Tax & Legal

Who pays the DLD transfer fee in Dubai, what is most common in practice, what can be negotiated, and what should be written in the sale agreement?

A practical answer for resale transactions, with clear contract wording guidance.

Direct Answer

DLD’s own fee schedule shows the transfer fee split as 2% seller and 2% buyer, total 4%. In real transactions, buyers often pay the full 4% unless the parties negotiate otherwise. Whatever you agree, write it clearly in Form F or an addendum.

Explanation

First, it helps to separate what DLD lists from what happens in the market.

What DLD lists (the official structure):
On the Dubai Land Department “Property Sale Registration” e-service page, the transfer fee is shown as Seller: 2% of the sale value and Buyer: 2% of the sale value, which totals the well-known 4% DLD transfer fee. This is the clean, official baseline.

What’s most common in practice:
A lot of Dubai resale deals end up with the buyer paying the full 4%. That’s not because the DLD page is wrong, it’s because the parties can agree on a different allocation in the sale terms, and the market often pushes that cost to the buyer.

What can be negotiated:
The DLD transfer fee allocation is negotiable, but you should treat it like money, because it is. If a seller “covers DLD,” it’s effectively a concession, like reducing the price or paying a closing cost on your behalf. Negotiation often depends on urgency, market conditions, and whether the seller has other costs, like mortgage release or NOC timing.

What should be written in the sale agreement:
Dubai deals typically use the unified contract Form F, and parties can add an addendum for extra terms. In writing, you want crystal clarity on:

  • Who pays the 4% DLD transfer fee (and whether it’s split or buyer-paid).
  • Who pays trustee or service partner fees, since DLD lists them separately.
  • Who pays developer NOC fees and any clearance costs (and the timeline).
  • How payment will be made on transfer day, and what happens if a party doesn’t pay, because transfer cannot complete until fees are settled.
Simple wording idea (addendum style)

State the exact split in one line, then add a fallback: “If either party fails to provide the required manager’s cheques for their portion of DLD, trustee, or related transfer fees on transfer day, the transfer will not proceed and the parties will reschedule at the earliest possible date, with any costs or penalties allocated as agreed below.”

Quick Fact Table

Item What’s “official” What’s common in practice
DLD transfer fee 2% seller + 2% buyer (total 4%) Buyer often pays full 4% unless negotiated
Trustee, service partner fee Separate fee listed by DLD Usually paid by buyer, confirm in writing
Payment timing Fees paid during transfer process Needs coordination with manager’s cheques, bank timelines
Contract wording Form F plus possible addendum Addendum is where fee split clarity saves deals

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