Agent: A real estate professional who will help you find a property and negotiate the best price.
Amenities: The add-ons that will enhance you living experience: gymnasium, sauna, swimming pool, BBQ area, kids’ play area, and other desirables.
Broker: The real estate professional who will help you with your property purchase.
Closing costs: Fees paid on the closing date of a transaction. Registration, real estate agency, land department, mortgage registration and processing fees.
Commission: Monies paid to the agent to find property buyers.
Conventional Mortgage: Loan repayments to a bank.
Default: When the buyer is behind on repayments.
DLD: Dubai Land Department (rate). A percentage of the cost of your new home that you pay to DLD.
Downpayment: A percentage of the cost paid upfront. Often from 5 to 20% of the property’s total value.
Equity: The value of a property. The more you repay, the more your equity increases.
Emirates Interbank Offered Rate (EIBOR): A fixed rate that UAE banks lend to each other. The current lending rate is important if you want to invest or sell.
En-suite: A bedroom with a bathroom connected.
Escrow: An account that is managed by a bank to collect tax and insurance payments from a homeowner.
Fiduciary: A real estate expert or company that legally acts in the best interests of the buyer.
Fixed-rate: A mortgage in which the borrowed amount is fixed usually from one to five years, depending on the agreement.
Freehold: The buyer completely owns a property, including the land it is built on.
Home Insurance: This protects you from liabilities against any misfortune such as theft and natural disasters.
Lease Agent: A licenced real estate agent responsible for leasing real estate properties and signing the documents.
Leasehold: You own the property for 99 years, but unlike freehold, you do not own the land as well.
Lessee / Lessor: If you rent, you’re the Lessee. The landlord is the the Lessor.
Memorandum of Understanding (MoU): An agreement offered by the real estate agent, signed by both seller and buyer, featuring terms and conditions.
Mortgage: Loan to purchase a property, or money borrowed against the value of the property.
Mortgage Broker: A professional who arranges property loans.
Mortgage Interest: Money charged on a property loan. It may be fixed or variable.
No Objection Certificate (NOC): A legal document that confirms there are no objections against the person buying a property.
Off-plan: Simply put, buying property that hasn’t yet been constructed. Such real estate is cost-effective for buyers because they can sell before build.
Rental Yield: Basically, your return on investment (ROI).
Rent to Own: When you agree to rent a property for a time with the option to buy before the lease runs out.
Return on Investment (ROI): The money you receive on a property relative to the property’s investment’s cost.
Security Deposit: A refundable amount paid to the landlord, usually 5% of the annual rent. It is the landlord’s security against any damage to the home that may occur while you live there.
Tenancy Contract: A legally binding agreement that allows occupancy usually for one year.
Title Deed: A legal document that transfers the ownership of property from seller to buyer.
Variable Rate: A mortgage where the interest rate varies due to inflation.
