Real Estate Laws Flashcards
What does Real Estate in Dubai involve?
Regulations concerning property ownership, sale, development, and leasing.
Who is the Master Developer?
The primary entity responsible for large-scale real estate development.
What is the role of the Real Estate Regulatory Authority (RERA)?
Oversees compliance and regulations in the real estate sector.
What does the Dubai Land Department (DLD) manage?
Property registration, licensing, and valuation.
What does Law No. (7) of 2013 define?
Defines ‘Real Property Activities’ to include development, sale, purchase, registration, valuation, and leasing.
What are the main functions of the Dubai Land Department (DLD)?
Registers real property transactions and lease contracts, encourages real estate investment, licenses and supervises real estate professionals, provides property valuation services.
What must be registered in the Real Property Register according to Law No. (7) of 2006?
Any legal action creating, transferring, altering, or terminating a property right.
What happens if a transaction is not registered according to Law No. (7) of 2006?
The transaction is rendered void.
What must developers do regarding off-plan sales according to Law No. (13) of 2008?
Register the sale with the Land Department.
What is the consequence if a developer fails to register an off-plan sale?
The buyer can request registration from the Land Department.
Under what conditions can developers sell off-plan property as per Executive Council Resolution No. (6) of 2010?
They must legally possess the land, have full control over the land, and obtain all required approvals.
What can a buyer do if the developer fails to deliver the final sale agreement?
Seek termination of the contract.
What are some grounds for a buyer to terminate a contract?
- Failure to deliver the final sale agreement without valid reason
- Developer fails to follow payment milestones set by RERA
- Major alterations to property specifications without buyer consent
- Property found unfit for use due to construction defects
- Any other valid legal reason under UAE law
What authority does RERA have concerning development projects?
RERA can cancel a project if the developer fails to start construction or violates agreements.
What must a developer do if a buyer breaches an off-plan Sale and Purchase Agreement?
Notify the Dubai Land Department (DLD).
What happens if a buyer does not fulfill their obligations after a notice from the DLD?
The developer can take legal action.
What percentage of completion allows a developer to enforce the contract and demand full payment?
More than 80% complete.
What is the maximum percentage of the sale value a developer can keep if the project is less than 60% complete?
25% of the sale value.
What is an Escrow Account?
A secure bank account where buyers’ payments for off-plan properties are held.
What is required to open an escrow account for real estate development?
- Dubai Chamber of Commerce membership certificate
- Trade license
- Title deed of the development land
- Contract between the Master Developer and Sub-Developer
- Approved architectural and engineering plans
- Certified financial statement
- Standard sale contract
What can funds in an escrow account be used for?
Project-related expenses.
