Glossary

Dubai property, term by term.

The vocabulary of a Dubai purchase, from DLD to usufruct, explained in plain English. Where a rule involves a number, we give the figure as it currently stands and mark it so; the regulator changes them from time to time and we update this page when it does.

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A

Assignment (off-plan resale)

Selling an off-plan unit before handover by transferring the sale and purchase agreement to a new buyer. The developer must consent through a no-objection certificate, and most currently require a minimum share of the price — often 30% to 40% — to have been paid first. The new buyer takes on the remaining instalments.

B

Building Completion Certificate (BCC)

The certificate Dubai Municipality or the relevant free-zone authority issues when a building has been inspected and passes for occupation. Developers cannot legally hand over units, and utilities cannot be connected in the owner's name, until it has been granted. If a handover date is close, ask whether the BCC has been issued yet.

Related termsHandover DEWA Snagging

Built-up area (BUA)

The total constructed floor area of a unit or villa, including internal walls, and usually balconies, terraces and any covered parking or service rooms. It is the figure most listings quote, so it is also the figure most easily inflated. Ask which elements are inside the number before comparing two properties on price per square foot.

C

Capital appreciation

The increase in a property's value between purchase and sale, before costs. In Dubai it is best measured against registered transactions for the same unit type rather than asking prices, which can run well ahead of what actually completes. Subtract the roughly 7% to 8% round-trip transaction cost before calling a gain a gain.

Capital gains tax

A tax on the profit from selling an asset. The UAE currently levies no capital gains tax on property sold by an individual, and no personal income tax on rental income. Your country of tax residence may treat the gain differently, so take advice there before relying on the UAE position.

Chiller fees (district cooling)

Charges for air conditioning in buildings served by a central district-cooling plant rather than individual units. They are billed by the cooling provider, typically as a fixed capacity charge plus consumption, and sit outside both the DEWA bill and the service charge. In some towers they add materially to running costs, so ask for a year of actual invoices.

Related termsService charges DEWA

Completion date (anticipated)

The handover date stated in an off-plan sale and purchase agreement. Most agreements allow the developer a grace period beyond it — often six to twelve months — before any buyer remedy applies, so the date is a target rather than a promise. Plan finances around the later date.

D

DEWA

Dubai Electricity and Water Authority, the utility for most of the emirate. An owner or tenant opens an account in their own name at move-in, paying a refundable security deposit, and the monthly bill also carries the Dubai Municipality housing fee. Some communities are served by other providers, so check before assuming.

DLD transfer fee

The registration fee charged by the Dubai Land Department on a sale, currently 4% of the purchase price plus a small administration charge. Regulation describes it as shared between buyer and seller, but by market convention the buyer pays all of it. On off-plan purchases it is paid at Oqood registration; on ready property, at the trustee office on transfer.

Dubai Land Department (DLD)

The government body that registers every property transaction in Dubai, issues title deeds and oversees the market through its agencies, including RERA. Ownership only exists once it is recorded here. Its published transaction data is the most reliable evidence of what property actually sells for.

Dubai REST

The Dubai Land Department's app and portal for property owners, tenants and brokers. It shows a property's registered details, lets owners view and download title deeds, verify a broker's licence, and check a project's registration and escrow status. Use it to confirm a listing is what it claims to be.

E

Early settlement fee

The charge a bank applies when a mortgage is repaid ahead of term, whether from a sale or a refinance. UAE Central Bank rules currently cap it at 1% of the outstanding balance or AED 10,000, whichever is lower. Ask for the exact figure in writing when deciding whether to sell a mortgaged property.

Ejari

The RERA system that registers residential tenancy contracts in Dubai. Registration is required for a tenancy to be enforceable, to connect utilities in the tenant's name and to sponsor family visas, and it is usually the tenant's responsibility. A seller of a tenanted property should hand over the current Ejari certificate with the contract.

Emirates ID

The identity card held by every UAE resident. It is not needed to buy property — a passport is sufficient for non-residents — but it is required to open a resident bank account, register a tenancy and complete most utility and government processes. Golden Visa holders receive one once the visa is issued.

Escrow account

A project-specific bank account, regulated by RERA, into which every buyer payment on a registered off-plan development must be made. The developer can draw funds only against certified construction progress, so buyer money cannot be diverted to other projects. Confirm a project's escrow account is registered before paying a booking deposit.

Related termsRERA Off-plan Oqood

F

Form A / Form B / Form I

The standard RERA broker agreements. Form A is the seller's listing agreement with a broker; Form B is the buyer's agreement to be represented; Form I sets out how two brokers share a transaction. Without a signed Form A, a broker is not entitled to advertise a property.

Related termsMoU / Form F RERA Trakheesi

Freehold

Outright ownership of a property and a share of the land it stands on, with no expiry, available to any nationality in Dubai's designated freehold areas. It is registered with the Dubai Land Department, and the owner may sell, let, mortgage or bequeath the property. Almost every community OAC18 works in is freehold.

Related termsLeasehold Title deed Usufruct

G

Golden Visa

A long-term UAE residence visa, currently ten years, available on several grounds including property ownership. Property currently qualifies at a registered value of AED 2 million or more, held in the applicant's name. The criteria have been revised more than once, so confirm the current rules before a purchase is structured around them.

Gross floor area (GFA)

The total floor area a developer is permitted to build on a plot, measured across all floors and usually excluding basements, parking and some service areas. It is a planning figure rather than a marketing one, and it determines how many units a tower can hold. It is not the same as a unit's built-up area.

H

Handover

The point at which a developer delivers a completed unit to the buyer, after the final instalment is paid and the completion certificate is issued. The buyer inspects the unit, records defects for the developer to fix, receives keys and access cards, and the title deed is issued in place of the Oqood registration. Budget for service charges and utility deposits from this date.

J

Jointly owned property (JOP)

The Dubai legal framework for buildings and communities where owners share common areas — the equivalent of strata or condominium law elsewhere. Common areas are managed by a management company under RERA supervision, funded by the service charge, with an owners' committee representing residents. The governing law is currently Law 6 of 2019.

K

KYC and source of funds

The identity and anti-money-laundering checks that brokers, developers, banks and trustee offices are required to carry out on every buyer. Expect to provide a passport copy, proof of address and evidence of where the purchase money came from. Preparing the documents once, before the first transfer, is the single best way to keep a remote purchase on schedule.

L

Leasehold

A long lease on a property, commonly up to 99 years, on land that remains with the freeholder. Leasehold is now uncommon in Dubai's residential market but still exists in a few older districts and some developments on government or master-developer land. It is registered with the Land Department, and its value tends to fall as the term shortens.

Related termsFreehold Usufruct

Liability letter

A letter from a seller's bank stating the exact amount needed to settle the mortgage on a property, valid for a set period. The buyer, or the buyer's bank, pays this sum to clear the charge before the transfer can be registered. Sellers should request it early; banks can take one to two weeks to issue it.

M

Manager's cheque

A cheque drawn on the bank's own funds rather than on a personal account, used for the balance of the price at a transfer. Trustee offices currently require payment by manager's cheque, and increasingly by bank transfer to the trustee's account, so that funds are certain on the day. Non-residents without a UAE account typically route the payment through the trustee or a power of attorney.

Mollak

The RERA system that oversees service charge accounts for jointly owned properties. Management companies must budget, invoice and collect through it, and owners' payments sit in accounts the regulator can see. It is why a developer's no-objection certificate can confirm, reliably, that a unit's service charges are paid.

Mortgage LTV (loan-to-value)

The share of a property's value a bank will lend. UAE Central Bank rules currently allow expatriate residents up to 80% on a first home under AED 5 million and 70% above it, with lower ceilings for second properties and off-plan. Non-residents are lent to at each bank's discretion, commonly 50% to 60%, and terms depend on income, age and country.

Mortgage registration fee

The Dubai Land Department fee for registering a bank's charge over a property, currently 0.25% of the loan amount plus a small administration charge. It is paid at the trustee office on transfer, in addition to the transfer fee, and is usually the buyer's cost. Banks add their own arrangement and valuation fees on top.

MoU / Form F

The memorandum of understanding — RERA's Form F — that a buyer and seller sign once a price is agreed on a ready property. It records the price, deposit, timeline and conditions, and is usually accompanied by a 10% deposit cheque held by the broker. Withdrawing without cause after signing generally forfeits the deposit, so the checking should happen before it is signed.

Municipality housing fee

An annual charge levied by Dubai Municipality on residential occupiers, collected monthly through the DEWA bill. For tenants it is currently 5% of the annual rent; owner-occupiers are charged on a value the municipality sets. It is the closest thing Dubai has to a property tax and is modest by international standards.

N

No-objection certificate (NOC)

A letter from the developer or master developer confirming it has no objection to a property being transferred, and that service charges and any other dues are settled. It is required before every ready-property transfer and every off-plan assignment. Developers charge a fee for it, currently from a few hundred to a few thousand dirhams, and issue it in a few days to a few weeks.

O

Off-plan

Property bought from a developer before construction is complete, paid for in instalments tied to booking and building milestones. Prices are usually below the equivalent completed unit, and payments are protected by an escrow account and Oqood registration. The trade-off is delivery risk: the date, the finish and the district may all differ from the brochure.

Oqood

The Dubai Land Department's interim register for off-plan sales. Each contract is recorded in the buyer's name, with the DLD fee paid at registration, so the buyer's interest exists on the public record before the unit does. At handover the Oqood entry is replaced by a title deed.

Owners' committee

A group of unit owners elected to represent residents of a jointly owned building or community, working with the management company under RERA's supervision. It reviews budgets and service quality but does not itself control the funds. Well-run committees are one reason two similar towers can have very different service charges and upkeep.

P

Payment plan

The schedule of instalments on an off-plan purchase, written as two numbers such as 60/40 or 80/20. The first is the share of the price paid during construction, in instalments tied to booking and building milestones; the second is the share paid at handover. The DLD fee is payable at the start and sits outside the plan.

Plot ratio

The permitted gross floor area of a building divided by the area of its plot, set by the master developer or planning authority. A plot ratio of 3 on a 20,000 square foot plot allows around 60,000 square feet of building. It tells you how dense a district will eventually be, which matters for views, light and traffic.

Post-handover payment plan

A payment plan in which part of the price — often 20% to 50% — is paid in instalments after the unit is handed over, sometimes over two to five years. The buyer receives the keys, and often rental income, while still paying the developer. Title is usually issued only once the final instalment is paid, so check what is registered in the meantime.

Related termsPayment plan Handover Title deed

Power of attorney (POA)

A legal document authorising someone in Dubai to sign on your behalf — to make an offer, sign the MoU and complete the transfer at the trustee office. A POA drawn up abroad must be notarised locally, attested by the UAE embassy in that country and then by the UAE Ministry of Foreign Affairs. Dubai Courts also offer remote notarisation by video for some documents, which is faster when it applies.

Pre-approval

A bank's written indication of how much it will lend you, based on your income and documents but before a specific property is valued. It is typically valid for 60 to 90 days and makes an offer credible to a seller. Arrange it before the shortlist, not after, so that the budget is real.

Premium (off-plan resale)

The amount above the original contract price that a seller asks when assigning an off-plan unit before handover. The buyer pays the seller the instalments already made plus the premium, and takes on the remainder of the plan. Whether a premium is justified depends on how the project and district are trading now, not on what the launch brochure said.

R

Rental Dispute Centre (RDC)

The Dubai Land Department tribunal that hears disputes between landlords and tenants — unpaid rent, deposits, eviction notices and rent increases. Cases are filed against a registered Ejari contract and most are resolved within weeks. It is the reason a valid Ejari registration protects both sides.

Rental index (RERA calculator)

RERA's published index of typical rents by community and unit type, with a calculator that sets the maximum permitted increase at renewal. Under the current decree, no increase is allowed while a rent is within 10% of the index, with stepped increases above that. Landlords must also give 90 days' written notice of any change.

Rental yield (gross and net)

Annual rent as a share of the property's price. Gross yield ignores costs; net yield deducts service charges, cooling, management fees, insurance and a realistic vacancy allowance, and is the only figure worth comparing across properties. In Dubai the gap between advertised and realised yield is often one to two full points.

RERA

The Real Estate Regulatory Agency, the regulatory arm of the Dubai Land Department. It licenses brokers and developers, registers projects and their escrow accounts, approves annual service charge budgets and sets the standard forms and tenancy rules. Every broker you deal with should hold a current RERA card, which you can check on Dubai REST.

S

Sale and purchase agreement (SPA)

The developer's contract for an off-plan unit, setting out the price, payment plan, anticipated completion date, grace period, specification and the remedies if either side defaults. It is drafted by the developer and rarely negotiable in substance, but the completion and termination clauses deserve careful reading. It is registered with Oqood once the first payments are made.

Saleable area

The area a developer sells and prices a unit on, usually the internal area plus balconies and terraces, sometimes with a share of common areas added. Developers define it differently, so two units of the same saleable area can differ noticeably inside. Ask for the internal, or net, area and compare that.

Service charges

The annual fee owners pay, per square foot, for the shared parts of a building or community — security, cleaning, landscaping, lifts, pools and a reserve fund — with the budget approved each year by RERA. Villas in established communities currently tend to pay a few dirhams per square foot; apartment towers considerably more depending on age and amenities. Ask for two years of actual invoices, not the developer's projection.

Snagging

The inspection of a newly handed-over unit to record defects — finishes, fittings, leaks, alignment, electrics — for the developer to correct under its defects liability period. An independent snagging survey typically costs a few thousand dirhams and pays for itself many times over. Do it before furniture arrives and before any tenant moves in.

T

Tenancy contract

The agreement between landlord and tenant, in Dubai normally on the unified contract form and registered with Ejari. Residential leases are typically one year, paid by one to four post-dated cheques, with a security deposit of around 5% of the annual rent. A tenancy survives a sale, and the buyer becomes the landlord on the existing terms.

Title deed

The Dubai Land Department document that records ownership of a completed property — the unit, its area, the plot and the owner's name. It is issued at the trustee office on the day of transfer and can be verified and downloaded through Dubai REST. Until a title deed exists in your name, you do not own the property.

Trakheesi

The Dubai Land Department system that issues advertising permits for property listings. Every legitimate advertisement, online or in print, should carry a permit number that ties it to a signed listing agreement with the owner. A listing without one is either unauthorised or fictitious.

Trustee office (registration trustee)

A private office licensed by the Dubai Land Department to process property transfers. Buyer and seller, or their attorneys, attend together; the balance of the price and the fees are paid, the ownership is transferred in the DLD system and the new title deed is issued the same day. The trustee's fee is currently around AED 4,000 plus VAT on properties above AED 500,000.

U

Usufruct

A registered right to use and benefit from a property for a fixed term — currently up to 99 years — without owning the land, similar to a long leasehold. It appears in some developments on land that cannot be sold freehold, and it can be sold or mortgaged for the remaining term. Check the years left, not just the price.

Related termsLeasehold Freehold

V

VAT on property

The UAE's 5% value added tax applies unevenly to property. The first sale of a new residential unit within three years of completion is currently zero-rated and later residential sales and rents are exempt, so no VAT is charged on the price of a home. VAT does apply to agency fees, trustee fees, service charges and commercial property.

Regulatory figures are stated as they currently stand and are given for orientation, not as advice. Confirm the current position before relying on any of them.

Raju TuliCo-Founder & Managing Director

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