Category: Lexicon

An Expression of Interest (EOI) is a formal but non-binding expression of interest from a potential buyer to the seller of a property. In Dubai's property market, it is often the first official step in the buying process and allows both parties to enter into negotiations without any legal obligation. In Dubai's dynamic property market, the Expression of Interest (EOI) has become a [...]

A payment plan is a contractual agreement between the property buyer and seller on the staggered payment of the purchase price. In Dubai, payment plans are particularly common for off-plan projects and can extend over several years. They allow buyers to pay the purchase price in fixed instalments, although payment terms can vary depending on the project and developer. In [...]

The down payment refers to the deposit that buyers must pay when purchasing a property in Dubai. This initial payment is between 20% and 50% of the purchase price, depending on the property type and buyer status, and is required by law. The down payment serves as proof of equity and reduces the risk for sellers and lenders. In Dubai, the down payment plays a [...]

The brokerage fee is the commission paid to the broker for arranging a property transaction in Dubai. In Dubai, this fee is regulated by law and amounts to a standard 2% of the purchase price for sales transactions and 5% of the annual rent for rental contracts. The commission is due as soon as a successful brokerage has taken place and the contract has been signed. [...]

The cooling-off period is a legally defined period during which property buyers in Dubai have the right to withdraw from a signed purchase agreement without financial disadvantage. The standard cooling-off period in Dubai is seven working days and begins with the signing of the sales purchase agreement (SPA). The cooling-off period is an important instrument of consumer protection in the Dubai [...]

In Dubai, the mortgage cap refers to the regulatory upper limit for property financing, which is set by the UAE Central Bank. This regulation determines the maximum percentage of the purchase price of a property that banks may lend. The mortgage cap serves to stabilise the property market and protect against excessive debt. In Dubai, the mortgage cap plays a [...]

The DLD Transfer Fee is a mandatory administrative fee that must be paid to the Dubai Land Department (DLD) when buying or selling a property in Dubai. It amounts to 4% of the agreed purchase price as standard and serves to officially register the transfer of ownership. This fee is an essential part of the incidental purchase costs for property transactions in Dubai. The DLD transfer [...]

The Title Deed (Arabic: Mulkiya) is the official title deed for property in Dubai, issued by the Dubai Land Department (DLD). This legally binding document confirms the ownership of a property and contains all the essential information about the property and its legal owner. The Title Deed plays a central role in Dubai's property market and is comparable [...]

A gated community is a closed residential complex with controlled access and comprehensive security measures. These exclusive residences not only offer their residents increased security, but also numerous communal facilities and amenities. In Dubai, gated communities are a particularly popular and prestigious form of housing. In Dubai, gated communities have established themselves as a favoured form of living and have a decisive influence [...]

The Sales and Purchase Agreement (SPA) is the legally binding contract of sale between the buyer and seller of a property in Dubai. This standardised document is regulated by the Dubai Land Department (DLD) and contains all essential agreements regarding the property transfer, including purchase price, payment terms and transfer modalities. The SPA is a mandatory part of any property transaction in Dubai and must be signed by the [...]