Dubai real estate glossary

Regulators, registries and licences

DLD (Dubai Land Department)

The government department that registers all real estate rights in the Emirate of Dubai, issues title deeds, collects the registration fee (4% of the price plus AED 580 on a ready sale) and oversees the sector through its regulatory arm, RERA.

RERA (Real Estate Regulatory Agency)

The regulatory arm of the DLD. RERA licenses brokers and developers, registers projects and escrow accounts, approves service charge budgets and administers the rules on advertising, tenancy and owners' associations.

ORN (Office Registration Number)

The RERA licence number of a brokerage company. Every advertisement and contract issued by a brokerage carries its ORN; Bonum Realty's is 34799. It can be checked through the DLD's digital services.

BRN (Broker Registration Number)

The RERA registration number of an individual broker, issued after training and examination. A broker must hold a BRN and work under a licensed office to represent clients or receive commission.

Trakheesi

The DLD system through which advertising permits are issued. Every property advertisement in Dubai must carry a Trakheesi permit number; for a resale the broker needs a Form A from the owner, and for an off-plan project a no-objection certificate from the developer.

Madhmoun

The DLD's verification layer for advertisements, represented by a QR code issued with each Trakheesi permit. Scanning it confirms that the listing and its permit are genuine. Also spelled Madmoun.

Mollak

The DLD system that regulates service charges in jointly owned properties. Budgets are approved through it and owners' payments are made into accounts it supervises, which is why service charge statements for many communities are described as Mollak statements.

Ejari

The RERA system on which every tenancy contract in Dubai must be registered. An Ejari certificate is evidence of a valid lease and is required for utility connections, visas and disputes. Buyers check Ejari to see whether a property is let.

Trustee office (registration trustee)

A private office licensed by the DLD to process property transfers, mortgage registrations and related transactions. Transfers of ready property take place at a trustee office, which charges a fee of AED 4,000 plus VAT on a sale.

Contracts and forms

Form A

The DLD's standard listing agreement between a seller (or landlord) and a brokerage. It records the property, the asking price, the commission, the term of the appointment and whether the appointment is exclusive. A signed Form A is required before a broker can obtain an advertising permit.

Form B

The DLD's standard agreement between a buyer (or tenant) and a brokerage, setting out the buyer's requirements and the terms on which the broker is engaged.

Form F (MOU)

The DLD's standard contract of sale between buyer and seller of a ready property, generated through the DLD's system. It records the price, deposit, completion date, allocation of fees and default terms. It is often called the MOU (memorandum of understanding), a name carried over from earlier practice.

Form I

The DLD's standard agreement between two brokerages that agree to cooperate on a transaction and share commission.

MOU (Memorandum of Understanding)

In Dubai usage, the sale agreement between buyer and seller; today this is Form F. The term is also used loosely for any preliminary agreement.

SPA (Sale and Purchase Agreement)

The contract between a developer and a buyer of an off-plan unit. It sets out the specification, payment schedule, completion date and remedies. Unlike Form F it is drafted by the developer and varies from project to project.

NOC (No-Objection Certificate)

A letter from the developer or master community confirming that service charges are settled and that it has no objection to the transfer of the property. Required for every resale transfer; the developer charges a fee for it. The term is also used for a developer's authorisation allowing a broker to advertise an off-plan project.

EOI (Expression of Interest)

A refundable deposit paid to a developer before a project launch to register interest and secure a place in the allocation of units. It is not a contract to sell.

Launch

The date on which a developer first offers units in a project for sale, usually after collecting EOIs. Allocation, pricing and payment plans are typically announced at launch.

Ownership, title and registration

Title deed

The certificate issued by the DLD recording ownership of a completed property. It states the owner, the plot or unit number, the area and any registered mortgage. In Dubai the title deed is the definitive evidence of ownership.

Mulkiya

Arabic for ownership; in property usage it refers to the title deed or ownership certificate. The same word is used for vehicle registration cards, which occasionally causes confusion.

Oqood

Arabic for contracts; the name of the DLD's interim register on which off-plan sales are recorded before completion. Registration attracts the 4% DLD fee plus an administrative charge, and the buyer receives an Oqood certificate that is replaced by a title deed on completion.

Freehold vs leasehold

Freehold is outright ownership of the property and its share of the land, available to non-UAE nationals in designated areas. Leasehold is a right to occupy for a fixed term, commonly up to 99 years, after which the property reverts to the freeholder. Most prime residential communities in Dubai are freehold.

Escrow account

A bank account dedicated to a specific off-plan project, required under Law No. 8 of 2007. Buyer instalments are paid into it and released to the developer only against certified construction progress.

Handover

The point at which a developer delivers a completed unit to the buyer, after the building completion certificate is issued and any snagging is resolved. Title registration usually follows handover.

Snagging

The inspection of a newly completed property to identify defects (snags) before or at handover, and the list that results. Buyers often appoint a specialist snagging company; the developer is expected to rectify the items listed.

Service charges

Annual charges paid by owners for the maintenance, security, insurance and management of shared areas and, in villa communities, the master community. Budgets are approved by RERA and, in many communities, collected through Mollak. Charges are quoted per square foot of the unit's area.

Golden Visa

A long-term UAE residence visa available on several grounds, including ownership of property with a value of at least AED 2 million. The holder sponsors family members and is not required to have a UAE employer. See Golden Visa through property.

Finance

Valuation

A formal assessment of a property's market value by a licensed valuer, required by lenders before a mortgage is approved and sometimes commissioned by buyers or sellers independently. The valuation may differ from the agreed price.

LTV (Loan-to-Value)

The mortgage amount expressed as a percentage of the property's value or price, whichever is lower. The UAE Central Bank sets maximum LTVs, which are lower for higher-value properties, for non-residents and for off-plan purchases; confirm the current caps with the lender.

Mortgage pre-approval

A lender's written indication, before a property is chosen, of the amount it is willing to lend based on the applicant's income and liabilities. Sellers and brokers in Dubai usually expect a financed buyer to hold a pre-approval before signing Form F.

Manager's cheque

A cheque issued by a bank and drawn on its own funds, used to pay the purchase price and deposits at Dubai transfers because it cannot bounce. Sometimes called a banker's draft or cashier's cheque.

Payment plan

The schedule of instalments under which an off-plan buyer pays the price to the developer, expressed as percentages due on dates or on construction milestones.

Post-handover payment plan

A payment plan under which part of the price falls due in instalments after the property is handed over. The buyer can occupy the unit during this period, but the title deed is normally issued only once the final instalment is paid.

Mortgage registration fee

The DLD fee payable when a mortgage is registered against a title: 0.25% of the loan amount plus AED 290.

Measurement

Sqft vs sqm

Dubai property is marketed and registered in square feet (sqft). One square metre is approximately 10.764 square feet. Service charges and price-per-area comparisons are quoted per square foot.

BUA (Built-Up Area) vs plot area

Plot area is the registered land area of a villa plot. BUA is the total constructed floor area of the house, often including basements, garages and covered terraces. Listings for custom-built villas, for example in Emirates Hills, should state both, and buyers should ask how the BUA figure was calculated.

Saleable area vs net area

For apartments, the area shown on the title deed usually includes a share of balconies and sometimes common areas; the internal (net or carpet) area is smaller. Ask which figure a listing is quoting.

For how these terms fit together in a transaction, see buying property in Dubai as a foreigner, Dubai property purchase costs, off-plan vs ready property and selling a luxury home in Dubai. Bonum Realty is a RERA-licensed brokerage (ORN 34799) advising on prime villas and selected off-plan projects; enquiries to info@bonumrealty.com or through the enquiry form.