The purchase or sale of real estate can be rather complex. This holds especially true if the property is located abroad and, thus, subject to a jurisdiction different from your own. With our glossary of UAE real estate law, we make terms frequently used in real estate transactions in the United Arab Emirates understandable. Today, we provide you with an overview of documents typically used in property transactions in the Emirate of Dubai.
Form A is the contract between the seller of a property and the real estate agency that is allowed to advertise the property on real estate platforms.
The broker must obtain the seller's information as soon as the property is to be offered for sale. A property owner may only complete three Form A at a time and, hence, may work with a maximum of three brokers simultaneously with respect to a property.
Form B is concluded between a prospective buyer and the real estate agency commissioned by him. Form B underpins the seriousness of the intention to buy towards the seller of a property.
The Sale and Purchase Agreement, abbreviated "SPA", is the purchase contract between the project developer and the buyer of a property. In most cases, the purchased property is still under construction. In certain cases, however, an SPA is also concluded for the purchase of a property that has already been completed.
The SPA contains all major information pertaining to the purchase of the property, in particular the details of the property, the terms of payments, warranties and potential penalties.
Form F - or sometimes also called Memorandum of Understanding, in short "MoU" - is the standard contract provided by the Dubai Land Department for the purchase of real estate in the secondary market, i.e. in case the purchase is not made directly from the project developer.
Form F contains all details about the property, the seller and buyer, the financial aspects and the commissions to be paid by the buyer and seller to the respective brokers as well as the relevant terms regarding the execution of the property purchase.
If the buyer purchases a property that has not yet been completed, he will be registered in the so-called Interim Real Estate Register, which is maintained by the Dubai Land Department. The proof of this registration is called Oqood. Oqood is the Arabic word for contracts.
With the Oqood, the buyer proves his right to the property. This is necessary, for example, if the property is to be resold in the secondary market before completion and handover.
If the real estate has been completed or if an already existing property is purchased, the buyer will be registered in the Real Estate Register and receive a Title Deed in his name.
The presentation of the Title Deed is particularly necessary if the property is to be resold or the investment volume has to be proven when applying for a property residence visa.