Are you an Expat?
Just moved to Dubai?
Are you in the process of buying or renting your first piece of property in Dubai?
If you answered yes to any of the previous questions, then this article is for you. As an expat myself, I realize it can be quite a task getting the paperwork done in a foreign land with different customs and laws. In this article I am going to cover terms that you can refer to, to make the entire paperwork more friendly and understandable. I have decided to keep evolving this article and as such, I’ll keep adding more terms too it from time to time. Here is the first compendium 🙂
RERA: Real Estate Regulatory Agency. This is the Dubai Land Department’s regulatory wing. RERA is tasked with the regulation of real estate related activities in Dubai. As a part of its mandate, RERA is the establishing authority of rules and regulation for the real estate market. RERA is the de facto authority when it comes to real estate in Dubai
Broker/Agents: An intermediary between the buyer and seller, representing either the buyer or the seller. In Dubai, its compulsory for a broker to be licensed by RERA in order to do business. RERA licensed brokers/agents are accountable to the law, hence they ensure that all activities being performed are as per the rules and regulations.
Ejari: Ejari is a RERA governed online/electronic registration system with the aim of providing transparency to all the parties involved in the real estate transaction. The core concept behind Ejari is to provide fair and accountable agreements for the tentats as well as the land lords. When you do a tenancy contract in dubai, it is absolutely important to register your contract with Ejari.
Makani: Makani number is a 10 digit unique code assigned to every building in Dubai. Using this number one can search for any building in Dubai from their portal at https://makani.ae
DEWA: Dubai Electricity and Water Authority. Is responsible for the distribution of water and electricity to all real estate units. Every premise has a DEWA registration number. You can pay your consumed Electricity and Water bill at https://dewa.gov.ae
Oqood: Important if you are interested in Off Plan Properties. Oqood is an online platform under Dubai Land Department, provided to real estate developers. RE Developers use this platform to register their projects with the Dubai Land Department. As an off plan buyer your contract will be registered under oqood to ensure 100% transparency and accountability.
Rental Yield: Rental Yield can be broadly called the ongoing return on your property. It helps you to compare your investment to other investments. Rental Yield however, does not take into account your capital growth. In other words Rental Yield helps you to identify the potential income and cash flow from a property. You can calculate the net rental yield of your property with this simple mathematical formula.
Net rental yield = [(Annual rental income – Annual expenses*) / Total property cost] x 100
Where your Annual expenses can be (not limited to) your mortgage payments, Maintenance costs, vacancy periods, insurance premiums and depreciation.
Return on Investment (ROI): The income that you get from a property versus the total price you paid to buy the property will be the ROI on the property. Mathematically speaking.
Form A: A simple, RERA mandated, contract between the property buyer and the Agent. This contract is a non binding contract which formalizes the mutual working terms between the buyer and the Agent. This agreement also introduces legally binding accountability on the part of the Agents. (We always recommend that you insist on signing a form A whenever you commission an Agent to work on your behalf)
Form B: Another simple RERA mandated, contracted between the property seller and the Agent. (Since almost everything about Form B is pretty much same as that of Form A, I’ll just Control V it here) This contract is a non binding contract which formalizes the mutual working terms between the property seller and the Agent. This agreement also introduces legally binding accountability on the part of the Agents. (We always recommend that you insist on signing a form B whenever you commission an Agent to work on your behalf)
Title Deed: At the culmination of the buying process, you will be provided with the Title Deed. This legal document asserts your ownership of the property and is endorsed by the legal entities under RERA. A title deed is essentially your proof of ownership.
Manager’s Cheque: Also known as cashiers cheque, these cheques are one of the most secure and prefered way of transacting in real estate. Unlike a normal cheque, a manager’s cheque is purchased from the bank ie, the payment has been made to the bank by the purchaser. This gaurantees the reciever of the cheque and hence is preferred way of transactions.
Please feel free to ping me on firstname.lastname@example.org in case you’d want me to add some more terms to it.
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