Who pays the 4 percent DLD fee in Dubai?

Buyers normally pay the 4 percent Dubai Land Department transfer fee unless the contract states otherwise.

How much is a typical NOC letter in 2026?

NOC fees range from 500 AED to 5,000 AED depending on the developer and community.

Do I need Ejari for an owned apartment?

Yes, every property in Dubai requires an Ejari contract even when you hold the title deed.

Hidden Property Fees Dubai Buyers Forget 2026

DLD Transfer Fee and Who Pays It

The Dubai Land Department charges a 4 percent transfer fee on every sale. Buyers usually cover this, calculated on the higher of the purchase price or the property's market value. For a 2 million AED villa the fee equals 80,000 AED and must be paid before title transfer at the DLD office or through an approved escrow agent.

NOC and Service Charge Clearance Letters

Most buildings and communities require a No Objection Certificate from the developer or management company. The NOC fee ranges from 500 AED to 5,000 AED depending on the project. You also need a service charge clearance letter confirming no outstanding community fees. These documents are issued within five working days once all dues are settled.

Real Estate Agent Commission

Buyer agents in Dubai typically charge 2 percent plus 5 percent VAT. The commission is negotiable but is almost always paid by the buyer when the agent introduces the property. Always confirm the exact percentage and VAT treatment in the brokerage agreement before signing.

Mortgage Related Costs

Banks add several one-time charges on top of the interest rate. Expect a 1 percent arrangement fee, valuation fee of 2,500-4,000 AED, and life insurance premium equal to roughly 0.5 percent of the loan amount per year. Early settlement fees can reach 1 percent if you repay the mortgage within the first three years.

Ejari and Utility Setup Deposits

Once you receive the title deed you must register a new Ejari tenancy contract even for owned property, costing 150 AED plus 5 percent of annual service fees. DEWA requires a security deposit of 1,000-2,000 AED for electricity and water plus connection fees of 150 AED. These amounts are refunded when you eventually sell or move out.

Common Oversights That Add Up

Many buyers forget the 250 AED title deed issuance fee, the 540 AED mortgage registration fee at the DLD, and possible RERA escrow administration charges of 0.25 percent on off-plan payments. Add these together and total extra costs can exceed 100,000 AED on a 2 million AED purchase.

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