The key terms
- What is Oqood in Dubai? The DLD interim register where your off-plan purchase is recorded. The developer registers it within 90 days of signing.
- What is an escrow account in Dubai? The bank account of each off-plan project where all your payments go. The bank releases it to the developer as construction progresses.
- What is an SPA in Dubai? The sale contract you sign with the developer. It sets the unit, price, payment plan and handover date, and is registered in Oqood.
- What is a title deed in Dubai? The DLD document proving you own the property. Off-plan it is issued at handover, once complete and paid, and costs AED 520.
- What is a service charge in Dubai? The annual fee owners pay to run the building. RERA approves the budget and it is based on your unit’s area.
- What is an NOC in Dubai? The certificate in which the developer does not object to you selling or mortgaging your home. Without it, the DLD will not register a resale.
A
- Admin fee#
An administrative charge made by the developer for handling the contract, the Oqood registration or a change of owner. It is not a DLD fee and each developer sets its amount in the contract. VAT may apply. Ask for the figure in writing before booking, as it adds to your costs.
- AED, dirham#
The currency of the United Arab Emirates. It is pegged to the US dollar at a fixed AED 3.6725 per dollar, maintained by the Central Bank of the UAE. So the rate between the euro and the dirham moves almost exactly like the euro against the dollar. Off-plan contracts and payments are counted in AED.
→ How to send money to Dubai to buy a property · Off-plan calculator
B
- Booking form#Also: Reservation form
The document that holds a specific unit for you for a few days before signing the SPA. You pay a deposit that is credited to the price and is usually not refunded if you walk away. Damac, for example, holds the unit for 7 days and defines its booking payment as non-refundable. Check the terms before signing.
→ Payment methods and EOIs when buying off-plan in Dubai · How to buy off-plan property in Dubai from abroad
- BRN#
Broker Registration Number, each broker’s registration number with RERA. You will see it on their card and their ads. You can check it in the DLD’s licensed brokers search or the Dubai REST app, and confirm the broker belongs to the agency you are dealing with, identified by its ORN.
- Brokerage commission#Also: Brokerage
What the real estate agency charges for the transaction. Under Dubai law it is set by agreement and, failing that, by market custom. The agency earns it once the sale is signed and registered, unless the contract says otherwise. On an off-plan purchase, who pays it depends on the arrangement with the developer. Always confirm it in writing before booking.
C
- Chiller, district cooling#
The centralised air conditioning used in many Dubai buildings. If each unit has no meter of its own, the cost is shared and billed by the developer, the owners association or the cooling company. It can be a significant fixed cost, so ask before buying how it is billed in that building.
- Construction progress#Also: Completion percentage
The actual completion percentage according to the latest technical audit. You can see it in Dubai REST or the DLD’s project status service. If your plan ties an instalment to a milestone, the DLD recognises your right to know the percentage before paying. We show you how to check it at each payment.
D
- Developer#
The company that builds and sells the project. In Dubai it must be on RERA’s developer register, register each project and open an escrow account before selling off-plan. A sale made before all approvals are in place is void. We only work with developers and projects we have selected beforehand.
→ How to choose a Dubai developer and check it with the DLD · How to check a Dubai off-plan project is safe
- DEWA#
Dubai Electricity and Water Authority, the public utility for power and water. At handover an account is opened in your name or the tenant’s. A tenant needs a registered Ejari contract to connect. Tenants also pay a municipality fee of 5% of the annual rent through the DEWA bill.
- DLD#Also: Dubai Land Department
Dubai Land Department, the Dubai Government department that registers and documents every property transaction. A sale not registered with the DLD is not valid. RERA, the Oqood register, the Ejari system and the Dubai REST app all sit under it.
- DLD fee, 4%#Also: Transfer fee
The registration fee on a sale: 4% of the contract price. The rules split it equally between buyer and seller unless agreed otherwise, so your contract decides. Off-plan it is paid when the sale is registered in Oqood, and some developers pay it for you as an incentive. On AED 1,000,000 it is AED 40,000.
- Down payment#
The first major payment in an off-plan purchase, after the booking. It is usually a percentage of the price set by the payment plan, for example 10% or 20%. On top of it, the 4% DLD fee is paid when the sale is registered, unless agreed otherwise.
→ How much money do you need to invest in Dubai? · Off-plan calculator
- Dubai REST#
The DLD’s official app. It shows a project’s construction progress, its escrow account number, your properties, your tenancy contracts and service charges. It also lets you verify brokers and licences. It is the quickest way to look up a project yourself. We only work with developers and projects we have selected beforehand.
E
- Ejari#
Dubai’s official tenancy contract registration system. Every long-term rental must be registered in Ejari, which accepts contracts of up to 10 years. Through the app it costs AED 100 plus AED 20 in fees. Without Ejari a tenant cannot connect power with DEWA.
- EOI#Also: Expression of Interest
Expression of Interest, a payment made before a launch to bid for a unit. It is neither a purchase nor a booking and does not secure a unit. If you do not book it is usually refunded, and if you book it is credited to the price. Amount, timing and refunds depend on each developer, and we review them before you pay.
- Escrow account#
The bank account of each off-plan project where all buyer payments go. Required by Dubai Law No. 8 of 2007 and audited by RERA. The bank only releases money to the developer as construction reaches each milestone, and holds 5% for one year after completion to cover defects. Always pay instalments into this account.
→ What is an escrow account in Dubai? · How to check a Dubai off-plan project is safe · Payment methods and EOIs when buying off-plan in Dubai
F
- Flipping, assignment#Also: Resale before handover
Selling your off-plan unit before handover by assigning the contract to another buyer. You need the developer’s NOC, and some require a minimum percentage of the price to have been paid, set in each contract. The DLD registers the change of owner in Oqood. Any profit depends on the market at the time and is not guaranteed.
→ Selling off-plan before handover in Dubai · Dubai off-plan payment plans
- Form A#
The official contract between a seller and their agency to list and sell a resale property. It is created in the DLD system and is needed to obtain the advert permit. It is not used for direct purchases from a developer.
- Form B#
The official contract between a buyer and their agency on a resale. It sets out what the buyer is looking for and the commission. Together with the seller’s Form A, it allows the Form F to be created.
- Form F, MOU#Also: MOU, Contract F
The sale contract between buyer and seller on a resale, also called the MOU. It is signed electronically through the DLD system, with price, deadlines, deposit and conditions. On an off-plan purchase from a developer, the SPA plays this role.
- Form I#
An agreement between two agencies working on the same resale, one with the seller and one with the buyer, to split the commission. It is common market practice; the DLD system contracts are A, B and F.
- Freehold#
Full ownership with no time limit. Foreigners can buy freehold in the areas the Dubai Government designates for it, under Law No. 7 of 2006. Almost all off-plan projects of interest to overseas investors are in these areas.
G
- Golden Visa#Also: Golden residency
The UAE’s 10-year residency. For property investors it requires one or more properties worth at least AED 2,000,000 in total, in your name. An off-plan purchase from an approved local developer can count, as can a property mortgaged with an approved local bank. Family can be included, with health insurance. Confirm the current requirements with the DLD before buying with this goal.
H
- Handover#
When the developer completes construction and hands you the property. You pay the rest of the plan, registration is completed and the title deed is issued. A snagging inspection comes first. From the date set in your SPA you pay the service charge, and from here you can rent it out.
→ Handover and snagging: what to check when you get the keys · How to buy off-plan property in Dubai from abroad
- Holiday home permit#Also: DTCM, DET, Short-term rental
The permit to rent a home to tourists by the night or week in Dubai. It is issued by the Department of Economy and Tourism, formerly DTCM, and each unit needs its own before being advertised. The owner or a licensed operator can apply. We help you weigh it against a long-term let.
→ The Dubai holiday home permit, explained for owners · Dubai rental yields by area
J
- Jointly owned property#
A building or complex with common areas shared by owners, governed by Dubai Law No. 6 of 2019. It is run by a RERA-approved management company. Once at least 10% of units are registered, an owners committee can be formed. Costs are covered by service charges.
K
- Knowledge and innovation fees#
Two small AED 10 fees the DLD adds to many of its services. On an off-plan purchase you pay them when the sale is registered and again at handover. They are the AED 20 you will see on your receipts.
- KYC and source of funds#Also: Source of funds, Know Your Customer
The identity and source-of-money checks made by developers, agencies and banks. You will be asked for your passport and, for large amounts, proof of where the money comes from, such as payslips, sale deeds or statements. Anti-money laundering laws require it. Having it ready speeds up the purchase.
→ How to send money to Dubai to buy a property · Opening a UAE bank account as a non-resident · Payment methods and EOIs when buying off-plan in Dubai
L
- Launch#
The start of sales of an off-plan project. The developer can only sell once the project is registered and approved, and advertise it with a permit. In high-demand projects there is an EOI phase first and units are allocated on launch day. We let you know about launches that match your goal.
- Leasehold, usufruct#Also: Usufruct
Long-term rights of use instead of full ownership, such as a lease or usufruct of up to 99 years. They exist in some areas and projects in Dubai. With leasehold, the right returns to the landowner at the end of the term. Always check which type of title you will receive.
- LTV#Also: Loan to Value
Loan to Value, the share of the price the bank lends. The Central Bank of the UAE sets maximums. For an off-plan purchase the cap is 50%. For an expatriate’s first completed home up to AED 5 million, 80%, and for a second or investment home, 60%. Banks can apply lower limits, especially for non-residents.
→ Dubai mortgage for non-residents · How much money do you need to invest in Dubai?
M
- Madmoun#
The DLD service that puts a QR code on property ads. Scan it to see whether the ad has a DLD permit and who published it. If an ad has no QR code or it does not match, do not pay anything until you have checked it with the DLD.
- Mainland and free zone#Also: Free zone
Two ways a company can be licensed in Dubai. Mainland means a licence from the Department of Economy and Tourism, to operate across the emirate. A free zone has its own authority and rules. Lurelis is a mainland agency licensed by RERA. A free zone company can own property in freehold areas.
- Master developer#
The developer behind a whole community, with its roads, parks and infrastructure, which sells plots to other developers. It charges owners a usage fee for the community’s common areas, separate from the building’s charge. It is worth knowing who the master developer is in the area you buy.
→ Dubai service charges by area · How to choose a Dubai developer and check it with the DLD
- Mollak#
The DLD system that oversees owners associations. Budgets are approved, service charge invoices are issued and payments are made through official channels in it. A service charge invoice should come from Mollak.
- Mortgage pre-approval#Also: Pre-approval
A bank’s letter stating how much it would lend before you pick a property. It is not the final mortgage and expires after a period set by the bank. On an off-plan purchase it matters mainly for the handover payment, so apply in good time.
→ Dubai mortgage for non-residents · How much money do you need to invest in Dubai?
- Mortgage registration#Also: Mortgage registration fee
The DLD fee to register a mortgage: 0.25% of the loan amount, plus AED 250 for the title deed and AED 20 in fees. At a trustee office, add AED 4,000 plus VAT, about €970 or $1,090, or AED 5,000 plus VAT if the unit is in Oqood. Include it in your numbers if you plan to borrow.
→ Dubai mortgage for non-residents · Dubai property buying costs
N
- NOC#
No Objection Certificate. In property sales it is the developer’s permission to resell or mortgage a unit, and confirms you are up to date with payments. It is also required for other steps, such as some holiday home permits. Each developer sets its own conditions and fee.
→ What is an NOC in Dubai? · Selling off-plan before handover in Dubai
- Noqodi#
The e-wallet the Dubai Government uses to collect fees. The DLD accepts Noqodi as well as certified bank cheques, credit cards and cash. It can also pay some service charge invoices.
O
- Off-plan and ready#
Off-plan means buying a home that is not built yet, paying in stages. Ready means buying a completed home. Off-plan usually lets you pay gradually and buy at launch prices. Ready earns rent from the first month. We help you choose based on your goal.
→ Off-plan or ready property in Dubai: differences, costs and which suits you · How to buy off-plan property in Dubai from abroad
- Oqood#Also: Interim register
The DLD’s interim register for off-plan sales. The developer must register your contract within 90 days of signing, and the certificate is emailed to you. It costs the 4% DLD fee plus AED 20, and some developers pass on the AED 1,000 the DLD charges them to register it. An unregistered off-plan sale is not valid, so this certificate is your first safeguard.
→ What is Oqood in Dubai? · Oqood registration in Dubai, step by step · How to buy off-plan property in Dubai from abroad · Dubai property buying costs
- ORN#
Office Registration Number, a real estate agency’s registration number with RERA. It must appear on its ads, website and contracts. You can check it in the DLD’s agency search. Lurelis’ ORN is 61312.
P
- Payment plan#
The schedule for paying an off-plan home. It is written as two numbers, such as 60/40: what you pay up to handover and what you pay on receiving it. Instalments can follow dates or construction milestones. Try different plans in the calculator.
- Post-dated cheque#Also: PDC
A cheque dated in the future, or PDC. In Dubai it is widely used for post-handover plan instalments and rents. You need a UAE chequebook, though some developers accept alternatives for non-residents. A bounced cheque is no longer a crime since 2022, unless in bad faith, but it can be enforced against you.
- Post-handover plan#
A payment plan where part of the price is paid after you receive the property, for example over 2 or 3 years. It lets you rent the unit while you finish paying. It usually requires post-dated cheques or another guarantee. Check what happens if you are late on those instalments.
- Power of attorney#Also: POA
A document authorising someone to sign for you in Dubai. If signed outside the UAE, the DLD accepts it once it is ratified by the notary public and the Ministry of Foreign Affairs of the country where it was signed, the UAE embassy in that country and the UAE Ministry of Foreign Affairs. A power signed outside the UAE must be less than two years old when submitted and name the exact transaction. Your attorney can only do what the document states.
→ Power of attorney to buy property in Dubai from abroad · How to buy off-plan property in Dubai from abroad
- Project cancellation#
If RERA cancels an off-plan project, the escrow account passes to the DLD’s liquidation department, which asks the developer to refund buyers within 60 days. If it does not, the case goes to court. If work never starts for reasons beyond the developer’s control, it must refund everything paid.
→ What happens if a Dubai developer delays or cancels an off-plan project · How to check a Dubai off-plan project is safe · How to buy off-plan property in Dubai from abroad
R
- Real estate broker#Also: Agent
A professional licensed to act in property sales or rentals in Dubai. They must be on RERA’s brokers register and hold a broker card with a BRN. Working without a licence is not allowed and an unlicensed broker loses the right to a commission. Lurelis is a licensed agency and we guide you through the whole purchase.
- REAR report#Also: Real Estate Activity Report
The report a UAE real estate agency must file with the Financial Intelligence Unit when AED 55,000 or more is paid in cash on a freehold purchase, or when crypto is used for any amount. It applies even when nothing is suspicious. That is why we ask for ID and proof of the source of funds.
- Rental Disputes Center#Also: RDC
The DLD’s specialist tribunal for landlord and tenant disputes, such as unpaid rent, evictions or rent increases. A registered Ejari contract is needed to bring a claim.
- Rental index#
The DLD’s official reference for rents by building and area. It sets how much a rent can rise at renewal, from 0% to 20% depending on how far below market the rent is. To change terms, notice must be given at least 90 days before the contract ends.
- RERA#
Real Estate Regulatory Agency, Dubai’s property regulator, part of the DLD. It licenses agencies and brokers, registers developers and projects, audits escrow accounts, approves service charges and authorises ads. When you buy through a RERA-licensed agency, you deal with someone accountable to the regulator.
- ROI and yield#Also: Yield
Gross yield is annual rent divided by the price. Net yield deducts service charges, management, maintenance and empty periods. Total ROI also adds capital growth, which is not guaranteed. Work out an area’s gross yield with the rent estimator.
S
- Service charge#
The annual fee owners pay to maintain and run the building. RERA approves the budget and the charge is based on your unit’s area. You can check the rate per square foot in the DLD’s service charge index. Ask for it before buying, as it reduces your net yield.
→ What is a service charge in Dubai? · Dubai service charges by area · Dubai property buying costs · Dubai rental yields by area
- Snagging#
Inspecting the property before accepting handover to find defects, from finishes to installations. You make a list and the developer must fix them. The law also holds 5% of the escrow account for one year to cover defects. If you are not in Dubai, we can coordinate the inspection for you.
→ Handover and snagging: what to check when you get the keys · How to buy off-plan property in Dubai from abroad
- SPA#Also: Sale and Purchase Agreement
Sale and Purchase Agreement, the contract with the developer. It sets the price, unit, payment plan, expected handover date, penalties and what happens if either side defaults. It is the document registered in Oqood. Read it all before signing. We explain its key points.
→ What is an SPA in Dubai? · The Dubai SPA, clause by clause · How to buy off-plan property in Dubai from abroad
T
- Title deed#
The DLD document proving you own the property. On an off-plan purchase it is issued at handover, once the property is complete and paid. It costs AED 250, plus AED 250 for the map and AED 20 in fees. It is now issued electronically.
→ What is a title deed in Dubai? · Dubai property buying costs
- Trakheesi#
The DLD’s licensing system for agencies, brokers and ads. Every property ad in Dubai needs a Trakheesi permit with its number. You can verify it with the DLD’s licences and permits service. An ad without a permit is a red flag.
- Trustee office#Also: Trustee centre
DLD-authorised service centres where resales, mortgages and other procedures are registered. On a resale they charge AED 4,000 plus VAT if the price is AED 500,000 or more, and AED 2,000 plus VAT below that. On an off-plan purchase, the developer registers the sale in Oqood.
U
- Unit and unit types#Also: Studio, 1BR, 2BR
Each home in a project. It is described by type: studio, 1BR for one bedroom, 2BR for two, and so on. Size is usually given in square feet. One square metre is about 10.76 square feet. Always compare size and orientation, not just the type.
- Usage charge#
The annual fee the master developer charges for the community’s shared areas, such as roads, parks or security. It comes on top of the building’s service charge. Ask for the figure before you buy.
V
- VARA#
Virtual Assets Regulatory Authority, Dubai’s crypto regulator, created by Law No. 4 of 2022. Companies providing crypto services in Dubai need its licence and appear in its public register. If you pay for a property with crypto, the conversion to dirhams should go through such a company.
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