What fees are involved with WeProperties investments?
At WeProperties, we believe in maintaining clarity and fairness in all aspects of your investment journey. Our fee structure is straightforward, ensuring you know exactly what to expect at every stage:
- Entry and Annual Fees:
- Acquisition Fee: 1.5% at the time of investment
- Annual Administration Fee: 0.5% each year for managing your investment.
- Compliance Fees:
- Initial KYC and AML Fee: A flat fee shall be applied at the time of acquisition.
- Annual KYC and AML Fee: 0.1% from the second year onwards.
- Exit Fees:
- Exit Fee: 2.5% charged upfront
- Performance Fee: 7% only on profits from property appreciation, ensuring we are motivated to maximize your returns.
- Municipality Transfer and Registration Fees: A fee is typically paid to the relevant Land Department or Municipality when a property changes ownership in a purchase and sale process.
- Trustee Fee: In certain jurisdictions, property transactions are completed through licensed trustee offices instead of legal firms. These offices handle the registration process, title deed issuance, and SPV setup, ensuring all deals comply with the relevant Land Department or Municipality requirements.
- Title Deed Fee: The Title Deed Fee is a mandatory charge for issuing a new ownership certificate when a property is transferred. It officially records the buyer as the new owner in the relevant Land Department or Municipality registry and is a crucial step in completing the legal transfer of property rights.
- Brokerage/Agency Fee: This fee is paid to the real estate agent or brokerage firm for facilitating the property transaction. It is typically a percentage of the property price. The fee covers services such as property sourcing, negotiations, and coordinating the transaction process.
- Administration Fee: This fee covers the costs associated with the due diligence needed to complete the transaction of property sale. This fee includes payments to third parties, including—but not limited to—legal services, payment processing, and overall coordination to ensure the transaction is completed smoothly and efficiently.
- Property Insurance Fee: This fee covers the cost of insuring the property against risks such as fire, natural disasters, or structural damage.
- Valuation Fee: A valuation fee is charged to inspect and assess the market value of a property, usually by a certified and authorized third party valuer.
- Certificate of Incumbency Fee: This fee is charged for issuing a Certificate of Incumbency, which confirms the authorized representatives of a company or SPV (Special Purpose Vehicle) involved in a property transaction.
- DIFC SPV Incorporation Fee: This fee is paid to establish a Special Purpose Vehicle (SPV) within the Dubai International Financial Centre (DIFC). Incorporating an SPV provides a legal structure for holding property, offering benefits such as asset protection, and streamlined ownership. The fee covers regulatory approvals, documentation, and registration with the DIFC authority.
- DIFC NOC Fee: This fee applies to obtaining a No Objection Certificate (NOC) from the DIFC authorities, which confirms that the SPV or its activities comply with regulatory, legal, and governance requirements. It's a vital step in corporate due diligence and facilitates the seamless progression of transactions or filings within the DIFC jurisdiction.
- Service Fee: This is an annual fee paid by property owners within a community to cover the costs of maintaining and operating common areas and amenities.
- Maintenance & Property Management Fee: This fee covers any needed upfront costs of maintaining and managing the property. It ensures the property remains in good condition and compliant with community standards, benefiting both owners and tenants.
- Utilities Deposits & Fees: These are charges and deposits required to set up and maintain essential services like water, electricity, and cooling for the property.
- Reserve Fund: This fund covers unanticipated expenses or fee variances that arise in the process of the completing the sale transaction and preparing the units for renting. Any portion of the fund that remains unused after these preparations will be returned to the investors.
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