Legal/regulatory compliance Flashcards
What is the impact of Decree no. 43 and why did you take account of it?
Legislation in Dubai on Determining the Increase in the Real Estate Rentals in the Emirate of Dubai
Due to Decree no. 43 maximum allowable rent increase was capped to 5%, although the market rent was 30% higher than passing rent
What is the impact of Law no. 8 of 2007 on valuations?
Impact on the IRR - development projects
An Escrow Agent must retain five percent (5%) of the total value of each Escrow Account once the Developer obtains the completion certificate. The retained amount will be released to the Developer one (1) year from the registration of Units in the name of purchasers.
What is the impact of Law no. 26 of 2007 on valuations?
Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai
1) The contractual relationship between Landlord and Tenant will be regulated by a written Lease Contract signed by both parties and detailing, in a manner allowing no room for uncertainty, a description of the leased Real Property, the purpose of the Lease Contract, the name of the owner, the number and type of the land, and the area where the Real Property is located. It will also determine the term of the Lease Contract, the Rent, and payment method.
2. All Lease Contracts related to Real Property which is subject to the provisions of this Law and any amendments thereto will be registered with RERA. Judicial authorities and Government departments, authorities, and corporations may not consider any dispute or claim or otherwise take any action relating to a Lease Contract unless such Contract is registered with RERA in accordance with the relevant rules and regulations.
