27/06/2023
Investor's glossary in Dubai:
8 important documents you should know
• SPA Sales and Purchase Agreement) - a contract between the buver and the developer for the purchase of propertv in the primarv market.
It spells out the rights and obligations of the parties, the payment plan, penalties, and the conditions for resale.
• MOU (Memorandum of Understanding) or FORM F - a contract between individuals for the purchase of property in the secondary market.
It is signed after receiving a 10% security deposit and becomes valid when signed by the parties, witnessed, and dated by the agent.
• OQOOD (from the Arabic word 'contract') - a certificate confirming the ownership of a property under construction (off-plan).
Registration of OQOOD is mandatory for every off-plan transaction. It protects the rights of the buyer and gives the right to resell.
• Title Deed - the main certificate confirming the ownership of a property.
It is issued when the buyer has paid the full cost of the unit and the construction is completed. If the 0QOOD was received previously, it is replaced with the Title Deed.
• NOC (No Objection Certificate) - a permission from the developer to commission actions with the unit and proof of the absence of debts in utility and service charges.
The term is widely used in the UAE, not only in real estate.
NOCs may be required for a variety of purposes, from starting a business to buying a car.
• POA (Power of Attorney) - a legal mandate from one person to another to act on their behalf regarding real estate.
It can be General, for a wide range of actions, or Special, for a narrow circle of actions. The duration of a POA in Dubai is 2 years.
• FORM A (Listing Form) - an agreement between the seller
and the agent to find a buyer.
If the unit has more than one co-owner, the contract is
signed by everyone. The seller can engage a maximum of 3 agents and have 3 active FORM A contracts.
• FORM B - an agreement between the buyer and the agent
to search for a property.
It contains data on the desired area, type of unit, budget, agent commission, etc. It is important to enter into a contract with an agent certified by RERA.