Glossary

Demystify real estate and legal jargon.

Navigating the world of real estate and legal terminology may seem complicated, but understanding these terms doesn’t require a degree in law. We’re here to simplify complex concepts and help you feel confident and well-informed. Whether you’re buying a property, dealing with legal documents, or simply looking to understand the industry’s specific jargon, we’re here to guide you.

Terms

Explanation

Dubai Land Department (DLD)

The primary regulatory authority for the real estate market in Dubai, responsible for registering transactions, property transfers, and issuing title deeds.

RERA (Real Estate Regulatory Agency)

The DLD division responsible for regulating developers, real estate agents, and tenants, ensuring transparency in lease agreements (Ejari) and off-plan projects.

NOC (No Objection Certificate)

A key certificate issued by the real estate developer or an authority certifying that a property can be legally sold or transferred.

Ejari Registration

A mandatory system for registering lease agreements in Dubai, which strengthens the rights of tenants and landlords in accordance with RERA laws.

Oqood System

A platform dedicated to recording off-plan transactions, ensuring that projects comply with regulations prior to delivery

Freehold Property

A designated area where foreign investors can purchase and own real estate in Dubai, often in premium neighborhoods such as Downtown Dubai, Dubai Marina, or Palm Jumeirah.

Leasehold Property

A time-limited property right (99 years), typically applied in specific areas of Dubai.

Off-Plan Property

Real estate purchased before completion, often with flexible payment plans secured through escrow accounts.

Escrow Account

A secure bank account regulated by the DLD to protect buyers' funds in real estate projects under construction.

Title Deed

A legal document confirming ownership of real estate in Dubai, issued by the DLD.

SPAs (Sales and Purchase Agreements)

An official contract setting forth the terms of a real estate transaction between a buyer and a seller or a developer.

Down payment

An initial down payment made when purchasing a property, typically ranging from 10% to 20% of the total price.

Payment Plan

A payment plan offered by developers that allows buyers to spread the cost of a property over several years, either before or after completion.

DLD Transfer Fee

Mandatory fees set at 4% of the total price, payable to the DLD upon transfer of ownership.

Trustee's Office

DLD-approved offices responsible for facilitating transactions and securing funds prior to the completion of the sale.

Mortgage Pre-Approval

A letter issued by a bank confirming the amount of the loan granted to a buyer to finance a real estate purchase.

ROI (Return on Investment)

A key metric measuring the profitability of a property in Dubai, expressed as a percentage of annual rental income relative to the initial investment.

Service Charge

Annual fees paid by homeowners for the maintenance of common areas in apartment buildings or residential communities.

DEWA (Dubai Electricity and Water Authority)

An organization that provides the essential water and electricity services required to register or occupy a property in Dubai.

Certificate of Completion

A document issued by local authorities confirming that the construction of a property complies with regulatory standards.

Property Valuation Certificate

A detailed report prepared by a real estate appraiser to determine the fair market value of a property, required for mortgages or sales.

Cancellation Fee

Fees charged when canceling an off-plan contract, which are often specified in the terms of the preliminary sales agreement.

Broker Commission

A fee paid to a real estate agent for their role in a transaction, typically set at 2% of the property's price.

Property Management Agreement

A contract between a property owner and a property management company to oversee leasing, maintenance, and tenant relations.

Cooling-Off Period

The period during which a buyer may cancel a contract without penalty, applicable to certain real estate contracts.

With Leximmo's resources, you have all the tools you need to make clear, consistent and informed decisions at every stage.