Are there any fees associated with property registration?

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Jun 19, 2025 - 00:07
 3

Ajman, one of the fastest-growing emirates in the UAE, continues to attract both local and international investors looking for lucrative real estate opportunities. With a wide range of residential and commercial plots for sale, understanding the cost implications—especially related to property registration—is essential for buyers. This article explores the various fees involved in property registration in Ajman and offers insights on both residential and Commercial Plot for Sale in Ajman .

Understanding Property Registration in Ajman

What Is Property Registration?

Property registration is the official process of transferring legal ownership of a property from the seller to the buyer. In Ajman, the Ajman Real Estate Regulatory Agency (ARRA) oversees this process to ensure transparency and legality.

Who Needs to Register Property?

Whether you’re purchasing a residential plot, a commercial plot, or a built-up property, registration with ARRA is mandatory. Both UAE nationals and expatriates (in designated freehold areas) are required to complete this step.

Types of Properties in Ajman

Residential Plots

Residential plots are parcels of land zoned specifically for the construction of housing. They can range from plots for individual villas to large-scale residential complexes.

Key Features:

  • Located in both freehold and leasehold areas

  • Popular with both UAE nationals and foreign investors

  • Often found in developing communities like Al Helio, Al Yasmeen, and Al Alia

Commercial Plots

These are intended for business-related developments such as office buildings, retail spaces, and warehouses.

Key Features:

  • Found in industrial zones and central business districts

  • Typically cost more than residential plots due to commercial viability

  • May require additional approvals for development

Breakdown of Property Registration Fees

1. Transfer Fee (Property Registration Fee)

This is the main fee required for registering a property in Ajman. It is calculated as a percentage of the property's sale value.

  • Standard Fee: 2% of the total property value

  • Payable By: Usually shared equally by the buyer and seller, unless otherwise agreed

  • Collected By: Ajman Real Estate Regulatory Agency (ARRA)

2. Admin Charges

These are fixed fees charged by the Land Department or ARRA to process the transaction.

  • Typical Cost: AED 1,000 – AED 2,000 depending on the property type and transaction complexity

3. NOC (No Objection Certificate) Fee

A No Objection Certificate is required if the property is within a master development or managed community.

  • Cost: AED 500 – AED 5,000

  • Payable To: The master developer (e.g., Ajman Uptown, Al Zorah)

4. Mortgage Registration Fee (If Applicable)

If the buyer is financing the purchase through a mortgage, the mortgage must also be registered.

  • Fee: 0.25% of the mortgage value

  • Collected By: ARRA or designated financial institutions

5. Brokerage Commission (Optional but Common)

In cases where a real estate agent is involved, a commission is payable.

  • Rate: Typically 2% of the property price

  • Payable By: Buyer or seller, depending on the agreement

Fees Comparison: Residential vs. Commercial Plots

Fee Type Residential Plot Commercial Plot
Transfer Fee 2% of property value 2% of property value
Admin Charges AED 1,000 – AED 2,000 AED 1,500 – AED 2,500
NOC Fee AED 500 – AED 3,000 AED 2,000 – AED 5,000
Mortgage Registration 0.25% (if applicable) 0.25% (if applicable)
Brokerage Commission Optional – ~2% Optional – ~2%

Where and How to Pay Property Registration Fees

Ajman Real Estate Regulatory Agency (ARRA)

All official fees are payable at ARRA. The agency offers a user-friendly process and also supports electronic transactions for certain types of registrations.

Required Documents:

  • Title deed or property ownership certificate

  • Valid Emirates ID and passport copies

  • Buyer-seller agreement

  • No Objection Certificate (if applicable)

  • Bank approval letter (for mortgage purchases)

Tips for Reducing Property Registration Costs

1. Negotiate Fees with the Seller

While the 2% registration fee is standard, parties can agree on how to split the cost. In some cases, sellers may offer to bear full or partial fees to close the deal faster.

2. Choose Properties with Prepaid NOC

Some developers may include the NOC in the property cost. This can help reduce your upfront expense.

3. Work with a Trusted Agent

Hiring a knowledgeable real estate agent can streamline the process and potentially help you find properties with fewer hidden charges.

Legal Compliance and Transparency

Ajman authorities take property registration and fee payments seriously. Skipping registration or attempting to undervalue property to reduce fees can result in:

  • Legal penalties

  • Invalid ownership claims

  • Ineligibility for resale or leasing

Always ensure that all transactions are documented and conducted through ARRA-approved channels.

Case Study: Cost Estimation for a Residential and Commercial Plot

Example 1: Residential Plot

  • Purchase Price: AED 500,000

  • Transfer Fee (2%): AED 10,000

  • Admin Charges: AED 1,500

  • NOC Fee: AED 2,000

  • Total Estimated Cost: AED 13,500

Example 2: Commercial Plot

  • Purchase Price: AED 1,200,000

  • Transfer Fee (2%): AED 24,000

  • Admin Charges: AED 2,500

  • NOC Fee: AED 4,000

  • Total Estimated Cost: AED 30,500

Conclusion

Purchasing property in Ajman—whether a residential or commercial plot—offers excellent investment potential. However, it’s crucial to understand the fee structure involved in property registration. These include transfer fees, admin costs, NOC charges, and optional brokerage commissions. Proper financial planning, legal due diligence, and working with credible real estate professionals will ensure a smooth and cost-effective registration process.

Explore Properties in Ajman:

  • [Residential Plot for Sale in Ajman]: Ideal for building a custom family home in a growing community.

  • [Commercial Plot for Sale in Ajman]: Perfect for investors and businesses looking to expand in the UAE market.

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