Questions & Answers
The basis of paying the 4% fee for property registration
I am an Emirati national and I have a unit in a building owned by a developer in Abu Dhabi; I have purchased it approximately three years ago.
On 2 Oct 2018, I got an email from the developer that I need to pay 4% of the original purchase price to the municipality to get the unit registered under my name (title deed). This 4% needs to be paid by November.
I purchased the apartment at approximately 1.3 million, however, the original price of the apartment was 2.2 million and they are charging the 4% based on that. I have also paid a 2% transfer fee when I purchased the apartment.
What I'm saying is they expect me to come up with AED 86000 in one month or I would start getting fined. I don't think I have to pay anything.
I've been to the municipality and their attitude was that someone must pay whether it is the developer or the unit owner, regardless of the circumstances.
Dear Sir
The amount to be paid at 4% depends strictly on the figure mentioned in the SPA that you have signed with the developer.
In this instance, the position taken by the Municipality is 100% correct since they are responsible to collect the levy either as paid by you or the developer.
You will be guided by the figure which is mentioned on the SPA since that will be the legally registered document.
