DLD transfer fee explained

What the fee is

Every sale of Dubai property is registered with the Dubai Land Department, and DLD charges a transfer fee of 4% of the purchase price for doing so. It is a government fee, not a commission, and it is the same rate for residents, non-residents and UAE nationals. DLD also charges smaller title-deed and administrative fees on top; these are separate from the 4% and can change, so ask the trustee office for the current schedule.

Who pays it

By market custom in Dubai the buyer pays the transfer fee. That custom is not automatic, though: the split is whatever the parties sign in Form F (resale) or the sale and purchase agreement (off-plan). Some developers run promotions where they cover part or all of the fee for off-plan buyers; if so, check the SPA wording closely and confirm whether admin fees are included. Read Form F explained to see where the fee split is recorded.

When and how it is paid

Resale

The fee is paid at the trustee office on the day of transfer, together with the other DLD charges. Trustee offices typically require payment by manager's cheque made out to DLD or by an accepted electronic method; ask the office which they accept for your transaction. Your agent should confirm the exact payee name a few days before so cheques are not rejected.

Off-plan

The fee is linked to registering your contract on the interim register (Oqood). The developer usually collects it with an early instalment and pays it to DLD, after which you receive the Oqood certificate. Our title deed and Oqood guide explains that document.

What the fee is calculated on

The fee is calculated on the purchase price registered with DLD. Where DLD's own valuation of the property differs, DLD rules decide which value applies — ask the trustee office if this could affect your transaction. Do not under-declare the price to reduce the fee: it is unlawful and can cause problems with your mortgage, future sale and Golden Visa eligibility.

Mortgages and the fee

Banks lend against the property price, not the fees, so the 4% must normally come from your own funds. Mortgage buyers also pay a separate DLD mortgage registration fee; see the full buying costs guide for that and other items. Model the total with the property buying cost calculator.

Common mistakes

• Budgeting 4% and forgetting the admin and title-deed fees
• Assuming a developer's fee waiver also covers registration admin fees
• Getting the cheque payee name wrong
• Agreeing in conversation that the seller will share the fee but not writing it into Form F

How to confirm the current figure

The 4% rate is published by DLD, but the total amount payable on the day includes admin and title-deed charges that are updated from time to time. A few days before transfer, ask the trustee office for a written breakdown of every DLD charge, the exact payee name for each cheque, and whether any fees can be paid electronically. If you are buying off-plan, ask the developer for a statement showing the DLD fee paid on your behalf and request the Oqood certificate once registration is complete. Keep these receipts: you will need them when you sell or apply for services that depend on registered ownership.