Terminology

Terminology

Use our quick Terminology Guide below to help you ensure a smooth and successful purchase process:

Mortgage pre-approval Mortgage pre-approval is the initial step in the home-buying process. During this stage, the bank reviews your application and provides a letter or email confirming that you've been pre-approved for a loan, outlining the amount they are willing to lend. This pre-approval is typically valid for 60 days.

Loan-to-value ratio (LTV) The loan-to-value (LTV) ratio represents the percentage of the property's purchase price that you can finance through a mortgage. For instance, if you’re purchasing a home for AED 1 million and your lender allows a maximum LTV of 80%, you would be eligible to borrow up to AED 800,000. A higher LTV means a lower down payment is required.

Off-plan properties Properties in Dubai that are still being built or are in the planning phase are known as off-plan properties, while those that are completed and ready for occupancy are referred to as ready properties. Purchasing an off-plan property can be appealing due to the attractive incentives and flexible payment options often offered. However, it’s essential to be aware of the risks involved, such as the possibility of a delayed property handover date.

Saleable area The saleable area is the usable space within a property. Understanding this area is important, as it is key in determining the property’s value and potential return on investment. The saleable area calculation does not include common areas such as elevators, lobbies, and staircases.

Sales and Purchase Agreement (SPA) The Sale and Purchase Agreement (SPA) is a legally binding contract between the buyer and seller of a property. It details the terms and conditions of the sale. It’s crucial to review this document thoroughly before signing to ensure your interests are protected.

Dubai Land Department (DLD) The DLD is the government authority responsible for regulating the real estate market in Dubai. When buying or selling property in Dubai, it is important to register the transaction with the DLD. This will help to protect your rights and ensure that the transaction is legal.

Real Estate Regulatory Agency (RERA) RERA is a branch of the DLD responsible for protecting the rights of real estate investors and consumers.

Title deed Oqood The title deed is a document issued by the DLD that proves the ownership of a property. The title deed is generally issued for ready properties.

Oqood If you purchase an off-plan property in Dubai, you will receive the Oqood document, which serves as proof of the property's registration in your name.

UAE Golden Visa Real estate investors can obtain self-sponsored residency in the UAE through the Golden Visa program. This visa grants you and your family a renewable 10-year residency. To qualify, you must own a property valued at AED 2 million or more and have paid at least AED 1 million. Alternatively, if you have paid AED 750,000 or more for your property in the UAE, you may be eligible for a 2-year Investor Visa.

Ejari Ejari is a widely used term in Dubai’s real estate market, referring to the online system for registering rental agreements. When you lease your property to a tenant, it’s important to register with Ejari to protect your interests as a landlord.

Dubai Land Departent (DLD) Form B This is a formal agreement between you and your agent, giving them the legal authority to represent you in upcoming negotiations. hile this form is not a commitment to purchase a specific property, it is essential to establish a formal relationship with your agent. Below is a breakdown of the information required in the Form B:
▪ Buyer’s requirements
▪ Location of the property
▪ Buyer’s Budget
▪ The type of property the buyer is looking for

Dubai Land Department (DLD) Form A This is a formal agreement between you and an agent to market and broker the sale of your property. This document includes key property details such as:
▪ Listing information
▪ Agent Commission
▪ Service charges
▪ Payment schedules
▪ Mortgage status (if applicable)

Sales and Purchase Agreement (SPA) / Form F A Sale and Purchase Agreement (SPA) is a frequently encountered term in Dubai’s real estate market. This legally binding contract between the buyer and seller details the terms and conditions of the sale. The Form F will outline essential details such as the agreed sale price, vendor’s information, buyer’s information, property specifics, and other key terms.

Power of Attorney (POA) A power of attorney (POA) legally designates a representative to act on behalf of the person granting the POA in their absence. Any decisions made by the appointee, as well as the documents they sign, are binding. Legally, a POA must include the necessary notarizations and attestations.

Liability letter Document issued by a mortgage lender or bank when a property owner wishes to sell a mortgaged property. The letter details the outstanding mortgage amount or liability on the property that the seller must settle before or during the sale process.

No Objection Certificate (NOC) A document issued by the property developer or the seller's mortgage lender to confirm that there are no outstanding issues or liabilities on the property. This certificate is required for the transfer of property ownership, ensuring that all service charges, mortgage obligations, or any other dues have been fully settled.

Offer letter Upon finding your desired property, your Property Consultant will present an Offer Letter. This will provide a clear breakdown of the purchase price, associated fees, and any terms and conditions included in the sale agreement.