Nakheel and Dubai Lands Department commit to 'no hidden fees' initiative

Nakheel, the world's largest privately held property developer, has teamed up with the Dubai Lands Department to implement a «no hidden fees» initiative relating to property transactions.

For Nakheel, the initiative has two major aspects. Firstly, to modify internal procedures that will lead to reductions in costs for property purchasers and secondly to ensure greater transparency in cost information provided to the buyers.

The modification of internal procedures has been made possible as a result of the Dubai Real Estate Law and the commencement of registration of title to properties leading to less reliance on Master Developers internal Registers. Master Developers will still need to know who are the owners of the villas and apartments in their communities to ensure that their rights are recognised but the rights and duties will derive from their title to their property and not from the initial contract.

The second major aspect of the «no hidden fees» initiative is that Nakheel will highlight in its contracts, so that it is clearly visible, the actual fees payable and clearly spell out that buyers are not liable to pay any sellers costs. This includes for Land Department fees and Affection Plan production costs.

Nakheel will continue to provide value added services where required by customers but will not make these services mandatory, they will be matter of choice for the customers. These services include contract production for building purchasers or assistance with Land Department title transfers for registered owners.

Chris O'Donnell, Nakheel Chief Executive Officer said:

«As both the Dubai property market and laws mature, it is vital that master developers streamline their processes and fees to reflect this progress. Working alongside the Dubai Lands Department, Nakheel has taken the initiative to ensure that the process of purchasing property is as user-friendly as possible. These changes will not only ensure greater transparency when purchasing freehold property, it will have the added benefit of reducing costs to our customers.«

Mohammed Sultan Thani, Dubai Lands Department Director Development & Marketing Administration said:

«There has been some confusion in the market about 'hidden fees' being charged to freehold purchasers by developers and sub-developers. The Dubai Lands Department is committed to protecting the rights of the customer to a clear and straightforward sales process, while also guaranteeing continued excellent growth in the Dubai property market. Dubai Lands Department and Nakheel's commitment to this 'no fees initiative' is an excellent step forward in making the process of purchasing even easier for local and international investors.»

One of the areas of many complaints is the fee charged by Master Developers for Notification of Completion (NOC) on title transfer. Whilst the NOC remains an important aspect for the benefit of purchasers in order for the Master Developer to confirm that there are no outstanding issues such as unpaid service charges, there are administrative costs in checking and verifying. Nakheel however has reduced its fee for the issue of the NOC from Dhs 1000 to Dhs 500 as part of its fee initiative.