Oqood is an interim property registration system introduced by the Dubai Land Department (DLD) for off-plan property purchases. It serves as a legally binding contract between the buyer and developer, protecting investors during the construction phase.
Pre-TD (Pre-Title Deed) is a temporary ownership document issued by the Dubai Land Department (DLD) for properties that are completed but not yet registered under the buyer’s name. It serves as proof of ownership until the final Title Deed is issued.
A Title Deed is the official legal document issued by the Dubai Land Department (DLD) that certifies full ownership of a property. It is the final and most important document in Dubai’s real estate transaction process.
This represents the ratio of the mortgage amount as a percentage of the value of the real estate asset. The maximum LTV is determined by the UAE Central Bank. It is capped at 85% for UAE Nationals and 80% for Expatriates for first-time home buyers and is applicable to purchase and balance transfer transactions as well as final handover payment to Developers. The maximum LTV allowed for off-plan properties is 50%.
This is a term commonly used by banks to determine the affordability of loans to potential clients. It is the ratio of debt burden to income. The maximum DBR for Mortgages is set at 50% by the Central Bank. This means that you may not borrow money where the total monthly combined repayments exceed 50% of your total monthly income.
A pre-approval is simply the evaluation of a potential borrower by a lender/bank that determines: (a) whether the borrower qualifies for a loan and (b) the maximum amount that the lender would be willing to give.
The pre-approval process is a formal process that involves a thorough look into the income and expenses of the borrower, including a look at the credit report and score. There is no assessment of the property in a pre-approval.
Early settling a mortgage is nothing but repaying your home loan ahead of schedule. This could be in the form of an extra payment which will reduce the amount of mortgage principal or full repayment of the loan.
Depending on the mortgage agreement with your lender/bank, there may be a prepayment cost for pre-paying. In the context of UAE, the maximum fee a Bank can charge is regulated by the U.A.E Central Bank and is defined as 1% of the outstanding loan amount capped at AED 10K.
A delayed sale (or post-handover payment plan sale) refers to a property transaction where the full payment is deferred beyond the official handover date. This is common in off-plan purchases, where developers allow buyers to pay the remaining amount in installments after receiving the keys, instead of requiring full payment at handover.
A buyout in Dubai’s property market refers to paying off the remaining mortgage or co-owner’s share to take full ownership of a property. It commonly happens in two scenarios:
1.Mortgage Buyout – Paying off the remaining loan to the bank.
2.Co-owner Buyout – Purchasing another owner’s share (e.g., divorces, business splits, or investment exits).
A seller buyout (or vendor buyout) occurs when a property developer or seller pays off an existing mortgage on behalf of the buyer as part of a purchase deal. This is common in off-plan resales or when buying a property still under bank financing.
