The process of buying or selling properties in Dubai and other cities can be exciting. At the same time, however, it can be frustrating, especially if you don’t know a thing or two about the jargon that comes along with it. For that, we have listed some of the most common jargon and their explanations.
Annual Percentage Rate
This is a common term used by Dubai real estate agencies and other agencies around the world when referring to mortgages. APR refers to your loan’s interest rate, repayment arrangements, and other fees which might be associated with the said loan. This will help indicate how much the overall cost of the loan is.
Building Inspection
This refers to a report conducted to check a property’s structural integrity and condition. It involves a surveyor conducting a thorough property inspection to check for the presence of issues or defects which might affect its market value.
Contract
Likewise known as an agreement, this one refers to the binding document agreed upon by both buyer and seller to complete a purchase of a property. This is common in new properties, such as off plan projects by Emaar such as Emaar Beachfront apartments or Meraas Bluewaters apartments and the like.
Direct Lender
This is a new type of mortgage lender who conducts deals over the phone.
Equity
Equity refers to the portion of the property you own. It is the difference between your property’s value and your outstanding mortgage balance. If you have a higher balance than your property’s sale price, it means that you have negative equity.
First Time Buyer
This term applies to an individual who hasn’t purchased a property before. For example, if you haven’t bought a property in Bluewaters apartments Dubai before and are planning to buy one, then you are considered a first-time buyer. This, however, doesn’t apply for rentals.
Gas Safety Record
This is a certificate that guarantees all pipework, gas lines, and gas appliances in a property are safe. It’s a legal requirement which must be adhered to by landlords.
Higher Lending Charge
This is an insurance designed to protect a lender from possible financial loss in the event you fall behind your payments and the property ended up being repossessed.
Interest-Only Mortgage
A type of mortgage in which you’re only paying off the interest over the term of the loan. This means that the capital isn’t paid off.
There are still plenty of jargon used by Dubai real estate agencies and other agencies throughout the world. However, the above mentioned ones are among the most common in the industry, and knowing them will help you make an informed decision when buying or selling a property.
