The 4% DLD transfer fee is the most predictable line item in any Dubai transaction, and the one buyers most often forget to include in their cash budget.
The transfer fee is the government registration charge levied by the Dubai Land Department when ownership passes from one party to another. Set at 4% of the sale price, it applies to both secondary-market resales and most primary off-plan transactions at the point of Oqood or title issuance (unless the developer is running a registration fee waiver). By convention, the fee is meant to be split 50/50 between buyer and seller, but in 98% of Dubai transactions the buyer pays the full 4%, because that is how the market negotiates.
On an AED 3.5M Downtown resale last year, a buyer new to Dubai nearly ran short on closing day because he had budgeted AED 140,000 for “fees and charges” without realising the 4% DLD fee alone, at AED 140,000, used the entire budget on one line.
Budget 6-7% of sale price for all closing costs combined. The 4% is just the DLD portion. Add agent fees, trustee, NOC, conveyancer, Ejari, DEWA deposit.
Related: DLD Fee, DLD, Transfer, Registration Fee Waiver.
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