DLD Waiver in Dubai: What the 4% Fee Covers and What Buyers Still Pay

What a DLD Waiver Is

What 4% Means in Dirhams

What a Waiver Does Not Cover

Why Waivers Matter More Since February 2025

A Worked Comparison: Waiver vs Price Discount

What to Check in the Contract

Why Choose Banke International Properties?

Conclusion

Dubai Real Estate Insights · Buying Costs DLD Waiver in Dubai: What the 4% Fee Covers and What Buyers Still Pay A DLD waiver means the developer pays all or part of the 4% Dubai Land Department registration fee that a buyer would normally pay. It is a common incentive on off-plan launches, and it only covers that one fee. This Banke guide explains what

a waiver is, what it saves in dirhams, what it does not cover and what to check in the contract before you rely on it. What a DLD Waiver Is When a property is registered in a buyer’s name in Dubai, the Dubai Land Department (DLD) charges a registration fee of 4% of the purchase price. A DLD waiver is an arrangement where the developer

absorbs that fee instead of the buyer. Where you see it: mostly on off-plan (under construction) projects, often as a limited-time launch offer. Full or partial: some offers cover the whole 4%, others only part of it. Published guides describe 50% and 100% waivers, so always ask which one is on offer. What it covers: the 4% registration fee only. It is not a discount

on the price of the property. What 4% Means in Dirhams The saving depends entirely on the price. These are simple calculations of 4% on round figures, shown as examples and not as quotes: AED 2,000,000 property: 4% is AED 80,000 . AED 5,000,000 property: 4% is AED 200,000 . AED 10,000,000 property: 4% is AED 400,000 . A 50% waiver halves those figures. A

waiver therefore matters most for buyers who want to keep cash available for deposits and payment-plan instalments. What a Waiver Does Not Cover A waiver removes one cost. Other charges in the transaction remain, and the exact list depends on whether you buy off-plan or ready, and whether you use a mortgage or an agent. Your deposit and the instalments in the payment plan. Any

part of the 4% the developer has not agreed to pay, if the waiver is partial. Other registration and administrative charges. Published buyer-cost guides report a trustee office fee of AED 2,000 for properties under AED 500,000 and AED 4,000 above that, plus VAT, and a small DLD administration fee. Confirm current amounts with the Dubai Land Department before budgeting. Mortgage costs, service charges and

any agency commission, if they apply to your purchase. Why Waivers Matter More Since February 2025 Published market guides report that from February 2025 mortgage lenders in the UAE can no longer add the 4% DLD fee to the loan. Buyers must therefore pay the deposit and the registration fee up front, in cash. That change is why a developer paying the fee has become

a more visible incentive. It does not change what a waiver covers, and it does not mean every project offers one. Check the current mortgage rules with your lender. A Worked Comparison: Waiver vs Price Discount A waiver and a discount can look similar, but they are calculated differently. Here is an illustrative example on a AED 2,000,000 property: Offer A, full DLD waiver: price

AED 2,000,000, DLD fee paid by the developer. Cost to you: AED 2,000,000. Offer B, 3% price discount: price AED 1,940,000, and you pay 4% DLD on that price, which is AED 77,600. Cost to you: AED 2,017,600. In this example the waiver costs AED 17,600 less, but a bigger discount would change the answer. Always compare the full cost of each offer, including every

fee, on the same basis. Also compare the payment plan, handover date and developer, not only the fee. What to Check in the Contract It must be written down. The waiver, and the percentage covered, should appear in the Sales and Purchase Agreement (SPA), not only in a brochure or message. Payment milestones. Some waivers depend on paying instalments on time. Ask what happens if

a milestone is missed. Resale before completion. Published guides say a waiver may not transfer to a new buyer if you resell before the project completes. Ask the developer directly. Limits. Offers are often tied to specific projects, units or dates. Registration. Ask how and when the off-plan sale is registered with the Dubai Land Department, and read how buyer money is protected in our

guide to Dubai escrow accounts . Why Choose Banke International Properties? A waiver is only one line in a purchase. Banke’s advisory team can help you compare offers on a full-cost basis, read the payment plan and SPA terms with you, and set an off-plan purchase against ready property. Our guides on off-plan vs ready property and the off-plan risk checklist are a good place