As you know, Tag properties is a reputed and trusted real estate company in the UAE, have a certified real estate agent throughout the UAE. In Yesterday in-house meeting, We were discussing the frequently asked question by the clients. In that, In-house meeting we found one question that we were asked plenty of time. The question is “How much charges and fees do we have to pay except the property price? Or what will be the final acquisition cost of the property?
So, today We are giving you in-depth information about the fees and charges.
Before starting, I would like to say something If you want to either live a luxurious life or invest in real estate for generating High ROI. We have made a list of properties for those who want to invest in Dubai real estate and spend a luxurious life. The price of properties in this is very affordable along with easily payable EMI plans, Check out the list of properties in Dubai.
Property buyers have to pay multiple fees and charges to acquire the property, Not only in UAE, wherever you buy the property in this entire stunning world, you have to pay fees and charges according to the country or city. Because all the country has its own rules and regulations. In Dubai to acquire the property, you have to pay charges and fees such as Dubai Land Department, Property Registration fee, and Conveyance fee.
How much do we have to pay fees and charges to the Government?
In Dubai, It is mandatory to register with DLD (Dubai Land Department) within 60 days of the transaction. If we don’t register with DLD in 660 days, the Purchase of a property will be invalidated. If a buyer purchases property via home loan then have to pay 0.25% on the loan amount to the DLD to register a mortgage against the property. If you buy property in cash then you have to 4% for DLD registration to DLD. In theory, DLD registration 2% fee is paid by the seller and 2% by the buyer, but in practical 4% is paid by the buyer. If you purchase property on cash then you don’t need to pay 0.25% against the loan amount.
|DLD (Dubai Land Department) Fees||4% on property price + Admin fee AED480 for apartment and office or AED430 for land and Off-Plan Property|
|Mortgage Registration Fee||0.25% on the amount of the loan + AED 290|
|Property Registration Fee||Property price Below AED 5,00,000:- 2000 + 5% VAT
Property price Above AED 5,00,000:- 4000 + 5% VAT
How much do you have to pay to a real estate agent, agency, or company?
Real estate agents, company, or agency also increase the acquisi[tion of the property, But they help and guide you, provide no. of properties, give an insight of the property and information about the market, negotiate with the owner on your behalf. Professional Real estate agent makes your transaction smooth and transparent. From a Professional Agent, you get advice throughout the process from the beginning, assisting you in the start to end the buying process of the Dubai property.
Conveyance fee is one another fee that is paid by the buyer when the Conveyance service and Support are used. It’s important because it ensures that all the legal terms and contracts are precisely written according to the UAE Law and regulation. Protecting the interest in the involvement of the other parties.
|Real Estate Agent Fees||2% of the purchase price + 5% VAT|
|Conveyance Fee||Approximately AED 6,000 to AED 10,000|
Mortgage fees paid by the buyer
The mortgage fee is paid to the bank when the buyer completes their mortgage. The mortgage fee is 1% on the loan amount + 5%VAT. Some allow buyers to add these upfront costs in their mortgage to ease the burden of the initial financial outlay.
It’s important to check that the seller has no mortgage. Otherwise, the buyer has to pay out the seller mortgage to get NOC (non Objection Certificate) for the transfer of the property with DLD. NOC is a legal certificate, That declares the seller has no objection to the sale and the buyer has paid all the charges and fees.
Off-plan Property buying Fees and Charges
In buying off-plan property some extra charges you have to pay. The off-plan property you can buy directly from the developer or the seller. You have to pay 4% DLD fees on property amount, it’s paid in both conditions. In off-plan property, buyers must pay AED 5,250 to issue to Oqood Certificate. This certificate issued by the RERA to register the name of the buyer under the property. Oqood Certificate Issued when 25% of the payment has been paid by the buyer.
Fees and charges of DEWA for a newly transferred property.
Mostly often buyers forgot the fees and charges of DEWA (Dubai Electricity and water authority). DEWA Provide the electricity and water supply in the entire Dubai. The charges in hundreds and depending on the No. of meter installed. They apply charges according to the location and type of property.
|Apartment||AED 2000 Refundable security Deposit + AED 100 reconnection charge + AED 30 knowledge/innovation fee|
|Office||AED 2000 Refundable security Deposit + AED 100 reconnection charge + AED 30 knowledge/innovation fee|
|Villa||AED 4,000 refundable security Deposit + AED 100 reconnection charge +|
# security deposit is refundable after the property is sold.
When a buyer gets the ownership of the property then the buyer should consider one additional charge. Buyers have to pay an annual maintenance charge to DLD on the basis of RERA Service Charge and Maintenance. These charges are charged on a square foot basis.
According to the Dubai Law, home insurance is not compulsory. Home and other assets insurance protects from a potential loss such as theft, disasters, fire and etc.
Life insurance is mandatory in the UAE when we get a mortgage. The premium of life insurance is the ongoing cost of a mortgage. It’s charged monthly, separated from the loan. Generally, banks charge between 0.4% to 0.8% on decreased mortgage amounts and some banks have their own policy.
|Home and Assist Insurance||Approximately AED 1,000|
|Life Insurance||Approximately 0.4-0.8% per annum on the decreasing loan balance|
We hope this information helps you in the calculation of the actual price of property acquisition.