| Breeze |
| Folks, I hope someone here is less confused than I am and can shed some light on the property registration part of the new law. I was told that will basically be charged a hefty 1.25 % of the property price for the privilege of stamping our name on it with the Dubai land registry dept ?!! My point is : That's a lot of money and why bother registering the ppty and handing over all that cash to the land registery if there is nothing in it for me at this stage . I'd rather keep my money in my pocket or invest it somewhere else because at the end of the day I am gaining nothing from it at this stage. Especially if I have no intention in selling right away. Am I missing something . Are there any risks or incentives in doing it now rather than later. Please let me know... |
| sage & onion |
| In the UK, this would be known as "Stamp Duty", and has to be paid at time of purchase, here they only require it if you want to register your land. I believe that it should be done as quickly as possible in order to legalise the land in your name, but of course it is your choice. If they change the law later or raise the duty where would you stand? |
| benwj |
| I was told by EMAAR that you can buy and sell their properties as many time as you like regardless of whether they have been registered with the lands dept or not. Where do you stand? I agree with sage that, if it is registered with the lands dept as well, you may feel more secure in the event of them doing a back flip on the freehold law. But I also believe that in the unlikely event of this happening, the title deed will become irrelevant. The lands dept will probably make registration compulsory when they realise that some people are avoiding it, but I'd say that they are collecting more than enough money to keep them happy for a while yet. |
| St.Lucifer |
| :) like in India, people would start underquoting the deal price only in papers, throwing the purpose of stamp duty, also that of keeping a check on the prices, to the gutters.. :) |
| arniegang |
| It only serves the purpose in that it confirms that you own the "freehold". If the property is mortgaged then the bank will hold the "freehold" until the property is paid off and therefore is "freehold and free". As Sage correctly points out it is based on the UK system of land registry and stamp duty which is 1% upto a certain amount then 3% thereafter. It is also a "stealth tax" introduced by the Dubai Gov't. Dubai is fast becoming a place where tax will become a fact of life. |
| Breeze |
| Thank you all for your input. I think I was prepared to take the risk of fees going up if that's the only risk there is. I guess I'll just have to take it and hang on to my cash at this stage. After all I am only doing the land registery dept a favour as they must be working day and night at the moment ;-) If anyone knows something we don't know , please let us know... |
| gtmash |
In the case of my Nakheel place, Nakheel already took the (HIGH) fees to do the deed for me, in addition to the gov fees. So apparently they do all the legwork. Contracts before december 2006 are 1.5%, after is 1%, so it actually came down. I was handed my place in feb 2007, but contract apparently signed oct 2006, so I pay 1.5%, according to nakheel. |
| Breeze |
| oops that sounds quite unfair to me . I'd be really pissed off if I pay the fees now and they come down in the future . I think the effect would be much worst than seeing them go up in the future. Anyway, it makes me more hopeful though . Thanks gtmash |
| gtmash |
The way it has been for me, I think "they" will make you pay the old rate if you already have a place (bought before dec 2006). So if the rates go up or down, you are still stuck with 1.5%. |