A Complete Breakdown of Dubai Land Department (DLD) Fees for Property Purchase

Budgeting for a property purchase in Dubai goes far beyond the asking price. While finding your dream home and securing a mortgage are significant milestones, understanding and planning for the associated transaction costs is what ensures a smooth and financially sound closing. The most substantial of these costs are the fees levied by the Dubai Land Department (DLD), the government entity that registers and regulates all real estate transactions in the emirate.

Failing to account for these fees can lead to unpleasant surprises and potential delays. This comprehensive guide will break down every DLD fee and other essential closing costs, so you can approach your property purchase with a complete and accurate budget.

The Core DLD Fee: The 4% Registration Fee

This is the largest single cost you will encounter, aside from your down payment.

• What it is: The DLD charges a registration fee of 4% of the property’s purchase price. This fee is for the service of transferring the property ownership and issuing the new Title Deed in the buyer’s name.

• Who Pays It: While the law suggests this 4% fee can be split 2% each between the buyer and the seller, the standard market practice in Dubai is for the buyer to pay the full 4%. This is often a point of negotiation, but as a buyer, you should always budget to cover the entire amount.

Example Calculation: For an apartment purchased at $AED$ 2,000,000, the DLD Registration Fee would be: $AED$ 2,000,000 x 4% = $AED$ 80,000

Administrative Fees for Title Deed Issuance

In addition to the 4% fee, the DLD charges a fixed administrative fee for the final issuance of the Title Deed. The amount depends on the property’s value.

• For properties valued below $AED$ 500,000: The fee is $AED$ 2,000 + 5% VAT.

• For properties valued at or above $AED$ 500,000: The fee is $AED$ 4,000 + 5% VAT.

For our $AED$ 2,000,000 apartment example, this fee would be $AED$ 4,000 + $AED$ 200 (VAT) = $AED$ 4,200.

Crucial DLD Fees for Mortgaged Properties

If you are financing your purchase with a home loan, as most buyers do, there is an additional set of DLD fees specifically for registering the mortgage against your property’s Title Deed. This registration provides the bank with security over the property.

• What it is: The DLD Mortgage Registration Fee is calculated as 0.25% of the registered loan amount.

• Additional Fee: There is also a fixed administrative fee of $AED$ 290 for this service.

Example Calculation (Continuing with the $AED$ 2,000,000 property): Let’s assume a buyer, Khalid, is making a 20% down payment ($AED$ 400,000).

• Loan Amount: $AED$ 1,600,000

• Mortgage Registration Fee: $AED$ 1,600,000 x 0.25% = $AED$ 4,000

• Total Mortgage Fee: $AED$ 4,000 + $AED$ 290 = $AED$ 4,290

This fee is often overlooked by first-time buyers but is a mandatory part of the process if you are not buying with cash.

The Role of the Real Estate Registration Trustee

The physical property transfer does not happen at the DLD headquarters itself. Instead, it is processed through an authorized Real Estate Registration Trustee office. These are private centers licensed by the DLD to handle the final stages of the transaction.

• Trustee Fees: These offices charge a fixed fee for their services, which includes handling the paperwork, verifying documents, and facilitating the exchange of payments.

  • For properties valued up to $AED$ 500,000: The fee is $AED$ 2,000 + 5% VAT.

  • For properties valued above $AED$ 500,000: The fee is $AED$ 4,000 + 5% VAT.

These fees are paid on the day of the transfer.

A Sample Cost Sheet: Putting It All Together

Let’s create a sample budget for Khalid, who is buying a $AED$ 2,000,000 apartment with an 80% mortgage.

As you can see, the total upfront cash required by Khalid is not just the $AED$ 400,000 down payment. He needs an additional $AED$ 154,640, or roughly 7.7% of the property price, to cover all the fees and closing costs.

Distinguishing Between Secondary and Off-Plan Market Fees

The fees described above primarily apply to the secondary market (resale properties). For off-plan properties bought directly from a developer, the DLD fee structure can sometimes be different. Developers often run promotions where they offer to pay a portion or even the entirety of the 4% DLD fee to attract buyers. However, you will still need to pay the mortgage registration fees if you are using a loan.

Navigating these costs requires careful planning and expert advice. A trusted mortgage consultant will not only help you secure the best loan but will also provide a transparent and detailed breakdown of every single cost involved, ensuring there are no last-minute financial shocks. At PRE APPROVAL Mortgage Consultant, our commitment is to make your home loan journey simple, transparent, and stress-free.

Don’t let hidden costs derail your property dreams. Contact PRE APPROVAL Mortgage Consultant for a free consultation and a comprehensive breakdown of all the fees associated with your specific purchase.