HOME-BUYING LINGO YOU SHOULD KNOW
Whether you’re looking for villas for sale in Dubai or are searching for off plan properties in Dubai, there are many terms and lingos that people that don’t usually work with this environment don’t know nor understand. Dubai real estate agencies and real estate experts, though, recommend their users to take a look to some words so they stay on safe ground when buying, renting or getting involved with the real estate market.
Appraisal management company (AMC): This is an institution that’s used to order home appraisals.
Appraisal: is, basically, the value of a property. This document, which is also an opinion, is prepared by a licensed and certified appraiser. This kind of ‘opinion’ is based on reliable data and research.
Closing: also known as the closure of a property deal, in which the transfer of the property from seller to buyer occurs. It’s usually attended by the buyer or buyers, the seller, both real estate agents and also the lender.
Closing costs: these are fees that come with the purchase of a property. Comparable to the taxes you pay for when you buy a product.
Down payment: it’s a portion of the property’s price and value that the buyer must pay.
Earnest money: security deposit is always made by the buyer in which he agrees and proves to the seller his or her interest and intention to purchase the property
Funding fee: this is a fee to protect the lender from loss. It also funds the loan program by itself.
Homeowners Association (HOA): this is a group of people also known as the governing body of a housing development, condo or townhouse complex. Its main function is to setup rules and regulations. They’re also in charge of some money related to basic transactions regarding the community like the maintenance of common areas
In Escrow: this is a period of time that usually takes 30 days or maybe long after the buyer has made his offer on a property and the seller accepts.
Listing price: this is the price the sellers set to their properties.
Under contract: like the escrow, this is another period that also takes 30 days or longer after a buyer has made an offer on a property and the seller accepts.
Walkthrough: this is the final inspection a buyer does with his real estate agent before closing on a property deal.