Dubai real estate registration fee remains at 4%: DLD
No plans to increase fee, which is lower than 110 countries: Bin Mejren
The real estate registration fee currently set at 4 per cent will not be increased, the Dubai Land Department (DLD) said in a statement.
“We do not plan to raise the charges, which are collected from customers to complete their real estate transactions, but penalties will be applied on fees evasion according to resolution (30) from year 2013 issued by the Dubai Executive Council after the ending of the notice period (31 Oct, 2015),” it added.
Emirates 24|7 said on Monday that unit owners missing the deadline will face fines on a case by case basis.
Sultan Butti bin Mejren, Director General of Dubai Land Department, said: “Until now we have no cases of fees evasions from real estate developers or investors, yet the DLD is foreseeing a great commitment from customers to save their rights,”
He added that if it is proved to DLD evade any party from the payment of fees in cases specified by the Executive Council resolution No. 30 of 2013, such as the submission of incorrect data on the value of the real estate transaction, using any trick or way of whatever kind or nature to evade the payment of fees, then the department will impose the penalties mentioned in Article (6) of the same resolution.
DLD has even formed a committee headed by the Director General to respond to any complaints or concerns in this regard.
Bin Mejren asserted that the real estate market in Dubai is stable and is enjoying sustainable growth, therefore there is no requirement to revisit the fees for various activities and servicing in the near future.
Law (13) of 2008 for Real Estate Registry identified the need for full compliance with the registration of properties sold at the department within 60 days from the date of signing of the sale or signing the booking form contract, stressing that the department violates the registration and payment if it exceeds that period.
In September 2013, DLD implemented Dubai Executive Council’s resolution to increase the real estate registration fees from two per cent to four per cent.
The charges are paid by the seller and the buyer equally unless otherwise agreed between the two parties.
“Through implementing this resolution, the Department succeeded in eliminating speculation that was challenging the market,” the statement said.
Despite the doubling of the registration fee, it still remains less than 110 real estate markets around the world.
By Parag Deulgaonkar , Published