Real Estate Lexicon Dubai

Official Confirmation of Property Completion

A Completion Certificate in Dubai is an official document issued by the relevant building authority - usually the Dubai Municipality or Trakhees. It confirms that a construction project has been properly completed and complies with approved plans and applicable safety and quality standards.

The Completion Certificate is a prerequisite for:

• Handover of the property to the buyer
• Provision of electricity and water (DEWA)
• Registration with the Dubai Land Department (DLD)

Without this certificate, a building may not be officially used or sold.

Dubai Electricity and Water Authority (DEWA) - Efficient Supply Infrastructure for Dubai's Real Estate Sector

The Dubai Electricity and Water Authority (DEWA) is the government-owned utility for electricity and water in the Emirate of Dubai. It is responsible for the provision, billing, and maintenance of energy and water supplies for residential, commercial, and industrial users.

DEWA plays a key role in the development and connection of new real estate projects, offers modern digital services (e.g., smart metering and e-billing), and supports Dubai's vision of a sustainable, technology-driven infrastructure.

A valid Ejari lease or proof of ownership is required to activate electricity and water connections in Dubai.

Dubai Land Department (DLD) Fees - Overview and Payment Methods in Dubai

Dubai's real estate market is among the most dynamic in the world, attracting investors from across the globe. The Dubai Land Department (DLD) is the official government authority responsible for regulating and overseeing all real estate transactions in the emirate. When buying or selling property in Dubai, certain fees must be paid to the DLD. These fees cover a range of services, including property registration, mortgage recording, and broker commissions.

What Are DLD Fees?

DLD fees are official charges payable to the Dubai Land Department to register and legalize property transactions. They apply to both buyers and sellers and ensure that all legal and administrative requirements are fulfilled.

Types of DLD Fees

The DLD fees can be divided into several categories:

• Property Transfer Fee
  The most significant fee during a real estate transaction is the property transfer fee, which amounts to 4% of the purchase price. It is payable upon registration of the property and is typically borne by the buyer, although it may be split depending on the agreement between the parties.
• Title Deed Issuance Fee
  For the issuance of a new title deed, the DLD charges AED 580 for individuals and AED 2,000 for corporate entities.
• Mortgage Registration Fee
  If the purchase is financed through a mortgage, the loan must be registered with the DLD. The registration fee is 0.25% of the loan amount, plus an administrative fee of AED 290.
• Brokerage Commission
  Real estate agents typically charge a brokerage fee of 2% of the property purchase price. This fee is paid directly to the agency facilitating the transaction.
• Oqood Registration Fee (for Off-Plan Properties)
  For off-plan property purchases, a 4% Oqood fee is charged based on the purchase price. This fee registers the sales contract for properties under construction.
• Ejari Registration Fee
  When registering a rental agreement via the Ejari system, a fee of AED 155 (plus VAT) is applicable if done online. If processed through an authorized trustee center, the fee is AED 219.75.
• Ejari Renewal Fee
  Renewing a rental contract costs AED 100 via the DLD website or the Dubai REST app. Alternatively, if processed through a trustee center, the total fee is AED 215 (AED 120 + AED 95).
• Trustee Office Service Fee
  For processing property transactions, a fee of AED 4,200 applies if the transaction value exceeds AED 500,000. For lower-value transactions, the fee is AED 2,100.

Payment Methods for DLD Fees

There are several ways to pay DLD-related fees in Dubai, depending on the type of service being provided. For example, fees for new property registrations can be paid via Noqodi, in cash, or by credit card. Ejari-related fees are usually paid online via debit or credit card.

Below is an overview of accepted payment methods for DLD services:

• Bank Transfer: Direct transfers to DLD accounts.
• Credit or Debit Card: Accepted at DLD service centers and online platforms.
• Noqodi Wallet: A secure digital wallet for real estate payments in Dubai.
• Cheque: Accepted for selected services, often via real estate agencies.
• Sadad Dubai Payment System: Integrated payment gateway.
• ePay: DLD's online payment solution.

Conclusion

DLD fees are an essential part of any real estate transaction in Dubai. They ensure legal compliance and contribute to the stability and transparency of the property market. Buyers and investors should be fully informed of these costs in advance to plan accordingly and avoid unexpected expenses.

Understanding the DLD fee structure allows for precise budgeting and smooth execution of property transactions. All fees are subject to change, and while this guide reflects the latest available information, no liability is assumed for accuracy or completeness.

The Dubai Land Department (DLD) is the official government authority responsible for regulating and overseeing the real estate sector in the Emirate of Dubai. It was established to ensure the legal security of all property transactions, create a transparent market environment, and strategically support the development of the real estate industry.

The DLD's core responsibilities include the legal registration of property transactions, issuing title deeds and land registry extracts, and conducting official valuations of land and buildings. It also licenses and supervises real estate professionals such as brokers, developers, and management companies. Additionally, the DLD acts as a point of contact for dispute resolution and provides a legal framework to support fair and efficient conflict management.

Ejari System - Official Lease Registration in Dubai

The Ejari System, administered by the Real Estate Regulatory Agency (RERA), has been the mandatory digital platform for registering and managing leases in Dubai since 2010. The Arabic term "Ejari" means "my lease" and underscores the central role this system plays in ensuring transparency, legal certainty, and regulatory oversight in the real estate market.

Registration is required by law and must be completed within 30 days of signing the lease. It serves as official proof of the lease and is a prerequisite for numerous administrative and financial transactions - from applying for a residence visa and registering for utility services to opening a bank account and installing telecommunications connections.

Registration requires the signed lease agreement, copies of both parties' passports, the property's title deed, and a current utility bill; for commercial properties, a commercial license is also required. Registration takes place via the Dubai REST portal or authorized typing centers and is typically completed within two to three business days. The result is the official Ejari certificate.

Ejari offers clear advantages for tenants, landlords, and investors: It documents tenancies in a legally secure manner, prevents illegal or fraudulent rentals, creates a transparent basis for disputes before the Rental Dispute Center, and regulates the market through its connection to digital rental price indices. This prevents excessive rents and keeps price structures in Dubai's neighborhoods transparent - a significant contribution to a transparent, secure, and investor-friendly real estate market.

Without an Ejari certificate, DEWA connections, visa extensions, and legal claims arising from the rental agreement are not possible.

Escrow Account - Escrow Account for Secure Off-Plan Transactions in Dubai

An escrow account is a legally required escrow account established for every off-plan property in Dubai to securely and transparently manage buyer payments. The account is held exclusively by authorized banks and is subject to the strict supervision of the Real Estate Regulatory Agency (RERA). All purchase price payments are paid directly into this account and may only be withdrawn by the developer after a specified construction progress has been reached. Release occurs in stages, following review by independent appraisers and approval by RERA, ensuring the earmarked use of funds.

This system protects buyers from financial losses due to misuse, construction delays, or the developer's insolvency, as disbursements are only made upon verifiable construction progress. A separate escrow account is required for each project, allowing investors to clearly segregate and track their funds.

Through these strict requirements, the escrow system strengthens the confidence of international investors, ensures market transparency, and contributes significantly to Dubai's stability and reputation as one of the safest and best-regulated real estate markets in the world.

Form A - Exclusive Agreement between Agent and Seller

Form A is an essential document in the Dubai real estate market and serves as an official contract between the agent and the seller of a property. It regulates the legal framework of the collaboration and obligates the agent to actively market the property and provide professional support to potential buyers. The document must contain detailed information about the owner and the property itself, including the agreed commission structure. If the property is jointly owned by multiple owners, the signatures of all co-owners are required. A seller can issue a maximum of three such forms for a property, allowing them to work with up to three agents simultaneously. Agents who do not have a signed Form A are not authorized to market or offer the property.

Form B - Exclusive Agreement between Agent and Buyer

Form B forms the contractual basis for the collaboration between a buyer and an agent in Dubai. It guarantees the buyer the support of a qualified real estate advisor who will act exclusively in their interest to find the right property. By signing this document, the agent is legally authorized to represent the buyer in all aspects of the purchase. This includes organizing and accompanying viewings, participating in auctions, and collaborating with other advisors, provided this is regulated by a signed Form I. Through this agreement, the buyer receives professional support and ensures that their agent actively supports them in finding the best property.

Form I - Collaboration between a broker and other real estate consultants involved

Form I is an official document issued by the Dubai Land Department (DLD) that governs the cooperation between a primary real estate broker and any additional agents or co-brokers involved in a transaction. It sets out the terms of collaboration, including commission sharing, responsibilities, and regulatory compliance. Form I is typically used when the primary agent involves external advisors to organize property viewings, attend auctions, or support negotiations beyond the scope of the original listing agreement. The form ensures that all participating parties are registered, authorized, and legally protected under DLD regulations.

Form F - Sale and Purchase Agreement (Memorandum of Understanding, MoU)

Form F is the official purchase agreement that forms the basis of the real estate transaction. The document only becomes legally binding once signed by the buyer and seller. Both parties must sign the agreement in the presence of their real estate agents, with the signatures dated and witnessed by their respective representatives. Furthermore, the signature must match the one in the signatory's passport. This form contains all essential details of the purchase, including the exact description of the property, payment terms, financing options (if applicable), and the contractual terms stipulated by the seller. It ensures that both parties are aware of their obligations and protects the rights of all involved during the purchase process.

Form SPA - Sale and Purchase Agreement (SPA)

The Sale and Purchase Agreement (SPA) is the purchase agreement between the developer and the buyer. The SPA is typically entered into while the property is still under construction, but in certain cases, it can also be used for completed properties. The SPA contains all essential information about the property purchase, particularly the details of the property, payment terms, warranty rights, and any contractual penalties.

Form U - Termination of the Brokerage Agreement

If a buyer or seller wishes to terminate their relationship with a broker, a formal termination notice is required. The broker must be given seven days' notice and a valid reason for terminating the agreement must be stated. The official termination document is Form U, which legally terminates the existing contract between both parties. Signing this document ensures that the termination is carried out properly and that both parties are informed of their further rights and obligations.

Tenancy Agreement & Ejari Registration

A legally valid tenancy agreement between landlord and tenant is a fundamental requirement for any rental in Dubai. To ensure the validity of the agreement and legally protect the rights of both parties, it must be registered in the Ejari system. Ejari registration is required by law and serves to avoid disputes, secure official documents and enable authorities to transparently trace tenancy agreements.

Structured Handover Process for Real Estate in Dubai

A handover in Dubai refers to the official handover of a property from the developer or seller to the buyer after construction is completed.

The prerequisite for the handover is that the property is fully completed, officially inspected, and the agreed purchase price is paid in full. This usually includes a joint inspection, during which any defects are documented. With the handover, the buyer ultimately receives access to the property, along with all relevant documents and usage rights.

The No Objection Certificate (NOC) is a clearance certificate issued by the developer, confirming that the seller of a property no longer has any outstanding financial or contractual obligations to the developer and that there are no objections to the transfer of ownership to the buyer. It is required for all property transfers in Dubai and is submitted before registration with the Dubai Land Department (DLD). It thus protects the buyer from hidden claims or liability risks. For existing properties, the NOC certifies that all service charges and fees have been paid in full. For off-plan properties, it is particularly necessary if the original buyer resells the property before completion, and in this case, confirms that all installment payments have been made according to the payment schedule. The NOC is therefore a key component of a legally secure property transfer in Dubai and ensures that the buyer acquires unencumbered property.

Purchasers of unfinished properties are first registered in the Interim Real Estate Register, maintained by the Dubai Land Department. Evidence of this preliminary registration is known as an Oqood. Once the property is completed, or in the case of the purchase of an existing property, the buyer is formally registered in the official Real Estate Register. Based on this, the title deed is then drawn up. The Oqood, or Title Deed, allows the registered individual to prove their legal ownership of the property.

A post-handover payment plan is a payment model established in Dubai, whereby a portion of the purchase price of a property is paid only after the keys have been handed over, in agreed, usually interest-free installments over several years. It allows buyers - especially international investors - to occupy the property immediately while simultaneously staggering the payment burden and represents a flexible alternative to traditional mortgage financing.

Real Estate Ownership Freehold or Leasehold

Leasehold (hereditary lease): When purchasing a leasehold property, the buyer receives the right to use the property for a fixed term, up to a maximum of 99 years. However, the property remains the property of the original owner, to whom it reverts after the lease term expires.

Freehold (freehold): A freehold buyer acquires full ownership of both the property and the land surrounding it. They can sell, rent, or live in the property as they see fit, without any time restrictions.

Regulatory Authority for Dubai's Real Estate Market

The Real Estate Regulatory Agency (RERA) is the central regulatory authority for the real estate sector in Dubai and was established in 2007 as part of the Dubai Land Department (DLD). Its primary mission is to ensure transparency, fairness, and legal certainty in the real estate market. As an independent regulatory body, it enforces clear guidelines and creates a stable and trustworthy market environment that provides security for both investors and property owners.

RERA has comprehensive powers to monitor, license, and regulate all players in the industry. It ensures that real estate agents and developers act according to ethical business practices, approves new construction projects, and monitors compliance with quality standards and deadlines. A key component of its regulation is the escrow system, which guarantees buyer protection for off-plan properties. Payments are deposited in escrow accounts, and developers only receive access to the funds after construction has verifiably progressed.

RERA provides essential protection for investors and property owners. Mandatory broker licenses, which can be verified via the Dubai REST portal, ensure that only registered professionals operate in the market. The authority also publishes regular market analyses and rental price indices, providing buyers and tenants with a sound basis for decision-making. These measures contribute significantly to market transparency and prevent unfair practices.

Another key area of RERA's work is dispute resolution in the real estate sector. The authority acts as an arbitration body for disputes between buyers, sellers, and developers, offering a quick and cost-effective alternative to lengthy legal proceedings. In doing so, it not only strengthens confidence in Dubai's real estate market but also actively contributes to the efficiency and stability of the sector.

With advanced digital platforms such as Dubai REST and Oqood, as well as ongoing reforms to market monitoring, RERA is positioning Dubai as one of the most transparent and secure real estate markets in the world. Through strict regulations and innovative protection mechanisms, the authority remains a key player in the sustainable development of the real estate sector and sets international standards for a regulated and fair market structure.

The ROI (return on investment) is a business metric used to evaluate the return on investment. It shows the relationship between the profit generated and the capital invested. In real estate investments, the ROI provides information about how profitable a property is relative to the investment amount.

SMART Invest encompasses a structured search, well-thought-out concept, and strategic planning for your real estate investment. This process includes the following steps:

• Definition of a customized investment strategy
• Financing review for implementation
• Targeted property search for suitable properties
• Support throughout the purchase process for the investment property