Buying or selling property in Dubai can be a rewarding yet complex process, especially for those unfamiliar with the local real estate terminology. Understanding key terms is crucial to navigating the details of property transactions. In this guide, let’s have a quick look at the 10 essential real estate terms that both buyers and sellers should be familiar with when engaging in property transactions in Dubai.
Ejari:
Ejari is a term that refers to the online system established by the Dubai Land Department (DLD) for the registration of lease agreements. It is mandatory for all rental contracts to be registered on the Ejari platform. This system provides a transparent record of the contractual terms, ensuring that both landlords and tenants adhere to their respective obligations. For property buyers, knowledge of Ejari is essential as it is an indicator of the legal compliance of the property’s lease agreements.
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Ijarah:
Ijarah is an Islamic leasing contract widely used in Dubai’s real estate sector. In an Ijarah agreement, the lessor (property owner) leases the property to the lessee (tenant) for a specific period and agreed-upon rent. At the end of the lease term, the lessee may have the option to purchase the property. Understanding the nuances of Ijarah is crucial for those exploring rental options or considering lease-to-own arrangements.
Tawtheeq:
Tawtheeq is a mandatory tenancy contract issued by the DLD that formalizes the relationship between the landlord and tenant. This contract outlines the terms and conditions of the lease, including the rental amount, duration, and other pertinent details. For buyers, knowledge of Tawtheeq ensures that the property they are interested in complies with regulatory requirements, providing a secure foundation for their investment.
Tasdeeq:
Tasdeeq is the process of verifying and authenticating property documents. It involves validating the accuracy of information provided in property-related documents to ensure compliance with legal standards. For sellers, completing the Tasdeeq process is vital to establish the authenticity of their property documents, instilling confidence in potential buyers. Buyers, on the other hand, should be aware of the Tasdeeq process to ensure the legitimacy of the property they are interested in.
Musataha:
Musataha refers to a long-term leasehold arrangement where a party is granted the right to develop on and utilize a plot of land owned by another party. This arrangement is common in Dubai, especially in the context of property development projects. Understanding Musataha is crucial for buyers interested in developments, as it outlines the rights and obligations associated with the land use.
Makani:
Makani is the unified addressing system implemented by the Dubai Municipality. It assigns a unique 10-digit code to every building and structure in Dubai, facilitating accurate navigation and location identification. For buyers and sellers alike, Makani provides a precise way to pinpoint the geographical location of a property, streamlining the property transaction process and enhancing transparency.
Oqood:
Oqood, or the initial sale agreement, is a legally binding document that outlines the terms and conditions of a property transaction. It serves as an interim agreement between the buyer and seller before the completion of the full sales process. Sellers initiate the Oqood process by registering the property with the DLD, while buyers benefit from the security it provides in the early stages of a property transaction.
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Trakheesi:
Trakheesi is a regulatory process implemented by the DLD to approve and verify real estate advertisements. Property advertisements in Dubai must undergo the Trakheesi process to ensure accuracy and prevent misleading information. For sellers, obtaining Trakheesi approval is a prerequisite for marketing their property, while buyers should look for Trakheesi approval to ensure the reliability of the property listing.
Al Sa’fat:
Al Sa’fat, or the property condition report, is a comprehensive document detailing the physical condition of a property. It covers aspects such as structural integrity, maintenance issues, and any alterations made to the property. For buyers, reviewing the Al Sa’fat report provides insights into the property’s condition, helping them make informed decisions. Sellers can use this report to showcase the well-maintained state of their property.
Estidama:
Estidama is an Arabic term meaning sustainability, and it is associated with a green building initiative in Dubai. Properties that adhere to Estidama principles prioritize energy efficiency, environmental sustainability, and overall eco-friendliness. For buyers interested in environmentally conscious living, understanding Estidama is crucial as it signifies the property’s commitment to sustainable practices.
Why are these terms necessary to be known?
Understanding the specified real estate terms is essential for both buyers and sellers in Dubai due to several reasons:
Legal Compliance
Many of these terms, such as Ejari, Tawtheeq, Tasdeeq, and Oqood, are associated with legal processes and documentation required by the Dubai Land Department (DLD). Adherence to these legal requirements is crucial to ensure the legitimacy of property transactions. For sellers, compliance with these regulations instills confidence in potential buyers, and for buyers, it provides assurance that the property adheres to legal standards.
Transaction Security
Terms like Oqood, Trakheesi, and Tasdeeq contribute to the security of property transactions. Oqood, for example, establishes a preliminary agreement between buyers and sellers, providing a level of security during the initial stages of the transaction. Tasdeeq ensures the authenticity of property documents, reducing the risk of fraudulent transactions. Trakheesi approval adds a layer of reliability to property advertisements, reducing the likelihood of misinformation.
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Transparent Property Information:
Terms like Al Sa’fat and Estidama provide valuable information about the physical condition and sustainability of a property, respectively. Al Sa’fat reports offer insights into the property’s structural integrity and maintenance history, aiding buyers in making informed decisions. Estidama, focusing on sustainability, caters to the growing interest in eco-friendly living, making it an important consideration for environmentally conscious buyers.
Location Accuracy
Makani, the unified addressing system, plays a vital role in providing accurate location information for properties. For both buyers and sellers, having a precise location code simplifies navigation, aids property inspections, and ensures that the property’s geographical details are easily accessible and verifiable.
Lease Understanding
Terms like Ijarah and Musataha are particularly relevant for those involved in rental agreements or long-term leasing arrangements. Understanding the nuances of Ijarah is crucial for tenants considering lease-to-own options, and knowledge of Musataha is essential for buyers interested in developments or properties associated with long-term land leasing.
Marketing and Advertisement
Trakheesi approval is essential for property sellers looking to advertise their listings. Compliance with Trakheesi ensures that property advertisements are accurate and meet regulatory standards. For buyers, seeing Trakheesi approval provides confidence in the reliability of the property listing and the transparency of the seller.
To Sum Up
Navigating the real estate landscape in Dubai requires a firm grasp of the local terminology. Whether you are buying or selling property, understanding terms such as Ejari, Ijarah, Tawtheeq, Tasdeeq, Musataha, Makani, Oqood, Trakheesi, Al Sa’fat, and Estidama is essential for a smooth and successful transaction. By familiarizing yourself with these terms, you empower yourself to make informed decisions and ensure compliance with Dubai’s real estate regulations.
