BUYING PROCESS & FEES
The buying process for purchasing a property in Dubai, whether off-plan or from the secondary market, involves several steps and various fees. Here's a comprehensive overview of the process, including associated fees
Determine Selling Objectives
Clarify your selling goals, including the desired sale price, timeline, and any specific conditions or requirements.
Engage a Real Estate Agent
Research and select a reputable real estate agent who specializes in your property type and location. The agent will provide guidance and assist throughout the selling process. The agent's commission is typically a percentage of the final sale price, ranging from 1% to 2.5% (plus VAT).
Property Search and Selection
Work closely with your real estate agent to identify suitable properties that match your criteria. The agent will arrange property viewings and provide guidance during the selection process. There are no direct fees associated with property viewings
Offer Submission and Negotiation
Once you have chosen a property, your agent will help you prepare and submit an offer to the seller. The agent will negotiate on your behalf to reach mutually agreeable terms. The negotiation is part of the agent's services covered by their commission
Memorandum of Understanding (MOU) OR Sale and Purchase Agreement (SPA)
Once you and the buyer agree on the terms, a legal agreement is prepared, typically by a lawyer or a conveyancing company. The associated fees for legal services can range from 0.5% to 1% of the property value.
Dubai Land Department (DLD) Fees
To proceed with the sale, certain fees must be paid to the Dubai Land Department. The fees include
This fee is typically 4% of the property's purchase price. However, it can vary depending on the property value and other factors.
The registration fee is 0.25% of the property's purchase price
For off-plan properties, a trustee fee of 0.125% of the property value is payable to the DLD
For off-plan properties, an Oqood fee of AED 4,000 is payable to register the off-plan property with the DLD.
Mortgage Registration Fee (if applicable)
If you require a mortgage to finance the property purchase, there will be a mortgage registration fee. The fee is 0.25% of the mortgage amount and is payable to the DLD
Prior to the completion of the sale, any outstanding service charges, utility bills, and other dues related to the property need to be settled.
Transfer of Ownership
At the completion stage, you and the seller, along with your respective legal representatives, will meet to sign the final transfer documents. You will provide the agreed-upon payment, and the property's ownership will be officially transferred to you
It's important to note that the fees mentioned above are approximate and can vary based on the specifics of the property, location, and other factors. It's recommended to consult with professionals, including a real estate agent and legal advisor, to understand the exact fees and costs involved in your particular purchase