Glossary
Plain-English definitions of terms that come up again and again. They are simplified; the exact legal meaning can differ by emirate or country.
- DLD (Dubai Land Department)
- The Dubai government body that registers property and transactions in the emirate.
- RERA (Real Estate Regulatory Agency)
- The regulatory arm of the Dubai Land Department. It licenses agents and developers, oversees off-plan projects and escrow, and approves building service charge budgets.
- Freehold
- Outright ownership of a property and, for villas, usually the land under it. In the UAE, foreigners can own freehold only in designated areas.
- Leasehold and usufruct
- Long-term rights to use a property for a fixed period without owning it outright. Common in some areas and for some nationalities; check exactly what you are getting.
- Off-plan
- Buying a property before it is built, usually from the developer, paying in instalments. See the off-plan guide.
- SPA (sale and purchase agreement)
- The contract between buyer and seller, or buyer and developer for off-plan purchases.
- MOU or Form F
- In Dubai, the standard memorandum of understanding signed by buyer and seller on a resale, setting out the price, deposit and timeline.
- Oqood
- Dubai's interim register for off-plan sales. The sale is recorded there until the building is complete and a title deed is issued.
- Escrow account
- A bank account for a specific off-plan project into which buyers' payments go. The developer can draw on it as construction progresses.
- Title deed
- The official document that records who owns a completed property.
- NOC (no-objection certificate)
- A letter from the developer confirming it does not object to a transfer, usually after checking that service charges are paid.
- Registration trustee
- An office approved by the Dubai Land Department to process property transfers on its behalf.
- Ejari
- Dubai's official system for registering tenancy contracts. A registered contract is needed for many other things, such as utility connections and some visa processes.
- Tawtheeq
- Abu Dhabi's equivalent of Ejari for registering tenancy contracts.
- Rental index
- An official reference for typical rents that, in Dubai, limits how much a landlord may increase the rent on renewal.
- Service charge
- The yearly fee owners pay for running and maintaining shared parts of a building or community. See service charges explained.
- Master community charge
- A separate fee for the shared roads, parks and facilities of a larger development.
- District cooling
- Central air-conditioning supplied to many buildings from one plant, usually billed separately.
- Snagging
- Inspecting a new property before accepting it and listing defects for the developer to fix.
- Handover
- The point where the developer gives a completed off-plan unit, and its keys, to the buyer.
- Payment plan and post-handover payment plan
- A schedule of instalments to the developer. "Post-handover" means some instalments continue after you get the keys.
- LTV (loan-to-value)
- The share of a property's value a bank lends. The Central Bank of the UAE sets the maximum.
- Investment zone
- In Abu Dhabi, an area where foreigners are allowed to own property.
- ITC (Integrated Tourism Complex)
- In Oman, a licensed development where non-Omanis can buy freehold property.