There are many terms with which you may be unfamiliar. We have listed the most common to help keep you fully informed.
AOA is an "Articles of Association", this is a company document that is required to transfer a property if there is a company as a buyer or seller.
Also known as the Dubai Green Building System, regulates sustainable development in Dubai and the UAE. Initiated by the Dubai Municipality, it encourages eco-friendly construction. Buildings adhere to Silver, Golden, or Platinum Sa’fat standards, enhancing safety and reducing environmental impact.
Refers to the entire space currently under construction on a property. Specifically, it represents the gross floor area in the context of a building or multi-story construction.
BVI stands for the "British Virgin Islands" and some entities selling may be selling as a company and their company could be registered as a BVI company.
COL is a "Certificate of Incorporation." This is a company document that is required to transfer a property if a company is acting as the Buyer or Seller.
The fee paid to a real estate agent or broker for their services in facilitating the sale, purchase, or rental of a property. The commission is usually a percentage of the transaction value.
DED stands for the "Department of Economic Development." More details on the DED are available on their website: https://dubaided.gov.ae/default/en
DDA stands for “Dubai Development Authority.” DDA Approval refers to zoning approval for master planning and any building services on your behalf.
Dubai Land Department (DLD) serves as the primary regulatory authority governing real estate affairs within Dubai. Its mandate encompasses the supervision and assurance of secure and transparent real estate transactions throughout the city. Through the provision of a robust regulatory framework, effective dispute resolution mechanisms, and comprehensive customer services, the DLD is dedicated to safeguarding the interests of investors, property owners, and tenants alike.
DM stands for "Dubai Municipality" and a Seller must have all approvals for any and all improvements that have been made to the property since it was handed over from the developer to the original owner.
Meaning ‘my rent’ in Arabic, is an initiative by the Real Estate Regulatory Agency (RERA) to regulate the rental market and tenancy contracts in Dubai. Implemented in 2010, this state-of-the-art system requires all rental and lease contracts for properties in Dubai to be registered on the Ejari Dubai portal. Its primary objective is to provide a clear and official record of all lease agreements, offering a layer of protection for both landlords and tenants.
EID is short for Emirates ID and to ensure a successful property transfer, a valid Emirates ID is required. You can purchase property without a valid EID if non-resident.
An escrow account acts as a secure third-party holding area for funds. Once an escrow agreement is in place, the seller can access the funds transferred by the buyer, ensuring a protected transaction process.
A FOL is short for “Final Offer Letter” which is the letter from the Buyer's financial institution who is lending money for the purchase of the property and is issued once a property is found and a valuation has been completed for the specific property.
A vital RERA document for property sales in Dubai, establishing the agreement between seller and agent, including property details, marketing strategies, and financials. It’s mandatory for sellers to sign it with their listing agent, and once signed, it’s validated by the DLD’s Trakheesi system with a permit number for advertising. Joint owners must all sign, and a seller can engage with up to three brokers at a time, one per Form A.
A mandatory RERA document for purchasing property in Dubai, including office spaces. It formalises the appointment of a RERA-certified agent by the buyer to locate properties that fit specific needs and budget. The form encompasses property type, location, buyer’s budget, and requirements, along with contract termination conditions, compensation, and agency fees.
Also known as the Memorandum of Understanding (MOU), is a key RERA document in Dubai, serving as the official purchase agreement between buyer and seller. It details the property, financials, and agent commissions, and becomes a valid contract once signed by both parties and witnessed by the agent. Essential for real estate transactions, it often accompanies a SPA or MOU to complete the sale process.
In Dubai, purchasing a freehold property grants the buyer full legal ownership until they decide to sell. Foreign investors can acquire freehold properties, though only in designated areas of Dubai. This offers a secure investment opportunity with long-term ownership rights.
A gated community refers to a residential area within new freehold developments, offering enhanced security measures such as 24-hour surveillance and controlled access points.
JAFZA stands for "Jebel Ali Free Zone Authority." Similar to A BVI (British Virgin Islands) company, a JAFZA company may be an entity that is selling or buying the property.
The owner of a property who rents it out to tenants in exchange for rental income.
In Dubai, leasehold properties grant buyers the right to use and occupy the property for a predetermined period, typically up to 99 years, with the possibility of extension. This arrangement provides long-term stability for occupants while maintaining the land ownership with the freeholder.
An LL stands for a “Liability Letter” which is the amount of money outstanding and owed to the Seller's financial institution to enable the property to be unencumbered and able to be successfully transferred to the Buyer.
A recurring fee paid by owners of properties in shared communities or buildings to cover the cost of maintaining common areas, facilities, and services. (Also known as Service Charge).
Makani is Dubai’s digital navigation system that assigns a unique 10-digit ‘Makani number’ to every building and public space, simplifying location identification throughout the city. The term ‘Makani’ translates to ‘my location’ in Arabic.
Musataha is a contractual right in the UAE allowing individuals to lease land for construction or agriculture without owning it, with leases lasting up to 50 years. Governed by the UAE Civil Code and subject to emirate-specific regulations, Musataha is less prevalent in free zones but is permitted by certain authorities like Tecom and Dubai World Central for property development.
MOA is a "Memorandum of Association", this is a company document that is required to transfer a property if there is a company as a buyer or seller.
A non-binding agreement between parties involved in a property transaction that outlines the general terms and conditions before the preparation of a formal contract.
A loan provided by a bank or financial institution to finance the purchase of a property. The property acts as collateral for the loan, and the borrower makes regular payments to repay the loan over a specified period.
A document issued by relevant authorities granting permission or approval for certain activities related to real estate transactions or development.
Off-plan properties in Dubai refer to developments that are in the pre-construction or early construction phase. They are popular due to the attractive payment plans and incentives they offer to buyers. The off-plan property market in Dubai is significant, catering to a wide range of customer preferences.
Oqood, meaning ‘contracts’ in Arabic, is a Dubai real estate portal that simplifies the management and initial sales registration of off-plan projects for developers, circumventing the need for direct DLD involvement. It regulates, automates, and brings transparency to the off-plan property market, bolstering investor confidence.
OP stands for “Original Price”, which refers to the original price of the property being transferred.
A Power of Attorney (POA) legally designates a representative to make decisions and sign documents on behalf of the issuer in their absence. Decisions and signatures by the appointee are legally binding, provided the POA has been duly notarized and attested as required by law.
PA stands for “Pre-Approval” which is a letter from the Buyers financial institution agreeing to lend the Buyer a certain amount of money that is pre-approved for the purchase of a property.
PP stands for “Purchase Price”, which refers to the purchase price of the property being transferred.
The Rental Disputes Centre (RDC) swiftly and effectively resolves rental disputes, facilitating a robust real estate market and supporting both landlords and tenants in Dubai. It plays a crucial role in addressing rental disagreements and tenancy law violations beyond the scope of the involved parties.
These are properties that have already been completed and are ready for immediate occupancy or use.
Real Estate Regulatory Authority (RERA) is a branch of the Dubai Land Department (DLD) that establishes the regulations for the Dubai real estate market. It encompasses legislation on property rental and purchase, as well as the legalisation and registration of real estate transactions through various RERA forms.
This is a measure of the profitability of an investment property, usually expressed as a percentage, which indicates the return an investor can expect from their investment over time.
These are fees paid by property owners in shared communities or buildings for the maintenance and management of common areas and facilities.
An SPA, or Sale and Purchase Agreement, is a key contract in Dubai’s property market, setting out the terms and conditions of the sale between the buyer and seller. It is a widely acknowledged and legally binding document that formalises the transaction.
SP stands for “Selling Price”, which refers to the selling price of the property being transferred.
Snagging in Dubai real estate is the process of inspecting a new property for any defects, ensuring all issues are addressed by the developer before the property’s final handover to the buyer, guaranteeing quality and safety standards are met. This essential step involves expert inspectors and covers all aspects of the property, from structure to finishes.
A person or entity that rents a property from a landlord in exchange for paying rent.
A title deed is an official document registered with the Dubai Land Department, confirming ownership of a property, and legally recognising the owner’s rights with the emirate’s authorities.
The process of checking the history of a property's ownership, liens, and any other legal encumbrances to ensure that the title is clear and can be transferred to a new owner.
Trakheesi is a system in Dubai that facilitates the licensing and approval of real estate agents and firms, offering a suite of services for property listings, app and website creation, all integrated with the Dubai Economic Development (DED) for official record-keeping. It's essential for the regulation and professional conduct within the real estate sector.
A fee paid to the government authorities for transferring the ownership of a property from the seller to the buyer.
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