Real Estate Terminology Explained: A Glossary for Dubai Property Investors

Table of Contents

• Introduction
• Why Understanding Real Estate Terms Is Crucial in Dubai
• Ownership and Legal Terms
  • Freehold
  • Leasehold
  • Title Deed
  • DLD (Dubai Land Department)
  • RERA (Real Estate Regulatory Agency)
  • Trust Account
• Transaction and Documentation Terms
  • SPA (Sales Purchase Agreement)
  • Oqood
  • NOC (No Objection Certificate)
  • Transfer Fee
  • Commission
• Leasing and Rental Terms
  • Ejari
  • Security Deposit
  • DEWA
  • Annual Rent
  • Rent Cap
• Property Investment and Finance Terms
  • ROI (Return on Investment)
  • Capital Appreciation
  • LTV (Loan-to-Value)
  • DSCR (Debt Service Coverage Ratio)
  • Escrow Account
• Co-Ownership and Community Terms
  • Mollak
  • Jointly Owned Property (JOP)
  • Service Charges
  • Reserve Fund
  • Master Developer vs. Sub-Developer
• Real Estate Technology & Regulation
  • Trakheesi
  • Dubai REST
  • Blockchain Tokenization
• Additional Legal and Industry Terms
  • Power of Attorney (POA)
  • Valuation Certificate
  • Tenancy Contract
  • Municipality Fees
• Case Study: A First-Time Investor’s Journey
• Common Mistakes Due to Misunderstanding Terms
• FAQ: Dubai Property Terminology
• Let Homecubes Simplify the Language of Real Estate

Introduction

Dubai’s real estate market is known for its innovation, transparency, and investor-friendliness. But for new buyers or foreign investors, the flood of unfamiliar terms—Ejari, Oqood, LTV, Mollak, and more—can feel like a different language altogether.

Understanding these terms is not just about knowledge. It’s about compliance, smart investment, avoiding mistakes, and making informed decisions. This article offers a complete real estate glossary Dubai investors need to navigate the market confidently—whether buying off-plan, leasing an apartment, or investing in fractional ownership.

Why Understanding Real Estate Terms Is Crucial in Dubai

Dubai’s property market operates under a unique legal, financial, and administrative framework. Unlike other countries, it includes specific systems like:

• Ejari for rental contract registration
• Mollak for co-owned property budgeting
• Trakheesi for advertising listings
• Oqood for off-plan registrations

Missing or misinterpreting these can result in legal delays, fines, or even voided transactions. A solid understanding of these terms ensures:

• Legal compliance with RERA regulations
• Clear communication with brokers and developers
• Better investment strategies and due diligence
• Smooth transfer of ownership or rental processes

Ownership and Legal Terms

Freehold

A freehold property allows foreign nationals to own both the property and the land it stands on—permanently. Introduced in 2002, freehold zones like Downtown Dubai and Dubai Marina are open to expat ownership.

Leasehold

In leasehold, you own the unit for a fixed term (usually 99 years), but the land remains with the master developer. You can lease, sell, or transfer the property, but you don’t own the land.

Title Deed

Issued by the Dubai Land Department (DLD), the title deed proves legal ownership of the property. For mortgage buyers, it lists the bank as a lien holder until the loan is repaid.

DLD (Dubai Land Department)

The DLD regulates and documents real estate transactions and issues title deeds. They’re responsible for all property registrations and maintaining ownership records.

🔗 DLD Website

RERA (Real Estate Regulatory Agency)

RERA is the regulatory arm of the DLD. It monitors brokers, developers, and landlords and sets the legal framework for rentals, advertising, and transaction processes. Hence, it is important to become familiar with RERA tenancy regulations in Dubai, whether you are a landlord or a tenant.

Trust Account

RERA mandates that developers must deposit buyer payments into RERA-approved trust accounts to protect investor funds. It’s essential for all off-plan developments.

Transaction and Documentation Terms

SPA (Sales Purchase Agreement)

A legally binding contract signed between buyer and seller outlining:

• Property details
• Price
• Payment plan
• Penalty clauses
  It becomes enforceable once signed by both parties and registered.

Oqood

An off-plan registration certificate issued by the DLD. Oqood secures the buyer’s interest in an under-construction property and is mandatory for finalizing the title deed later.

🔗 Read more about Oqood

NOC (No Objection Certificate)

Required when selling a property, especially off-plan. The developer issues an NOC confirming that the seller has no outstanding liabilities (like unpaid service fees).

Transfer Fee

A 4% fee paid to DLD during property transfers. Usually split 50/50 between buyer and seller unless otherwise agreed.

Commission

Real estate broker commissions typically range from 2% to 5% of the transaction value. Ensure the broker is RERA-licensed.

Leasing and Rental Terms

Ejari

Ejari is the official tenancy registration platform, ensuring all rental contracts are documented with RERA. Tenants need Ejari to:

• Open DEWA accounts
• File disputes
• Apply for residence visas

🔗 Ejari Portal

Security Deposit

Usually 5% of annual rent (for unfurnished units) or 10% (furnished). Landlords hold this deposit for the lease duration.

DEWA (Dubai Electricity & Water Authority)

Utility services provider. After signing your lease, you must register with DEWA using your Ejari.

🔗 DEWA Website

Annual Rent

Most lease agreements are annual, and payment is often made in 1–4 post dated cheques. Rents are benchmarked by the RERA rent index.

Rent Cap

RERA enforces a rent cap to prevent landlords from raising rent arbitrarily. Rent increases must follow specific rules based on the market average.

Property Investment and Finance Terms

ROI (Return on Investment)

A key metric for investors. ROI = (Net Profit ÷ Total Cost) × 100
Dubai offers ROIs as high as 7%–9% in areas like JVC and Dubai Silicon Oasis.

Capital Appreciation

The increase in property value over time. For instance, a unit bought in Business Bay in 2020 for AED 900K may now be worth AED 1.2M.

LTV (Loan-to-Value)

Indicates how much of a property’s value a bank is willing to finance.
In Dubai:

• Up to 80% LTV for residents
• Up to 50% LTV for non-residents

DSCR (Debt Service Coverage Ratio)

Used by banks to assess mortgage eligibility. DSCR = Net Operating Income ÷ Debt Obligations

Escrow Account

All off-plan payments must be routed through escrow accounts approved by RERA. This secures buyer funds and ensures funds are only released per construction milestones.

Co-Ownership and Community Terms

Mollak

The DLD’s service charge transparency platform. Developers and owners’ associations submit budgets and collect maintenance fees through Mollak.

🔗 Mollak Platform

Jointly Owned Property (JOP)

A building or community with shared areas (gym, lobby, parking) and multiple owners. JOP laws govern maintenance, management, and service charges.

Service Charges

Annual fees owners must pay for:

• Cleaning
• Security
• Facility management
  Usually quoted per square foot (e.g., AED 12–20/sq.ft.)

Reserve Fund

A reserve fund is collected in addition to annual service charges and is used for major repairs like elevator replacement, painting, and structural maintenance.

Master Developer vs. Sub-Developer

• Master Developer: Plans and maintains the entire community (e.g., Emaar for Downtown)
• Sub-Developer: Builds individual buildings within the community (e.g., Damac, Sobha)

Real Estate Technology & Regulation

Trakheesi

A system that regulates real estate ads and listings. All properties listed for rent/sale must have a valid Trakheesi number.

🔗 Trakheesi Details

Dubai REST

The Real Estate Self Transaction (REST) app by DLD lets users:

• View property ownership
• Register Ejari
• Complete sales transactions
• Track mortgages
  It’s Dubai’s official smart property platform.

Here is a complete introduction to the Dubai REST App

🔗 Dubai REST

Blockchain Tokenization

Tokenization allows properties to be divided into digital shares, enabling fractional ownership. This is regulated by Dubai’s VARA and is an emerging model for real estate investing.

Additional Legal and Industry Terms

Power of Attorney (POA)

A POA allows someone to act legally on your behalf. Foreign investors often grant POA to agents for signing contracts or representing them at the DLD.

Valuation Certificate

Required by banks for mortgage applications. It confirms a property’s market value based on approved valuation firms.

Tenancy Contract

The legal agreement between landlord and tenant. Must be:

• In Arabic
• Registered with Ejari
• Include payment terms, obligations, and renewal clauses

Municipality Fees

Paid to Dubai Municipality by the tenant, this is 5% of annual rent, typically added to DEWA bills monthly.

Case Study: A First-Time Investor’s Journey

Profile: Ana, a Swedish national, invests in a studio in Jumeirah Village Circle (JVC)
Challenge: Confused by terms like Oqood, escrow, NOC, and Mollak
Solution: Engaged a RERA-licensed broker and studied each term
Outcome:

• Understood escrow laws, reducing risk
• Registered Oqood and tracked construction milestones
• Used the Dubai REST app for updates
• Monitored service charges via Mollak

Result: Property handed over smoothly with 9% rental yield in the first year.

Common Mistakes Due to Misunderstanding Terms

• Not registering Ejari, making visa renewals or DEWA activation impossible
• Paying fees outside of escrow, risking developer delays
• Forgetting to check Mollak fees, leading to unexpected service charges
• Misunderstanding leasehold vs freehold, affecting resale plans
• Confusing SPA with title deed, which delays legal transfer

Understanding terms prevents these costly errors.

FAQ: Dubai Property Terminology

Is Ejari mandatory for every rental contract?
Yes. Without Ejari, the lease is not legally enforceable.

What’s the difference between Oqood and Title Deed?
Oqood is for off-plan units; Title Deed is for completed, registered properties.

Do I need a valuation certificate for a cash purchase?
No, it’s usually required only for mortgages.

Can a non-resident get a POA notarized remotely?
Yes, through UAE embassies or verified e-notary platforms.

What happens if I skip Mollak payments?
You may be barred from using shared facilities or face legal action.

Let Homecubes Simplify the Language of Real Estate

At Homecubes, we believe real estate investment should be accessible, clear, and efficient—even for those unfamiliar with local terminology. While our VARA license is still pending, we’re building a platform that will:

• Translate legal terms into plain English
• Automate documents like Oqood and Ejari
• Connect you with licensed service providers
• Help you track your property’s performance in real time

🟦 Want to invest smarter and understand the terms behind your investment?
👉 Reach out to our team and join the waitlist for Dubai’s most intuitive property investment experience.