What is the process of buying property in Dubai and what documents or fees are involved?

The typical process begins with the buyer and seller signing a Memorandum of Understanding (MOU). This agreement outlines the buyer’s commitment to purchase and the seller’s commitment to sell the property.

• The buyer pays an initial booking deposit (not exceeding AED 100,000 for villas and apartments) to the seller.

• If the buyer withdraws, the deposit is forfeited.

• If the seller withdraws, the deposit is refunded to the buyer.

• The remaining balance is paid by the buyer upon transfer of the property.

Breakdown of Fees When Buying Property in Dubai:

• Dubai Land Department (DLD) Fees:
  4% of the property price

  • Admin fee:

  • AED 580 for apartments and offices

  • AED 40 for off-plan properties

  • AED 430 for land

• Registration Fees:

  • Ready properties over AED 500,000: AED 4,200

  • Ready properties under AED 500,000: AED 2,100

  • Off-plan properties over AED 500,000: AED 5,250

  • Off-plan properties under AED 500,000: AED 3,675

• Mortgage Registration Fees (if applicable):
  0.25% of the loan amount + AED 290 (one-time fee)

• Property Service Charges:
  Charged per square foot, typically ranging from AED 3 to AED 30 or more depending on the property.