Every cost in a ready purchase
On a straightforward ready purchase, transaction costs commonly land in the region of six to seven percent of the price once the DLD transfer fee, agency commission, trustee and administrative fees are added together — more where a mortgage brings registration, arrangement and valuation charges with it. Model it as cash you must have on the day, because the transfer fee in particular cannot usually be financed.
DLD transfer fee
4% of purchase pricePayable by Buyer
The Dubai Land Department transfer fee on a sale is 4% of the purchase price. Convention is that the buyer pays it, though it is negotiable and is sometimes split. Whatever is agreed belongs in the Form F, because the transfer will not register until it is paid. Treat it as cash: it is rarely capable of being added to a mortgage.
Fee levels are set by the Dubai Land Department and can be revised. Confirm the current rate with DLD before you exchange.
DLD administration and title deed fee
Fixed feePayable by Buyer
A separate administrative charge for processing the transfer and issuing the title deed. It is a modest fixed amount rather than a percentage, and it differs between property types.
Confirm the current administration and title deed issuance fees with the Dubai Land Department.
Registration trustee fee
Fixed feePayable by Buyer
The fee charged by the registration trustee office that hosts the transfer appointment. It is banded by the value of the transaction and VAT is charged on top.
Trustee office fees are published by the Dubai Land Department and are banded by transaction value.
Agency commission
2% of purchase pricePayable by Buyer
Brokerage commission on a Dubai sale is conventionally 2% of the purchase price, plus 5% VAT on the commission. It is a matter of contract rather than a fixed rate, and the figure and the payer should be agreed in writing before viewings begin.
Developer NOC fee
VariesPayable by Seller
Charged by the developer for issuing the no-objection certificate confirming service charges are clear. The amount varies significantly between developers, and the NOC will not issue until arrears are settled.
Ask the developer for its current NOC fee at the start of the transaction.
Service charge apportionment
VariesPayable by Negotiable
Service charges already paid for the year are apportioned between seller and buyer at the transfer date. There is no annual property tax in Dubai; the service charge, levied per square foot and set per building, is the recurring cost of ownership.
Ask for the approved service charge budget for the specific building, including the reserve fund provision.
Mortgage registration fee
0.25% of loan amountPayable by Buyer · with a mortgage only
Where the purchase is financed, the mortgage is registered against the title with the Dubai Land Department at 0.25% of the loan amount, plus a fixed administrative charge.
Confirm the current mortgage registration rate and administrative charge with the Dubai Land Department.
Bank arrangement and valuation fees
VariesPayable by Buyer · with a mortgage only
Lenders charge an arrangement fee, usually a percentage of the loan, and a valuation fee for the survey they instruct. Both are set by the individual bank rather than by regulation.
Ask your lender or a regulated mortgage broker to quote arrangement, valuation and early settlement charges in writing.
DEWA connection deposit
Fixed feePayable by Buyer
A refundable deposit to open a DEWA account, at a different level for apartments and villas, plus a connection charge. Where cooling is supplied by a district provider, that account is separate and may carry its own registration fee.
Current deposit and connection charges are published by DEWA.