Glossary
A
Advance Rent
Rent paid in advance, typically for a specified period, such as one year.
AED
United Arab Emirates Dirham, the currency used in Dubai and the UAE.
Agent
A licensed professional who represents buyers, sellers, landlords, or tenants in real estate transactions.
Amenities
Features or facilities of a property that enhance its value or desirability.
Amortization
The gradual repayment of a mortgage loan, typically through regular monthly payments.
Annual Rental Value
The total amount of rent collected from a property over a year.
Appraisal
An estimate of a property's value, typically performed by a professional appraiser.
Appraisal Fee
The cost charged by a professional appraiser to assess a property's value.
Appreciation
An increase in the value of a property over time.
As-Is Condition
The current state of a property, without any repairs or improvements.
Assessed Value
The value assigned to a property for tax purposes.
Assignment
The transfer of rights or property from one party to another.
B
Balloon Payment
A large final payment on a loan, typically much larger than the regular payments.
Bankruptcy
A legal status of a person or entity that cannot repay debts to creditors.
Beneficiary
The person who benefits from a trust or receives money from an insurance policy.
Bridge Loan
A short-term loan used until a person or company secures permanent financing.
Broker
A licensed professional who acts as an intermediary between buyers and sellers in real estate transactions.
Building Code
Local regulations that set standards for construction, maintenance, and occupancy of buildings.
C
Capital Gain
The profit made from selling a property for more than its purchase price.
Capital Improvement
An improvement that increases a property's value or extends its life.
Certificate of Occupancy
A document issued by a local government certifying a building's compliance with applicable building codes and laws.
Chain of Title
The sequence of historical transfers of title to a property.
Clear Title
A title that is free from liens or other encumbrances.
Closing
The final stage in a real estate transaction where the property title is transferred to the buyer.
Closing Costs
Fees associated with completing a real estate transaction, typically paid at the closing of the sale.
Collateral
An asset pledged as security for a loan.
Commercial Property
Real estate intended for business or income-generating purposes.
Commission
The fee paid to a real estate agent or broker for their services, usually a percentage of the property's sale price.
Comparative Market Analysis (CMA)
An evaluation of similar, recently sold properties to determine a competitive price for a home.
Condominium (Condo)
A type of property ownership where individuals own their units and share ownership of common areas.
Contingency
A condition that must be met for a real estate contract to become binding.
Contract of Sale
A written agreement between a buyer and seller for the purchase of real estate.
Conveyance
The transfer of property from one party to another.
Covenant
A promise written into deeds and other instruments agreeing to performance or non-performance of certain acts.
D
Debt-to-Income Ratio
The percentage of monthly income that goes toward paying debts.
Deed
A legal document that transfers ownership of real property from one party to another.
Default
Failure to fulfill a legal obligation, especially the failure to make payments on a loan.
Delinquency
The state of being behind on a debt or financial obligation.
Deposit
Money given as security for a future payment or event.
Depreciation
A decrease in the value of a property over time, often due to wear and tear.
Down Payment
An initial upfront payment made when purchasing a property, typically a percentage of the total price.
Dual Agency
A situation where a real estate agent represents both the buyer and the seller in a transaction.
Dubai Land Department (DLD)
The government entity responsible for registering real estate transactions in Dubai.
Due Diligence
The process of investigating and verifying the details of a property before purchase.
E
Easement
The right to use another person's land for a specific purpose.
Ejari
The mandatory tenancy contract registration system in Dubai.
Eminent Domain
The power of the government to take private property for public use, with compensation.
Encroachment
When a structure or other property improvement intrudes onto another's property.
Encumbrance
A claim or liability attached to a property.
Equity
The difference between the market value of a property and the amount owed on its mortgage.
Escrow
A third-party account used to hold funds during a real estate transaction.
Escrow Account
An account held by a third party on behalf of transacting parties.
Estate
All of a person's possessions and debts left at death.
Eviction
The legal process of removing a tenant from a rental property.
F
Fair Market Value
The price a property would sell for on the open market.
Fannie Mae
The Federal National Mortgage Association, a government-sponsored enterprise that buys and sells mortgage-backed securities.
FHA Loan
A mortgage insured by the Federal Housing Administration.
Fiduciary
A person in a position of trust who is obligated to act in another's best interests.
Fixed-Rate Mortgage
A mortgage with an interest rate that remains the same for the entire term of the loan.
Foreclosure
The legal process by which a lender takes possession of a property due to the borrower's failure to make payments.
Freehold
A type of property ownership that grants the owner full rights to the property and land.
G
Gentrification
The process of renovating and improving a neighborhood, often resulting in increased property values and displacement of lower-income residents.
Good Faith Estimate
An estimate of fees due at closing for a mortgage loan.
Grace Period
A set length of time after the due date during which a payment can be made without penalty.
Grantee
The person to whom a property is conveyed.
Grantor
The person conveying a property to another.
Gross Lease
A lease in which the landlord pays for all property charges regularly incurred by the ownership.
Ground Lease
A lease for the ground only, with the tenant paying to construct and maintain all improvements.
Guarantor
A person who guarantees to pay for someone else's debt if they default.
H
Home Equity Line of Credit (HELOC)
A line of credit secured by the equity in a home.
Home Inspection
An examination of a home's condition, typically performed before purchase.
Home Warranty
A service contract that covers the repair or replacement of home systems and appliances.
Homeowners Association (HOA)
An organization of property owners that makes and enforces rules for properties and common areas.
Homestead Exemption
A legal provision that helps protect the value of a home from property taxes, creditors, and circumstances arising from the death of the homeowner's spouse.
Hybrid Adjustable-Rate Mortgage
A mortgage that combines features of fixed-rate and adjustable-rate mortgages.
I
IBAN
International Bank Account Number, used for international money transfers.
Indemnity
Security or protection against a loss or other financial burden.
Independent Contractor
A person who provides services to another entity under terms specified in a contract.
Inflation
A general increase in prices and fall in the purchasing value of money.
Installment Sale
A sale of property where the seller finances the purchase and the buyer makes regular payments.
Interest
The cost of borrowing money, typically expressed as a percentage of the loan amount.
Interest-Only Mortgage
A mortgage in which the borrower pays only the interest for a set period, with the principal balance unchanged.
J
Joint Tenancy
A form of property ownership where two or more people own equal shares with right of survivorship.
Judicial Foreclosure
A type of foreclosure that is processed through the courts.
Junior Mortgage
A mortgage that is subordinate to a first or prior mortgage.
L
Land Contract
A contract in which the buyer makes payments directly to the seller, who retains the deed until the contract is fulfilled.
Landlord
The owner of a property who rents or leases it to others.
Lease Option
A contract that gives a renter the choice to purchase the rented property during or at the end of the rental period.
Leasehold
A type of property ownership where the owner has the right to use a property for a specified period.
Lessee
A person who rents property from another; a tenant.
Lessor
A person who leases or rents property to another; a landlord.
Leverage
The use of borrowed capital to increase the potential return of an investment.
Lien
A legal claim against a property, typically used as security for a debt.
Listed Price
The price at which a property is offered for sale.
Listing
A contract between a real estate broker and a property owner that allows the broker to market and handle the sale of the property.
Loan-to-Value Ratio (LTV)
The ratio of a loan to the value of an asset purchased.
M
Market Value
The price at which a property would sell in a competitive market.
Mechanic's Lien
A claim made against a property by someone who is owed money for labor, services, or supplies contributed to the property.
Mortgage
A loan used to purchase real estate, with the property serving as collateral.
Mortgage Broker
A professional who arranges mortgage loans for clients.
Mortgage Insurance
Insurance that protects the lender against losses due to the default of a mortgage loan.
Multiple Listing Service (MLS)
A system used by real estate brokers to share information about properties for sale.
N
Negative Amortization
An increase in the principal balance of a loan caused by making payments less than the interest due.
Net Lease
A lease in which the tenant pays, in addition to rent, some or all of the property expenses normally paid by the landlord.
Non-Conforming Loan
A loan that does not meet traditional lending criteria, often due to the borrower's unique circumstances.
Notary Public
A state-licensed official who can legally witness and authenticate the signing of important documents.
O
Off-Plan Property
A property that is purchased before it has been built or completed.
Offer
A proposal to buy a property under specific terms.
Open House
A scheduled period of time in which a house or other dwelling is designated to be open for viewing by potential buyers.
Option
The right to buy or sell a property at a specified price within a specified time period.
Origination Fee
A fee charged by a lender for processing a loan application.
Owner Financing
A transaction in which the property seller provides all or part of the financing.
P
Partition
The division of property between co-owners.
Percentage Lease
A lease based on a percentage of the gross or net sales made on the premises.
Plat
A map showing the divisions of a piece of land.
Points
Fees paid to a lender to lower the interest rate on a mortgage.
Power of Attorney
A legal document giving one person the authority to act for another person in specified matters.
Pre-Approval
A commitment from a lender to provide a mortgage up to a specified amount.
Prepayment Penalty
A fee charged to a borrower who pays off a loan before it is due.
Principal
The original amount of a loan, excluding interest.
Private Mortgage Insurance (PMI)
Insurance that protects the lender against loss if a borrower defaults on a conventional mortgage with a low down payment.
Probate
The legal process of administering a deceased person's estate.
Property Management
The operation, control, and oversight of real estate.
Property Tax
A tax assessed on real estate by the government, based on the property's value.
Q
Quitclaim Deed
A deed that transfers whatever interest the grantor has in the property without any warranty of title.
R
Real Estate Agent
A licensed professional who represents buyers or sellers in real estate transactions.
Real Estate Investment Trust (REIT)
A company that owns and operates income-producing real estate.
Realtor
A real estate professional who is a member of the National Association of Realtors.
Redlining
The illegal practice of refusing to offer credit or insurance in certain neighborhoods based on the residents' race or ethnicity.
Refinance
The process of paying off one mortgage with the proceeds from a new mortgage.
Rental Yield
The annual rental income as a percentage of the property's value.
RERA
Real Estate Regulatory Agency, the regulatory arm of the Dubai Land Department.
Right of First Refusal
A contractual right to enter into a business transaction with a person or company before anyone else can.
Right of Way
The legal right to pass through grounds or property owned by another.
S
Security Deposit
A sum of money paid by a tenant to a landlord as security against damage or unpaid rent.
Service Charge
Fees paid by property owners for the maintenance and management of common areas.
Setback
The distance between a property line and the area where building is permitted.
Short Sale
A sale of real estate in which the proceeds fall short of the balance owed on the property's loan.
Sqft
Square feet, a unit of area commonly used to measure property size.
Squatter
A person who settles on property without right or title.
Sublease
A lease in which the original tenant rents out the property to another tenant.
Survey
A detailed study of a property's boundaries and features.
T
Tenancy Contract
A legal agreement between a landlord and tenant, outlining the terms of the rental.
Tenancy in Common
A form of ownership where two or more individuals have an undivided interest in property.
Title Deed
A legal document that proves ownership of a property.
Title Insurance
Insurance that protects the holder from financial loss related to defects in a property title.
Transfer Tax
A tax imposed on the transfer of property ownership or title.
Trust Deed
A document that transfers legal title of a property to a trustee as security for a loan.
U
Underwriting
The process of evaluating a loan application to determine the risk for the lender.
Usufruct
The legal right to use and derive profit from property belonging to another person.
V
Vacancy Rate
The percentage of unoccupied rental units in a building or area.
Valuation
The process of determining the market value of a property.
Variance
An exception to a zoning ordinance, typically granted by a local government.
W
Warranty Deed
A deed that guarantees the grantor has a valid title to the property and can transfer ownership.
Z
Zoning
Local laws that specify how property in specific locations can be used.