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01 December 2023

Why buying off-plan property in Dubai has become costlier...

Home insurance policy can cost as little as Dh1 per day. (Ashok Verma)

By Parag Deulgaonkar

Developers in Dubai are asking off-plan property buyers to pay the registration fee of 4 per cent of the contract value at the time of booking, Emirates 24|7 can reveal.

“We are asking investors to pay the title registration fee of 4 per cent of contract value, Oqood fee of Dh1,000 along with a knowledge fee of Dh20 at the time of property purchase as per the new regulation from Dubai Land Department (DLD),” a developer told this website.

A buyer of off-plan property had to pay 4 per cent of the sales value, but could defer the fee payment at the time of resell or at handover.

The new DLD regulation, the developer says, gives investors 30 days from the booking date to pay the above fees.

Real estate agents confirm that developers are asking them to inform investors of the change with the payment being made through a manager’s cheque.

“We have been told to inform investors to pay the title registration fee upfront,” a senior executive with a real estate consultancy told this website.

Oqood registration is implemented in line with Law No. 13 regulating the Interim Real Estate Register of Dubai.  It is mandatory for all developers to undertake pre-registration of all off-plan and under construction purchases, as it is aimed to safeguard the interest of homeowners.