Real Estate Terminology Guide
Agent / Broker Fee: A fee payable to a real estate agent or broker, usually between 1% and 5 % of the sale value.
Completion Bond: For off-plan properties, a completion bond insures that the builder will finish his project. The person insured could be a lender or a buyer.
Compound: Villas or town-houses arranged around a central area and surrounded by an enclosing wall.
DEWA (Dubai Electricity and Water Authority): The sole supplier of electricity and water.
Down payment: The part of the purchase price that is paid in cash and not financed with a mortgage or by a payment plan.
First floor: The floor above the ground floor.
Floor plan: The layout of a building or portion of a building (apartment, office, etc.) showing the size of the rooms and the purpose of each (bath, bedroom, etc.).
Freehold properties: In May 2002, the crown prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoom, issued a decree that granted foreigners the right to buy freehold property in certain areas. This means that the property is in the owner’s name for life, and that the owner can sell, lease or rent the property.
Furnished accommodation: accommodation with furniture and appliances provided.
Gated community: groups of properties in new freehold developments which have security gates and 24-hour security.
Installment: payments (usually monthly payments) to the developer for off-plan projects.
Land Department: All Properties have to be registered at the Dubai Land Department for 1.5% of the sale value.
Non-freehold property: Any property which can only be owned by UAE or GCC nationals.
Off-plan: A property that has not yet been built and which is purchased based solely on the plans for the building.
Original cost: The price paid by the present owner who may or may not be the first owner.
Premium: A premium is the difference between the original price and the selling price.
Plot: Ground on which an improvement is to be built. Each building has a plot number which may be required when you apply for a telephone line.
RERA (Real Estate Regulatory Authority): A government agency with full legal authority to regulate the real estate sector in Dubai.
Rent cap: The maximum percentage increase in rents within a given time period.
Rent Committee: A government committee which oversees rent complaints against landlords including excessive rental charges and unlawful eviction.
Snags: Problems which may occur in new properties.
Unfurnished accommodation: Accommodation without furniture. Kitchen appliances may or may not be provided.
Unit: A unit or units of property.
Villa: One or more storey houses with one or more bedrooms, includes town-houses, semi-detached properties, linked properties and stand alone detached properties.
White goods: Major kitchen appliances, whether white or stainless steel, including fridge, cooker and washing machine.