Dubai’s property market in areas designated for sales by the Emir of Dubai. You don’t need to hold a
residency or other permit to do so. Both leasehold and freehold properties are on the market in Dubai, with a high
number of freehold properties. The average timeframe for a real estate transfer to take place in Dubai is around 30
days from when the agreement for sale has been signed. But what are the procedures for property transfers in practice?
The two parties agree a Memorandum of Understanding (MOU), sign it and a deposit is paid. The parties meet at the
developer’s office and secure a No Objection Certificate for the sale, which usually incurs a small fee. Next, both
parties visit the Dubai Land Department or one of its Registration Trustees to formalize the property transfer and for
the buyer to demonstrate that he has the means to make the purchase. A new title deed will then be issued in the
name(s) of the new buyer(s). If a mortgage will be used to buy the property, the bank will be involved at this point
too; similarly, if the seller still has a mortgage, the issuer is involved prior to obtaining the NOC.

Transfer of Real Estate Property and Fees in Dubai

Transfer of real estate property in Dubai is inevitably different to other real estate markets worldwide. Making sure
that you have expert advice from a Dubai-based real estate agency and legal advisor for land transfers, mortgages and
all of the applicable charges and fees involved in this process can be invaluable.
Here, we look at some of the fees you may have to pay when involved in real estate transfers in Dubai. There are
several fees charged by different agencies at various stages of the process of real estate transfer, whether you are
buying, selling or transferring property to a relative, for instance. They can be applicable to either or both parties, the
buyer and the seller. No Objection Certificate (‘NOC’) fees are charged by developers, usually to the seller. The cost
can be between AED 500 & AED 5,000, depending on the value of the property and the transaction to be carried out.
There may also be a refundable deposit on this when the buyer presents the new title deeds and records are amended,
at either the Dubai Land Department (‘DLD’) or one of its appointed Registration Trustees. Real estate agents will
charge a commission of 2% of the purchase price of the property. Property transfer fees are calculated at 4% of the
final price of the property, as well as an admin fee which is usually up to AED 5,000 and payable to the DLD. Finally,
you are likely also to pay mortgage registration fees, unless funding the purchase in cash. Mortgage registration fees
are currently calculated at a rate of 0.25% of the mortgage value, again payable to the DLD. Developers will also
usually ask for an annual service charge to be paid upfront.

Real Estate Transfer Fees - Steps to Transfer Property In Dubai

Real estate transfer fees are payable on all properties bought, sold and transferred in Dubai, whether by expats or
residents. Different levels are applicable for sales and for property transfers. If you have decided that you wish to
transfer part or all of your interest in a property to a close relative, how do you comply with the rules and applicable
fees?

Phone: +971 4 425 2780 Fax: +971 4 425 2601 Email: [email protected]
Premier Estates, P03 Building 2, Bay Square, Business Bay, Dubai - UAE, ORN : 11814 www.dubaipremierestates.com
To complete the process of a property transfer, there are several steps involved. As with a normal property purchase or
sale in Dubai, the title deed is required to initiate the process. You also need a floor plan or, as it is known in Dubai
law, an Affection Plan. This costs around AED 260 and can be obtained from the Dubai Land Department. You must
also produce a valuation certificate. This determines the value of the property and allows the Dubai Land Department
to calculate the real estate transfer fee and rate applicable to the transaction. The certificate costs AED 4,010 and takes
7-10 days to receive. You can apply for the valuation certificate from the Dubai Land Department. As such, you might
need a power of attorney in Dubai to carry this out if you are living elsewhere. If a developer is involved (for example,
if transferring an off-plan purchase), you will also need a No Objection Certificate. This states that the developer has
no objection to the transfer of ownership taking place, and that there are no outstanding payments left on the property.
NOC fees can vary between AED 500 and AED 5,000. All parties need to be present at this stage, and in the final
stage of transfer, with the Dubai Land Department or one of its endorsed Registration Trustees.

Real Estate Transfer Tax and Payment Plans

Real estate transfer tax is applied to property bought, sold and transferred in Dubai. Once you have found a property
that you want to invest in, you or your Dubai estate agent need to contact the developer and set up sales negotiations.
You will also need to take advice on and plan for transfer tax charges which will be levied on the property.
Dubai doesn’t have any property purchase taxes as such, unlike other similar large and dynamic property markets.
However, you will be charged fees on any property transfer at different stages of the process. When buying or selling
a property, you need to register the sale with the Dubai Land Department; and the applicable real estate transfer and
registration fees to that Department should be an important part of your financial planning. After all, the combination
of all of these different fees, levies and tax rates can end up representing a significant proportion of the total
purchasing cost of the property. In total, they can add up to between 1% and 7% of the property purchase price.
Additionally, if you are taking out a mortgage on the property, you will only be able to borrow to a maximum of 75%
of the property price and will also be charged an extra 0.25%. The end result of this is that in some cases, you may
need up to 8.75% extra, on top of the total purchase price, as well as a deposit of 25% to pay in cash. You should
therefore make certain you have the capital to cover all these expenses, as late payments can result in additional fines
and fees.

Dubai Land Registration Fees - Buying Off-Plan with Confidence

Dubai Land Registration fees are applicable when buying existing property or when purchasing off-plan. There are
great opportunities for lucrative long-term investment opportunities in off-plan real estate in Dubai. The market today
is more regulated than ever before, allowing investors to purchase with greater confidence.
The clear majority of properties available for purchase in Dubai today are new-builds. The market is strong and the
situation is ripe for investors to make off-plan purchases on the Dubai property market with confidence. Previous
market slowdowns, coupled with large amounts of stock being held by developers, means that investors face much
better odds of completing off-plan purchases at lower prices today. Developers are also being more creative and
flexible with both pricing and payment plans in order to secure more sales and a greater turnover in property transfer.
Prices might not stay at these lower, more competitive levels over the longer term as construction continues apace and
valuations are being gradually driven up again with increasing demand. As with any market, it is important to make
your purchase as early as possible during the market's development. This is when prices are at their most competitive.
There are commonly several projects coming onto the market at once, which give the investor a slew of fantastic

Phone: +971 4 425 2780 Fax: +971 4 425 2601 Email: [email protected]
Premier Estates, P03 Building 2, Bay Square, Business Bay, Dubai - UAE, ORN : 11814 www.dubaipremierestates.com
options for return on investment. When buying off-plan, though, there are a number of factors to take into account,
above and beyond the purchase price of the property, as with any such transaction. These include additional costs such
as Dubai Land Department transfer fees, which should be carefully calculated and built into your budget.

Phone: +971 4 425 2780 Fax: +971 4 425 2601 Email: [email protected]
Premier Estates, P03 Building 2, Bay Square, Business Bay, Dubai - UAE, ORN : 11814 www.dubaipremierestates.com