Top real estate terms that a broker working in Dubai needs to know

It is easy for a novice broker not yet working in the UAE to be confused by unknown terms used in the local real estate market. In order not to get into an awkward situation and not to blush in front of the client, we suggest that you familiarize yourself in advance with the basic concepts used by all local realtors and investors in the Emirates. 

DLD 

Dubai Land Department is the body responsible for real estate registration in accordance with local regulations and laws. This is also where resident visa applications are processed, all sales transactions are conducted, title certificates are issued and registration fees are paid for home purchases. All in all, the DLD is a trusted body that helps make the real estate market transparent and safe for both investors and developers. 

OFF-PLAN

In Dubai, you will often hear the phrase: "Properties in this residential complex are sold off-plan". For those who are new to the brokerage profession and those who are new to buying an apartment in Dubai for the first time, this term is unlikely to be understandable. If we understand, off-plan means "without a plan" in English. 

That is, saying the phrase "real estate off-plan", a person means housing under construction, which the developer promises to finish by a certain date. Many people prefer to buy off-plan apartments, as they are characterized by lower prices and flexible payment plans. Often such apartments and apartments have 0% installments. Also, this property is ideal for investment: if your client buys an apartment under construction in a promising neighborhood, it is likely that in a few years he will be able to sell it at a more attractive price. 

LAUNCH

From English, this term translates as "launch". There is always a lot of excitement around this word, because this is the official start of real estate sales in new buildings. At the launch it is important to be able to make a quick decision. If the developer offers an apartment, and you at this time doubts, the property will immediately go to another. Therefore, good reaction and the ability to quickly analyze the situation - these are two valuable qualities that will be useful to you at the "lonchas".

Many people confuse the terms "pre-sale" and "lonch", but these terms have significant differences. On a pre-sale you can simply book an apartment, while on a lonche you will be required to make a down payment.

EOI

An agreement document that a potential investor signs. This is how he expresses his interest in the project before its official launch. 

For the client, this document is an opportunity to choose a property before the launch, simply put, to book in advance. After signing the EOI, the selected property is not offered to other clients wishing to get it. The deposit is usually about 5% of the value of the apartment or apartment. 

It is the broker learns in advance about the most favorable positions in the market and offers the client several options for real estate, which will soon appear on the market.

Freehold Zone 

Only UAE citizens can have one hundred percent ownership rights over the entire territory of the Emirates. However, for foreigners are allocated special freehold zones. It is here that citizens of other countries can purchase real estate in full ownership and further dispose of it at will. For example, the apartment can be rented, resold or even transferred by inheritance. There are no legal restrictions for foreigners in this case. 

It is important to distinguish between free zones (Free Zones) and zones with 100% ownership rights (Freehold Zones). Free zones in the UAE are those in which foreigners can own a business without paying taxes. And freehold zones are areas where foreigners can buy their own homes and fully own them.

Leasehold zone (leasehold)

Important: the opportunity to buy housing in the leasehold zone is available only to residents of the UAE. Russians and other foreign nationals do not have this option.

In the case of buying real estate in the lizhold-zone, the owner is not the owner, but only buys for a certain period of time the right to dispose of its real estate. The legal owner of the home in this case is either the developer or another individual. Lickhold zoning is mainly suitable for those who are not interested in one hundred percent ownership of the property. 

NOC (No Objection Certificate)

Another authorization document, without which a real estate transaction is not without. NOC can also be useful for obtaining residency status, renewing a work permit or for reselling an apartment. The No Objection Certificate (or "No Claims") is always written in several languages: Arabic and English. 

In the case of real estate transactions, it is the developer who drafts the letter. In it, he lists information about the absence of debts for utilities and other services. He also writes a separate letter agreeing to the sale of the property.

Oqood

A document that confirms ownership of primary real estate. In Arabic, the term means "contract". Off-plane objects have the opportunity to purchase housing in installments. After payment of 20%-24% of the first installment in DLD is issued a document Oqood - a certificate for the object under construction. However, once all payments are completed, the Oqood certificate changes to a Title Deed.

Title Deed

This is an official document for all seven emirates, which confirms the ownership of real estate. Every homeowner in the UAE has it. It does not matter what you buy in the Emirates: a plot of land, apartment, condo, townhouse or penthouse. In any case, you will need this legal document. DLD is in charge of issuing it. After full payment of the cost of housing, the client receives a title deed. It includes all the parameters of the property, as well as information about the form of ownership and data on both parties to the transaction. 

Of course, these are not all the terms that a broker who starts working with real estate in Dubai must know. We will definitely prepare the second part, in which we will tell you what ROI, SPA and other local concepts, knowledge of which will help you to provide your clients with a quality level of service. So please follow our news carefully.