Closing Costs of Real Estate Transactions in Dubai

 

Closing costs are part and parcel of every real estate transaction. Buyers and sellers normally  incur these fees when completing a sale. Each type of sales transaction has its own set of requirements and fees. As provided by the Dubai Land Department, here are the costs you’d expect to pay for property transactions in Dubai.  

Sale

Documentary requirements and costs to register the sale or purchase of land or real estate unit are as follows:

Documents Required

  • Original Title Deed
  • Sales And purchase Agreement (SPA) (In case of a sale from a developer)
  • No Objection Certificate from the developer (in case of sale in the freehold areas)
  • Sale Agreement (MOU)
  • Emirates ID card or copies of valid passports for non-residents

Land Department Fees

Seller:

  • 2% of the sale price
  • Knowledge Dirham Fee: AED 20
  • Innovation Dirham Fees

Buyer:

  • 2% of the sale price
  • Title Deed issuance fees: AED 250  
  • Map Issuance Fees:  AED 100 for land plots and AED 250 for Villas & Units
  • Knowledge Dirham Fees (AED 10 added for each service): AED 30
  • Innovation Dirham Fees (AED 10  added for each service): AED 30

Registration

Registration Trustee fees:    

  • Property purchase price equal to or exceeding 500,000: AED 4,000
  • Property purchase price less than 500,000: AED 2,000

 

Rent to Own 

The following are the documentary requirements and costs for the registration of a rent to own contract between a buyer of real property and a financer. At the end of the term of contract, the ownership of real property is transferred to the buyer.

Documents Required

  • Title Deed  
  • No Objection Certificate from the developer
  • Deferred Sale Agreement
  • Letter from the bank indicating the Ijarah amount with the start and end dates
  • Copies of valid Passports or Emirates ID cards of the seller and buyer
  • UAE Nationals (Citizen File Number + Copy of Nationality Certificate)
  • Non-UAE nationals (A copy of the residence permit, No Objection Certificate or passport)

Land Department Fees

  • Seller: 2% of the sale price  
  • Buyer: 2% of the sale price
  • Title Deed issuance fees: AED 250
  • Map Issuance Fees: Amount varies based on the type of real property
  • 0.25% of the rent amount
  • Knowledge Dirham Fee of AED 10 for each service

Registration Fees

  • Property with a purchase price equal to or exceeding 500,000: AED 4,000
  • Property with a purchase price less than 500,000: AED 2,000

 

Mortgage discharge and Rent to own contract transfer 

Documentary requirements and costs to register a mortgage discharge (subject to a letter by the financer)

Documents Required

  • Original Title deed
  • Official correspondence from the both the lender and the mortgagor to terminate the mortgage
  • Original mortgage contract (Owner's attendance is not necessary)

Land Department Fees

  • Mortgage redemption fees: AED 1000
  • Knowledge surcharge per service: AED 10

 

Deferred Sale

The following are the documentary requirements and costs to register the deferred sale or purchase of real property based on a payment plan agreed upon by the seller and buyer. The title deed is issued only upon settlement of all payments.

Documents Required

  • Deferred Sale Contract
  • Sales and purchase agreement (SPA) (In case of a sale from a developer)
  • No Objection Certificate from the developer (in case of sale in the freehold areas)
  • Sale Agreement (MOU)
  • Emirates ID card or copies of valid passports for non-residents

Sale Fees

Seller

  • 2% of the sale price
  • Knowledge Dirham Fee: AED 20
  • Innovation Dirham fees

Buyer

  • 2% of the sale price
  • Knowledge Dirham Fee: AED 20
  • Innovation Dirham fees

Registration

Registration Trustee fees:    

  • Property purchase price equal to or exceeding 500,000: AED 4,000
  • Property purchase price less than 500,000: AED 2,000

 

Finance Lease 
Documentary requirements and costs to register a finance lease contract are as follows:

Documents required

  • Original title deed
  • Letter from the financer on the registration of the finance lease, stating the start and end date and the lease amount
  • Identity card of the owner (Emirates ID, passport)  

Land Department Fees

  • 0.25% of the finance value
  • 250 AED title deed issuance fee
  • 100 AED land plan issuance fees (250 AED if a villa and apartment)
  • Knowledge Dirham fee at the rate: AED 30 (10 AED per service)
  • Innovation Dirham fee at the rate: AED 30 (10 AED per service)  

 

Termination of Finance Lease 

The documentary requirements and costs to terminate a finance lease are as follows

Documents required

  • Lease title deed
  • NOC letter from the bank to terminate finance lease
  • Identity card of the owner

Land Department Fees:

  • Lease termination fee: AED 1,000
  • Title deed issuance fee: AED 250
  • Land plan issuance fee: AED 100 or AED 250 for villas or apartments
  • Knowledge Dirham fees: AED  10 per service
  • Innovation Dirham fees: AED  10 per service

Registration Trustee fees: AED 300

 

Rent to Own Contract (Deferred Sale) 

The following are the documentary requirements and costs to register a rent to own contract between a buyer of real property and financer. At the end of the term of contract, the ownership of real property is transferred to the buyer.

Documents Required

  • Title Deed  
  • No Objection Certificate from the developer
  • Deferred Sale Agreement
  • Letter from the bank indicating the Ijarah amount with the start and end dates
  • Copies of valid Passports or Emirates ID cards of the seller and buyer
  • UAE Nationals (Citizen File Number + Copy of Nationality Certificate)
  • Non-UAE nationals (A copy of the residence permit, No Objection Certificate or passport)

Land Department Fees

  • Seller: 2% of the sale price  
  • Buyer: 2% of the sale price
  • Title Deed issuance fees: AED 250
  • Map Issuance Fees: Amount varies based on the type of real property
  • 0.25% of the rent amount
  • Knowledge Dirham Fee of 10 Dirhams (added to each fee)

Registration Fees

  • Property with a purchase price equal to or exceeding 500,000: AED 4,000
  • Property with a purchase price less than 500,000: AED 2,000


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