Conveyancing Fees in Dubai: Hidden Costs and What to Expect

What Are Conveyancing Fees?

Conveyancing fees cover the legal and administrative services required during property transactions. These charges ensure the property transfer is smooth and all necessary legal requirements are met. 

Key tasks included in these fees are:

• Verifying title deeds and ownership

• Preparing and reviewing sale agreements.

• Facilitating payments and contracts.

For those asking, "What are conveyancing fees?" they are essentially the costs of hiring a professional to manage this process, providing peace of mind during real estate transactions.

Types of Conveyancing Fees in Dubai

Conveyancing fees vary based on the property type, complexity of the sale and transaction details. In Dubai, you may encounter several fees, including: 

1. Conveyancer Charges

A professional conveyancer or sales progression officer will charge a fee for managing the sales process. This fee could be a fixed fee or a percentage of the property’s sales price.

2. Transfer Fees

The Dubai Land Department charges specific fees for the transfer of property ownership. In particular, a DLD Fee of 4% of the purchase price must be paid on the transfer day, plus an AED 580 admin charge for the new title deed. 

3. Registration Fees

Additional fees may apply to register the property under your name. These include the property registration fee, AED 2,100 for properties below AED 500,000 and AED 4,200 for properties above AED 500,000. 

4. Commercial Property Conveyancing Fees

If you're purchasing a commercial property, conveyancing fees in Dubai can be higher. This is due to the greater complexity of many commercial transactions and additional legal requirements.

How Much Should You Expect to Pay for Conveyancing in Dubai?

The question "What is the average conveyancing fee?" often arises. On average, conveyancing fees in Dubai range from AED 5,000 to AED 15,000 for residential properties. Due to their complexity, commercial transactions may incur higher costs.

Below is a table of typical conveyancing fees:

These figures should be considered an estimate. Actual fees may be higher based on the conveyancer’s experience, the property type and the complexity of the transaction. 

Hidden Costs in the Conveyancing Process

Along with the typical conveyancing fees in Dubai, there are some hidden expenses that buyers or sellers should be aware of. These can include: 

• Legal Verification Costs: Additional fees for double-checking title deeds or seller authenticity.

• Mortgage Registration Fees: If you buy a property using a mortgage, there is an additional registration fee of 0.25% of the mortgage amount plus AED 290. 

• VAT on Professional Services: VAT at 5% applies to many professional fees, including conveyancing.

• Amendment Charges: Changes to agreements or contracts can incur extra costs.

How to Budget and Save on Conveyancing Fees

While residential and commercial property conveyancing fees are unavoidable when buying or selling a property, strategic planning can help minimise costs. Here are some tips to consider: 

1. Request Multiple Quotes

Generally, your real estate agent will recommend a conveyancer to handle your property and will be able to secure you a low conveyancing fee. 

However, if you are unhappy with the quote, you could speak with multiple conveyancers to compare pricing and services. 

2. Negotiate Fixed Fees

Opting for a flat fee rather than a percentage can save you money, especially for high-value transactions.

3. Check for Inclusions

Ensure the quote includes all potential services, such as legal verifications or document submissions, to avoid additional charges later.

4. Leverage Developer Deals

Some developers may offer discounted conveyancing services when purchasing off-plan properties as part of the sale package.

Choosing the Right Conveyancer

Selecting the correct sales progression professional can significantly impact your experience. Typically, your real estate agent will have a trusted partner they can recommend - this can be a great option to ensure a smooth process. 

But, when deciding who to hire, consider the following:

• Experience and Expertise: Choose a conveyancer with extensive experience in Dubai's property market.

• Reviews and Recommendations: Read client testimonials and seek referrals from trusted sources.

• Transparency in Pricing: Ensure the professional can answer the question “What are the conveyancing fees?” and can provide a clear, upfront breakdown of costs.

• Specialisation in Property Type: If dealing with commercial property, choose someone familiar with complex commercial transactions.

Conclusion

Understanding what the average conveyancing fees are is crucial in any property transaction. From recognising the standard charges to uncovering hidden costs, being well-informed ensures a smoother process. 

Whether you're buying residential real estate or dealing with commercial property conveyancing fees, planning and research will help you stay within budget.

By selecting the right conveyancer and monitoring conveyancing fees in Dubai, you can focus on what matters most: securing your ideal property. If you're ready to start, contact Engel & Völkers, who can efficiently and transparently guide you through the entire process of buying or selling a property.