by Paromita Dey on Nov 3, 2015
Dubai Land Department (DLD) reassured that real estate registration fees, currently set at 4%, will not be increased.
It has also stated that it does not plan to raise the charges, which are collected from customers to complete their real estate transactions, but penalties to 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).
The department stressed that decisions to increase the various fees relating to real estate are issued by Dubai Executive Council.
The Council issued resolution No. (30) of 2013 to determine the value of real estate fees, including real estate registration charges.
HE Sultan Butti Bin Mejren, director general of DLD, 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.”
“A number of market players are talking about alleged reports that DLD will be increasing real estate registration fees from 4% to 8%. This is a baseless rumour and only serves to encourage the return of speculation. It confuses buyers and needlessly compels them to speed up their purchasing decisions,” he said.
Bin Mejren added that the real estate market in Dubai is stable and is enjoying sustainable growth, meaning that there is no requirement to revisit the fees for various activities and servicing in the near future.
“The 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, Dubai Land Department implemented Dubai Executive Council’s resolution to increase the real estate registration fees from 2% to 4%. 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 decision was seen as being instrumental in preventing speculators reap quick profits and threatening the interests of investors and the market in general.