FEES ASSOCIATED WITH BUYING A PROPERTY OTHER THAN THE PRICE OF THE PROPERTY

When you are out in the market to purchase a property, understanding the budget that you will need is important. When browsing potential property options, the price tag on the listings is not the only amount you will be paying.

So, it is important for every buyer to have a general idea of what payments are associated with their purchases. Let’s dive into key expenses when buying property in Dubai. 

Dubai Land Department Fee

This is a mandatory 4% fee (of the property price)that is charged when the property is legally transferred to the buyer’s name. Usually it is paid by the buyer, but if the seller agrees, they can split the fee between them.

NOC Fee

The No Objection Certificate (NOC) is provided by the developer to confirm that the seller has no outstanding payments. The cost of this varies with different developers and projects. While this fee is usually paid by the seller, it can be split between the seller and the buyer upon agreement.

Agent Commission

Typically real estate agents charge 2% + VAT for their services. This fee is paid by the buyer by default unless stated otherwise in the agreement. The commission covers sourcing, negotiations, paperwork assistance, and guidance. Additional services such as property management, POA services and specific conveyancing services will incur extra charges.

Mortgage Registration Fee

This fee applies if the buyer chooses a mortgage option for their payment method. It is usually 0.25% of the loan amount + AED 290.

Property Valuation Fee (for mortgage buyers)

If the buyer finances the property, the valuation of the property + VAT should be paid by the buyer to the bank. The charges differ with the banks.

Service charges

This fee is applied by certain developers who charge the property owners an annual service charge. The amount varies depending on the developer and the property’s square footage.

When it comes to buying property in Dubai, people always oversee the transactional charges as they are usually only presented with the property price. However, understanding your exact expenses allows you to plan your property purchase more comprehensively. Reach out to Anarock Middle East, where our consultants break down your property journey step by step, helping you to take on a transparent and secure path to owning your property investment in Dubai.