Conveyancing is the legal process of transferring property ownership from one party to another, and it involves several costs that buyers and sellers need to account for. Understanding these costs helps in budgeting for the entire property transaction. Below are the primary costs associated with conveyancing services in UAE:
Conveyancer’s fees:
The main cost associated with conveyancing is the fee charged by the conveyancer or solicitor. These fees can vary widely based on the complexity of the transaction, the location of the property, and the experience of the conveyancer. Generally, conveyancer’s fees can range from $500 to $2,000 or more. These fees cover the conveyancer’s time and expertise in handling the legal aspects of the property transfer.
Disbursements:
Disbursements are additional costs incurred by the conveyancer on behalf of the client, which are then passed on to the client. Common disbursements include:
- Local authority searches: These searches check for any planning issues, restrictions, or future developments affecting the property. Costs can range from $100 to $400.
- Land registry fees: These fees are paid to register the new ownership with the land registry. They vary depending on the property’s value and whether the registration is done online or via paper.
- Bankruptcy search: This search ensures that the buyer is not bankrupt, typically costing around $2 to $5.
- Title deeds copy: If the property is unregistered, obtaining a copy of the title deeds might cost around $5 to $10.
- Environmental searches: These searches identify any environmental issues, costing around $30 to $50.
- Drainage and water search: This confirms the property’s water supply and drainage connections, usually costing $30 to $40.
- Telegraphic transfer fee: This is a bank charge for transferring the purchase funds, typically around $20 to $50.
Stamp duty land tax (SDLT):
Stamp duty land tax (SDLT) is a significant cost for property buyers. The amount payable depends on the property’s purchase price and whether the buyer is a first-time buyer or purchasing an additional property. SDLT rates are tiered, meaning different portions of the property price are taxed at different rates. It’s important to check the current rates and any applicable exemptions or reliefs.
By understanding these costs, buyers and sellers can better prepare financially for the conveyancing process, ensuring they have accounted for all necessary expenses and avoiding any unexpected financial surprises.
