Purchasing a flat is not limited to paying the listed price alone. Several additional expenses accompany the transaction, and being aware of them allows buyers to plan their budget more effectively. From registration fees to maintenance costs, knowing the breakdown of expenses provides a clearer picture of the overall financial commitment mandatory in the process.
Purchase price:
The largest portion of the cost is the flat’s purchase price itself. This is the agreed amount between the buyer and the seller. While this forms the base, it is not the final figure, as a number of supplementary charges are added to complete the transaction, especially when you plan to buy flat in Dubai.
Registration fees:
Registration fees are payable at the time of officially recording the property under the buyer’s name. These fees are usually calculated as a percentage of the property’s value and are submitted to the land department. It is one of the essential charges that finalises the legal transfer of ownership.
Transfer fees:
Transfer fees are another significant cost when buying a flat. These fees cover the administrative expenses associated with updating the property records from the seller to the buyer. They are handled through the relevant property registration office and are generally shared or agreed upon by the two parties in advance.
Agency commission:
If a property agent is involved, a commission is part of the transaction. This is generally a percentage of the purchase price and is payable by the buyer. The commission works as compensation for the services provided during the process of finding and finalising the flat.
Service charges:
Flats often come with service charges that cover the upkeep of shared areas within the building, such as lobbies, corridors, and facilities. These charges are paid annually and vary based on the size of the unit and the amenities provided. Service charges are ongoing costs that buyers must account for.
Mortgage costs:
For buyers financing their purchase through a mortgage, additional expenses such as bank processing fees, valuation fees, and insurance charges apply. These costs are linked to the lending process and are usually payable before final loan approval. They add a noticeable amount to the overall purchase cost.
Maintenance fund:
In some cases, developers request a contribution toward a maintenance or sinking fund. This amount is collected to cover future repairs or large-scale improvements within the building. Though not always necessary, it is a cost worth considering during the purchase stage.
