Know your transaction fees and charges

Keep abreast of changes to avoid the risk of losing your property altogether.

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 Expatriates are known to purchase property in this part of the world either to make it their home or for purposes of investment. Whatever the reason may be, and notwithstanding the fact that you are a buyer or a seller, it is always helpful to get a handle of the charges associated with any real estate transaction.

 

1. No Objection Certificate (NOC) fee – The cost of issuing a NOC varies from one developer to another. However, as per the norm, developers charge between Dh500 and Dh1,000 for ready properties and up to Dhs5,000 for off-plan units. this charge Is payable by the seller of the property.

2. Real Estate Agent Fee – The buyer pays 2 percent of the selling price of the property to the real estate agent involved as his/her commission fee. 

3. Transfer Fee – In case of a ready property, the buyer pays 4 percent of the selling price to the Dubai Land Department (DLD) for the registration and transfer of property. 

 

However, in case of an off-plan property, an additional 4 percent is payable (on the original purchase price of the property) by the buyer as pre-registration (OQOOD) fee. 

1. Administrative Fee – At the end of the transaction, the buyer pays the DLD an administrative fee which ranges between Dhs4,000 and Dhs5,000. 

2. Mortgages Fee – If the property in question is mortgaged, the buyer pays 0.25 percent of the mortgage value as mortgage registration fee (plus Dh10 knowledge fee) to the DLD. The buyer also pays a processing fee equivalent to 1 percent of the mortgage value and Dhs3,000 valuation fee to the bank for facilitating the mortgage deal.

 

Since there are various charges to begin with, and they tend to vary depending on the type of property you are interested in and whether you are paying cash or through mortgage, it is important to update yourself with them prior to making the decision to purchase or sell. Ignoring these fees at the outset can result in unnecessary financial complications to a large stage, with the risk that you might end up losing your property of choice altogether.

 

Handy Hints:.

 

1. Be proactive and research about transaction fess before buying a home

2. Licensed agents guide buyers through the property investment process

3. Transaction costs depend on the type of property and payment period

 

credit to Gulf News