Steering through the real estate market may seem a hard nut to crack in Dubai where the real estate sector is both very fluid and unique. However, this does not have to be the case with the right know-how. Knowledge of the common terms used within this industry is critical for any individual who intends to purchase, sell, or invest in a property within Dubai. Below are some of the most important real estate terminologies in Dubai that you need to know.

Freehold

When it comes to freehold property, the buyer has permanent ownership of both land and the property sitting on it. There are areas that have been defined as freehold areas where foreigners can buy properties in Dubai. This kind of possession guarantees complete control to the buyer.

Leasehold

Leasehold properties are those that one owns for a stipulated period say 10-99 years but not the land on which they stand. At the expiry of that lease term, ownership goes back to the owner of the land. These types of properties in Dubai usually come in places where freeholds are restricted.

Ejari

Ejari or ‘my rent’ in Arabic, is a program of the Real Estate Regulatory Agency (RERA) in Dubai aimed at bringing regulation to the rental market. All leases and rental agreements must be registered in one central database. Ejari registration is important because it ensures the legality of lease contracts and helps in resolving disputes between tenants and landlords.

Title Deed

A title deed can be defined as a legal document that shows ownership of property. In Dubai, title deeds are issued by the Dubai Land Department (DLD). For any property transaction, it is an essential document as it provides evidence of ownership to the buyer, as well as the size and location among other details.

Oqood

This refers to an online system used by developers and purchasers for registering off-plan sales of properties in Dubai. Oqood which means “contracts” in Arabic ensures that all off-plan sales are documented and registered with relevant authorities thus providing buyers with some safety net while ensuring transparency in transactions.

Off-plan

An off-plan property in Dubai can be defined as a building sold before it is completed. Buyers typically develop such properties based on the developer’s illustrations and drawings. Purchasing off-plan properties can be beneficial as they are usually priced lower than finished ones, although there are risks involved like delays or variations that might arise during construction.

Real Estate Regulatory Agency (RERA)

RERA is the regulatory authority for Dubai’s real estate market. It has been set up for the purpose of devising and enforcing policies as well as regulations aimed at ensuring transparency, fairness, and efficiency in the real estate market. In addition to this, RERA handles disputes and complaints among parties involved in real estate transactions.

Developer

A developer is a person or firm that builds and sells houses, apartments, or industrial facilities. Developers in Dubai must register with RERA and comply with strict laws to ensure their projects’ quality control and legality.

Service Charges

These are payments made by the landowners for the common area and facility maintenance in a residential or commercial building. Usually, service charges involve expenses like cleaning, security, landscaping, and general repairs. Buyers and investors ought to understand what is meant by service charges so that they can better decide whether they want a specific service or not.

Maintenance Fees

These are fees similar to service dues and are paid by homeowners to maintain their properties. The purpose of this fee is to keep the property in good condition since it mostly covers expenses associated with repairs, upkeep, and improvements. The amount of money you pay as maintenance fees depends on the type of property and its vicinity.

Transfer Fee

It is the amount of money that one pays to Dubai Land Department (DLD) during a property transfer implying ownership rights from a seller to a buyer. The transfer fee is typically calculated as a percentage of the sale price of the property. Typically, Dubai charges 4% of the sales price while other deals may differ depending on terms that apply specifically to each transaction.

Security Deposit

When it comes to rental properties in Dubai, a security deposit is an amount paid by the tenant to the landlord as a guarantee against any damages or unpaid rent. This is refundable at the end of the tenancy if there are no damages or outstanding payments.

Mortgage

A mortgage is a loan taken by a buyer to buy a property. In Dubai, mortgages are offered by banks and financial institutions and the terms and conditions vary. Make sure you understand the interest rates, repayment terms, and other conditions before you commit.

Valuation

A valuation is an assessment of a property’s value by a professional. Valuations are required for various purposes including getting a mortgage, selling a property in Dubai, or for legal purposes. Accurate valuations ensure the property is bought or sold at the right price.

Conclusion

Knowing the key real estate terms will help you navigate Dubai’s property market, and will make you well-equipped. Whether you are a buyer, seller, or tenant trying to understand the market, this guide will simplify a lot of things for you. For any assistance with a real estate transaction in Dubai, get in touch with InZone Properties to secure top-notch services.