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2019 Issue Year3 2
Mission
To create an innovative and
sustainable real estate
environment that shall promote
Dubai the World’s happiest city
through:
• Smart services.
• Professional human and financial
resources.
• Integrated Real Estate Legislations
of Dubai.Vision
To Position Dubai as the
World’s premier real estate
destination, and a byword
for innovation, trust and
happiness.5 4INDEX
Law No. ( 6) of 2019 Concerning
Ownership of Jointly Owned Real Property in the Emirate of Dubai
...................................................................................................................................................................................
Law No. ( 4) of 2019 Concerning
The Real Estate Regulatory Agency
...................................................................................................................................................................................
Decree No. ( 31) of 2016 Concerning
The Mortgage of Granted Land in the Emirate of Dubai
...................................................................................................................................................................................
Executive Council Resolution No. ( 37) of 2015 Regulating the Real Property
Valuation Profession in the Emirate of Dubai
..................................................................................................................................................................................
Law No. ( 7) of 2013
Concerning the Land Department
..................................................................................................................................................................................
Decree No. ( 43) of 2013 Determining
Rent Increase for Real Property in the Emirate of Dubai
..................................................................................................................................................................................
Decree No. ( 26) of 2013 Concerning
The Rental Disputes Settlement Centre in the Emirate of Dubai
..................................................................................................................................................................................
Executive Council Resolution No. ( 30) of 2013
Approving Fees of the Land Department
.................................................................................................................................................................................
Decree No. ( 4) of 2010 Regulating the Transfer of Title to
Granted Industrial and Commercial Land in the Emirate of Dubai
.................................................................................................................................................................................
Decree No. ( 56) of 2009 Forming a Special Tribunal to Determine
Cheque Disputes Relating to Real Property Transactions
............................... |
..................................................................................................................................................
Law No. ( 13) of 2008 Regulating the
Interim Real Property Register in the Emirate of Dubai
.................................................................................................................................................................................
Law No. ( 9) of 2009 Amending
Law No. ( 13) of 2008 Regulating the Interim Real Property Register in the
Emirate of DubaiLaw No. ( 9) of 2009 Amending
Law No. ( 13) of 2008 Regulating the Interim Real Property Register in
the Emirate of Dubai
...................................................................................................................................................................................
Law No. ( 19) of 2017 Amending Law No. ( 13) of 2008
Regulating the Interim Real Property Register in the Emirate of Dubai
...................................................................................................................................................................................
Executive Council Resolution No. ( 6) of 2010 Approving the Implementing
Bylaw of Law No. ( 13) of 2008
Regulating the Interim Real Property Register in the Emirate of Dubai
..................................................................................................................................................................................
Executive Council Resolution No. ( 25) of 2009 Approving
Fees and Fines of the Real Estate Regulatory Agency
..................................................................................................................................................................................
Law No. ( 14) of 2008 Concerning
Mortgage in the Emirate of Dubai
..................................................................................................................................................................................
Law No. ( 26) of 2007 Regulating the Relationship between
Landlords and
Tenants in the Emirate of Dubai
.................................................................................................................................................................................
Law No. ( 33) of 2008 Amending Law No. ( 26) of 2007 Regulating the
Relationship between Landlords and Tenants in
the Emirate of Dubai
.................................................................................................................................................................................
Law No. ( 8) of 2007 Concerning Escrow Accounts for Real
Property Development in the Emirate of Dubai
.................................................................................................................................................................................
Law No. ( 7) of 2006 Concerning
Real Property Registration in the Emirate of Dubai
. |
................................................................................................................................................................................
Law No. ( 7) of 2019 Amending Law No. ( 7) of 2006 Concerning
Real Property Registration in the Emirate of Dubai
..................................................................................................................................................................................
By law No. ( 85) of 2006 Regulating the Real Property Brokers
Register in the Emirate of DubaiINDEX
07
35
41
49
63
71
75
87
99
103
107
113113
117
123
133
139
149
161
169
177
187
1916Regulation No. ( 3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai
...................................................................................................................................................................................
Regulation No. ( 1) of 2010 Amending Regulation No. ( 3) of 2006 Determining Areas for
Ownership by Non-UAE Nationals of Real Property in the Emirate of Dubai
...................................................................................................................................................................................
Regulation No. ( 1) of 2011
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in the Emirate of Dubai
...................................................................................................................................................................................
Regulation No. ( 2) of 2012
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in the Emirate of Dubai
..................................................................................................................................................................................
Regulation No. ( 3) of 2012
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in the Emirate of Dubai
.................................................................................................................................................................................
Resolution No. ( 14) of 2015 Adding Land to the Areas for Ownership by Non-UAE
Nationals of Real Property in the
Emirate of Dubai
.................................................................................................................................................................................
Resolution No. ( 8) of 2016
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in the Emirate of Dubai
.................................................................................................................................................................................
Resolution No. ( 18) of 2019
Adding Land to the Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of DubaiINDEX
Law No. (6) of 2019
Concern |
ing
Ownership of Jointly Owned Real
Property in the Emirate of Dubai 203
207
211
215
219
223
229
2359 8Law No. (6) of 2019
Concerning
Ownership of Jointly Owned Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its
amendments;
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (27) of 2007 Concerning Ownership of Jointly Owned Real Property in the Emirate
of Dubai;
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments;
Law No. (7) of 2013 Concerning the Land Department;
Decree No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
Decree No. (17) of 2013 Concerning Licensing and Classification of Hotel Establishments in
the Emirate of Dubai;
Decree No. (26) of 2013 Concerning the Rental Disputes Settlement Centre in the Emirate
of Dubai; and
The legislation establishing and regulating free zones in the Emirate of Dubai,
Do hereby issue this Law.
Title of the Law
Article (1)
This Law shall be cited as “Law No. (6) of 2019 Concerning Ownership of Jointly Owned
Real Property in the Emirate of Dubai”.Definitions
Article (2)
The following words and expressions, wherever mentioned in this Law, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
Government : The Government of Dubai.
Executive Council : The Executive Council of the Emirate of Dubai.
DLD : The Land Department.
RERA : The Real Estate Regulatory Agency.
RDSC : The Rental Disputes Settlement Centre in the Emirate.
Competent Authority : The authority in charge of issuing building permits and
approving community plans in the Emirate.
Director General : The director general of the DLD.
CEO : The chief executive officer of RERA.
Real Property Register : The register regulated pursuant to the above-mentioned Law
No. (7) of 2006.
Master Developer : A Person who is licensed to conduct Real Property
development business in the Emirate and to dispose of Real
Property units to others, and who is classified as a master
developer in accordance with the legislation in force in the
Emirate.
Sub-developer : A person who is licensed to conduct Real Property
development business in the Emirate and to dispose of Real
Property units to others; who is granted by a Master
Developer the right to develop part of a Master Project,
in accordance with the provisions of a Master Community
Declaration; and who is classified as a sub-developer in
accordance with the legislation in force in the Emirate.
Developer : A Master Developer or a Sub-Developer.
Master Project : A project which involves developing vacant land, |
constructing
infrastructure and common service facilities thereon,
subdividing that land for the purpose of sale, and
constructing residential, commercial, or mixed-use multi
storey buildings or compounds; and which is classified
by RERA as a master project in accordance with the relevant
criteria approved by the Director General.11 10Jointly Owned Real Property : A building, including the parts and appurtenances
allocated for common use, and the land on which
that building is constructed; or land which is
subdivided into Units or land plots intended for
individual ownership.
Major Project : Any Jointly Owned Real Property designated as a
major project in accordance with the relevant criteria
approved by the Director General.
Hotel Project : Any Real Property whose Units are intended for joint
ownership, and which is licenced for use as a Hotel
Establishment by the Competent Authority. This
includes hotels, hotel villas, hotel apartments, and
hotel rooms.
Unit : A flat, shop, office, warehouse, floor, whole or part
of a land plot, town house, or independent house
that constitutes part of Jointly Owned Real Property
and is intended for residential, commercial,
industrial, or any other use.
Master Plan : A set of plans and design and engineering drawings
of a Master Project which are prepared by the
Master Developer and approved by the DLD and the
Competent Authority.
Site Plan : A map prepared by the Developer, and approved by
the DLD and the Competent Authority, which
delineates the boundaries of a building in Jointly
Owned Real Property.
Plans : These include Master Plans and Site Plans.
Common Facilities : The areas and spaces demarcated on a Master
Plan as common facilities which are owned by
the Developer, subject to ownership limitations,
and are designated for common use and for serving
the Master Project. This includes gardens, landscape
areas, fountains, streets, ponds, swimming pools,
playgrounds, public areas, public car parks,
pedestrian walkways, beaches, and other facilities.
Common Parts : The parts of Jointly Owned Real Property, as shown
on the Site Plan, designated for common use by the
Owners and Occupants of Units.Designated Common Parts : The Jointly Owned Real Property parts, connections,
fittings, equipment, or facilities designated for
exclusive use by certain Owners rather than others.
Developer-owned Areas : The areas and spaces, other than Common Facilities
and Common Parts, that are specified on a Master
Plan or a Site Plan, owned by the Developer, and
designated by him for private, commercial, or
investment use.
Owner : A Person registered in the Real Property Register as
an Owner of a Unit, including the holder of a
usufruct or long-te |
rm lease right pursuant to the
above-mentioned Law No. (7) of 2006; or a
Developer in respect of unsold Units.
Master Community Declaration : The conditions and provisions governing the
development and operation of a Master Project and
the Jointly Owned Real Property and Common
Facilities therein, including the planning and
construction standards of the Master Community.
Building Management Regulation : A document prepared in accordance with the
relevant bylaws issued by the DLD, and entered in
the Jointly Owned Real Property Register, which
states the procedures for maintenance of Common
Parts, including equipment and services in any part
of another building, and the percentages of
contribution of Owners in the relevant costs.
Owners Committee : A committee constituted from amongst Owners in
accordance with the provisions of this Law.
Statute : The rules and provisions governing an Owners
Committee, which are established and approved in
accordance with the provisions of this Law.
Service Charges : The annual charges collected from Owners to cover
the cost of management, operation, maintenance,
and repair of Jointly Owned Real Property.
Usage Charges : The annual charges collected from Owners or
Sub-developers in return for the management,
operation, maintenance, and repair of Common
Facilities.13 12Occupant : Any person using a Unit for its intended purposes,
including an Owner, a tenant, or any other person
authorised by the Owner to use the Unit.
Management Company : A sole proprietorship or a company recognised by
RERA and specialised in managing Common
Facilities, Jointly Owned Real Property, or Common
Parts, as the case may be.
Hotel Project Management Company : A sole proprietorship or a company recognised by
RERA and specialised in managing Hotel Projects
and their Common Parts in accordance with the
provisions of this Law.
Management Entity : An entity in charge of managing Common Facilities,
Jointly Owned Real Property, or Common Parts in
accordance with the provisions of this Law. This
includes Developers, Management Companies, or
Hotel Project Management Companies, as the case
may be.
Utility Services : These include water connection or supply; gas
connection or supply; electricity; air conditioning;
telephone; computer, television, and
telecommunication cables; sewerage; rain water
drainage; garbage and waste removal or disposal;
mail, parcel, or cargo delivery; and horticulture and
agriculture services, as well as any systems or
services intended for improving Common Facilities
or Common Parts.
Scope of Application
Article (3)
The provisions of this Law shall apply to all Master Projects and Jointly Owned Real
Property in the Emirate, including those |
in Special Development Zones and in free zones.Jointly Owned Real Property Register
Article (4)
a. The DLD shall maintain a special register of Jointly Owned Real Property, which contains
the following:
1. details of the land plots owned by Developers on which Jointly Owned Real Property
are to be constructed;
2. details of Units that are intended for individual ownership in Jointly Owned Real
Property and sold by Developers, and names of Owners of these Units;
3. details of members of Owners Committees;
4. Building Management Regulations;
5. Plans;
6. details of Management Entities;
7. the contracts for management of Jointly Owned Real Property or Common Parts;
8. statement of the total area of Common Parts and Designated Common Parts, and its
ratio to the total area of Units in Jointly Owned Real Property; and
9. details of Developer-owned Areas in Jointly Owned Real Property.
b. Upon the request of concerned parties, the DLD shall issue the certificates, deeds,
or other documents related to Units or Jointly Owned Real Property based on the
information in the register referred to in paragraph (a) of this Article. Any interested
party shall have the right to access that register.
Ownership Rules
Article (5)
The rules and conditions stipulated in the above-mentioned Law No. (7) of 2006 shall
apply to the ownership of Jointly Owned Real Property.
Jointly Owned Real Property Title Deeds
Article (6)
a. The Plans, Master Community Declaration, Statute, and Building Management
Regulation shall constitute part of the title deed of Jointly Owned Real Property. The
DLD shall maintain an original copy of each of these documents.
b. An Occupant shall be under an obligation towards the Developer, the Owner, the
Occupants of other Units, and the Owners Committee to comply with the Master
Community Declaration, Statute, and Building Management Regulation to the extent
that their provisions apply to that Occupant.15 14c. A Developer must, upon completing the construction of the Jointly Owned Real
Property and obtaining a completion certificate from the Competent Authority, file
the documents referred to in paragraph (a) of this Article with the DLD within sixty
(60) days from the date of issue of the completion certificate. The DLD may extend
this time limit for a period not exceeding thirty (30) days, provided that the Developer
provides valid reasons for the extension that are acceptable to the DLD.
d. The Developer›s obligation under paragraph (c) of this Article does not include filing
the Building Management Regulation where it is prepared by RERA.
e. Where the Developer fails to submit the documents referred to in paragraph (a) of this
Article within the time limit stated in paragraph (c) thereof, the DLD may request any
entity, as it deems appropriate, to file and maintain these documents with the DLD; in
which case, the Developer shall be held liable for all the expenses and costs incurred in
this regard.
f. The DLD shall issue |
and update the maps of Common Parts, Designated Common
Parts, and Common Facilities in accordance with the provisions of this Law.
Components of Common Parts
Article (7)
a. The Common Parts of a building include, without limitation, the following:
1. the structural components of the Jointly Owned Real Property, including the main
supports, foundations, columns, structural walls, ceilings, ceiling joists, staircases,
stairwells, fa ades, and roofs;
2. unless otherwise indicated on the Site Plan, thresholds; halls; parking aisles;
entrances; emergency exits; and windows in external walls;
3. unless otherwise indicated on the Site Plan, watchmen rooms; recreational facilities
and equipment; swimming pools; gardens; storage facilities; offices; and car parks
designated for use by the Management Entity, the Owners Committee, or visitors;
4. equipment and systems of main utilities, including electricity generators; lighting
systems; gas, cold and hot water, and heating and cooling systems and equipment;
air conditioning systems; and waste collection and treatment facilities;
5. elevators, tanks, pipes, generators, chimneys, ventilation fans and ducts, air
compressor units, and mechanical ventilation systems;
6. water mains; sewer pipes; gas pipes and chimneys; and electrical and
telecommunications towers, wiring, and conduits serving the Owners of more than
one (1) Unit;
7. equipment used for measuring the provision or supply of Utility Services;8. any other parts outside the boundaries of Units which are necessary or required
for the existence, maintenance, sustainability, safety, or operation of the Jointly
Owned Real Property; and
9. any other Common Parts indicated on the Site Plan.
b. The Common Parts of a land plot include, without limitation, the following:
1. roads, roundabouts, intersections, pathways, pavement edges, median strips,
viaducts, drainage systems, and all related structures;
2. unless otherwise indicated on the Site Plan, lakes; ponds; canals; parks; fountains;
water features; and other waterways, including all equipment related thereto;
3. unless otherwise indicated on the Site Plan, landscape areas; public areas;
playgrounds; rest areas; and car parks designated for use by the Management
Entity, the Owners Committee, or visitors;
4. the wires, cables, pipes, drains, ducts, machinery, and equipment used to supply
Units or Common Parts with various services;
5. equipment used for measuring the provision or supply of Utility Services; and
6. any other Common Parts indicated on the Site Plan.
Developer-owned Areas
Article (8)
When obtaining the approval of a Master Plan or Site Plan for the first time, the Developer
may, subject to the approval of the DLD and the Competent Authority, designate areas
owned by the Developer on the Master Plan or Site Plan for private, commercial, or
investment use. This approval may only be granted, and the Developer-owned areas may
only be used, subject to the provisions of the |
Master Community Declaration and the
rights of Owners.
Unit Components
Article (9)
a. Unless otherwise indicated on the Site Plan, each Unit in a building or part of a building
includes, without limitation, the following:
1. floors and flooring materials and components down to the base of the joists, and
other structures supporting the floor of the Unit;
2. plaster ceilings and all other types of ceilings, additions that form part of the
interior of the Unit, spaces between such ceilings, ceilings above the support walls
and structures inside the Unit, and walls separating the Unit from other parts of
the Jointly Owned Real Property or any adjacent Units or Common Parts;17 163. the internal area, non-support internal walls, and surrounding walls of the Unit;
4. windows, glass, fixtures that form part of the internal windows, lighting systems,
doors, door frames, and all equipment and fixtures serving the Unit;
5. bathrooms and other integral parts of the Unit, such as balconies and other
ancillary parts allocated to the Owner;
6. facilities attached or allocated to the Unit, such as gardens, car parks, storage
rooms, or watchmen rooms, even if such facilities are not adjacent to the unit,
provided that these facilities are attached to the Unit and their area is not included
in the net area of the Unit;
7. internal connections serving the Unit;
8. fixtures and fittings installed by the Occupant;
9. additions, modifications, and improvements made to the Unit from time to time;
and
10. any other components indicated on the Site Plan.
b. For the purposes of application of the provisions of paragraph (a) of this Article, a Unit
does not include the Utility Services therein which serve the Common Parts or any
other Unit.
c. Unless otherwise indicated on the Site Plan, each Unit in any Jointly Owned Real
Property comprising land, rather than a building or part of a building, shall include,
without limitation, everything within the boundaries of the Unit other than the Utility
Services that serve the Common Parts or any other Unit.
d. Each Unit intended for individual ownership is entitled to the right of way in other
Units or land plots, and in Common Parts.
e. The dividing walls between two (2) adjacent Units shall be shared by the Owners of
both Units, provided that these walls are part of the Common Parts.
Car Parks designated for Units
Article (10)
a. The car parks allocated or designated to a Unit under the legislation applicable by the
Competent Authority shall be deemed an integral part of the Unit, and may not be
separated, or sold independently, from that Unit.
b. A Developer must register Units and their designated car parks in the names of
respective Owners in accordance with the relevant instructions issued by the Director
General. In all events, a Unit may not be sold or disposed of without the car parks
designated to it.
c. An Owner may purchase additional car parks, provided that such car parks are in
excess of th |
ose designated for all Units in the Jointly Owned Real Property under the legislation and instructions referred to in paragraphs (a) and (b) of this Article. The
Director General may prescribe the cases in which Owners may purchase additional
car parks.
Ownership of Interest in Common Parts
Article (11)
An Owner, or a Developer in respect of unsold Units, shall own an undivided interest in
Common Parts. This interest shall be determined based on the ratio of the Unit area to the
total area of the Jointly Owned Real Property.
Disposing of Jointly Owned Real Property Units
Article (12)
A Unit Owner may sell or dispose of his Unit in any legal manner, and may mortgage his
Unit to any bank or financing institution licensed to operate in the Emirate.
Subdivision of Jointly Owned Units
Article (13)
A Unit jointly owned by two (2) or more Persons may not be subdivided amongst them
unless that subdivision is permitted under the Master Community Declaration; the DLD
approval is obtained; and the necessary licenses are granted by the Competent Authority.
Pre-emption Rights
Article (14)
a. A co-owner of a Unit shall have a pre-emption right to purchase another co-owner’s
share in the Unit if that share is offered for sale or disposition to a non-Owner. Where
more than one (1) co-owner exercises this right, each of them shall be entitled to
purchase a share proportional to his existing share in the Unit.
b. The pre-emption right prescribed under paragraph (a) of this Article shall not be
established in case of sale or disposition of the co-owner’s share to any ascendants,
descendants, spouse, relatives up to the fourth degree, or in-laws up to the second
degree.19 18Exercise of Pre-emption Rights
Article (15)
a. A pre-emption right may not be divided and may only be exercised or waived in whole.
In case of multiple co-owners, each of them may exercise his pre-emption right in
proportion to his share in the relevant Unit; and if any of them waives his right, it shall
be transferred to the other co-owners in proportion to their existing shares.
b. A pre-emption right shall be forfeited if the co-owner offering to sell or dispose of his
share serves on the other co-owners, through a notary public, a written notice that
states the name and address of the third-party purchaser and the terms of sale, but
none of these co-owners agrees to such terms of sale within thirty (30) days from
receipt of that notice.
c. Where a co-owner agrees to purchase the offered share, he must notify his intention
to the co-owner offering to sell or dispose of his share, through a notary public, within
the notice period referred to in paragraph (b) of this Article; and must finalise the sale
procedures with the DLD within no later than ten (10) working days from the date of
expiry of that notice period.
d. If it is proven that the sale made pursuant to this Article is concluded under terms that
are more favourable to the purchaser than those mentioned in the n |
otice sent to the
co-owners having the pre-emption right, these co-owners may file, with the RDSC,
claims against the seller for compensation for the damage they have sustained.
Leasing out Units
Article (16)
a. An Owner may lease out his Unit, provided that he and the tenant remain under an
obligation towards other Owners and Occupants, the Owners Committee, and the
Management Entity to comply with the Statute, the Master Community Declaration,
and the Building Management Regulation.
b. Unless otherwise stipulated in the Unit lease agreement, the Owner shall be liable
to pay the Service Charges and Usage Charges. In all events, the Owner may not be
discharged from his liability to pay the Service Charges and Usage Charges if the
tenant fails to pay the same as prescribed under this Law.Disposition of Common Parts and Common Facilities
Article (17)
a. In all events, Common Parts may neither be converted into private property; nor
subdivided; nor disposed of in whole or in part, independently from the Units to which
they pertain, without first obtaining the approval of the DLD and the Competent
Authority. This applies even if the building to which the Common Parts belong is under
construction. The Director General shall issue a resolution prescribing the rules for
using the proceeds generated from such a conversion, subdivision, or disposition.
b. Unless the relevant prior approvals of the DLD and the Competent Authority are
obtained, it is prohibited to dispose of Common Facilities in any manner whatsoever;
or utilise, alter, redesign, or shut down these facilities in a manner that restricts their
use by Owners.
Management of Common Parts
Article (18)
a. For the purposes of management of Common Parts, Jointly Owned Real Property is
classified into three (3) categories as follows:
1. Category 1: Major Projects Projects in this category shall be determined in
accordance with the criteria prescribed under the relevant resolution issued by
the Director General. The Developer shall be responsible for the management,
operation, maintenance, and repair of Common Parts and Utility Services. A Major
Project shall have an Owners Committee constituted of members selected by RERA
from amongst Owners residing in the Jointly Owned Real Property. The duties of
the Owners Committee shall be determined pursuant to the Statute and the rules
and conditions prescribed under the relevant resolutions of the Director General.
2. Category 2: Hotel Projects These are projects wherein the management of Common
Parts must be outsourced by the Developer to a Hotel Project Management
Company in accordance with the relevant rules approved by the Director General.
A Hotel Project shall have an Owners Committee constituted of members selected
by RERA if the Hotel Project Management Company expresses its wish that such
a committee be constituted. This Owners Committee shall not be authorised to
participate in the management of the Hotel Project or it |
s Common Parts.
3. Category 3: Real Property Projects Other Than Major Projects and Hotel Projects
These are Real Property projects other than those falling in Category 1 and Category
2, as referred to in this paragraph. The management of Common Parts in these
projects shall be undertaken by a specialised management company selected and 21 20contracted by RERA in accordance with the relevant rules and standards approved
pursuant to the relevant resolution issued by the Director General. A Real Property
project in this category shall have an Owners Committee constituted of members
appointed by RERA as prescribed under this Law.
b. Where the Jointly Owned Real Property includes a project of Category 2 and a project
of Category 3, as referred to in paragraph (a) of this Article, the Common Parts in
that Jointly Owned Real Property shall be outsourced to a Hotel Project Management
Company. In this case, the Jointly Owned Real Property shall have a single Owners
Committee constituted of members appointed by RERA as prescribed under this Law.
c. The Developer may outsource all or any of his duties, and delegate all or any of his
responsibilities, under sub-paragraph (a)(1) of this Article to a Management Company
in return for the fees, and subject to the conditions, agreed upon by both parties. This
agreement must be approved by RERA.
d. In case of absence of a Developer in a project that falls in Category 1 or Category 2, as
stated in paragraph (a) of this Article, a Management Company shall be appointed by
RERA.
Management of Common Facilities
Article (19)
The Master Developer of a Master Project shall undertake the management and
maintenance of the Common Facilities in that project. The Master Developer must
outsource such management and maintenance to a Management Company pursuant to
a written agreement approved in advance by RERA.
Building Management Regulations
Article (20)
a. A Developer shall issue the Building Management Regulations of the Major Projects
and Hotel Projects managed by that Developer. Building Management Regulations
must be approved by RERA before making any legal disposition in respect of the Units
comprising the Jointly Owned Real Property in the Major Project or Hotel Project in
accordance with the provisions of this Law, the resolutions issued in pursuance hereof,
and the Master Community Declaration.
b. RERA shall issue the Building Management Regulations of Jointly Owned Real Property
other than the projects referred to in paragraph (a) of this Article, provided that
such Jointly Owned Real Property has no Building Management Regulation. In this
regard, RERA may engage any specialised company to assist it in drafting the Building
Management Regulation.c. If a part of the Jointly Owned Real Property is developed in phases, the Building
Management Regulation for that developed part must be issued.
Master Community Declarations
Article (21)
The Master Developer of a Master Project shall issue the M |
aster Community Declaration
of that project before making any legal disposition in respect of the land, buildings, or
Units of the project. The Master Community Declaration must be approved by RERA. Any
amendment to that Master Community Declaration, affecting in any way the rights of
purchasers, may not be made without first obtaining the relevant approval of RERA.
Owners Committees
Article (22)
a. The Owners Committee of a Real Property project that falls in Category 1 or Category 3,
as stated in paragraph (a) of Article (18) of this Law, shall be constituted of a maximum
of nine (9) members appointed by RERA, including the committee chairman and vice
chairman.
b. An Owners Committee shall be constituted upon the registration of at least ten
percent (10%) of the total Units of the Jointly Owned Real Property on the Real Property
Register in the names of their respective Owners.
c. A member of an Owners Committee must:
1. be of full legal capacity;
2. be an Owner residing in the Jointly Owned Real Property;
3. be of good character and repute;
4. pay the Service Charges and Usage Charges; and
5. attend, and actively participate in, the meetings of the Owners Committee.
d. A Developer may be a member of the Owners Committee only if he owns unsold Units
in the Jointly Owned Real Property.
e. An Owners Committee shall elect from amongst its members the chairman of that
committee, who shall represent it before the Management Entity and RERA.
f. The provisions and conditions stipulated in this Law, the resolutions issued in pursuance
hereof, and the Statute shall apply to Owners Committees.
g. Subject to the provisions of this Law, RERA shall issue Statutes.
h. The membership of an Owner in the Owners Committee shall be terminated if he
ceases to meet any of the membership requirements stipulated in paragraph (c) of
this Article, in which case RERA shall appoint a replacement member who meets these
requirements.23 22i. RERA may, at any time, reconstitute an Owners Committee, provided that the new
members meet the Owners Committee membership requirements.
Meetings of Owners Committees
Article (23)
a. An Owners Committee shall be regularly convened every three (3) months, i.e. four (4)
times a year; and its first meeting shall be convened within thirty (30) days from the
date of its constitution. Meetings of the Owners Committee shall be valid if attended
by the majority of its members, provided that its chairman or vice chairman is in
attendance.
b. Where necessary, the Owners Committee may convene an extraordinary meeting,
provided that it notifies RERA in advance of the date and time of this meeting and the
reasons for convening the same.
c. When voting on the resolutions and recommendations of the Owners Committee,
each of its members shall have one (1) vote, whether he owns one (1) Unit or multiple
Units in the Jointly Owned Real Property. In the event of a tie, the chair of the meeting
shall have a casting vote.
d. The Man |
agement Entity must designate a place for holding the Owners Committee
meetings, and must appoint a rapporteur of the Owners Committee to prepare the
reports and minutes of these meetings.
Duties of Owners Committees
Article (24)
An Owners Committee shall exclusively:
1. verify that the Management Entity undertakes the management, operation,
maintenance, and repair of the Common Parts in accordance with this Law, the
resolutions issued in pursuance hereof, and the Building Management Regulation;
2. review, and provide the necessary recommendations on, the annual budgets for the
maintenance of the Jointly Owned Real Property; and for this purpose, request the
Jointly Owned Real Property financial reports;
3. discuss the obstacles and difficulties related to the management, operation,
maintenance, and repair of Common Parts; and submit the necessary recommendations
on the same to the Management Entity or RERA, as the case may be;
4. receive, and notify to the Management Entity, the complaints and suggestions submitted
by Owners and Occupants in respect of the management, operation, maintenance,
and repair of Common Parts; and submit these complaints and suggestions to RERA if the Management Entity fails to address them within fourteen (14) days from the date
of being notified of the same;
5. request RERA to replace the Management Entity of any Real Property project that
falls in Category 3, as stated in paragraph (a) of Article (18) of this Law; and provide
appropriate advice to RERA on the selection and appointment of a new Management
Entity;
6. notify the Management Entity or RERA of any defects in the structural parts of the
Jointly Owned Real Property; or any damage to, or defect in, the Common Parts that
requires urgent repair;
7. coordinate with RERA, the Management Entity, or the Competent Authority with
respect to any safety, environmental, security, or other matter related to the Jointly
Owned Real Property; and
8. submit to the Management Entity any proposals regarding the method of use of
Common Parts; or regarding amendment of the Building Management Regulation, in
which case the amendment must be approved by RERA.
Service Charges
Article (25)
a. An Owner shall pay to the Management Entity his share of the annual Service Charges
to cover the Common Parts management, operation, maintenance, and repair expenses.
This share shall be calculated, using the relevant method approved by the Director
General, based on ratio of the area of the Owner’s Unit to the total area of the Jointly
Owned Real Property. A Developer shall pay his share of the annual Service Charges
in respect of unsold Units, and in respect of the sold Units for which he undertakes,
under the provisions of the sale contract or reservation agreement, to pay the Service
Charges on behalf of the purchaser.
b. For the purposes of application of paragraph (a) of this Article, the Owner’s share of
the Service Charges shall be calculated based on the are |
a of his Unit as recorded in the
Real Property Register.
Usage Charges
Article (26)
A Master Developer shall be entitled to collect Usage Charges from Owners or Sub-
developers in return for the management, operation, maintenance, or repair of the
Common Parts in the Master Project. Such Usage Charges apply in respect of completed
buildings, under-construction buildings, and vacant land. The Owner or Sub-developer’s 25 24share of the Usage Charges shall be calculated using the method adopted pursuant to
the relevant resolution issued by the Director General, provided that this method is in
compliance with the approved Master Community Declaration.
Approval of Service Charges and Usage Charges
Article (27)
a. A Management Entity must not charge Owners, or collect from them, any amounts
whatsoever in return for the management, operation, maintenance, or repair of
Common Parts or Common Facilities; or for any other reason, without first obtaining
the relevant approval of RERA. This approval shall be issued in accordance with the
approved Master Community Declaration and the relevant rules and criteria approved
by the Director General.
b. For the purposes of application of paragraph (a) of this Article, RERA may not approve or
ratify the Service Charges or Usage Charges budget unless it is approved by a certified
audit firm recognised by RERA for this purpose.
c. Where necessary, RERA may approve a temporary Service Charges budget until the
budget referred to in paragraph (b) of this Article is approved. The temporary budget
shall be approved in accordance with the rules prescribed under the relevant resolution
issued by the Director General.
Non-payment of Service Charges or Usage Charges
Article (28)
An Owner or Sub-developer may not refrain from paying the Service Charges or Usage
Charges approved by RERA. An Owner may not waive his interest in Common Parts to
avoid paying the charges due from him.
Preventing Owners from Using Units
Article (29)
A Developer or Management Entity must not take any action against any Owner to
prevent him from taking possession of, or using, his Unit or using Common Parts or
Common Facilities, with the intent of forcing him to pay Service Charges or Utility Services
in contravention of the procedures stipulated in this Law and the resolutions issued in
pursuance hereof.Deposit and Disposition of Service Charges
Article (30)
a. A Management Entity must open a Service Charges account for each Jointly Owned
Real Property with a bank licensed to operate in the Emirate and recognised by RERA.
b. In accordance with the rules prescribed under the relevant resolution issued by the
Director General, the Management Entity must deposit the Service Charges it collects
in the account referred to in paragraph (a) of this Article within seven (7) working days
from the date of collection of these charges.
c. The amounts deposited in the Service Charges account may not, for any reason
whatsoever, be subject t |
o attachment in favour of the Management Entity creditors.
d. Until a Management Company is appointed by RERA, the Developer must undertake
the management of the Jointly Owned Real Property and maintain the Service Charges
paid by Owners in the relevant Service Charges account, as prescribed by this Law.
e. The funds deposited in the Service Charges account may not be disposed of, and may
only be used for the following purposes:
1. paying for Common Parts cleaning services;
2. paying for security and safety services in the Jointly Owned Real Property;
3. paying for the operation, maintenance, repair, and improvement of Common Parts
and their fixtures, fittings, and installations; and for preserving the same in a good
condition;
4. paying the Jointly Owned Real Property insurance premiums;
5. paying any fees for the audit of the accounts and budgets related to the Service
Charges account;
6. paying the Management Company fees, as per the amount and method of payment
determined by RERA;
7. cover the Developer’s administrative expenses related to Major Projects, as
approved by RERA;
8. creating a cash reserve to cover emergency expenses, or to replace equipment and
devices in Common Parts, which must be deposited in an account separate from
the Service Charges account and may not be disposed of for any purposes, other
than in critical emergencies, without first obtaining the approval of RERA;
9. paying any fees or costs in return for inspecting; or overseeing the management,
operation, maintenance, and repair of, Jointly Owned Real Property by RERA; and
10. covering any other costs prescribed under the Master Community Declaration and
approved by RERA, as required for the management, operation, maintenance, and
repair of Common Parts.
f. Where the cash reserve referred to in sub-paragraph (e)(8) of this Article is not sufficient
to cover emergency expenses, the DLD may, subject to obtaining the relevant prior
approval of RERA, request Owners to cover these expenses.27 26Deposit and Disposition of Usage Charges
Article (31)
a. A Master Developer must open a Usage Charges account for each Major Project with a
bank licensed to operate in the Emirate and recognised by RERA.
b. In accordance with the rules prescribed under the relevant resolution issued by the
Director General, the Management Entity must collect Usage Charges and deposit
them in the account referred to in paragraph (a) of this Article within seven (7) working
days from the date of collection of these charges.
c. Where the Developer uses Common Facilities for profitable commercial purposes
based on the DLD approval, he must deposit a percentage of the net profits generated
from that use in the Usage Charges account within ten (10) days from the date of
collection of the proceeds from use of the Common Facilities. This percentage of net
profits shall be determined pursuant to the relevant resolution issued by the Director
General.
d. The funds deposited in the Usag |
e Charges account shall be used only for the purposes
stated in paragraph (e) of Article (30) of this Law in relation to Common Facilities in the
Major Project.
e. In addition to the purposes mentioned in paragraph (e) of Article (30) of this Law, the
Master Developer may, subject to obtaining the prior approval of RERA, use a portion
of the funds deposited in the Usage Charges account for the purposes of repair and
maintenance in the Developer-owned Areas in the Master Project, provided that these
areas are available for public use without consideration.
f. The amounts deposited in the Usage Charges account may not, for any reason
whatsoever, be subject to attachment in favour of the Master Developer creditors.
Collection of Service Charges and Usage Charges
Article (32)
a. The Management Entity shall have a lien on every Unit for unpaid Service Charges in
respect thereof. A Unit may not be disposed of unless these charges are paid to the
Management Entity.
b. Where an Owner fails to pay his share of the Service Charges or any part thereof, the
Management Entity must request him to pay such charges within thirty (30) days from
being served the relevant written notice approved by RERA. In the event of failure of
the Owner to pay the charges within this time limit, the financial claim made by the
Management Entity against the Owner shall be enforceable by the execution judge at
the RDSC in accordance with the relevant rules and procedures adopted by the RDSC.c. Where necessary, the competent execution judge may order that a Unit in respect of
which the Owner fails to pay his share of Service Charges is sold by public auction to
collect these charges.
d. An Owner who defaults in paying his share of Service Charges must pay any court fees
and costs, or advocates’ fees, adjudged by the competent execution judge.
e. RERA shall determine the method of service of the notice referred to in paragraph (b)
of this Article.
f. The provisions of this Article apply to the collection of Usage Charges owed to Master
Developers.
Audit and Inspection
Article (33)
a. RERA shall inspect; and audit the management, operation, maintenance, and repair
of, the Jointly Owned Real Property, Common Parts, and Common Facilities. For these
purposes, RERA shall have the authority to:
1. inspect Jointly Owned Real Property, Common Parts, and Common Facilities; and
verify their suitability for the intended purposes, without prejudice to the functions
of the Competent Authority;
2. record violations and serve notices on Developers or Management Entities, as the
case may be, where it is proven that they have failed to preserve the Jointly Owned
Real Property, Common Parts, or Common Facilities in a good condition; and grant
them time limits as necessary to remedy such violations;
3. audit the revenue credited, and the expenditure debited, to the Service Charges
account and the Usage Charges account; and for this purpose, request any
information, data, o |
r statements and engage a certified auditor recognised by RERA
in this regard;
4. consider the complaints filed against Developers, Management Entities, or Owners
Committees in relation to the management, operation, maintenance, and repair of
Jointly Owned Real Property, Common Parts, and Common Facilities; and take the
necessary action in respect thereof;
5. Audit the contracts and agreements concluded by Management Entities with
maintenance, security, cleaning, insurance, and other corporations and companies;
and
6. exercise any other duties or powers assigned to it by the Director General.
b. RERA may outsource any of its duties and delegate any of its powers under paragraph
(a) of this Article to any natural or legal person in accordance with the relevant
conditions and rules approved by the Director General.29 28Conclusion of Contracts and Agreements
Article (34)
a. A Management Entity shall conclude contracts and agreements with maintenance,
security, cleaning, insurance, and other corporations and companies to the extent
required to enable it to perform its duties and obligations as prescribed in this Law.
b. A Management Entity must provide RERA, every six (6) months, with a periodic report
on the management of, and the maintenance works performed in, Jointly Owned Real
Property, Common Parts, and Common Facilities. Where necessary, RERA may request
the Management Entity to provide it with any information or with a statement of the
revenue and expenditure related to Service Charges or Usage Charges.
Repair and Maintenance Works
Article (35)
a. Where it is established to the satisfaction of RERA that Common Parts or Common
Facilities are not duly maintained, or not preserved in a good, clean, and serviceable
condition, RERA may serve a written notice on the Management Entity requesting it
to take any necessary action or perform the relevant repair or maintenance works it
deems appropriate.
b. RERA must state in the notice referred to in paragraph (a) of this Article, the required
repair and maintenance works and the dates of commencement and completion of
such works.
c. Where the Management Entity fails to perform repair or maintenance works in
accordance with paragraph (a) of this Article, RERA may appoint any other entity to
perform all or any of these works; and debit the costs and expenses incurred in this
regard to the Service Charges account or to the Usage Charges account referred to in
Article (30) and Article (31) of this Law respectively.
Security Deposit for Repair of Common Parts and Common Facilities
Article (36)
a. A Management Entity must provide a bank guarantee, in favour of the DLD and in the
amount it determines, with respect to all Jointly Owned Real Property managed by
that Management Entity. The bank guarantee shall be held as a security deposit to be
used to remedy any damage sustained by Common Parts or Common Facilities as a
result of omission or negligence on the part of the Management |
Entity.b. Where Jointly Owned Real Property, Common Parts, or Common Facilities sustain
damage as a result of any act, negligence, or omission of the Management Entity,
RERA may serve a written notice on the Management Entity requesting it to remedy
such damage within the time limit specified by RERA.
c. Where the Management Entity fails to remedy the damage within the time limit
specified in the notice served on it pursuant to paragraph (b) of this Article, RERA may
appoint any other entity to fulfil all or any of the requirements stated in the notice
and deduct the costs and expenses incurred in this regard from the bank guarantee
referred to in paragraph (a) of this Article.
Incompetence of Developers or Hotel Project Management Companies
Article (37)
a. Where a Developer or Hotel Project Management Company is proven incompetent
or unable to manage Jointly Owned Real Property or Common Parts in projects that
fall in Category 1 or Category 2, as stated in paragraph (a) of Article (18) of this Law, in
a manner that ensures their sustainability and serviceability, the CEO may appoint a
specialised Management Company to undertake the management and operation of
that Jointly Owned Real Property or Common Parts.
b. The provisions of paragraph (a) of this Article shall apply if a Master Developer is
proven incompetent or unable to manage the Common Facilities in a Master Project in
a manner that ensures their sustainability and serviceability.
Incompetence of Management Companies
Article (38)
a. Where RERA deems that a Management Company is incompetent, unqualified, or
unable to manage and maintain Common Parts in Real Property projects that falls
in Category 3, as stated in paragraph (a) of Article (18) of this Law, RERA may appoint
a replacement Management Company to undertake the management of the Jointly
Owned Real Property. In this case, RERA must adhere to the following procedures:
1. notify the Owners Committee of the violations committed by the Management
Company, and seek its opinion regarding such violations;
2. serve a written warning on the Management Company stating its mistakes and
wrong practices with respect to the management, operation, maintenance, and
repair of Common Parts; whereupon the Management Company may respond
to that written warning within fourteen (14) days from the date of service of the
warning;31 303. appoint a certified audit firm to audit the Service Charges account and verify the
Management Company’s compliance with the Service Charges budget approved by
RERA; and
4. grant the Management Company a time limit to hand over the management
of the Jointly Owned Real Property to the replacement Management Company
within thirty (30) days from the date of issue of RERA’s decision appointing that
replacement Management Company.
b. Where any damage to property in the Jointly Owned Real Property or Common Parts
is caused by the acts of the substituted Management Company, that company shall be
li |
able for the cost of remedy of this damage, which shall be deducted from the bank
guarantee provided by that company, as referred to in paragraph (a) of Article (36) of
this Law.
Alterations to Jointly Owned Real Property
Article (39)
a. Without prejudice to the construction legislation in force in the Emirate, an Occupant
may make substantial alterations or modifications to the structure or external
appearance of his Unit, or to any part of the Jointly Owned Real Property, only after
obtaining the approval of the Master Developer, the DLD, and the Competent Authority.
b. An Occupant who violates the provisions of paragraph (a) of this Article shall be liable
for remedying, at his own expense and in the manner prescribed by Master Developer
or RERA, any damage arising from the alterations or modifications made by him.
c. Where an Occupant fails to remedy the damage in accordance with paragraph (b) of
this Article, RERA or the Master Developer may appoint any entity to remedy such
damage; and hold the Occupant liable for the remedy costs and expenses.
d. Subject to the provisions of the Building Management Regulation, an Occupant and
his guests must use Common Parts only for their intended purposes, and in a manner
that does not prejudice the rights of others to use these Common Parts, disturb them,
or endanger their safety or the safety of the Jointly Owned Real Property.
Liability of Developers
Article (40)
a. Subject to the provisions governing contractor agreements, as stipulated in the above-
mentioned Federal Law No. (5) of 1985, a developer shall remain liable, for a period of
ten (10) years from the date of obtaining the completion certificate of the Real Property
project developed by him, to remedy or rectify any defects in the structural parts of the
Jointly Owned Real Property.b. The Developer shall remain liable, for a period of one (1) year from the date of handover
of the Unit to the Owner, for repairing or replacing defective installations in the
Jointly Owned Real Property. These include mechanical and electrical works, sanitary
and sewerage installations, and similar installations. Where an Owner refrains from
taking possession of his Unit for any reason, the above-mentioned liability period shall
commence from the date of obtaining the completion certificate of the Real Property
project developed by the Developer.
c. Subject to the provisions of paragraphs (a) and (b) of this Article, nothing in this Law
may preclude or prejudice any rights or warranties granted to Owners as against
Developers pursuant to any other legislation.
d. An agreement which is made after this Law comes into force and which contradicts, in
any way, the provisions of this Article shall be deemed null and void.
Insurance of Jointly Owned Real Property
Article (41)
a. A Management Entity must insure the Jointly Owned Real Property under an insurance
policy that covers the maintenance and reconstruction of the Jointly Owned Real
Prop |
erty in case of fire, damage, or destruction for any reason whatsoever. For these
purposes, the beneficiary of the insurance must be the Management Entity.
b. The Management Entity must insure the Jointly Owned Real Property against the
liability for damage and for bodily injuries sustained by Occupants or third parties.
c. Insurance premiums payable by Owners shall be calculated pursuant to the insurance
contracts concluded with insurance companies, and shall be included in the Service
Charges.
Dispute Resolution
Article (42)
In addition to the functions assigned to the RDSC under the legislation in force, the RDSC
shall have the exclusive jurisdiction to hear and determine all disputes and disagreements
related to the rights and obligations stipulated in this Law and the resolutions issued in
pursuance hereof, in accordance with the relevant rules and procedures adopted by the
RDSC.33 32Fees
Article (43)
In return for issuing the approvals and providing the services prescribed under this Law
and the resolutions issued in pursuance hereof, the DLD shall collect the fees determined
pursuant to the relevant resolution issued by the Chairman of the Executive Council.
Sanctions and Administrative Penalties.
Article (44)
a. Without prejudice to any stricter penalty stipulated in any other legislation, a person
who commits any act constituting a violation of the provisions of this Law and the
resolutions issued in pursuance hereof shall be punished by a fine of not less than
one million Dirhams (AED 1,000,000.00). Upon repetition of the same violation within
one (1) year from the date of the previous violation, the amount of the fine shall be
doubled. A fine must not exceed two million Dirhams (AED 2,000,000.00).
b. The acts constituting a violation of the provisions of this Law, and the fines prescribed
for each of these acts, shall be determined pursuant to the relevant resolution issued
by the Chairman of the Executive Council.
Law Enforcement
Article (45)
The persons nominated by a resolution of the Director General shall have the capacity of
law enforcement officers to record the acts committed in breach of the provisions of this
Law and the resolutions issued in pursuance hereof. For this purpose, they may issue the
necessary violation reports and seek the assistance of concerned Government Entities in
the Emirate, including police personnel.
Grievances
Article (46)
Any affected party may submit a written grievance to the Director General against any
decision or measure taken against him under this Law and the resolutions issued in
pursuance hereof, within thirty (30) days from the date of being notified of the contested
decision or measure. The grievance shall be determined, within thirty (30) days from the
date of its submission, by a committee formed by the Director General for this purpose.
Without prejudice to the grievant’s right to recourse to the RDSC to seek any relief, the
decision issued in respect of the gr |
ievance shall be final.Payment of Revenues
Article (47)
The fees and fines collected pursuant to this Law and the resolutions issued in pursuance
hereof shall be paid to the Public Treasury of the Government.
Compliance
Article (48)
a. All Developers, Management Entities, and Owners Associations must comply with the
provisions of this Law within six (6) months from its effective date. Where necessary,
the Director General may extend this grace period for the same period.
b. The provisions of this Law shall apply without prejudice to the provisions of the
contracts concluded before its effective date between Developers and Owners and
the Master Community Declarations approved by and filed with RERA, except for
the provisions related to the exemption applicable to the constitution of Owners
Associations.
Succession of Owners Associations by Management Entities
Article (49)
All rights and obligations of Owners Associations, arising before the effective date of this
Law, are hereby transferred to Management Entities.
Issuing Implementing Resolutions
Article (50)
The Director General shall issue the resolutions required for the implementation of this
Law. These resolutions shall be published in the Official Gazette of the Government of
Dubai.
Repeals
Article (51)
a. The above-mentioned Law No. (27) of 2007 is hereby repealed. Any provision in any
other legislation shall also be repealed to the extent that it contradicts the provisions
of this Law.
b. The bylaws, regulations, and resolutions issued in implementation of the above-
mentioned Law No. (27) of 2007 shall continue in force, to the extent that they do not
contradict this Law, until new superseding bylaws, regulations, and resolutions are
issued.34Publication and Commencement
Article (52)
This Law shall be published in the Official Gazette and shall come into force sixty (60)
days after the date of its publication.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 4 September 2019
Corresponding to 5 Muharram 1441 A.H.Law No. (4) of 2019
Concerning
The Real Estate Regulatory Agency 37 36Real Property Development Projects : The projects involving construction of multi-storey
buildings and compounds for residential,
commercial, industrial, or multiple purposes.
Jointly Owned Real Property : A building, including the parts and appurtenances
allocated for common use, and the land on which
that building is constructed; or land which is
subdivided into units or land plots intended for
individual ownership.
Applicability of the Law to RERA
Article (2)
The provisions of this Law shall apply to the Real Estate Regulatory Agency established
pursuant to the above-mentioned Law No. (16) of 2007 as a public corporation, which has
legal personality and the legal capacity required to undertake all acts and dispositions
that ensure the achievement of its objectives, and which is affiliated to the DLD.
Head Office of |
RERA
Article (3)
The head office of RERA shall be located in the Emirate. RERA may establish branches
within the Emirate pursuant to a resolution of the Director General.
Objectives of RERA
Article (4)
RERA aims to:
1. contribute to developing the Real Property sector through an integrated set of
regulatory and supervisory procedures that enhance the role of this sector in the
comprehensive economic development of the Emirate;
2. provide a safe and supportive environment for Real Property Development Projects
in the Emirate to ensure that the rights of Real Property Developers and investors are
protected;
3. keep pace with the continuing growth witnessed by the Emirate in the Real Property
sector and all related activities;
4. promote the role of UAE nationals in the Real Property sector, and implement
programmes and projects that enable them to engage in Real Property Activities; and
5. establish the principles and code of conduct of Real Property Activities, and develop
the relevant charters.Law No. (4) of 2019
Concerning the
Real Estate Regulatory Agency
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency;
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments;
Law No. (13) of 2012 Establishing the Dubai Real Estate Institute;
Law No. (7) of 2013 Concerning the Land Department;
Law No. (8) of 2018 Concerning Management of the Government of Dubai Human
Resources;
Executive Council Resolution No. (6) of 2010 Approving the Implementing Bylaw of Law
No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai; and
Executive Council Resolution No. (37) of 2015 Regulating the Real Property Valuation
Profession in the Emirate of Dubai,
Do hereby issue this Law.
Definitions
Article (1)
The following words and expressions, wherever mentioned in this Law, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Executive Council : The Executive Council of the Emirate of Dubai.
DLD : The Dubai Land Department.
Director General : The director general of the DLD.
RERA : The Real Estate Regulatory Agency.
CEO : The chief executive officer of RERA.
Real Property Activities : The activities related to Real Property that RERA is authorised
to license in the Emirate under this Law, the resolutions issued
in pursuance hereof, and the legislation in force in the
Emirate.39 38Functions of RERA
Article (5)
For the purpose of achieving its objectives, RERA shall have the duties and powers to:
1. regulate, audit, and monitor Escrow Accounts for Real Property Development, and
approve the banking and financial institut |
ions qualified to manage these accounts;
2. approve the rules regulating the Real Property development, sale, leasing, and
brokerage professions; the Real Property Valuation Profession; the management of
Jointly Owned Real Property; and other Real Property Activities;
3. regulate and license Real Property Activities, and audit and monitor the persons
conducting these activities to ensure their compliance with the legislation regulating
the Real Property sector;
4. regulate and audit the accounts related to managing and operating Jointly Owned
Real Property in accordance with the relevant applicable legislation;
5. propose the legislation required for regulating the work of persons conducting Real
Property Activities;
6. issue the bylaws required for regulating training and qualifying the staff of
establishments authorised to conduct Real Property Activities;
7. register the persons conducting Real Property Activities in the relevant registers it
maintains for this purpose, and issue identification cards for individuals engaged in
Real Property Activities;
8. consider and investigate complaints filed against the persons conducting Real Property
Activities, and take the necessary actions and decisions in respect thereof;
9. audit; monitor; and inspect the operation, management, and maintenance of
Jointly Owned Real Property, Common Parts, and Common Facilities to ensure their
sustainability, and audit relevant accounts and books, in accordance with the relevant
applicable legislation;
10. approve Real Property Development Projects in the Emirate, monitor their percentages
of completion, and issue the relevant resolutions and recommendations, in accordance
with the relevant applicable legislation;
11. issue the required approvals of the content of Real Property advertisements in the
Emirate, including in Special Development Zones and free zones such as the Dubai
International Financial Centre; and monitor and censor that content in coordination
with the Competent Entities in the Emirate;
12. develop and implement programmes and projects that promote the role of UAE
nationals in the Real Property sector and encourage them to engage in this sector;
13. develop and implement informative and awareness-raising programmes on the rights
and obligations of the parties engaged in the Real Property sector, in coordination with
the Dubai Real Estate Institute;14. develop and update policies and studies aimed at striking a balance between supply
and demand in the Real Property market, and submit the same to the Director General
for approval in preparation for final approval by the Executive Council; and
15. exercise any other duties or powers required for the achievement of the objectives of
RERA, as assigned to it by the Executive Council.
Executive Body of RERA
Article (6)
The executive body of RERA shall be comprised of the CEO and a number of administrative,
finance, and technical Employees, to whom Law No. (8) of 2018 Concerning M |
anagement
of the Government of Dubai Human Resources, and the resolutions issued in pursuance
thereof, shall apply.
Appointment and Functions of the CEO
Article (7)
a. The CEO shall be appointed pursuant to a resolution of the Chairman of the Executive
Council.
b. The CEO shall supervise the work and activities of RERA in a manner that ensures the
achievement of its objectives. In particular, the CEO shall have the duties and powers
to:
1. prepare the general policy and the strategic and development plans of RERA, submit
the same to the Director General for approval, and follow up their implementation;
2. prepare the organisational structure of RERA, and submit the same to the Director
General for approval in preparation for final approval by the Executive Council;
3. propose the projects, initiatives, activities, and programmes that contribute to
the achievement of the objectives of RERA and that enable RERA to exercise its
functions; and submit the same to the Director General for approval;
4. submit periodic reports to the Director General on the work and performance
outcomes of RERA;
5. propose the draft administrative and technical resolutions and bylaws regulating
the work of RERA, and submit the same to the Director General for approval,
6. supervise the work of the executive body of RERA; and
7. exercise any other duties and powers assigned to him by the Director General.40Financial Resources of RERA
Article (8)
The financial resources of RERA shall consist of:
1. the support allocated to RERA in the budget of the DLD; and
2. any other resources approved by the Director General in accordance with the legislation
in force.
Issuing Implementing Resolutions
Article (9)
The Chairman of the Executive Council shall issue the resolutions required for the
implementation of the provisions of this Law.
Supersession and Repeals
Article (10)
a. This Law supersedes the above-mentioned Law No. (16) of 2007.
b. The DLD hereby succeeds RERA in exercising all the functions related to the registration
of Lease Contracts and regulation of the relationship between Landlords and Tenants,
and in exercising all other functions related to Lease Contracts, which are stipulated in
the legislation in force in the Emirate.
c. Any provision in any other legislation is hereby repealed to the extent that it contradicts
the provisions of this Law.
Publication and Commencement
Article (11)
This Law shall be published in the Official Gazette and shall come into force on the day on
which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 4 September 2019
Corresponding to 5 Muharram 1441 A.H.Decree No. (31) of 2016
Concerning
The Mortgage of Granted Land in
the Emirate of Dubai 43 42Decree No. (31) of 2016
Concerning the
Mortgage of Granted Land in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai |
;
Law No. (14) of 2008 Concerning Mortgage in the Emirate of Dubai;
Law No. (4) of 2011 Establishing the Mohammed bin Rashid Housing Establishment and its
Implementing Bylaw;
Law No. (7) of 2013 Concerning the Land Department;
Decree No. (4) of 2010 Regulating the Transfer of Title to Granted Industrial and Commercial
Land in the Emirate of Dubai;
The Order Issued on 14 May 1996 Authorising the Mortgage of Land Granted by the
Government of Dubai for Which Title Deeds Are Issued by the Land Department;
The Instructions Issued on 20 September 1994 Concerning Land Granted by the Government
to UAE Nationals in the Emirate of Dubai; and
The Instructions Issued on 5 June 1996 Concerning the Implementation of the Order Issued
on 14 May 1996 Concerning the Mortgage of Granted Land,
Do hereby issue this Decree.
Definitions
Article (1)
The following words and expressions, wherever mentioned in this Decree, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Government : The Government of Dubai.
DLD : The Land Department.
MRHE : The Mohammed bin Rashid Housing Establishment.
Board of Directors : The board of directors of the MRHE.
Director General : The director general of the DLD.
Beneficiary : A natural or legal person who has a usufruct right to Granted
Land.
Granted Residential Land : A land plot owned by the Government and granted to a
Beneficiary for residential use.Granted Commercial or Industrial Land : A land plot owned by the Government and
granted to a Beneficiary for commercial or
industrial use.
Granted Land : Granted Residential Land, Granted
Commercial or Industrial Land, or any other
land granted by the Government.
Mortgaged Land : Granted Land mortgaged together with any
buildings or structures thereon.
Mortgagor : A Beneficiary who has a usufruct right to
Granted Land.
Mortgagee : A creditor who lends money to a Mortgagor
against Granted Land provided as collateral.
Competent Entity : The competent entity in the Emirate in
charge of licensing the construction of
buildings and other structures.
Mortgage Authorisation and Conditions
Article (2)
a. A Beneficiary is authorised to mortgage Granted Land in favour of any of the banks or
financing institutions licensed to operate in the Emirate. This mortgage shall be legally
valid and binding on both parties.
b. For the mortgage referred to in paragraph (a) of this Article to be valid and legally
effective, the following conditions must be met:
1. the purpose of mortgaging the Granted Commercial or Industrial Land must be to
invest the loan in exploiting the land for the purpose for which it is granted;
2. the purpose of mortgaging the Granted Residential Land must be to invest the loan in
the maintenance, expansion, construction, or reconstruction of an existing building;
3. the mortgage must be registered in a |
ccordance with the rules and procedures
stipulated in the above-mentioned Law No. (14) of 2008; and
4. any other conditions prescribed, in coordination with the MRHE, by the DLD pursuant
to a resolution issued by the Director General in this regard.45 44Registration of Mortgages
Article (3)
a. The DLD may not register any mortgage that does not meet the conditions stipulated
in paragraph (b) of Article (2) of this Decree.
b. When registering the mortgage of Granted Land, the DLD must ensure that the
mortgage agreement:
1. stipulates that the loan be used to achieve the purpose for which the land is
granted;
2. is accompanied by a building permit submitted by the Mortgagor which is issued
by the Competent Entity; and
3. is accompanied by any other documents or information the DLD may require the
Mortgagor to submit to verify the authenticity of the information included in the
mortgage agreement and to ensure the implementation of such agreement.
Land Granted to Entities Affiliated to the
Government and Real Property Developers
Article (4)
a. The land granted to entities affiliated to the Government, or to companies in which
the Government or its affiliated entities hold at least fifty percent (50%) of the capital,
may be mortgaged without any conditions or limitations.
b. The land granted to Real Property developers for the purpose of Real Property
development is granted on a freehold basis and may be mortgaged or disposed of in
any manner whatsoever without any conditions or limitations.
Pledging the Income of Real Property Constructed on
Granted Commercial or Industrial Land
Article (5)
a. Notwithstanding the provisions of Article (2) and Article (4) of this Decree, the income
of the Real Property constructed on Granted Commercial or Industrial Land may be
pledged, exclusive of the land, in favour of any of the banks or financing institutions
licensed to operate in the Emirate. In this case, the pledgee shall manage the Real
Property and collect its income until repayment of the loan, or as agreed by both
parties.
b. For the purpose of implementing the provisions of paragraph (a) of this Article, the DLD
shall create an entry on the registry folio of the Granted Commercial or Industrial Land
to denote that the income of the Real Property constructed on that land is pledged in
favour of the pledgee.Procedures for Foreclosure on Mortgaged Land
Article (6)
Where a Mortgagor or his successor fails to perform his obligations under the mortgage
agreement, the Mortgagee or his successor may initiate foreclosure proceedings on the
Mortgaged Land and the sale of the same at public auction under the supervision of the
DLD and in accordance with its adopted procedures, provided that the Mortgagor or his
successor is served a notice, through the notary public, at least thirty (30) days before the
commencement of foreclosure proceedings, to perform his obligations.
Hearing Claims Relating to Mortgaged Land
Article (7)
a. Courts shal |
l hear any applications or claims relating to the mortgage of Granted Land.
b. Where a Mortgagor or his successor defaults on repayment of his debt within the
grace period prescribed in Article (6) hereof, the execution judge shall issue, upon the
Mortgagee’s request, a foreclosure order in respect of the mortgaged Real Property in
order to sell the same at public auction in accordance with the relevant procedures
adopted by the DLD.
Payment of Mortgaged Land Foreclosure Proceeds
Article (8)
a. Without prejudice to the rights of the MRHE as a preferential creditor, the Mortgagor’s
debts shall be paid from the proceeds of the foreclosure sale of the Mortgaged Land
after deducting the following amounts:
1. court fees and costs;
2. the fees and costs of the sale of the Mortgaged Land at public auction and fees and
costs for the registration of the sale with the DLD; and
3. the fees payable in accordance with the above-mentioned Law No. (4) of 2010 for
the transfer of title to industrial and commercial land, where these fees have not
been paid upon the registration of the mortgage.
b. The balance of the price of sale of Granted Commercial or Industrial Land at public
auction, if any, shall be paid to the Mortgagor.
c. The balance of the price of sale of Granted Residential Land at public auction, if any,
shall be paid towards the purchase of a house that shall be registered as a grant in the
name of the Beneficiary or towards providing him with any other Housing Services as
the MRHE deems appropriate. However, if the remaining amount is not sufficient to
purchase a house, that amount shall be paid to the Mortgagor.47 46Sale of Granted Residential Land
Article (9)
Notwithstanding the provisions of Article (6) hereof and where a Mortgagor or his
successor defaults on repayment of his debts, Granted Residential Land may not be sold
without first obtaining the approval of the Board of Directors. This approval shall be
granted in accordance with the relevant rules and conditions adopted by the Board of
Directors.
Mortgage Validity
Article (10)
All mortgages registered with the DLD on the land granted by the effective date of this
Decree are hereby deemed valid and effective.
Invalidity of Violating Dispositions
Article (11)
Any disposition or agreement concluded in breach of the provisions of this Decree shall be
null and void, shall have no legal effect, and may not be registered with the DLD.
Issuing Implementing Resolutions
Article (12)
The Director General shall issue the resolutions required for the implementation of the
provisions of this Decree.
Repeals
Article (13)
The above-mentioned Order issued on 14 May 1996 and the instructions issued in
implementation thereof on 5 June 1996 are hereby repealed. Any provision in any other
legislation shall also be repealed to the extent that it contradicts the provisions of this
Decree.Commencement and Publication
Article (14)
This Decree comes into force on the day on which it is issu |
ed, and shall be published in
the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 1 November 2016
Corresponding to 1 Safar 1438 A.H.Executive Council Resolution No. (37) of 2015
Regulating the Real Property
Valuation Profession in
the Emirate of Dubai 51 50Executive Council Resolution No. (37) of 2015
Regulating the Real Property
Valuation Profession in the Emirate of Dubai
We, Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman
of the Executive Council,
After perusal of:
Law No. (9) of 2004 Concerning the Dubai International Financial Centre and its
amendments;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency;
Law No. (14) of 2009 Concerning the Pricing of Government Services in the Emirate of
Dubai and its amendments;
Law No. (35) of 2009 Concerning Management of the Public Funds of the Government of
Dubai and its amendments;
Law No. (7) of 2013 Concerning the Land Department;
Decree No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
Executive Council Resolution No. (25) of 2009 Approving the Fees and Fines of the Real
Estate Regulatory Agency;
Executive Council Resolution No. (30) of 2013 Approving the Fees of the Land Department;
and
The legislation establishing and regulating free zones in the Emirate of Dubai,
Do hereby issue this Resolution.
Definitions
Article (1)
The following words and expressions, wherever mentioned in this Resolution, shall have
the meaning indicated opposite each of them unless the context implies otherwise:
UAE : The United Arab Emirates.
Emirate : The Emirate of Dubai.
DLD : The Land Department.
RERA : The Real Estate Regulatory Agency.
Director General : The director general of the DLD.
Real Property Valuation : Estimation of the market value of specific Real Property on a
specific date and for a specific purpose, based on its location, characteristics, specifications, and other factors that may affect its value.
Profession : The Real Property Valuation profession.
Firm : A company or sole proprietorship authorised to practise the Profession
in the Emirate.
Valuer : A natural person registered on the Roll to practise the Profession in the
Emirate through a Firm or through a licensed bank or financial
institution.
Trainee Valuer : A natural person registered on the Roll and authorised to receive
training to practise the Profession.
Authorisation : A document issued by RERA that authorises a Firm to practise the
Profession in the Emirate upon fulfilment by that Firm of the conditions
and requirements stipulated herein.
Roll : A paper or electronic record maintained by RERA on which Valuers
and Trainee Valuers, who meet the conditions and requirements
stipulated herein, are registered.
Real Property Valuation Book : The book issued by the DLD that contains the |
standards of
Real Property Valuation.
Scope of Application
Article (2)
The provisions of this Resolution shall apply to any person who practises the Profession
in the Emirate, including Special Development Zones and free zones such as the Dubai
International Financial Centre. This Resolution shall not apply to Government entities and
the practitioners of the Profession employed by these entities.
Functions of RERA
Article (3)
For the purposes of this Resolution, RERA shall have the duties and powers to:
1. determine applications for registration, renewal of registration, and reinstatement of
Valuers; for registration of Trainee Valuers on the Roll; and for variation of their details
in the Roll, in accordance with the relevant adopted conditions and requirements;
2. determine applications for Authorisations and renewal of Authorisations of companies
and sole proprietorships wishing to practise the Profession;
3. consider and investigate complaints filed against persons practising the Profession
and Trainee Valuers, and take the necessary action in respect thereof;
4. issue identification cards to Valuers;53 525. conduct studies on the practice of the Profession in the Emirate with a view to
developing it;
6. supervise, audit, and inspect the activities of persons practising the Profession to
ensure their compliance with this Resolution and with the terms of their registration
or Authorisation;
7. supervise the training and qualification of Valuers and Trainee Valuers;
8. establish principles, ethics, and traditions of the Profession;
9. prepare the forms required for the implementation of the provisions of this Resolution;
10. create the Roll and determine its form and the data and information that must be
entered therein; and
11. perform any other duties required for the regulation of the Profession in the Emirate.
Practising the Profession
Article (4)
a. No natural person may practise the Profession in the Emirate without being registered
on the Roll.
b. No private legal person may practise the Profession in the Emirate without being so
authorised by RERA.
c. No Firm, bank, or financial institution in the Emirate may employ or hire any person as
a valuer unless he is registered on the Roll.
d. A Valuer working for a bank or a financial institution is prohibited from providing Real
Property Valuation services to any party other than the bank or financial institution for
which he works.
Registration Requirements
Article (5)
To be registered on the Roll as a Valuer, an applicant must:
1. be a UAE national;
2. be of full capacity;
3. be of good conduct and repute and not have been sentenced for a felony or other crime
affecting honour or trustworthiness, unless he has been rehabilitated or pardoned by
the competent authorities;
4. be a holder of the academic qualifications and training certificates determined
pursuant to the relevant resolution of the Director General;
5. have work experience of no less th |
an two (2) years in the field of Real Property
Valuation, or have completed the training period prescribed under this Resolution;6. pay the fees prescribed under this Resolution; and
7. meet any other requirements determined by the relevant resolutions issued by the
DLD.
Exemption from Registration Requirements
Article (6)
a. Natural persons practising the Profession in the Emirate prior to the effective date
of this Resolution shall be exempted from compliance with the provisions of sub-
paragraphs (4) and (5) of Article (5) of this Resolution.
b. Notwithstanding the provisions of sub-paragraph (1) of Article (5) of this Resolution,
RERA may register on the Roll a non-UAE national as a Valuer, provided that he has, in
addition to meeting other registration requirements, work experience of no less than
five (5) consecutive years in the field of Real Property Valuation.
Registration Procedures
Article (7)
Registration on the Roll shall be in accordance with the following procedures:
1. an application for registration on the Roll shall be submitted to RERA on the form
prescribed for this purpose, supported by the documents required by RERA;
2. RERA shall consider the application and verify that the applicant meets all the
requirements stipulated in this Resolution and the resolutions issued in pursuance
hereof;
3. RERA shall determine the application in accordance with the conditions and
requirements stipulated herein. RERA must notify the applicant of its relevant decision
within ten (10) working days from the date of submitting the application that meets
all conditions and requirements, and this decision must be reasoned where the
application is rejected; and
4. RERA shall issue identification cards to persons registered on the Roll. The form of
these cards and the information that must be included therein shall be determined by
a resolution of the Chief Executive Officer of RERA.
Validity of Registration
Article (8)
Registration of Valuers shall be valid for a period of one (1) year, renewable for the same
period. A renewal application must be submitted within thirty (30) days prior to the date
of expiry of the registration.55 54Trainee Valuer
Article (9)
a. An application for registration as a Trainee Valuer shall be submitted to RERA on the
form prescribed for this purpose, supported by all required documents, including a
training undertaking issued by a Firm confirming its approval to train the applicant.
b. The Firm that provides training to practise the Profession must have a Valuer who has
work experience of no less than five (5) years in the Emirate.
c. Firms shall be liable towards third parties for the acts of their Trainee Valuers
throughout their training period.
d. RERA may require a Firm to simultaneously train a maximum of three (3) Trainee
Valuers. This Firm must provide RERA with a biannual report on the punctuality and
commitment of Trainee Valuers, and their compliance with the training requirements;
and |
must provide RERA with a detailed report on each Trainee Valuer at the end of the
training period.
Training Period
Article (10)
The training period of a Trainee Valuer is one (1) year commencing from the date of his
registration on the Roll. The training Firm must notify RERA where the Trainee Valuer is
absent for more than thirty (30) consecutive days or forty (40) non-consecutive days during
the training year in order for RERA to verify the reasons of absence. Where the absence is
proved to be for no valid reason, RERA shall strike the Training Valuer off the Roll.
Authorisation Issuing Requirements
Article (11)
A person applying for an Authorisation must:
1. be a UAE national;
2. be a Valuer, or employ a Valuer to manage the company or sole proprietorship to be
granted the Authorisation;
3. pay the fees prescribed under this Resolution; and
4. meet any other requirements determined by the relevant resolutions issued by the
DLD.Validity of Authorisation
Article (12)
An Authorisation shall be valid for a period of one (1) year, renewable for the same period.
A renewal application must be submitted within thirty (30) days prior to the date of expiry
of the Authorisation validity.
Authorisation Issuing Procedures
Article (13)
An Authorisation shall be issued in accordance with the following procedures:
1. an applicant wishing to practise the Profession shall submit an application for a
commercial licence to the competent commercial licensing authority in the Emirate, in
accordance with the relevant legislation and procedures adopted by it;
2. the commercial licensing authority shall refer the application to RERA for technical
consideration and for verification that it meets the conditions and requirements
adopted for issuing the Authorisation;
3. RERA shall determine an application that meets all conditions and requirements within
ten (10) working days from the date of referral of the application, and its decision must
be reasoned where the application is rejected;
4. following the issuance of an Authorisation, the competent commercial licensing
authority shall complete the procedures for issuing the trade licence; and
5. following the issuance of an Authorisation, RERA shall enter all the basic details of
the Firm, including its address, owner, and manager, as well as the Valuers employed
therein, on the database maintained by RERA for this purpose.
Opening Branches of Firms
Article (14)
Upon the request of a Firm, RERA may approve the opening of branches for the Firm
within the Emirate. The request for opening a branch shall be determined subject to the
requirements prescribed by the relevant resolution of the Director General.57 56Contents of Real Property Valuation Reports
Article (15)
A Valuer must prepare a report on all Real Property Valuations he performs, and this report
must contain:
1. the name of the entity requesting the Real Property Valuation;
2. the purpose of the Real Property Valuation;
3. description of the |
Real Property subject of the Real Property Valuation, supported by a
plan of the land plot on which it is constructed;
4. the basis for valuation, namely the market value of the Real Property calculated in
accordance with the standards stipulated in the Real Property Valuation Book;
5. the date of the Real Property Valuation;
6. the relationship between the Valuer and the entity requesting the Real Property
Valuation;
7. the assumptions, if any, that the Valuer relied on or adopted for completing his work
in accordance with the standards stipulated in the Real Property Valuation Book;
8. a reference that the report was prepared in accordance with the Real Property Valuation
Book;
9. the value of the Real Property subject of the Real Property Valuation in figures and in
words;
10. the name and signature of the Valuer and the number of his registration on the Roll;
11. the plans and documents based on which the Real Property Valuation report is prepared,
such as the site plan issued by competent entities in the Emirate, Real Property photos,
completion certificate, and lease contracts; and
12. any other information determined pursuant to the relevant resolutions issued by the
DLD.
Obligations of Persons Practising the Profession
Article (16)
A person practising the Profession in the Emirate must:
1. comply with the principles of honesty and integrity, and the code of ethics of the
Profession approved by RERA for this purpose;
2. observe accuracy and the principles and traditions of the Profession while performing
his duties;
3. maintain the confidentiality of the data or information to which he may have access in
the course of conducting Real Property Valuation;
4. comply with the requirement that a Valuer must include his name and number of registration on the Roll in all correspondence, certificates, and reports he issues;
5. prepare work reports for all Real Property Valuation assignment performed and send a
summary of these reports to RERA through the relevant means approved by RERA;
6. observe the ethics of the Profession in dealing with colleagues, and refrain from
unfairly competing with them or criticising their work in public;
7. keep paper or electronic record of every Real Property Valuation assignment performed,
in which copies of the written reports, correspondence, and memoranda related to this
assignment are included;
8. maintain the records, reports, and files of all valuated Real Property for at least five (5)
years after completion of the valuation assignment or from the date of delivery of the
final report. The Director General shall determine the types of these records and the
information that must be entered therein;
9. comply with the form and other basic requirements of the Real Property Valuation
report; include the mandatory information of the Real Property and the rights attached
to it in that report; and deliver the same to the party requesting the Real Property
Valuation;
10. comply with the Real P |
roperty Valuation standards and methods stipulated in the Real
Property Valuation Book;
11. not engage any person who is not registered on the Roll to perform Real Property
Valuations;
12. comply with the requirement that no Firm owner may own more than one Firm in the
Emirate;
13. comply with the requirement that a Valuer must practise the Profession through a
Firm, a bank, or a financial institution;
14. comply with the requirement that no Valuer may work for more than one Firm in the
Emirate; and
15. meet any other obligations determined pursuant to the relevant resolutions issued by
the DLD.
Real Property Valuation Agreement
Article (17)
a. A Firm must conclude a Real Property Valuation agreement with the entity requesting
the Real Property Valuation. This agreement must provide for the rights and obligations
of the parties and must, in particular, state:
1. the Real Property to be valuated;
2. the purpose of the Real Property Valuation;
3. the period of completion of the Real Property Valuation; and59 584. the financial consideration for performing the Real Property Valuation.
b. If a dispute arises between a Firm and an entity that requests Real Property Valuation
in relation to the Real Property Valuation agreement, RERA shall have the authority
to consider this dispute through a committee to be formed pursuant to a resolution
issued by the Director General in this respect.
Entering Real Property
Article (18)
In the event that the work of a Valuer requires him to enter the Real Property subject of
the Real Property Valuation, the Valuer must notify the occupant of the Real Property
or his agent in advance, and must agree with him on an appropriate time to enter and
inspect the Real Property. The Valuer must also determine the data and information that
must be provided to him in order to complete the Real Property Valuation.
Obtaining Licences
Article (19)
An Authorisation issued to a Firm pursuant to this Resolution does not exempt that Firm
from obtaining any other licences required by the concerned Government entities in the
Emirate.
Fees
Article (20)
In return for issuing Authorisations, registration on the Roll, and other services rendered
by RERA pursuant to this Resolution, RERA shall collect the fees set forth in Schedule (1)
attached hereto.
Violations and Administrative Penalties
Article (21)
a. Without prejudice to any stricter penalty stipulated in any other resolution, a person
who commits any of the acts stipulated in Schedule (2) attached hereto shall be
punished by the fine indicated opposite that act.
b. Upon repetition of the same violation within one (1) year from the date of the previous
violation, the amount of the fine referred to in paragraph (a) of this Article shall be
doubled. A fine must not exceed two hundred thousand Dirhams (AED 200,000.00).c. In addition to the penalty of a fine referred to in paragraph (a) of this Article, RERA may
take one or more of the following measures against a v |
iolator:
1. suspend the violator from practising the Profession for a period not exceeding six
(6) months;
2. require the violator to attend training or qualification courses for the periods and
subject to the conditions determined by RERA in this regard;
3. strike the violator off the Roll; and/ or
4. revoke the violator’s Authorisation.
Law Enforcement
Article (22)
RERA employees nominated pursuant to a resolution of the Director General shall
have the capacity of law enforcement officers to record the acts committed in breach
of the provisions of this Resolution and the resolutions issued in pursuance hereof. In
this capacity, they may issue the necessary violation reports, and, where necessary, seek
assistance from police personnel.
Grievance
Article (23)
Any affected party may submit a written grievance to the Director General against any
decision or measure taken against him under this Resolution within thirty (30) days from
the date of being notified of the contested decision or measure. The grievance shall be
determined, within thirty (30) days from the date of its submission, by a committee
formed by the Director General for this purpose, and the decision issued in respect of the
grievance shall be final.
Reinstatement on the Roll
Article (24)
The Director General may reinstate any person who is struck off the Roll, provided that
this person meets the requirements for registration on the Roll and that two (2) years from
the date of striking him off the Roll have elapsed.61 60Payment of Fees and Fines
Article (25)
Fees and fines collected pursuant to this Resolution shall be paid to the Public Treasury of
the Government of Dubai.
Compliance
Article (26)
Any person who practises the Profession in the Emirate, including those employed by sole
proprietorships, companies, and financial and banking institutions, by the effective date
of this Resolution must comply with its provisions within one (1) year from that effective
date. The Director General may extend this grace period once for the same period.
Repeals
Article (27)
Any provision in any other resolution shall be repealed to the extent that it contradicts the
provisions of this Resolution.
Issuing Implementing Resolutions
Article (28)
The Director General shall issue the resolutions required for the implementation of the
provisions of this Resolution.
Publication and Commencement
Article (29)
This Resolution shall be published in the Official Gazette and shall come into force on the
day on which it is published.
Hamdan bin Mohammed bin Rashid Al Maktoum
Crown Prince of Dubai
Chairman of the Executive Council
Issued in Dubai on 17 August 2015
Corresponding to 2 Thu al-Qidah 1436 A.H.Schedule (1)
Fees
SN Description Fee (in Dirhams)
Issuing a new Authorisation or renewal of an Authorisation
Issuing an approval to open a branch of a Firm in the Emirate
Registration, renewal of registration, or reinstatement of a
Valuer on the Roll
Registration of a Train |
ee Valuer on the Roll
Variation of the details of registration on the Roll
Variation of the details of an Authorisation
Issuing a replacement for a lost or damaged identification card
of a Valuer or a lost or damaged Authorisation1
2
3
4
5
6
710,000/decimal.arabic00
10,000/decimal.arabic00
5,000/decimal.arabic00
500/decimal.arabic00
200/decimal.arabic00
500/decimal.arabic00
100/decimal.arabic0062Schedule (2)
Violations and Fines
SN Description Fee (in Dirhams)
Practising the Profession in the Emirate by a natural person
who is not registered on the Roll
Practising the Profession in the Emirate by a private legal
person without an Authorisation
Engaging by a Firm of any person who is not registered on the
Roll to practise the Profession
Submitting false documents or information for registration on
the Roll or for obtaining an Authorisation
Practising the Profession after expiry of the Authorisation
without a reason acceptable to RERA
Practising the Profession after expiry of the registration on the
Roll without a reason acceptable to RERA
Failure to comply with the obligations stipulated in Article ( 16)
of this Resolution
Obstructing the work of RERA employees
Refusal by a Firm to train a Trainee Valuer without a valid
reason, failure to provide a Trainee Valuer with proper training,
or failure to send reports on the Trainee Valuer to RERA
Committing any other act that constitutes a violation of the
provisions of this Resolution other than the acts stated above
in this Schedule1
2
3
4
5
6
7
8
9
1020,000/decimal.arabic00
30,000/decimal.arabic00
10,000/decimal.arabic00
10,000/decimal.arabic00
AED 5,000/decimal.arabic00
per month of
delay, up to AED
50,000/decimal.arabic00 . A
part of a month
shall be
rounded up to a
full month.
AED 500/decimal.arabic00 per
month of delay,
up to AED
5,000/decimal.arabic00 . A part
of a month shall
be rounded up
to a full month.
5,000/decimal.arabic00
5,000/decimal.arabic00
5,000/decimal.arabic00
2,000/decimal.arabic00Law No. (7) of 2013
Concerning the Land Department 65 64Law No. (7) of 2013
Concerning the Land Department
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
The Declaration issued on 24 January 1960 Establishing the Tabou (Land) Department;
Law No. (7) of 1997 Concerning Land Registration Fees and its amendments;
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (27) of 2006 Concerning Management of the Government of Dubai Human
Resources and its amendments;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the
Emirate of Dubai and its amendments;
Law No. (27) of 2007 Concerning Ownership of Jointly Owned Real Property in the Emirate
of Dubai; and
Law No. (9) of 2009 Regulating the Interim Real Prope |
rty Register in the Emirate of Dubai
and its amendments,
Do hereby issue this Law.
Title of the Law
Article (1)
This Law shall be cited as “Law No. (7) of 2013 Concerning the Land Department”.
Definitions
Article (2)
The following words and expressions, wherever mentioned in this Law, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Ruler : His Highness the Ruler of Dubai.
Government : The Government of Dubai.
Executive Council : The Executive Council of the Emirate of Dubai.
DLD : The Land Department.Chairman : The chairman of the DLD.
Director General : The director general of the DLD.
Real Property Activities : All material acts and legal dispositions related to the
development, sale, purchase, registration, regulation,
valuation, and leasing of Real Property in the Emirate, as well
as other Real Property activities and services performed,
regulated, or supervised by the DLD and its affiliated entities.
Scope of Application
Article (3)
The provisions of this Law shall apply to the Land Department established pursuant to the
above-mentioned Declaration issued on 24 January 1960.
Head Office of the DLD
Article (4)
The head office of the DLD shall be located in the Emirate, and the DLD may establish
branches and offices within the Emirate.
Objectives of the DLD
Article (5)
In its capacity as the Government entity in the Emirate responsible for regulating and
registering Real Property and promoting Real Property investment, the DLD shall have the
following objectives:
1. to create a world-class pro-investment Real Property environment;
2. to achieve the strategic goals of the Government in the Real Property sector;
3. to keep up with the latest international Real Property registration systems;
4. to improve the effectiveness of the Real Property regulation and control in the
Emirate;
5. to manage and develop the Real Property rental sector in the Emirate;
6. to update and develop Real Property registration systems to be consistent with the
latest international systems in this field;
7. to encourage investment in Real Property through creating a favourable
environment for Real Property investors;
8. to increase the contribution of the Real Property sector to the comprehensive
development in the Emirate; and
9. to plan and develop an integrated strategy for Real Property development in the
Emirate to achieve excellence at the international level.67 66Functions of the DLD
Article (6)
In addition to the functions assigned to it pursuant to the legislation in force, the DLD
shall have the duties and powers to:
1. set, and follow up the implementation of, the policies and strategies related to
implementing the Dubai Strategic Plan with respect to developing and regulating
the Real Property sector in the Emirate;
2. register Real Property through updating and developing Real Property registration
systems of the DLD to be consisten |
t with the latest international systems in this
field;
3. regulate Real Property activities through setting the rules regulating the Escrow
Accounts for Real Property Development, Real Property brokerage offices, and joint
ownership;
4. encourage investment in Real Property through providing investors with
information and data on Real Property investment opportunities in the Emirate;
5. propose the initiatives and policies required for achieving the objectives of the
DLD, particularly those related to Real Property promotion and investment in the
Emirate;
6. propose the legislation regulating the Real Property sector in the Emirate, conduct
post-application evaluation of such legislation, regulate the relationship between
Landlords and Tenants, and register Lease Contracts of Real Property Units;
7. license and supervise Real Property activities in the Emirate and monitor those
engaging in them;
8. set, in cooperation and coordination with the competent entities, the appropriate
measures that ensure the protection and stability of the Real Property market in
the Emirate;
9. undertake Real Property promotion within and outside of the Emirate through
organising and participating in local, regional, and international Real Property
conferences, events, and exhibitions;
10. consider requests of Real Property investors to obtain the benefits prescribed
pursuant to the legislation and the policies adopted by the DLD;
11. prepare and issue reports and studies specialised in the Real Property market and
in increasing awareness in that market, prepare bulletins and data to support these
studies, and provide decision-makers with the findings of these studies to benefit
from them in setting and implementing the Government policies and programmes;
12. provide information and data to investors on Real Property investment opportunities
in the Emirate;
13. provide Real Property valuation services;14. conduct land surveys and re-surveys and issue maps thereof;
15. disseminate Real Property knowledge through preparing and implementing various
Real Property training programmes to qualify those working on the Real Property
market, including Developers, Real Property brokers, and other Persons engaging in
Real Property activities in the Emirate, and prepare and conduct informative and
awareness-raising programmes on the rights and duties of those involved in the
Real Property sector;
16. provide specialised Real Property consultations for Real Property Developers,
brokers, investors and others;
17. prepare and implement programmes and projects that contribute to promoting the
role of UAE nationals and encouraging them to work in the Real Property sector;
18. organise Real Property seminars, workshops, and conferences that aim to discuss
issues related to the Real Property market, and propose appropriate solutions for
them;
19. assess the performance of the entities affiliated to the DLD and ensure that they
perform the duties and services |
assigned to them;
20. prepare, develop, and periodically update a unified central database for the Real
Property Activities in the Emirate; and make the data accessible to serve the
objectives and purposes of planning and decision-making;
21. form Real Property councils and groups, and advisory committees, comprising
Persons with expertise in the various areas related to Real Property to provide the
DLD with opinions and advice on issues referred to it; and
22. perform any other duties required for the achievement of the objectives of the DLD.
Chairman of the DLD
Article (7)
a. A Chairman shall be appointed to the DLD pursuant to a decree issued by the Ruler.
b. The Chairman shall undertake the general supervision of the DLD and make decisions
he deems appropriate to achieve its objectives. In particular, the Chairman may:
1. approve the general policy and strategic plans of the DLD and its affiliated entities;
2. approve the organisational structure of the DLD and its affiliated entities;
3. approve the draft annual budget and financial statements of the DLD;
4. approve the fees and charges for the services provided by the DLD and its affiliated
entities; and
5. perform any other duties or exercise any other powers related to the work of the
DLD and assigned to him by the Ruler.
c. The Chairman may delegate any of the powers vested in him pursuant to this Law or
any other legislation to the Director General.69 68Director General
Article (8)
a. A Director General shall be appointed to the DLD pursuant to a decree issued by the
Ruler.
b. The Director General shall undertake the supervision of the administrative, technical,
and financial affairs of the DLD, and shall represent it before third parties. In particular,
he may:
1. propose the general policy and strategic plans of the DLD and its affiliated entities,
and supervise the implementation of these policies and plans upon being approved;
2. propose the organisational structure of the DLD and its affiliated entities;
3. approve the bylaws and resolutions regulating the administrative, financial, and
technical work of the DLD and its affiliated entities;
4. propose the annual draft budget of the DLD and prepare its financial statements;
5. propose the fees and charges for the services provided by the DLD and its affiliated
entities;
6. supervise the work of the executive body of the DLD and its affiliated entities;
7. supervise the work of the executive directors of the DLD affiliated entities, and
their implementation of the strategic and operational plans of their respective
entities; and
8. perform any other duties assigned to him by the Chairman.
Executive Body of the DLD
Article (9)
The executive body of the DLD shall be comprised of a number of administrative and
technical Employees. Law No. (27) of 2006 Concerning Management of the Government of
Dubai Human Resources and its amendments shall apply to these Employees.
DLD Affiliated Entities
Article (10)
a. Specialised en |
tities working in areas related to regulating, conducting, and developing
Real Property Activities in the Emirate may be affiliated to the DLD.
b. The DLD may, in accordance with its needs and the work requirements of its affiliated
entities, propose redefining the goals and objectives of these entities, or dissolving or
merging them. These proposals shall be submitted to the competent authorities for
approval.c. The DLD affiliated entities must implement the adopted plans and policies, and must
submit periodic reports to the Director General on their work and programmes as well
as the statistics, studies, and information available to these affiliated entities.
Fees
Article (11)
In return for registering Real Property dispositions and providing other services, the DLD
shall collect the fees determined pursuant to the relevant resolution of the Chairman of
the Executive Council.
Financial Resources of the DLD
Article (12)
The financial resources of the DLD shall consist of:
1. the support allocated to the DLD in the general budget of the Government;
2. the fees and charges for the services provided by the DLD; and
3. any other resources approved by the Executive Council.
Accounts and Financial Year of the DLD
Article (13)
In regulating its accounts and records, the DLD shall follow the government accounting
rules and standards. The financial year of the DLD shall commence on 1 January and shall
end on 31 December of each year.
Issuing Implementing Resolutions
Article (14)
The Chairman of the Executive Council shall issue the resolutions required for the
implementation of the provisions of this Law.
Repeals
Article (15)
The Declaration issued on 24 January 1960 Establishing the Tabou (Land) Department and
Law No. (7) of 1997 Concerning Land Registration Fees are hereby repealed. Any provision in
any other legislation shall also be repealed to the extent that it contradicts the provisions
of this Law.70Commencement and Publication
Article (16)
This Law comes into force on the day on which it is issued, and shall be published in the
Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 September 2013
Corresponding to 13 Thu al-Qidah 1434 A.H.Decree No. (43) of 2013
Determining
Rent Increase for Real Property in the
Emirate of Dubai 73 72Decree No. (43) of 2013
Determining
Rent Increase for Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (9) of 2004 Concerning the Dubai International Financial Centre and its
amendments;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency;
Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the
Emirate of Dubai and its amendments;
Decree No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
Decree No. (2) of 2011 Concerning Real Property Rent in the Emirate of Dubai;
Decree No. (26) of 2013 Concerning the Rental Disputes S |
ettlement Centre in the Emirate
of Dubai; and
The legislation regulating free zones in the Emirate of Dubai,
Do hereby issue this Decree.
Percentages of Increase
Article (1)
When renewing Real Property Lease Contracts, the maximum percentage of Rent increase
for Real Property in the Emirate of Dubai shall be as follows:
a. no Rent increase, where the Rent of the Real Property unit is up to ten percent (10%)
less than the average rental value of similar units;
b. five percent (5%) of the Rent of the Real Property unit, where the Rent is eleven percent
(11%) to twenty percent (20%) less than the average rental value of similar units;
c. ten percent (10%) of the Rent of the Real Property unit, where the Rent is twenty-one
percent (21%) to thirty percent (30%) less than the average rental value of similar units;
d. fifteen percent (15%) of the Rent of the Real Property unit, where the Rent is thirty-one
percent (31%) to forty percent (40%) less than the average rental value of similar units;
or
e. twenty percent (20%) of the Rent of the Real Property Unit, where the Rent is more
than forty percent (40%) less than the average rental value of similar units.Scope of Application
Article (2)
This Decree shall apply to Landlords, whether private or public entities, in the Emirate of
Dubai, including those in Special Development zones and free zones such as the Dubai
International Financial Centre.
Average Rental Value
Article (3)
For the purposes of application of Article (1) of this Decree, the average rental value of
similar units shall be determined in accordance with the “Rent Index of the Emirate of
Dubai” approved by the Real Estate Regulatory Agency.
Publication and Commencement
Article (4)
This Decree comes into force on the day on which it is issued, and shall be published in
the Official Gazette.
Mohammed bin Rashid Al Maktoum Ruler of DubaiIssued in Dubai on 18 December 2013
Corresponding to 15 Safar 1435 A.H.Decree No. (26) of 2013
Concerning
The Rental Disputes Settlement Centre
in the Emirate of Dubai77 76Decree No. (26) of 2013
Concerning the
Rental Disputes Settlement Centre in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its
amendments;
Federal Law No. (11) of 1992 Issuing the Civil Procedures Code and its amendments;
Law No. (3) of 1992 Establishing the Dubai Courts and its amendments;
Law No. (6) of 1992 Establishing the Judicial Council and its amendments;
Law No. (2) of 2003 Concerning the Profession of Renting and Leasing Real Property in the
Emirate of Dubai;
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (27) of 2006 Concerning Management of the Government of Dubai Human
Resources and its amendments;
Law No. (26) of 2007 Regulating the Relationship between |
Landlords and Tenants in the
Emirate of Dubai and its amendments;
Law No. (15) of 2009 Concerning Hearing Rental Disputes in Free Zones;
Decree No. (2) of 1993 Forming a Special Tribunal to Determine Disputes between Landlords
and Tenants and its amendments;
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai and its amendments; and
Local Order No. (1) of 2004 Concerning the Fees of the Rent Tribunal in the Emirate of
Dubai,
Do hereby issue this Decree.
Title of the Decree
Article (1)
This Decree shall be cited as “Decree No. (26) of 2013 Concerning the Rental Disputes
Settlement Centre in the Emirate of Dubai”.Definitions
Article (2)
The following words and expressions, wherever mentioned in this Decree, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
Ruler : His Highness the Ruler of Dubai.
Executive Council : The Executive Council of the Emirate of Dubai.
Council : The Judicial Council.
DLD : The Land Department.
RDSC : The Rental Disputes Settlement Centre in the Emirate.
Tribunal : The tribunal formed at the First Instance Division or Appellate
Division of the RDSC.
Rental Dispute : A dispute that arises between a Landlord and a Tenant in
relation to leasing or renting immovable property.
Objectives of the Decree
Article (3)
With a view to supporting sustainable development in the Emirate, this Decree aims
to establish a specialised judicial system to hear Rental Disputes, and to develop the
procedure for determination of such disputes through an expeditious and simple process
for the purpose of realising social and economic stability for all Persons engaged in the
Real Property rental sector and other related sectors.
Scope of Application
Article (4)
a. The provisions of this Decree shall apply to the Special Tribunal to Determine Disputes
between Landlords and Tenants formed pursuant to the above-mentioned Decree No.
(2) of 1993.
b. The name “Special Tribunal to Determine Disputes between Landlords and Tenants”
is hereby replaced by the name “Rental Disputes Settlement Centre in the Emirate of
Dubai”.79 78Head Office of the RDSC
Article (5)
The RDSC shall have its head office in the DLD, and may establish other offices in the
Emirate.
Jurisdiction of the RDSC
Article (6)
a. The RDSC shall have the exclusive jurisdiction to:
1. determine all Rental Disputes that arise between Landlords and Tenants of Real
Property situated in the Emirate, including in free zones, and counterclaims arising
therefrom, as well as determine applications for interim or urgent relief filed by any
of the parties to a Lease Contract;
2. determine appeals from the decisions and judgments that are subject to appeal in
accordance with the provisions of this Decree and the regulations and resolutions
issued in pursuance hereof; and
3. enforce the decisions and judgments issue |
d by the RDSC in the Rental Disputes
that fall within its jurisdiction.
b. The RDSC shall have no jurisdiction to hear the following Rental Disputes:
1. Rental Disputes that arise within the free zones which have tribunals or special
courts having jurisdiction to determine the Rental Disputes that arise within their
boundaries;
2. Rental Disputes that arise from a lease finance contract; and
3. disputes that arise from long-term Lease Contracts governed by the above-
mentioned Law No. (7) of 2006.
Organisational Structure of the RDSC
Article (7)
a. The organisational structure of the RDSC shall consist of two (2) sectors: a judicial
sector and an administrative sector.
b. The judicial sector shall comprise the following divisions and organisational units:
1. the Mediation and Conciliation Directorate;
2. the First Instance Division;
3. the Appellate Division; and
4. the Judgment Enforcement Directorate.
c. The administrative sector of the RDSC shall comprise a number of organisational units
charged with the duty of providing technical and administrative support to the judicial
sector.Chairman of the RDSC
Article (8)
A chairman, who must be a judge whose grade is not lower than the grade of an appellate
court judge, shall be appointed to the RDSC pursuant to a decree issued by the Ruler. The
chairman shall undertake the supervision of the judicial sector of the RDSC and shall, in
particular:
1. supervise the distribution of claims at the First Instance Division and the Appellate
Division;
2. propose the regulations and resolutions for the purpose of regulating work in the
judicial sector of the RDSC, including the fees and the charges for services provided
by the RDSC; and
3. coordinate with all judicial and government entities with respect to all matters
relating to the work of the RDSC in the judicial sector.
Secretary General of the RDSC
Article (9)
A secretary general shall be appointed to the RDSC pursuant to a resolution issued by the
Director General of the DLD to undertake the supervision of the administrative sector of
the RDSC and any other duties assigned or delegated to him by the chairman of the RDSC.
Mediation and Conciliation Directorate
Article (10)
a. A Mediation and Conciliation Directorate shall be established in the RDSC with the
power to amicably settle Rental Disputes in accordance with the rules adopted in this
respect by the chairman of the RDSC, with the exception of the following:
1. orders, applications, and claims which are urgent or interim; and
2. claims that have been registered before the effective date of this Decree.
b. The Mediation and Conciliation Directorate shall be comprised of a number of legal
practitioners and experts to be appointed by the DLD.
c. Rental Disputes submitted to the Mediation and Conciliation Directorate shall be
heard and settled by a number of specialists working under the supervision of a judge
seconded to work with the RDSC for this purpose.
d. The Mediation and Conc |
iliation Directorate shall hear a Rent Dispute submitted to
it by summoning the parties or their representatives, reviewing the documents and
related evidence, proposing a settlement to the parties, and reconciling their points of
view for the purpose of reaching amicable settlement of the Rent Dispute.81 80e. The time bar periods and limitation periods stipulated by the legislation in force shall
be suspended from the date of registering the Rent Dispute with the Mediation and
Conciliation Directorate.
f. The Mediation and Conciliation Directorate shall seek to amicably settle the Rent
Dispute within a period not exceeding fifteen (15) days from the date of appearance of
the parties before it. This period may be extended for the same period or periods by a
decision of the judge supervising the Mediation and Conciliation Directorate.
g. Where settlement between the parties to the Rent Dispute is reached, this settlement
shall be documented in a settlement agreement signed by the parties and approved
by the judge supervising the Mediation and Conciliation Directorate. This agreement
shall have the force of a writ of execution.
h. The Mediation and Conciliation Directorate may, as it deems appropriate, seek
assistance from experts and specialists to provide technical expertise in the matters
submitted to it. The decision to seek assistance from an expert shall specify the
scope of his assignment, the period required for completion of this assignment, his
remuneration, and the party responsible for payment of that remuneration.
i. A fee shall be charged for the registration of a Rent Dispute submitted to the Mediation
and Conciliation Directorate in accordance with the fees prescribed for the registration
of claims by the RDSC. One-half of the fee shall be refunded if amicable settlement is
reached between the parties to the Rent Dispute.
Appointment of Chairs and Members of Tribunals
Article (11)
The chairs and members of the Tribunals that constitute the First Instance Division and
Appellate Division shall be appointed pursuant to a resolution of the Chairman of the
Council.
Taking the Oath
Article (12)
Before assuming their duties, members of Tribunals who are not judges shall take the
following oath before the Chairman of the Council: “I swear by Allah the Almighty that
I shall administer justice, respect the laws, and discharge my duties with integrity and
honesty”.First Instance Division
Article (13)
a. The First Instance Division shall be comprised of a sufficient number of Tribunals,
each of which is formed of a chair and two (2) competent and experienced members
specialised in law and Real Property. These Tribunals shall have the jurisdiction to
determine the Rental Disputes referred to in Article (6) of this Decree. The chair of each
Tribunal must be a judge, but the Chairman of the Council may appoint an experienced
and specialised legal practitioner as the chair of any of these Tribunals.
b. The chairman of th |
e RDSC may designate one or more Tribunals within the First
Instance Division to hear certain types of Rental Disputes depending on the nature of
claims, or the location or nature of use of leased Real Property Units.
Appellate Division
Article (14)
The Appellate Division shall be comprised of a sufficient number of Tribunals, each
of which is formed of two (2) judges and one (1) person known for his experience and
expertise in Real Property. The chair of each Tribunal must be a judge. These Tribunals shall
have jurisdiction to determine the appeals from decisions and judgments issued by the
First Instance Division. Judgments of the Appellate Division shall be final and not subject
to any form of appeal, and shall be enforced in accordance with the procedures and rules
adopted by the RDSC.
Meetings of Tribunals
Article (15)
Meetings of Tribunals shall be valid if attended by all their members, and their decisions
and judgments shall be issued in the name of the Ruler, unanimously or by majority vote.
Determining Claims
Article (16)
The Tribunals formed under the provisions of this Decree must determine the rental claims
referred to them within a period not exceeding thirty (30) days from the date of referral
of the claim file to them. This period may be extended for the same period in accordance
with the rules and procedures adopted in this respect by the Chairman of the Council.83 82Appeals from Judgments of the First Instance Division
Article (17)
a. Judgments of the First Instance Division shall be appealed to the Appellate Division,
with the exception of judgments issued in rental claims whose value is less than one
hundred thousand Dirhams (AED 100,000.00), which shall be final and not subject to
any form of appeal.
b. Judgments issued by the First Instance Division in claims whose value is less than
the amount mentioned in paragraph (a) of this Article may be appealed in any of the
following cases:
1. where an eviction judgment is issued;
2. where the judgment is issued in breach of the rules of jurisdiction;
3. where the judgment grants relief that has not been requested by the parties or
that exceeds what they have requested, or where the judgment fails to address any
requests made by the parties;
4. where the judgment is issued against a Person who was not duly represented in
the claim, or where the service of the relevant summons was invalid;
5. where the judgment is based on documents which are acknowledged as or judicially
declared to be false after the judgment has been issued, or where the judgment is
based upon a testimony that is judicially declared to be false after the judgment
has been issued; or
6. where a party to a contract conceals from the First Instance Division evidence or
documents that would have changed the judgment.
Time Limit for Appeal of Judgments
Article (18)
a. The time limit for appeal of a judgment issued by the First Instance Division is fifteen
(15) days from the day following the da |
te of the hearing in which the judgment was
issued. Where the party against whom the judgment is issued has failed to appear in
all hearings of the claim and failed to submit a statement of defence, the time limit for
appeal shall commence from the date on which he is served with the judgment.
b. To admit an appeal of a judgment issued by the First Instance Division in respect of
financial claims, the judgment debtor must deposit half of the judgment amount with
the RDSC until the appeal is determined. Notwithstanding the foregoing, the chairman
of the RDSC may decide to admit the appeal without the deposit of that amount or
upon payment of a part thereof.Applicable Sources
Article (19)
Tribunals shall determine the Rental Disputes and appeals submitted to them by reference
to:
1. the legislation in force in the Emirate;
2. the provisions of Islamic Sharia;
3. the principles of natural justice, equity, and fairness; and
4. custom, provided that such custom does not contradict the laws, public order, or public
morals.
Operating Procedures of the RDSC
Article (20)
The Chairman of the Council shall issue regulations concerning the procedures and rules
to be adopted by the RDSC in all matters relating to the registration, determination,
and enforcement of claims and applications by the First Instance Division, the Appellate
Division, the Mediation and Conciliation Directorate, or the Judgment Enforcement
Directorate. Until these regulations are issued, the RDSC may be guided by the provisions
of the procedural rules adopted by the Special Tribunal to Determine Disputes between
Landlords and Tenants.
Enforcement of Judicial Judgments
Article (21)
All final and irrevocable judgments issued by the First Instance Division and the Appellate
Division shall be enforced by the Judgment Enforcement Directorate of the RDSC. The
chairman of the RDSC may seek assistance from the Enforcement Department of the
Dubai Courts to enforce the judgments issued by the RDSC.
Appeals from Decisions and Judgments
Issued before the Effective Date of this Decree
Article (22)
Subject to the provisions of Article (17) of this Decree, the decisions and judgments that
were not enforced before the effective date of this Decree may be appealed within thirty
(30) days from that effective date.85 84Fees
Article (23)
a. In return for registering the claims and applications submitted to the RDSC and other
services provided by it, the RDSC shall collect the fees determined pursuant to the
relevant resolution of the Chairman of the Executive Council.
b. The fees stipulated in the above-mentioned Local Order No. (1) of 2004 shall continue
to apply until the Executive Council resolution referred to in paragraph (a) of this
Article is issued.
Remuneration of the Members of Tribunals
Article (24)
The Chairman of the Council shall issue regulations concerning the financial remuneration
that may be paid to chairs and members of Tribunals.
Automation and Use of Technolo |
gy
Article (25)
The work of the RDSC, in the judicial and administrative sectors, shall be automated to
ensure simplification of procedure and expeditious determination of Rental Disputes.
Providing Support to the RDSC
Article (26)
The DLD shall provide all necessary support to the RDSC to enable it to perform the
functions assigned to it pursuant to this Decree, including providing office premises and
administrative, financial, and technical support.
Financial Resources of the RDSC
Article (27)
The financial resources of the RDSC shall consist of:
1. the support allocated to the RDSC in the budget of the DLD; and
2. the fees and charges for the services collected by the RDSC with respect to claims,
applications, transactions, and services provided by the RDSC.Transitional Provisions
Article (28)
a. Except for cases reserved for judgment, the RDSC shall hear and determine all claims
and applications being heard by the effective date of this Decree by the Special Tribunal
to Determine Disputes between Landlords and Tenants. These claims and applications
shall be referred to the RDSC in their current state.
b. All Employees of the Special Tribunal to Determine Disputes between Landlords and
Tenants shall be transferred to the DLD as of the effective date of this Decree without
prejudice to their existing rights. Law No. (27) of 2006 Concerning Management of
the Government of Dubai Human Resources and its amendments shall apply to these
Employees.
Repeals
Article (29)
a. This Decree supersedes Law No. (15) of 2009 Concerning Hearing Rental Disputes in
Free Zones and Decree No. (2) of 1993 Forming a Special Tribunal to Determine Disputes
between Landlords and Tenants.
b. Any provision in any other legislation shall be repealed to the extent that it contradicts
the provisions of this Decree.
Issuing Implementing Resolutions
Article (30)
The Chairman of the Council shall issue the resolutions required for the implementation
of the provisions of this Decree.
Publication and Commencement
Article (31)
This Decree shall be published in the Official Gazette and shall come into force sixty (60)
days after the date of its publication.
Mohammed bin Rashid Al Maktoum Ruler of DubaiIssued in Dubai on 18 September 2013
Corresponding to 13 Thu al-Qidah 1434 A.H.Executive Council Resolution No. (30) of 2013
Approving Fees of the Land Department 89 88Executive Council Resolution No. (30) of 2013
Approving Fees of the Land Department
We, Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman
of the Executive Council,
After perusal of:
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (27) of 2007 Concerning Ownership of Jointly Owned Real Property in the
Emirate of Dubai;
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of
Dubai and its amendments;
Law No. (14) of 20 |
09 Concerning the Pricing of Government Services in the Emirate of
Dubai;
Law No. (35) of 2009 Concerning Management of the Public Funds of the Government of
Dubai and its amendments;
Law No. (7) of 2013 Concerning the Land Department;
Decree No. (4) of 2010 Regulating the Transfer of Title to Granted Industrial and
Commercial Land in the Emirate of Dubai; and
Executive Council Resolution No. (24) of 2006 Approving Fees for Real Property
Transactions in the Emirate of Dubai,
Do hereby issue this Resolution.
Definitions
Article (1)
The following words and expressions, wherever mentioned in this Resolution, shall have
the meaning indicated opposite each of them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
DLD : The Land Department.
Fee : Any of the amounts and percentages prescribed pursuant
to this Resolution as charges for the registration of Real
Property Dispositions or other services provided by the DLD.
Real Property Register : The Real Property Register or the Interim Real Property
Register in which Real Property Dispositions are registered.
Real Property Disposition : Any legal disposition pursuant to which the ownership or possession of Real Property is transferred. This includes, without
limitation, contracts transferring usufruct rights or long-term lease
rights provided for by the above-mentioned Law No. (7) of 2006, and
rent-to-own contracts.
Approval of Fees
Article (2)
Pursuant to this Resolution, the Fees for registration of Real Property Dispositions in the
Real Property Register, including those related to completed, under-construction, or off-
plan Real Property, as well as the Fees for services provided by the DLD, as set out in the
Schedule attached hereto, are approved.
Fee Collection Rules
Article (3)
When collecting the Fees prescribed by Article (2) of this Resolution, the following shall
apply:
1. unless agreed otherwise, the Fee for the sale of Real Property shall be shared
equally by the seller and purchaser;
2. unless agreed otherwise, the Fee for registering a usufruct or long-term lease right
provided for by the above-mentioned Law No. (7) of 2006 shall be paid by collection
of two percent (2%) of the value of the Real Property from the owner, Landlord, or
holder of the usufruct right, and collection of two percent (2%) of the value of the
Real Property from the Tenant or holder of the usufruct right;
3. unless agreed otherwise, the Fee for registering a rent-to-own contract shall be
paid by collection of two percent (2%) of the value of the Real Property from the
Landlord, and collection from the Tenant of two percent (2%) of the value of the Real
Property plus a quarter of a percent (0.25%) of the value of the amount financed;
4. the Fees for registering the subdivision of co-owned Real Property shall be paid by
the co-owners in proportion to their respective shares prior to the subdivision;
5. unless agreed otherwise, the Fees for registering |
contracts for the use and
development of the land of another Person (Musataha), contracts transferring
the share of Real Property belonging to an heir to the other heirs (Takharuj), gifts,
shalls, mortgages, debt conversions, and family endowments (Family Waqf), and
registering the rights of the heirs of tenants, shall be paid by the Person to whom
the rights are transferred; and
6. Fees for dispositions other than those stipulated in paragraphs (1), (2), (3), (4), and
(5) of this Article shall be paid by the applicant.91 90Fee Assessment
Article (4)
For the purpose of calculating the Fees payable under this Resolution, the DLD may:
1. verify the value of the Real Property in respect of which the Real Property Disposition
is made; and
2. assess the value of the Real Property and Real Property Dispositions where that
value is undetermined, where it is established that the value stated in the relevant
disposition contract is less than the market value, or where false information or
data is provided with respect to these Real Property and Real Property Dispositions.
Evasion of Fees
Article (5)
The following acts shall be deemed as evasion of Fees:
1. providing false information about the value of a Real Property Disposition;
2. acting in a fraudulent manner or using any means whatsoever to evade the
payment of Fees; or
3. performing any other act with a view to evading the payment of Fees.
Fines
Article (6)
a. Without prejudice to any stricter penalty stipulated in any other legislation, a Person
who commits any of the acts provided for in Article (5) of this Resolution shall be
punished by a fine of double the prescribed Fee.
b. Any Real Property developer or broker who assists a Person under obligation to pay
Fees in evading the payment of these Fees shall be punished by the same penalty
stipulated in paragraph (a) of this Article.
Law Enforcement
Article (7)
The DLD employees determined pursuant to a resolution of its Director General, in
coordination with the Director General of the Government of Dubai Legal Affairs
Department, shall have the capacity of law enforcement officers to record the acts
committed in breach of the provisions of this Resolution and the resolutions issued in
pursuance hereof. For this purpose, they may issue the violation reports required in this
regard.Grievances
Article (8)
Any affected party may submit a written grievance to the Director General of the
DLD against any decision or measure taken against him under this Resolution. The
grievance shall be determined, within thirty (30) days from the date of submission of the
grievance, by a committee formed by the Director General of the DLD for this purpose,
and the decision on the grievance shall be final.
Payment of Fees and Fines
Article (9)
The Fees and fines collected pursuant to this Resolution shall be paid to the Public
Treasury of the Government of Dubai.
Issuing Implementing Resolutions
Article (10)
The Director General of the DLD shall |
issue the resolutions required for the
implementation of the provisions of this Resolution.
Publication and Commencement
Article (11)
This Resolution shall be published in the Official Gazette and shall come into force on
the day on which it is published.
Hamdan bin Mohammed bin Rashid Al Maktoum
Crown Prince of Dubai
Chairman of the Executive Council
Issued in Dubai on 18 September 2013
Corresponding to 13 Thu al-Qidah 1434 A.H.93 92Schedule
Fees for Registration of Real Property Dispositions and
Other Services Provided by the Land Department
SN Description Fee (in Dirhams)
Registering a Real Property sale contract
Registering a warehouse sale contract
Transfer of title to granted industrial or commercial land to the
beneficiary
Transfer of title to granted industrial or commercial land to the
possessor
Registering a gift of Real Property4% of the value
of the sale
contract
AED 10.00 per
square metre of
the land plot on
which the
warehouse is
constructed,
provided that
the Fee is not
less than AED
10,000.00
30% of the
market value of
the land
50% of the
market value of
the land
0.125% of the
value of the
Real Property
granted as a
gift, provided
that the Fee is
not less than
AED 2,000.001
2
3
4
5SN Description Fee (in Dirhams)
Registering Ijara (Islamic Finance)
Amending the registration of a rent-to-own contract
Application for transferring the ownership of Real Property
from one financer to another in a rent-to-own contract
Creating an entry on the Real Property registry folio to denote
that a rent-to-own contract is terminated
Registering a mortgage contract
Variation of the details of a mortgage
Transferring a mortgage
Discharging a mortgage
Registering a long-term Lease Contract
Amending the registration of a long-term Lease Contract4.25% (being 4%
of the value of
the Real
Property, and
0.25% of the
total value of
the rent-to-own
contract)
AED 1,000.00
0.25% of the
total value of
the rent-to-own
contract
AED 1,000.00
0.25% of the
mortgage (debt)
value
AED 1,000.00
0.25% of the
mortgage (debt)
value
AED 1,000.00
4% of the total
value of the
Lease Contract
AED 1,000.006
7
8
9
10
11
12
13
14
1595 94SN Description Fee (in Dirhams)
Registering a usufruct right
Registering a contract for the use and development of the land
(of another Person (Musataha
Amending the registration of a contract for the use and
(development of the land of another Person (Musataha
Transferring a contract for the use and development of the
(land of another Person (Musataha
Terminating a contract for the use and development of the
(land of another Person (Musataha
Supervising the sale of Real Property by public auction
Issuing a title deed of Real Property
Holding an electronic public auction
Licensing a public auction outside the DLD
Issuing a replacement for a lost/ damaged title deed or
possession certificate of Real Property
Registering land granted as a gift
Registering the ownership of Real Pro |
perty in the name of
heirs2% of the Real
Property value
1% of the
consideration
paid for the
Musataha
contract
AED 1,000.00
1% of the
consideration
paid for the
Musataha
contract
AED 1,000.00
1% of the
auction value,
provided that
the Fee does not
exceed AED
30,000.00
AED 250.00
AED 10,000.00
AED 10,000.00
AED 1,000.00
AED 500.00
AED 1,000.00
per inherited
Real Property1716
18
19
20
21
22
23
24
25
26
27SN Description Fee (in Dirhams)
Registering a family endowment (family Waqf)
Transferring the share of Real Property belonging to an heir to
the other heirs (Takharuj)
Subdividing a co-owned Real Property between co-owners
Issuing a ‘To Whom It May Concern’ Certificate
Confirming the ownership of Real Property
Registering a will
Valuating vacant land
Valuating land allocated for a Real Property development
project
Valuating agricultural land
Valuating a Real Property Unit (exclusive of the land)
Valuating land on which a hotel is constructed
Valuating land on which a villa compound/ commercial
building is constructedAED 2,000.00
per Real
Property
1% of the value
of the Real
Property subject
to the transfer
(Takharuj)
1% of the value
of the Real
Property subject
to subdivision
AED 50.00
AED 5,000.00
0.125% of the
value of the
willed Real
Property
AED 2,000.00
AED 10,000.00
AED 6,000.00
AED 4,000.00
AED 15,000.00
AED 6,000.002928
30
31
32
33
34
35
36
37
38
3997 96SN Description Fee (in Dirhams)
Valuating land on which a residential villa is constructed
Determining the location of a site
Issuing a replacement for a lost/ damaged Real Property
Disposition contract or certificate
Converting a Lease Contract with a term of up to ninety-nine
(99) years, which is concluded prior to the effective date of this
Resolution, into an ownership contract
Issuing a usufruct certificate
Cancelling a Real Property Disposition
Creating an entry on the Real Property registry folio (other
than in relation to a mortgage)
Registering a lease finance contract of Real Property in the
name of the financer
Amending/ removing an entry on a Real Property registry folio
Authorising the cancellation of registration of a Real Property
Unit sale contract
Effecting a Real Property settlement
Amalgamating/ separating Real Property
Amending an entry in the Interim Real Property Register
Approving the plan of a land plot/ Real Property Unit/ villa and
its appurtenances
Approving the plan of common areas of land
Approving a plan of common areas in a building AED 4,000.00
AED 200.00
AED 250.00
1% of the value
of the Real
Property
AED 250.00
AED 1,000.00
AED 100.00
0.25% of the
value of the
Real Property
AED 1,000.00
AED 500.00
AED 3,000.00
AED 500.00
AED 250.00 per
Real Property
Unit
AED 50.00
AED 250.00
AED 350.0041
42
43
4440
45
46
47
48
49
5150
52
53
54
55SN Description Fee (in Dirhams)
Approving a building plan
Approving a 3D plan of common areas in a building
Approving a volumetric 3D plan (BMS)
Applying for a Real Property Unit |
survey
Issuing a land map
Surveying a business centre
Issuing a villa/ Real Property Unit plan
Issuing a plan of common areas in Real Property
Issuing a 3D building plan
Issuing a plan of common areas in a building
Issuing a building plan
Issuing a 3D plan of common areas in a building
Issuing a plan of common areas (component plan)
Issuing a map of an island
Issuing a land map and conducting a field survey
Issuing a villa/ Real Property Unit plan and conducting a field
survey
Issuing a plan of common areas of land and conducting a field
survey
Issuing a building plan and conducting a 2D survey
Issuing a plan of common areas (component plan) and
conducting a field survey AED 500.00
AED 500.00
AED 1,000.00
AED 3,000.00
AED 100.00
AED 2,000.00
AED 250.00
AED 3,000.00
AED 5,000.00
AED 5,000.00
AED 2,500.00
AED 5,000.00
AED 5,000.00
AED 450.00
AED 500.00
AED 600.00
AED 5,000.00
AED 3,000.00
AED 5,000.0057
58
59
60
6156
62
63
64
65
66
67
6968
70
71
72
73
7498SN Description Fee (in Dirhams)
Issuing a map of an island and conducting a field survey
Training a Real Property registrar
Changing the time of a training course
Issuing a report on a Real Property investment project
Attending at the client’s premises upon request to process a
Real Property transaction
Processing an urgent Real Property Disposition transaction
Joining Taskeen programme
Joining Tayseer Programme
Joining a project in Tayseer Programme
Joining Tanmia Programme by a Real Property developer
Joining the Real Property Investment Plan of the Emirate of
Dubai
Joining the Real Property Investment Plan of the Emirate of
Dubai by a Real Property developer
Joining the Real Property Sustainability Standards InitiativeAED 3,000.00
AED 2,500.00
per course
AED 500.00
AED 500.00
AED 2,000.00
AED 5,000.00
AED 400.00
AED 10,000.00
AED 10,000.00
AED 1,000.00
AED 500.00
AED 5,000.00
AED 10,000.0076
77
78
7975
80
81
82
83
84
85
8786Decree No. (4) of 2010
Regulating the Transfer of Title to
Granted Industrial and Commercial Land
in the Emirate of Dubai 101 100Decree No. (4) of 2010
Regulating the Transfer of Title to
Granted Industrial and Commercial Land in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
The Instructions Issued on 20 September 1994 Concerning Land Granted by the
Government to UAE Nationals in the Emirate of Dubai;
The Order Issued on 20 September 1994 Prohibiting Notaries Public from Attesting
Contracts, Agreements, or Documents Related to the Disposition of Granted Land; and
The Order Issued on 12 July 2004 Concerning Residential Land Granted to UAE Nationals
in the Emirate of Dubai,
Do hereby issue this Decree.
Definitions
Article (1)
The following words and expressions, wherever mentioned in this Decree, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Government |
: The Government of Dubai.
DLD : The Land Department.
Granted Land : Any industrial or commercial land whose usufruct is granted to UAE
nationals.
This includes : 1. land in respect of which disposition orders are issued; and
2. Granted Land which is conveyed to others by way of inheritance,
assignment, or gift; or in return for consideration.
Beneficiary : A UAE national who is awarded Granted Land.
Transfer of Title to Granted Land
Article (2)
Upon the request of a Beneficiary, the freehold title to his Granted Land may be transferred
to him without any restriction on the use, exploitation, or disposition thereof.Procedures for Transferring the Title to Granted Land
Article (3)
The ownership of Granted Land shall be transferred to a Beneficiary in accordance with
the following procedures:
1. The Beneficiary shall submit to the DLD an application for transfer of title to the
Granted Land. The DLD shall consider the application, in coordination with other
concerned entities in the Emirate where required, and shall issue the appropriate
decision in this regard.
2. Upon payment by the Beneficiary of the transfer fee prescribed in this Decree, the
DLD shall follow the procedures for transfer of title to the Granted Land to the
Beneficiary, register it in his name in the Real Property Register, and issue its title
deed.
Fees for Transfer of Title to Granted Land
Article (4)
A Beneficiary who wishes to transfer the ownership of industrial or commercial land to
himself shall be charged a transfer fee of thirty percent (30%) of the market value of the
land as determined by the DLD at the time of transfer.
Transfer of Title to Granted Land to Possessors
Article (5)
a. Notwithstanding the provisions of any other legislation, a possessor of Granted Land
who acquires its possession by way of sale by a Beneficiary may request transferring the
freehold title to that land to himself without any restriction on its use or exploitation.
b. The DLD shall transfer the title to the Granted Land to the possessor upon considering
his application, and verifying the validity of his acquisition of the land possession and
that he has paid the transfer fee of fifty percent (50%) of the market value of the land.
Issuing Implementing Resolutions
Article (6)
The Director General of the DLD shall issue the instructions required for the implementation
of the provisions of this Decree.102Repeals
Article (7)
Any provision in any other legislation shall be repealed to the extent that it contradicts the
provisions of this Decree.
Commencement and Publication
Article (8)
This Decree comes into force on the day on which it is issued, and shall be published in
the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 2 March 2010
Corresponding to 16 Rabi al-Awwal 1431 A.H.Decree No. (56) of 2009
Forming a Special Tribunal to Determine
Cheque Disputes Relating to Real
Property Transactions 105 104Decree No. (56) of |
2009
Forming a Special Tribunal to Determine
Cheque Disputes Relating to Real Property Transactions
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (3) of 1992 Establishing the Dubai Courts and its amendments;
Law No. (1) of 1994 Concerning Court Fees and its amendments;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai; and
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments,
Do hereby issue this Decree.
Article (1)
Pursuant to this Decree a special tribunal named the “Special Tribunal to Determine
Cheque Disputes Relating to Real Property Transactions” (the “Tribunal”) is formed as
follows:
1. a judge from the Court of Appeal of the Dubai Courts, as chairman;
2. a judge from the Court of First Instance of the Dubai Courts, as member; and
3. a representative from the Land Department, as member.
Article (2)
Before assuming his duties, a member of the Tribunal who is not a judge shall take the
following oath before the Director of His Highness the Ruler’s Court:
“I swear by Allah the Almighty that I shall administer justice, respect the laws, and
discharge my duties with integrity and honesty.”
Article (3)
The Tribunal shall have exclusive jurisdiction to determine complaints related to
dishonoured cheques issued by purchasers to Real Property developers, or cheques issued
by the usufructuaries and long-term lease Tenants of Real Property whose rights are
governed by the above-mentioned Law No. (7) of 2006.Article (4)
For the purpose of determining the cheque-related complaints filed with it, the Tribunal
shall have the authority to:
1. cancel a dishonoured cheque issued to a Real Property developer if it is proven that
the developer is not entitled to the amount of the cheque;
2. order the cheque issuer to write a new cheque payable on a date prescribed by the
Tribunal to replace the cheque subject of the complaint;
3. refer the dishonoured cheque to the competent judicial authority to take the
appropriate legal action against the cheque issuer if the Real Property developer is
entitled to the amount of the cheque; or
4. seek the assistance of Real Property experts and specialists as it deems appropriate.
Article (5)
a. Law enforcement authorities, including the police, must refer to the Tribunal all
cheque-related complaints governed by the provisions of this Decree.
b. The Public Prosecution and the Courts may not investigate any case of dishonoured
cheques governed by this Decree, or determine any dispute related to these cheques,
before the dispute is referred to and heard by the Tribunal. In addition, the Public
Prosecution and the Courts must cease hearing any complaint or penal action related
to these cheques, and refer the same to the Tribunal for consideration in accordance
with the provisions of th |
is Decree.
Article (6)
A judgement rendered by the Tribunal shall be irrevocable, definitive, and not subject to
appeal.
These judgments shall be enforced through the Enforcement Department of the Dubai
Courts.
Article (7)
Subject to the provisions of this Decree, the Tribunal shall exercise its powers in accordance
with:
1. the laws in force in the Emirate of Dubai;
2. the provisions of Islamic Sharia;
3. custom, unless it contradicts the law, public order, or public morals; and
4. the principles of natural justice, equity, and fairness.106Article (8)
This Decree comes into force on the day on which it is issued, and shall be published in
the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 1 November 2009
Corresponding to 13 Thu al-Qidah 1430 A.H.Law No. (13) of 2008
Regulating the
Interim Real Property Register in the
Emirate of Dubai 109 108Law No. (13) of 2008
Regulating the
Interim Real Property Register in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 1997 Concerning Land Registration Fees;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (27) of 2007 Concerning Ownership of Jointly Owned Real Property in the
Emirate of Dubai;
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai; and
Bylaw No. (85) of 2006 Regulating the Real Property Brokers Register in the Emirate of
Dubai,
Do hereby issue this Law.
Article (1)
This Law shall be cited as “Law No. (13) of 2008 Regulating the Interim Real Property
Register in the Emirate of Dubai”.
Article (2)
The following words and expressions shall have the meaning indicated opposite each of
them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
DLD : The Land Department.
Real Property Register : The real property register maintained by the DLD.
Interim Real Property Register : A set of documents which are created or maintained
by the DLD in paper format or in electronic format
as part of its electronic registry, and in which the
details of off-plan sale contracts, and other off-plan
legal dispositions, of Real Property are recorded prior
to transferring them to the Real Property Register.Real Property : Land and any fixed structures constructed on it which cannot
be moved without damage or alteration to its structure.
Real Property Unit : A designated part of Real Property, including any part
designated on its plan.
Off-plan Sale : The sale of a Real Property Unit which is designated on plan
or is under construction, or whose construction is incomplete.
Master Developer : A Person who is licensed to conduct Real Property
Development activity in the Emirate and to sell Real Property
Units t |
o others.
Sub-developer : A Person licensed to conduct Real Property Development
activity and to sell Real Property Units to others; and who
undertakes part of a Real Property Development project of a
Master Developer under an agreement between them.
Broker : A Person who conducts Real Property Brokerage business in
accordance with Bylaw No. (85) of 2006 Regulating the Real
Property Brokers Register in the Emirate of Dubai.
Competent Entity : Any of the entities in charge of licensing or registering Real
Property projects in the Emirate.
Article (3)
1. Any disposition in respect of a Real Property Unit sold off-plan must be registered on
the Interim Real Property Register. Any sale or other legal disposition involving the
transfer or restriction of ownership, or any of its associated rights, shall be null and
void unless it is registered on the Interim Real Property Register.
2. Any developer who has disposed of a Real Property Unit by way of sale, or any other
disposition involving the transfer or restriction of ownership, by the effective date of
this Law must apply to the DLD to register that sale or other disposition on the Real
Property Register or the Interim Real Property Register, as the case may be, no later
than sixty (60) days from the date on which this Law comes into force.
Article (4)
A Master Developer or Sub-developer may not commence the implementation of a project
or sell its units off-plan unless he takes possession of the land on which the project is to
be constructed and obtains the necessary approvals from the Competent Entities in the
Emirate.
In all events, the DLD must create an entry on the registry folio of the Real Property to
denote that it is being developed.111 110Article (5)
An application for registration of a Real Property Unit in the Interim Real Property Register
shall be submitted on the form prescribed for this purpose. The application must be
accompanied by all necessary information and documents in accordance with the rules
and procedures adopted by the DLD.
Article (6)
Real Property Units sold off-plan and registered on the Interim Real Property Register
maintained by the DLD may be disposed of by way of sale, mortgage, or any other legal
disposition.
Article (7)
No Master Developer or Sub-developer may charge any fees for the sale, resale, or any
other legal disposition in respect of completed or off-plan Real Property Units, except for
the administrative expenses charged to third parties by the Master Developer or Sub-
developer, as approved by the DLD.
Article (8)
A Developer must register any completed project in the Real Property Register maintained
by the DLD once he receives the relevant completion certificate from the Competent
Entities. This includes registering sold Units in the names of their respective purchasers
who have fulfilled their contractual obligations in accordance with the procedures adopted
by the DLD.
For the purposes of thi |
s Article, the DLD may, upon the request of a purchaser or on its
own initiative, register in the name of that purchaser on the Real Property Register the
Real Property Units that have been sold off-plan and registered in his name in the Interim
Real Property Register, provided that the purchaser fulfils all his contractual obligations.
Article (9)
If a Developer wishes to market his project through a Broker, he must conclude an
agreement with the Broker, who must be approved in accordance with the conditions
and provisions stipulated in the above-mentioned Bylaw No. (85) of 2006. In addition, the
Developer must register that agreement with the DLD.Article (10)
No Developer or Real Property Broker may conclude a simple contract for off-plan sale of
Real Property or Real Property Units in projects that are not approved by the Competent
Entities. Any contract which is concluded prior to obtaining that approval shall be null and
void.
Article (11)
1. Where a purchaser breaches any of the terms of the Real Property Unit sale agreement
concluded with the Developer, the Developer must notify the DLD of the breach. In
that case, the DLD must give the purchaser a grace period of thirty (30) days to fulfil
his contractual obligations, by serving him a notice in person or in writing through
registered mail or email.
2. If the purchaser fails to fulfil his contractual obligations within the grace period
set forth in sub-paragraph (1) of this Article, the Developer may terminate the
sale agreement and refund the amounts received by him from the purchaser after
deducting a maximum of thirty percent (30%) of these amounts.
Article (12)
The area of a sold Real Property Unit shall be deemed to be correct. Any excess area
discovered after the handover of the unit shall not be taken into account, and the
Developer may not claim any payment for that excess area. In case of any shortage in the
area of the Real Property, the Developer must compensate the purchaser for that shortage.
However, if the shortage is insignificant, the Developer shall not be bound to compensate
the purchaser for the same.
Article (13)
Where it is established to the satisfaction of the DLD that a Developer or Broker has
committed any act or omission in violation of the provisions of this Law, or any other
legislation in force, the Director General of the DLD must prepare a report on the same
and refer the case to the Competent Entities for investigation.112Article (14)
The Chairman of the Executive Council shall issue the regulations required for the
implementation of the provisions of this Law.
Article (15)
This Law shall be published in the Official Gazette and shall come into force on the day on
which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 14 August 2008
Corresponding to 13 Shaban 1429 A.H.Law No. (9) of 2009
Amending
Law No. (13) of 2008 Regulating the
Interim Real Property Register in
the Emirate of Dubai
|
115 114Law No. (9) of 2009
Amending
Law No. (13) of 2008 Regulating the Interim
Real Property Register in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency;
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
(the “Original Law”),
Do hereby issue this Law.
Article (1)
Articles (2) and (11) of the Original Law are hereby superseded by the following:
Article (2)
The following words and expressions shall have the meaning indicated opposite each of
them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
DLD : The Land Department.
RERA : The Real Estate Regulatory Agency.
Real Property Register : The Real Property register maintained by the DLD.
Interim Real Property Register : A set of documents which are created or maintained
by the DLD in paper format or in electronic format as
part of its electronic registry, and in which the details
of off-plan sale contracts, and other off-plan legal
dispositions, of Real Property are recorded prior to
transferring them to the Real Property Register.
Real Property : Land and any fixed structure constructed on it, or
either of them.
Real Property Unit : A designated part of Real Property, including any part
designated on its plan.Off-plan Sale : The sale of Real Property Units designated on plans or under
construction Real Property Units.
Master Developer : A Person who is licensed to conduct the Real Property
Development activity in the Emirate and to sell Real Property
Units to others.
Sub-developer : A person who undertakes part of a Real Property Development
project of a Master Developer under an agreement between
them.
Real Property Broker : A Person who conducts Real Property Brokerage business in
accordance with Bylaw No. (85) of 2006 Regulating the Real
Property Brokers Register in the Emirate of Dubai.
Competent Entity : Any of the entities in charge of licensing or registering Real
Property projects in the Emirate.
Article (11)
1. Where a purchaser breaches any of the terms of the Real Property Unit sale agreement
concluded with the Developer, the Developer must notify the DLD of the breach,
and the DLD must give the purchaser a grace period of thirty (30) days to fulfil his
contractual obligations, through serving a notice on him in person or by registered
mail or email.
2. If the purchaser fails to fulfil his contractual obligations within the grace period set
forth in sub-paragraph (1) of this Article, the following shall apply:
a. Where the Developer has completed at least eighty percent (80%) of the Real
Property project, he may retain all the amounts paid and request the purchaser to
settle the balance of the contrac |
t price. If the purchaser fails to settle that balance,
the Developer may request selling the Real Property by public auction to settle the
remaining amounts payable to him.
b. Where the Developer has completed at least sixty percent (60%) of the Real
Property project, he may terminate the sale agreement and retain a maximum of
forty percent (40%) of the Real Property Unit price set forth in the agreement.
c. Where the Implementation of the Real Property project has commenced but less
than sixty percent (60%) of the project is completed, the Developer may terminate
the sale agreement and retain a maximum of twenty-five percent (25%) of the Real
Property Unit price set forth in the agreement.
d. Where the Implementation of the Real Property project has not commenced due to
reasons beyond the Developer’s control, and without negligence or omission on his
part, the Developer may terminate the agreement and retain up to thirty percent
(30) of the amounts paid by the purchaser.1163. For the purposes of sub-paragraphs (2)(c) and (2)(d) of this Article, the term
“Implementation” means taking possession of the Real Property project site by the
Developer and commencing construction works in accordance with the design plans
approved by the Competent Entities.
4. For the purposes of paragraphs (2)(b) and (2)(c) above, the Developer must refund any
amounts owed to the purchaser no later than one (1) year from the date of termination,
or sixty (60) days from the date of resale of the Real Property Unit, whichever occurs
earlier.
5. Notwithstanding paragraphs (1) and (2) of this Article, RERA may, based on a reasoned
report, decide to revoke the Real Property project, in which case the Developer must
refund all payments received from purchasers, in accordance with the procedures
and provisions stipulated in Law No. (8) of 2007 Concerning Escrow Accounts for Real
Property Development in the Emirate of Dubai.
6. The provisions of this Article shall not apply to land sale agreements which do not
involve any Off-plan Sale. This land sale shall continue to be governed by the terms of
the land sale agreements concluded by the parties thereto.
7. The provisions of this Article shall apply to all agreements concluded before the
effective date of this Law.
Article (3)
This Law shall be published in the Official Gazette and shall come into force on the day on
which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 12 April 2009
Corresponding to 16 Rabi al-Thani 1430 A.H.Law No. (19) of 2017
Amending Law No. (13) of 2008
Regulating the Interim Real Property
Register in the Emirate of Dubai 119 118Law No. (19) of 2017
Amending Law No. (13) of 2008
Regulating the Interim Real Property Register in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (16) of 20 |
07 Establishing the Real Estate Regulatory Agency; and
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments,
Do hereby issue this Law.
Superseded Article
Article (1)
Article (11) of the above-mentioned Law No. (13) of 2008 is hereby superseded by the
following:
Article (11)
a. Where a purchaser fails to fulfil his contractual obligations under an Off-plan Sale
agreement concluded with a Developer, the following rules and procedures shall apply:
1. The Developer must notify the DLD of the purchaser’s non-performance of
his contractual obligations. This notification must be submitted on the form
prescribed by the DLD for this purpose and must include all details of the Developer
and purchaser; a description of the Real Property Unit subject of the Off-plan Sale
agreement; a detailed account of the contractual obligations breached by the
purchaser; and any other details determined by the DLD.
2. Promptly upon receipt of the notification and verifying that the purchaser is in
breach of his contractual obligations, the DLD must:
a. serve a thirty (30) days’ notice on the purchaser requiring him to fulfil his
contractual obligations towards the Developer. The notice must be in writing
and dated; and must be delivered to the purchaser either in person or by
registered mail with acknowledgement of receipt, email, or any other means
prescribed by the DLD; andb. where possible, mediate an amicable settlement between the Developer and
purchaser, in which case such settlement must be attached as an addendum to
the Off-plan Sale agreement and must be executed by the Developer and the
purchaser.
3. If the notice period mentioned in sub-paragraph (a)(2)(A) of this Article expires and
the purchaser fails to fulfil his contractual obligations or to reach a settlement with
the Developer, the DLD shall issue an official document in favour of the Developer
confirming the following:
a. the Developer’s compliance with the procedures stipulated in paragraph (a) of
this Article; and
b. the percentage of completion of the Real Property Unit subject of the Off-plan
Sale agreement, calculated in accordance with the relevant standards and rules
adopted by RERA.
4. Upon receiving the official document referred to in sub-paragraph (a)(3) of this
Article and based on the percentage of completion, the Developer may take any
of the following measures against the purchaser without recourse to courts or
arbitration:
a. Where the percentage of completion of the Real Property Unit exceeds eighty
percent (80%), the Developer may:
1. maintain the Off-plan Sale agreement concluded with the purchaser, retain
all amounts paid by the purchaser, and claim the balance of the price of the
Real Property Unit from the purchaser;
2. request the DLD to sell the Real Property Unit, subject of the Off-plan Sale
agreement, by public auction to collect the remaining amounts payable to
the Developer; and hold the p |
urchaser liable for the costs arising from the
sale; or
3. unilaterally terminate the Off-plan Sale agreement, retain up to forty percent
(40%) of the value of the Real Property Unit stipulated in the Off-plan Sale
agreement, and refund any amounts in excess of this to the purchaser
within one (1) year from the termination of the agreement or within sixty
(60) days from the date of resale of the unit to another purchaser, whichever
occurs earlier.
b. Where the percentage of completion of the Real Property Unit is between
sixty percent (60%) and eighty percent (80%), the Developer may unilaterally
terminate the agreement, retain up to forty percent (40/percentsign.arabic) of the value of
the Real Property Unit stipulated in the Off-plan Sale agreement, and refund
any amounts in excess of this to the purchaser within one (1) year from the
termination of the agreement or within sixty (60) days from the date of resale
of the unit to another purchaser, whichever occurs earlier.121 120c. Where the Developer has commenced work on the Real Property project, having
taken hold of the construction site and started construction works in accordance
with the designs approved by the Competent Entities, and the percentage
of completion of the Real Property Unit is less than sixty percent (60%), the
Developer may unilaterally terminate the Off-plan Sale agreement, retain up
to twenty-five percent (25%) of the value of the Real Property Unit stipulated
in the Off-plan Sale agreement, and refund any amounts in excess of this to
the purchaser within one (1) year from the termination of the agreement or
within sixty (60) days from the date of resale of the unit to another purchaser,
whichever occurs earlier.
d. Where the Developer has not commenced work on the Real Property project for
any reason beyond his control, without negligence or omission on his part, he
may terminate the Off-plan Sale agreement, retain up to thirty percent (30/percentsign.arabic) of
the amounts paid to him by the purchaser, and refund any amounts in excess
of this to the purchaser within sixty (60) days from the termination of the
agreement.
b. Where the Real Property project is cancelled pursuant to a reasoned decision
of RERA, the Developer must refund all payments made by the purchasers in
accordance with the procedures and rules stipulated in the above-mentioned Law
No. (8) of 2007.
c. The rules and procedures stipulated in this Article do not apply to land sale
agreements which do not involve any Off-plan Sale. Land sale shall continue to
be governed by the terms of the land sale agreements concluded by the parties
thereto.
d. The rules and procedures stipulated in this Article shall apply to all Off-plan Sale
agreements concluded prior to or after the commencement of this Law.
e. The rules and procedures stipulated in this Article are considered part of public
order, and failure to comply therewith shall result in nullity of the legal act in
question. |
f. The rules and procedures stipulated in this Article shall not preclude the purchaser
from having recourse to courts or arbitration where the Developer abuses any of
his powers under this Article.Repeals
Article (2)
Any provision in any other legislation shall be repealed to the extent that it contradicts
the provisions of this Law.
Commencement and Publication
Article (3)
This Law comes into force on the day on which it is issued, and shall be published in the
Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 October 2017
Corresponding to 28 Muharram 1439 AH.Executive Council Resolution No. (6) of 2010
Approving the Implementing Bylaw of
Law No. (13) of 2008
Regulating the Interim Real Property
Register in the Emirate of Dubai 125 124Executive Council Resolution No. (6) of 2010
Approving the Implementing Bylaw of
Law No. (13) of 2008
Regulating the Interim Real Property Register in the Emirate of Dubai
We, Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman
of the Executive Council,
After perusal of:
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (7) of 1997 Concerning Land Registration Fees in the Emirate of Dubai and its
amendments;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments (the “Law”); and
Bylaw No. (85) of 2006 Regulating the Real Property Brokers Register in the Emirate of
Dubai,
Do hereby issue this Resolution.
Article (1)
The words and expressions mentioned in this Resolution shall have the same meaning
assigned to them in the Law.
Article (2)
A Master Developer or Sub-developer who applies for the registration of a legal disposition
in respect of a Real Property Unit with the DLD within the time limit stipulated by paragraph
(2) of Article (3) of the Law shall be deemed to have complied with the stipulated time
limit even if the DLD does not complete the registration procedures within that time limit.
Article (3)
Where a Master Developer or Sub-developer submits an application for registration of
a legal disposition of a Real Property Unit after expiry of the time limit stipulated by
paragraph (2) of Article (3) of the Law, the DLD must:
1. register the legal disposition in the Interim Real Property Register; and
2. impose a fine of ten thousand Dirhams (AED 10,000.00) on the Developer.Article (4)
A Master Developer or Sub-developer may not commence the implementation of a project
or sell its units off-plan unless:
1. he takes possession of the land and has received the demarcation certificate;
2. he has actual control of the land on which the project is to be constructed; and
3. he has obtained from the Competent Entities the approvals required to commence
th |
e implementation of the project.
Article (5)
1. The DLD must, whether on its own initiative or upon request by the concerned parties,
create an entry on the Real Property registry folio of any land on which a Real Property
project is to be constructed to denote that the project is a development project
governed by the provisions of the Law.
2. The DLD shall remove the entry referred to in the preceding paragraph upon completion
of the Real Property project and registration of its units in the names of purchasers on
the Real Property Register, or upon cancellation of the project for any of the reasons set
forth in Article (23) of this Resolution.
Article (6)
An application for registration of a Real Property Unit in the Interim Real Property Register
shall be submitted in the electronic or paper form approved by the DLD, together with the
relevant supporting documents determined by the DLD.
Article (7)
1. Upon completion of a Real Property project and obtaining its completion certificate
from the Competent Entities, the Master Developer or Sub-developer may not refuse to
hand over any Real Property Unit or register it in the name of its purchaser on the Real
Property Register, provided that the purchaser fulfils all his contractual obligations.
This applies even if the purchaser owes the Developer any financial dues other than in
connection with the sale agreement of the Real Property Unit.
2. The Master Developer or Sub-developer must register the Real Property Unit and all
facilities allocated to it, such as car parks, in the name of the purchaser.
3. If the Master Developer or Sub-developer refuses, for any reason whatsoever, to 127 126register the Real Property Unit in the name of the purchaser despite the fact that the
purchaser has fulfilled all his contractual obligations, the DLD may, upon the request
of the purchaser or on its own initiative, register the Real Property Unit in the name of
the purchaser on the Real Property Register.
Article (8)
A Master Developer or Sub-developer may not, for any reason whatsoever, charge
purchasers any amounts, other than those approved by the DLD, in return for any legal
disposition of their Real Property Units.
Article (9)
Unless agreed otherwise, the Master Developer or Sub-developer and the purchaser of a
Real Property Unit must pay the prescribed fees for registration of any legal dispositions
of that Real Property Unit as per their respective share of fees prescribed by the applicable
legislation.
Article (10)
If the Master Developer or Sub-developer wishes to market his project through a Broker,
the Master Developer or Sub Developer must comply with the following:
1. The project to be marketed through the Broker must be registered with the DLD.
2. An agreement must be concluded with the Broker, who must be approved and
licensed in accordance with Bylaw No. (85) of 2006 Regulating the Real Property
Brokers Register in the Emirate of Dubai.
3. The project marketing agreement |
with the Real Property Broker must be registered
with the DLD.
Article (11)
Any legal disposition made by a Master Developer, Sub-developer, or Broker which
involves the Off-plan Sale of any Real Property or Real Property Unit prior to approval of
the commencement of the project by the Competent Entities and its registration with the
DLD shall be deemed null and void.Article (12)
Where a Master Developer or Sub-developer engages a Real Property Broker to market
his project in full or in part, the Broker must deposit the sale price of the relevant Real
Property Unit(s) into the project Escrow Account. The Real Property Broker may not deposit
the price into his own account or deduct his commission from that price before depositing
it into the Escrow Account. Any agreement to the contrary of the provisions of this Article
shall be null and void.
Article (13)
1. As of the effective date of this Resolution, the net area of a Real Property Unit shall be
adopted for the purposes of registration on the Real Property Register. This area shall
be calculated as determined by the DLD in this regard.
2. Unless agreed otherwise, any area in excess of the net area of the sold Real Property
Unit shall not be taken into account, and the Developer may not claim any payment
for that excess area.
3. The Developer must compensate the purchaser if the actual area of the Real Property
Unit is less than its net area by more than five percent (5%).
4. Where the shortage in the net area of the Real Property Unit exceeds the percentage
set forth in paragraph (3) of this Article, the compensation payable to the purchaser
shall be calculated based on the price of the Real Property Unit agreed upon in the
agreement between the Developer and the purchaser.
5. For the purposes of applying this Article, the net area of a Real Property Unit, as set
forth in its sale agreement and plan, shall be adopted as the basis for calculation of
any excess or shortage in the area of the Real Property Unit.
Article (14)
Where any dispute arises between a Developer and a purchaser, the DLD may undertake
conciliatory efforts to preserve their contractual relationship and may propose any
solutions it deems appropriate to achieve this objective. Where the Developer and
the purchaser reach an amicable settlement, that settlement shall be documented in
a written agreement executed by the Developer and the purchaser or their respective
representatives. Upon approval of that agreement by the DLD, it shall become binding on
both parties.129 128Article (15)
Where a purchaser fails to fulfil any of his obligations under a Real Property Unit sale
agreement concluded between him and the Developer:
a. The Developer must serve a notice on the purchaser requesting him to fulfil his
contractual obligations. The notice may be served in person by appearing before
the DLD; or in writing through registered mail or email, in which case the Developer
must provide the DLD with a copy of |
the notice.
b. The DLD must give the purchaser a grace period of thirty (30) days to fulfil his
contractual obligations. This period shall commence from the date of serving the
notice on the purchaser by the Developer.
c. If the purchaser fails to fulfil his contractual obligations within the notice period set
forth in paragraph (b) of this Article, the Developer may take any of the following
actions:
1. Where the Developer has completed at least eighty percent (80%) of the project,
he may retain all the amounts paid by the purchaser. In addition, the Developer
may either request selling the Real Property Unit by public auction to settle the
remaining amounts payable to him, or terminate the sale agreement and retain
a maximum of forty percent (40%) of the price of the Real Property Unit.
2. Where the Developer has completed at least sixty percent (60%) of the project,
he may terminate the sale agreement and retain a maximum of forty percent
(40%) of the Real Property Unit price set forth in the agreement.
3. Where the Developer has completed less than sixty percent (60%) of the project,
he may terminate the sale agreement and retain a maximum of twenty-five
percent (25%) of the Real Property Unit price set forth in the agreement.
4. Where the Developer has not commenced implementation of the project for
reasons beyond his control, he may terminate the sale agreement and retain a
maximum of thirty percent (30%) of the amounts paid to him by the purchaser.
d. The Developer may resort to the competent court to seek a judgement awarding
him the respective percentage prescribed in sub-paragraph (c)(1), (c)(2), (c)(3), or (c)
(4) of this Article where the amounts retained by him are less than this percentage.
Article (16)
A Developer who has not commenced the implementation of a project may not terminate
an agreement with a purchaser and retain thirty percent (30%) of the payments made
by the purchaser unless that Developer proves that he has fulfilled all his contractual
obligations towards the purchaser and that the failure to commence the implementation of the project is not due to negligence or omission on the part of the Developer, or is due
to reasons beyond his control.
Article (17)
For the purposes of applying Article (15) of this Resolution:
1. The completion percentage of a project shall be confirmed by a technical report
issued by a consultant approved by RERA, which includes a statement of the
completed works based on an on-site inspection of the project.
2. Completion of the levelling works and the infrastructure of the project shall be
deemed as commencement of the implementation of the project.
Article (18)
A Developer must refund to the purchaser the amounts retained by him pursuant to
Article (15) of this Resolution no later than one (1) year from the date of termination of
the agreement or within sixty (60) days from the date of sale of the Real Property Unit,
whichever occurs earlier.
Article (19)
1. Where |
a Real Property Unit is sold by public auction in accordance with the provisions
of Article (15) of this Resolution, the DLD may at its sole discretion deposit the price of
the Real Property Unit in a trust account and pay to the purchaser or his representative
the amounts remaining after deduction of the Developer’s dues.
2. The Developer may use the Real Property Unit or lease the same to third parties if it
is not sold by public auction, in which case the Developer must refund the remaining
amounts to the purchaser within the period stipulated in Article (18) of this Resolution.
Article (20)
A purchaser may resort to the competent court to seek termination of his contractual
relationship with a Developer:
1. if the Developer refuses without a valid reason acceptable to the DLD to deliver the
final sale agreement of the Real Property Unit to the purchaser;
2. if the Developer declines to link payments to the construction milestones proposed
by RERA;131 1303. if the Developer materially deviates from the specifications agreed upon in the
agreement;
4. if it is proven after the handover of the Real Property Unit that it is unfit for use due
to material construction defects; or
5. in any other circumstances that require the termination of the agreement in
accordance with the general legal rules.
Article (21)
The following shall be deemed as reasons beyond the control of the Developer:
1. the land on which the project is to be constructed is expropriated for the public
interest;
2. a government entity suspends the project for re-planning purposes;
3. structures, excavations, or utility lines are found in the project site;
4. the Master Developer makes any variation to the project site that results in changing
the boundaries and area of the project in a manner that affects the performance by
the Sub-developer of his obligations; or
5. any other reasons determined by RERA.
Article (22)
A Developer shall be deemed to have committed negligence or omission in performing his
obligations based on the following:
1. delay, without valid reason, in taking possession of the land or obtaining the
required approvals from the Competent Entities to commence the implementation
of the project;
2. Off-plan Sale by the Sub-developer without the written approval of the Master
Developer;
3. delay in obtaining the Master Developer’s written approval of the plans and
designs;
4. delay in preparing the project for construction works;
5. failure to provide RERA with the data and information required for approval of the
project;
6. failure to register the project with RERA;
7. failure to disclose the financial statements of the project to RERA; or
8. any other grounds determined by RERA.Article (23)
RERA may, based on a reasoned technical report, decides to cancel a Real Property project:
1. if the Developer fails, without valid justification, to commence construction
works despite having already obtained all required approvals from the Concerned
Autho |
rities;
2. if the Developer commits any of the offenses set forth in Article (16) of Law No.
(8) of 2007 Concerning Escrow Accounts for Real Property Developments in the
Emirate of Dubai;
3. if it is proven to the satisfaction of RERA that the Developer has no genuine
intention to implement the project;
4. if the land on which the project is to be constructed is withdrawn due to failure by
the Sub-developer to fulfil any of his contractual obligations towards the Master
Developer;
5. if the land is completely affected by the planning or re-planning projects
implemented by the Competent Entities in the Emirate;
6. if the Developer fails to implement the project due to gross negligence;
7. if the Developer expresses his intention not to implement the project for reasons
acceptable to RERA;
8. if the Developer is declared bankrupt; or
9. for any other reasons determined by RERA.
Article (24)
1. A Developer may submit a grievance in respect of any decision issued by RERA
cancelling his project, no later than seven (7) working days from the date on which he
is notified of that decision.
2. The grievance must be in writing and must include the grounds for objection to the
decision.
3. RERA must consider the grievance and render its decision on the same within seven (7)
working days from the date of submission of the grievance to it.
4. If RERA admits the grievance, it must prescribe the conditions and requirements that
the Developer must satisfy in order to revoke the project cancellation decision.
5. The Developer must undertake in writing to satisfy RERA’s conditions and requirements.
6. If RERA rejects the grievance, its decision in this regard shall be final and it must
proceed with the project cancellation procedures.132Article (25)
Where RERA cancels a project, it must:
1. prepare a technical report stating the reasons for cancellation;
2. notify the Developer in writing, through registered mail or email, of the cancellation
decision;
3. appoint a certified auditor at the expense of the Developer to audit the financial
position of the project and verify the amounts paid to the Developer or deposited
in the project’s Escrow Account, as well as the amounts that have been expended;
and
4. request the project’s Escrow Agent, or the Developer where any payments are not
made through the Escrow Account, to refund the amounts deposited in the Escrow
Account or paid to the Developer to the parties entitled to these amounts no later
than fourteen (14) days from the date of cancellation of the project.
Article (26)
If the funds in the Escrow Account of the project are insufficient to refund the purchasers
the amounts owed to them, the Developer must refund these amounts to them no later
than sixty (60) days from the date of the project cancellation decision, unless RERA decides
to extend this period based on valid reasons.
Article (27)
If the Developer fails to refund the amounts owed to the purchasers within the period set
forth in |
Article (26) of this Resolution, RERA must take all necessary actions to preserve the
rights of purchasers, including referring the matter to the competent judicial authorities.
Article (28)
This Resolution comes into force on the day on which it is issued, and shall be published
in the Official Gazette.
Hamdan bin Mohammed bin Rashid Al Maktoum
Crown Prince of Dubai
Chairman of the Executive Council
Issued in Dubai on 14 February 2010
Corresponding to 30 Safar 1431 A.H.Executive Council Resolution No. (25) of 2009
Approving
Fees and Fines of the Real Estate
Regulatory Agency 135 134Executive Council Resolution No. (25) of 2009
Approving
Fees and Fines of the Real Estate Regulatory Agency
We, Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman
of the Executive Council,
After perusal of:
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (18) of 2006 Concerning Management and Realisation of the Public Funds of the
Government of Dubai;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency;
Law No. (26) of 2007 Regulating the Relationship Between Landlords and Tenants in the
Emirate of Dubai and its amendments;
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments;
Law No. (14) of 2009 Concerning the Pricing of Government Services in the Emirate of
Dubai; and
Bylaw No. (85) of 2006 Regulating the Real Property Brokers Register in the Emirate of
Dubai,
Do hereby issue this Resolution.
Article (1)
Pursuant to this Resolution, the fees for the services of the Real Estate Regulatory Agency
set out in Schedule (1) attached hereto are approved.
Article (2)
1. Without prejudice to any stricter penalty prescribed in any other legislation, the fines
set out in Schedule (2) attached to this Resolution are hereby approved.
2. Upon repetition of the same violation within one (1) year from the date of the previous
violation, the amount of the fine shall be doubled. A fine must not exceed one million
Dirhams (AED 1,000,000.00).Article (3)
The employees of the Land Department and the Real Estate Regulatory Agency nominated
pursuant to a resolution issued by the Director General of the Land Department shall have
the capacity of law enforcement officers to record any of the acts listed in Schedule (2)
attached hereto. They may, in this capacity, issue the relevant violation reports.
Article (4)
The fees and fines collected under this Resolution shall be paid to the Public Treasury of
the Government of Dubai.
Article (5)
Any provision in any other resolution shall be repealed to the extent that it contradicts the
provisions of this Resolution.
Article (6)
This Resolution shall be published in the Official Gazette and shall come into force on the
day on which it is published.
Hamdan bin Mohammed bi |
n Rashid Al Maktoum
Crown Prince of Dubai
Chairman of the Executive Council
Issued in Dubai on 31 December 2009
Corresponding to 14 Muharram 1431 A.H.
137 136Schedule (1)
Fees for Services of the Real Estate Regulatory Agency Schedule (2)
Violations and Fines
SN Description Fine (in Dirhams)
Licensing a Real Property Developer
Licensing a one-time one-project Real Property Developer
Approving a new Real Property project
Approving an existing Real Property project
Registering an Escrow Agent in the roll of Escrow Agents
Registering a Real Property financial auditor
Registering a Real Property technical auditor
Issuing or renewing a Real Property Broker licence
Issuing or renewing a Real Property Broker card
Licensing a residential timeshare Units lease Broker
Licensing Real Property sale and purchase brokerage activity
Licensing Real Property leasing brokerage activity
Licensing residential timeshare Units leasing services
Licensing third party's Real Property lease and management
activity
Licensing Real Property valuation services activity
Licensing Real Property purchase and sale activity
Licensing Real Property inspection and examination activity
Licensing self-owned Real Property lease and management
activity
Licensing a Real Property representative office25,000.00
100,000.00
150,000.00
50,000.00
75,000.00
50,000.00
50,000.00
5,000.00
500.00
25,000.00
5,000.00
5,000.00
25,000.00
15,000.00
10,000.00
5,000.00
5,000.00
5,000.00
5,000.002
3
4
5
61
7
8
9
10
11
12
1413
15
16
17
18
19SN Description Fine (in Dirhams)
Conducting the Real Property Development activity in the
Emirate without a licence from RERA
Submitting false documents or information for obtaining a
licence to conduct Real Property Development activity
Offering Units in fraudulent Real Property projects for sale
Embezzling or misappropriating cash payments for
constructing Real Property projects
Submitting, by the auditor, a false report on the financial
position of the Developer or concealing material facts
Failure to open an Escrow Account for Real Property
Development
Failure to deposit the received amounts in the Escrow Account
Failure by the Developer to commence construction works
months from the approval of RERA to commence (6) within six
the same
Failure by the Developer to comply with this Resolution within
the grace period granted to him by RERA
Withdrawing from or depositing to the Escrow Account by the
Escrow Agent without the approval of RERA
Failure by the Escrow Agent to comply with the conditions of
disbursement from the Escrow Account
Failure by the Escrow Agent to provide RERA with the required
statements or information
Imposing any charges by the Developer on the buyers without
the approval of RERA
Cancelling any Real Property project by the Developer without
the approval of RERA
Failure to translate a Real Property Unit sale or reservation
contract into Arabic500,000.00
100,000.00
100,000.00
100,000.00
100,000.00
500 |
,000.00
500,000.00
500,000.00
100,000,00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.00
100,000.002
3
4
5
6
7
8
9
10
11
12
13
14
151138Schedule (2)
Violations and Fines
SN Description Fine (in Dirhams)
Conducting the Real Property brokerage activity in the Emirate
without a licence from RERA
Failure by a Broker to provide RERA with the required
information and data
Undertaking Real Property brokerage in respect of a Real
Property project that is not registered with RERA
Conducting any Real Property activity without a licence from
RERA
Breaching the terms of the licence issued by RERA50,000.00
50,000.00
50,000.00
50,000.00
50,000.0016
17
18
19
20Law No. (14) of 2008
Concerning
Mortgage in the Emirate of Dubai 141 140Law No. (14) of 2008
Concerning
Mortgage in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code and its amendments;
Federal Law No. (8) of 2004 Concerning Financial Free Zones;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (27) of 2007 Concerning Ownership of Jointly Owned Real Property in the Emirate
of Dubai; and
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai,
Do hereby issue this Law.
Chapter One
Definitions and General Provisions
Article (1)
This Law shall be cited as “Law No. (14) of 2008 Concerning Mortgage in the Emirate of
Dubai”.
Definitions
Article (2)
The following words and expressions shall have the meaning indicated opposite each of
them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
DLD : The Land Department.
Chairman : The chairman of the DLD.
Real Property : Land and any fixed structures constructed on it which cannot
be moved without damage or alteration to its form.
Real Property Unit : A designated part of Real Property, including any part
designated on its planReal Property Register : A set of documents which are created or maintained by the
DLD in paper or electronic format, and which record all Real
Property rights and any variation thereto.
Interim Property Register : A set of documents which are created or maintained by the
DLD in paper or electronic format, and in which the details of
off-plan sale contracts, and other off-plan legal dispositions,
of Real Property are recorded prior to transferring them to the
Real Property Register.
Mortgage : A contract under which a creditor acquires a Real Right, in Real
Property or in a Real Property Unit, by virtue of which he
obtains preference over ordinary creditors and creditors of
lower rank, for the repayment of his claim out of the price of
Real Prope |
rty, no matter in whose possession the Real Property
may be.
Mortgagor : An Owner of Real Property or a person holding a Real Right
or personal right under a sale contract signed by the Owner
of Real Property which is sold off-plan and registered in the
Property Register or Interim Property Register.
Mortgagee : A creditor who lends money to a Mortgagor against the
security of Real Property which exists physically or legally.
Article (3)
This Law shall apply to the Mortgage of Real Property or Real Property Units as a security
for debt, whether the debt is secured by the whole Real Property, by a common interest
therein, or by a Real Right or personal right in Real Property which is sold off plan.
Article (4)
A creditor-Mortgagee must be a bank, or a finance company or institution, that is duly
licensed and registered with the UAE Central Bank to provide Real Property finance in the
UAE.
Article (5)
1. A Mortgagor must be the Owner of the mortgaged Real Property or Real Property Unit
and must have the capacity to dispose of the same.
2. A Mortgagor may be a debtor, or a real surety who concludes a Mortgage in favour of
a debtor.143 1423. Subject to Articles (22), (23), and (24) of this Law, the mortgaged Real Property or Real
Property Unit must physically exist or legally exist off-plan at the time of concluding
the Mortgage.
4. A Mortgage may be created only on Real Property or Real Property Units that may be
subject to valid transactions.
Article (6)
A Mortgage shall cover all appurtenances to the mortgaged Real Property or Real
Property Unit, including any buildings, plants, Real Property by destination, and facilities
constructed after the Mortgage contract is concluded.
Article (7)
1. A Mortgage shall come into effect only if it is registered with the DLD, and any
agreement to the contrary shall be null and void.
2. A Mortgagor shall be liable for the Mortgage contract registration fees unless otherwise
agreed by the parties.
Article (8)
1. Mortgage applications shall be submitted to the DLD signed by the Mortgagor and the
Mortgagee, or real surety if applicable, and shall include the following:
a. all information related to the Real Property;
b. the value of the Real Property;
c. the value of the debt;
d. the mortgage term; and
e. particulars of the Mortgagor, Mortgagee, and real surety, including their domiciles
and places of residence.
2. A Mortgage contract shall be executed in the form prescribed by the DLD, and an entry
denoting the Mortgage shall be created on the Real Property Register or Interim Real
Property Register, as the case may be. The rank of the Mortgage shall be determined in
accordance with the date of its registration.
3. The DLD shall deliver to the contracting parties a Mortgage deed signed by the
competent officer and stamped with the seal of the DLD.
4. A Mortgage deed may be in electronic format, in which case it shall have the same
evidential value of a written Mor |
tgage deed.Article (9)
A Mortgage must secure a specified debt which is incurred or promised at the time of
Mortgage.
Chapter Two
Legal Effects of Mortgages
Article (10)
A Mortgagor may sell, donate, or dispose in any other manner of, the mortgaged Real
Property Unit or Real Property; or create any Real Right or personal right in the same only
with the approval of the Mortgagee and provided that the person to whom the mortgaged
property is disposed of agrees that all obligations of the Mortgagor under the Mortgage
contract shall be transferred to him. A Mortgagee may stipulate in the Mortgage contract
that the Mortgagor and the person to whom the Real Property is disposed of shall be
jointly liable for these obligations.
Article (11)
Where a Mortgage contract includes a provision which stipulates that the ownership of
mortgaged property be transferred to the Mortgagee if the Mortgagor fails to settle the
debt by a fixed date, or stipulates that the mortgaged property be sold without following
the relevant legal procedures, the Mortgage shall be valid but, in both cases, that
provision shall be null and void. The provision shall also be null and void if it is included in
a subsequent agreement.
Article (12)
A Mortgagor is entitled to manage his mortgaged Real Property and receive its proceeds
unless the mortgaged Real Property is foreclosed and sold by public auction for failure to
repay the debt.
Article (13)
Where a mortgaged Real Property is totally destroyed or becomes defective, the Mortgage
shall be placed on the substitute property and the Mortgagee may enforce his rights
against that property according to the rank of the Mortgage.145 144Article (14)
A debt may not be enforced against any property other than the mortgaged Real Property,
and the real surety may not seek enforcement against other property of the debtor, before
enforcement of the debt against the mortgaged property.
Article (15)
1. A Mortgagee may assign his rights to another person subject to the consent of the
debtor. The deed of assignment shall be registered with the DLD.
2. A creditor-Mortgagee may, within the value of his debt, assign the rank of his Mortgage
against the mortgaged Real Property to another creditor.
Article (16)
A Mortgage shall secure only the amount specified in the Mortgage contract unless
otherwise provided for by law or agreement.
Article (17)
The rank of a Mortgage shall be determined by the serial number of its registration with
the DLD. Where more than one person applies for registration of Mortgages against the
debtor’s interest in the same Real Property, these Mortgages shall be registered under the
same number and the creditors shall rank equally for the purpose of distribution of the
proceeds of sale by auction.
Article (18)
A creditor-Mortgagee shall have the right to enforce his debt, on the maturity date of his
debt and in accordance with the rank of Mortgage, against the mortgaged Real Property
while in the posse |
ssion of any person. A person shall be deemed to have possession of the
Real Property if the ownership of the Real Property is transferred to him, or he acquires
any Real Right or personal right therein, after the Mortgage is concluded.
Article (19)
A Mortgagor shall guarantee the safety and integrity of the mortgaged Real Property until
the date of repayment of the debt. A Mortgagee may object to any impairment to the
value of the mortgaged Real Property, take any legal action to preserve his rights, and have
recourse against the Mortgagor for reimbursement of relevant costs.Article (20)
A Mortgage shall be terminated upon full repayment of the secured debt.
Chapter Three
Special Mortgages
Article (21)
A holder of the right of Musataha (right to use and exploit land belonging to another
person) may mortgage buildings or plants for the period of Musataha but shall not be
entitled to mortgage the land subject of the right of Musataha unless otherwise agreed.
Article (22)
A holder of a usufruct right or long-term lease of no less than ten (10) and no more than
ninety-nine (99) years may mortgage his interest in the Real Property or Real Property Unit
for the period of the usufruct or long-term lease.
Article (23)
A Mortgage of the right of Musataha, usufruct, or long-term lease shall be terminated,
and the relevant entries shall be removed from the register, upon either repayment of
the debt secured by the Mortgage or termination of the period of Musataha, usufruct, or
long-term lease.
Article (24)
A purchaser of a Real Property Unit or Real Property which is sold off-plan, or before
completion of its construction, may mortgage the same to secure a debt, provided that
the Real Property Unit or Real Property is registered on the Interim Real Property Register
maintained by the DLD.147 146Chapter Four
Procedures for Enforcement Against
Mortgaged Real Property
Article (25)
In the event of default in the payment of a debt or upon fulfilment of a condition under
which early repayment of the debt is required, the creditor-Mortgagee or his universal or
particular successor may commence foreclosure and forced sale procedures against the
mortgaged Real Property, provided that the debtor or the person who has possession of
the mortgaged Real Property or Real Property Unit is served at least a thirty-day notice
through a Notary Public.
Article (26)
If a debtor-Mortgagor, his universal or particular successor, or a real surety fails to pay
the debt within the period stipulated in the preceding Article, the enforcement judge
shall, upon request of the creditor-Mortgagee, issue an attachment order against the
mortgaged Real Property in order to sell it by public auction in accordance with the
applicable procedures of the DLD.
Article (27)
Subject to the preceding Article, the enforcement judge may, upon request of the debtor
or real surety, postpone the sale by public auction once only for a period not exceeding
sixty (60) days if it is |
established to the satisfaction of the enforcement judge that:
1. the debtor-Mortgagor can repay the debt within this grace period; or
2. the debtor may sustain gross damage as a result of sale of the mortgaged Real
Property or Real Property Unit.
Article (28)
Subject to Articles (25), (26), and (27) of this Law, in case of failure to repay the debt within
the prescribed grace period, the mortgaged Real Property shall be sold by public auction in
accordance with the applicable procedures of the DLD no later than thirty (30) days from
the date of expiry of the period stipulated in the relevant Article.Article (29)
The debtor or his real surety may settle a debt secured by Mortgage and all its ancillary
obligations prior to its maturity date.
Article (30)
Debts owed to creditor-Mortgagees shall be paid out of the price of mortgaged Real
Property Unit or Real Property, or the substitute property, in accordance with the ranks of
Mortgages even if all Mortgages are registered on the same day. Where the proceeds of
sale are not sufficient to settle a debt, the creditor shall be entitled to claim the balance
of the debt from the debtor.
Chapter Five
Final Provisions
Article (31)
Federal Law No. (5) of 1985 Issuing the Civil Code and its amendments and Federal Law No.
(11) of 1992 Issuing the Civil Procedures Code shall apply to any matter not provided for in
this Law.
Article (32)
The Real Property granted by the Government to UAE nationals or persons of similar
status for commercial and residential purposes shall be governed by the provisions of this
Law. The relevant orders and instructions issued by the Ruler, and the resolutions issued in
implementation thereof, shall apply to that Real Property.
Article (33)
Mortgage deeds duly registered pursuant to this Law shall be binding on third parties.
Article (34)
The Chairman shall issue the resolutions required for the implementation of the provisions
of this Law.148Article (35)
This Law shall be published in the Official Gazette and shall come into force sixty (60) days
after the date on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 14 August 2008Corresponding to 13 Shaban 1429 A.H.Law No. (26) of 2007
Regulating the Relationship between
Landlords and
Tenants in the Emirate of Dubai 151 150Law No. (26) of 2007
Regulating the Relationship between Landlords and
Tenants in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its amendments;Federal Law No. (10) of 1992 Issuing the Law of Evidence Governing Civil and Commercial Transactions;Decree No. (2) of 1993 Establishing a Special Tribunal to Determine Disputes between Landlords and Tenants; andLaw No. (16) of 2007 Establishing the Real Estate Regulatory Agency,
Do hereby issue this Law.
Title
Article (1)
This Law shall be cited as “Law No. (26) of 2007 Regulating the Relatio |
nship between
Landlords and Tenants in the Emirate of Dubai”.
Definitions and Scope of Application
Article (2)
In implementing the provisions of this Law, the following words and expressions shall have the meaning indicated opposite each of them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
RERA : The Real Estate Regulatory Agency.
Real Property : Immovable property, and everything affixed or annexed to it, which is
leased out for residential purposes or for practising any business activity,
trade, profession, or other lawful activity.
Lease Contract : A contract pursuant to which a Landlord is bound to allow a Tenant to
use Real Property for a specific purpose, over a specific term, and in
return for a specific consideration.
Landlord : A natural or legal person who is entitled by law or agreement to dispose
of Real Property. This includes any person to whom the ownership of theReal Property is transferred during the term of lease, agent or legal
representative of the Landlord, or Tenant who is permitted by the
Landlord to sublet the Real Property.
Tenant : A natural or legal person who is entitled to use Real Property pursuant
to a Lease Contract, or any person to whom the lease is legally transferred
from the Tenant.
Subtenant : A natural or legal person who is entitled to use Real Property or any
part thereof pursuant to a Lease Contract entered into with the Tenant.
Rent : The specific consideration which a Tenant is bound to pay pursuant to
a Lease Contract.
Tribunal : The Special Tribunal to Determine Disputes between Landlords and
Tenants.
Notice : A written notification sent by either party to a Lease Contract to the
other party through a Notary Public; or delivered by registered mail, by
hand, or by any other technological means approved by law.
Article (3)
The provisions of this Law shall apply to Real Property leased out in the Emirate, including
vacant and agricultural land, but excluding hotel units and Real Property provided free of Rent by natural or legal persons as accommodation for their employees.Lease Contracts
Article (4)
1. The contractual relationship between a Landlord and a Tenant shall be regulated by
a
written Lease Contract signed by both parties which includes a description of the
leased Real Property that leaves no room for uncertainty, the purpose of the LeaseContract, the name of the owner, the number and type of the land, and the area wherethe Real Property is located. It shall also determine the term of the Lease Contract, theRent, and the Rent payment method.
2. All Lease Contracts related to Real Property which is governed by the provisions of this
Law, and any amendments thereto, shall be registered with RERA. Judicial authoritiesand Government departments, authorities, and corporations must not consider anydispute or claim, or otherwise take any action based on a Lease Contract, unless theLease Contract is registered with RERA in accordance with the relevant rules andreg |
ulations.
153 152Term of Lease Contracts
Article (5)
The term of a Lease Contract must be specified. Where the term is not specified in the
Lease Contract or where it is impossible to prove a claimed term, the Lease Contract shall
be deemed valid for the period prescribed for payment of the Rent.
Article (6)
Where the term of a Lease Contract expires but the Tenant continues to occupy the Real
Property without any objection by the Landlord, the Lease Contract shall be renewed for
the same term or for a term of one (1) year, whichever is shorter, under the same terms of
the previous Lease Contract.
Article (7)
Where a Lease Contract is valid, it may not be unilaterally terminated during its term by
the Landlord or the Tenant. It can only be terminated by mutual consent or in accordance
with the provisions of this Law.
Article (8)
The term of a sublease contract entered into between a Tenant and a Subtenant shall
expire upon expiry of the term of the Lease Contract entered into between the Landlord
and the Tenant, unless the Landlord expressly agrees to extend the term of the sublease
contract.
Rent
Article (9)
Landlords and Tenants must specify Rent in Lease Contracts. In any event, the Rent may
not be increased, nor may any of the terms of the Lease Contract be amended, before the
lapse of two (2) years from the date on which the contractual relationship is established
for the first time.
Article (10)
RERA shall have the authority to establish criteria relating to the percentage of Rent
increase in the Emirate in line with the requirements of the prevailing economic situation
in the Emirate.Article (11)
Unless otherwise agreed, the Rent shall cover the use of the Real Property facilities, such
as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other facilities.
Article (12)
A Tenant shall pay the Landlord the Rent on the dates mutually agreed upon by them. In
the absence of an agreement or where it is impossible to verify the payment dates, the
Rent must be annually paid in four (4) equal instalments to be settled in advance.
Article (13)
1. Subject to the provisions of Article (9) of this Law and for the purposes of renewing
a Lease Contract, the Landlord and Tenant may reconsider the Rent, and if they do
not reach an agreement and it is proved necessary to extend the term of the Lease
Contract, the Tribunal may decide on extending the Lease Contract and determine the
Rent based on the rental value of similar Real Property.
2. The Tribunal shall determine the rental value of similar Real Property in accordance
with the legislation approving the criteria and Rent amounts proposed by RERA, taking
into account the condition of the Real Property and the prevailing rental value of
similar Real Property in other similar Real Property markets within the same area.
Article (14)
Unless otherwise agreed by the parties to a Lease Contract, where either party does not
wish to renew the Lease Contract or wishes |
to amend any of its terms, that party must
notify the other party of this intent no less than ninety (90) days before the date on which
the Lease Contract expires.
Landlord Obligations
Article (15)
A Landlord shall be bound to hand over the Real Property in a good condition which allows
the Tenant to fully use it as stated in the Lease Contract.155 154Article (16)
Unless otherwise agreed by the parties, a Landlord shall, during the term of the Lease
Contract, be responsible for the Real Property maintenance works and for repairing any
breakdown or defect that affects the Tenant’s full intended use of the Real Property.
Article (17)
A Landlord may not make to the Real Property, or any of its facilities or appurtenances,
any changes that preclude the intended use of the same. The Landlord shall be responsible
for any such changes whether made by him or by any other person authorised by him.
In addition, the Landlord shall be responsible for any breakdown, impairment, defect, or
damage sustained by the Real Property for reasons beyond the control of the Tenant.
Article (18)
A Landlord must grant the Tenant any approvals required to be submitted to competent
official entities in the Emirate where the Tenant wishes to carry out decoration works in
the Real Property or any other works that require such approvals. These approvals shall be
granted on condition that the works do not affect the structure of the Real Property and
that the Tenant provides the official documents proving that the approvals are required.
Tenant Obligations
Article (19)
A Tenant must pay the Rent on its due dates and must maintain the Real Property in
a good condition as a reasonable person would maintain his own property. Without
prejudice to the Tenant’s obligation to carry out any restoration that is agreed upon or
which is customary for Tenants to undertake, the Tenant may not make any changes or
carry out any restoration or maintenance works in the Real Property without obtaining
the permission of the Landlord and the necessary licences from the competent official
entities.
Article (20)
When entering into a Lease Contract, a Landlord may collect from the Tenant a security
deposit for the purpose of maintenance of the Real Property upon the expiry of the Lease
Contract. The Landlord must refund this deposit or the balance thereof to the Tenant upon
expiry of the Lease Contract.Article (21)
Upon expiry of the term of a Lease Contract, the Tenant must surrender possession of
the Real Property to the Landlord in the same condition in which the Tenant received it
at the time of entering into the Lease Contract, except for ordinary wear and tear or any
damage sustained due to reasons beyond the Tenant’s control. Where a dispute between
the parties arises in this regard, it shall be referred to the Tribunal to issue its decision on
the same.
Article (22)
Unless the Lease Contract states otherwise, the Tenant must pay all fees and taxes owed
to Governme |
nt entities and departments in relation to the use of the Real Property, and
must pay the fees or taxes prescribed for any sublease of the Real Property.
Article (23)
Unless otherwise agreed by the parties, upon vacating, and surrendering possession of,
the Real Property, the Tenant may not remove any fixed leasehold improvements made
by him.
Article (24)
Unless otherwise agreed by the parties to a Lease Contract, the Tenant may not sublease,
or assign the use of, the Real Property to third parties unless the relevant written consent
of the Landlord is obtained.
Eviction Cases
Article (25)
1. A Landlord may request eviction of the Tenant from the Real Property before expiry of
the Lease Contract term in any of the following cases:
a. where the Tenant fails to pay the Rent or any part thereof within thirty (30) days
from the date of service of a Notice on the Tenant by the Landlord requesting the
payment;
b. where the Tenant sublets the Real Property or any part thereof without obtaining
the Landlord’s written approval, in which case the eviction shall apply to the
Subtenant, who shall reserve the right to claim compensation from the Tenant;157 156c. where the Tenant uses the Real Property or allows others to use it for any illegal
purpose or for a purpose which conflicts with public order or morals;
d. where the Tenant makes any change to the Real Property that endangers its safety
in a manner that makes it impossible to restore the Real Property to its original
state; or causes damage to the Real Property as a result of his deliberate act, or his
gross negligence by failing to exercise due caution and care or allowing others to
cause that damage;
e. where the Tenant uses the Real Property for a purpose other than that for which it is
leased, or otherwise uses the Real Property in a manner that violates the planning,
construction, and land use regulations in force in the Emirate;
f. where the Real Property is likely to collapse, provided that the Landlord proves this
by a technical report certified by the Dubai Municipality, or
g. where the Tenant fails to comply with any of his obligations under this Law or any
of the Lease Contract terms within thirty (30) days from the date on which a Notice
requesting him to comply with that obligation or term is served upon him by the
Landlord.
2. Upon expiry of the Lease Contract, the Landlord may seek eviction of the Tenant from
the Real Property if:
a. the competent Government entities decide that the demolition and reconstruction
of the Real Property are mandated in accordance with urban development
requirements in the Emirate;
b. the Real Property is in a condition that requires restoration or comprehensive
maintenance that cannot be carried out while the Tenant occupies the Real
Property, provided that this condition of the Real Property is verified by a technical
report certified by the Dubai Municipality;
c. the Landlord wishes to demolish and reconstruct the Real Property |
or to add
any new structures that would prevent the Tenant from using the Real Property,
provided that the Landlord obtains the required permits from the competent
entities; or
d. the Landlord wishes to retake possession of the Real Property for his own use or for
use by any of his first-degree relatives.
In any of the above-mentioned four (4) cases, the Landlord must notify the Tenant of the
eviction reasons no less than ninety (90) days prior to expiry of the Lease Contract.Article (26)
If, upon expiry of a Lease Contract, the Landlord requests retaking possession of the Real
Property for his own use or for use by any of his first-degree relatives, and the Tribunal
awards him that possession, the Landlord may not rent the Real Property to a third party
before the lapse of at least one (1) year from the date of retaking possession of the Real
Property. Otherwise, the Tenant may request the Tribunal to award him appropriate
compensation.
General Provisions
Article (27)
A Lease Contract does not expire upon the death of the Landlord or the Tenant. The
contractual relationship shall continue with their heirs unless the heirs of the Tenant wish
to terminate that relationship, in which case the termination shall come into effect no less
than thirty (30) days after the date of notifying the Landlord of this intent or after the date
of expiry of the Lease Contract, whichever occurs earlier.
Article (28)
Transferring the ownership of Real Property to a new owner does not affect the Tenant’s
right to continue to occupy the Real Property in accordance with the Lease Contract
entered into with the previous owner, provided that the Lease Contract has a fixed date.
Article (29)
1. A Tenant shall have the right of first refusal to return to the Real Property where it is
demolished and reconstructed, or renovated and restored, by the Landlord, in which
case the Rent must be determined in accordance with the provisions of Article (13) of
this Law.
2. The Tenant must exercise the right of first refusal referred to in the preceding paragraph
within a period not exceeding thirty (30) days from the date the Tenant is notified of
the same by the Landlord.159 158Article (30)
If the Tribunal issues an award terminating the Lease Contract while the Real Property is
occupied by a Subtenant under a contract entered into with the Tenant and approved by
the Landlord, the Subtenant may continue to occupy the Real Property under the terms of
the sublease contract.
Article (31)
Filing a claim to evict a Tenant does not exempt the Tenant from paying the Rent for the
whole period during which the claim is being heard until a relevant award is rendered and
enforced.
Article (32)
If the Landlord and Tenant agree in the Lease Contract, or in any other subsequent
agreement, to refer any dispute arising between them out of the Lease Contract
performance to arbitration, neither party may take any action that would affect the Real
Property or the parties’ |
rights and obligations as set forth in the Lease Contract.
The Tribunal may, upon the request of the Landlord or the Tenant, issue any interim
awards it deems appropriate to preserve the rights and legal positions of the parties until
an arbitration award is rendered.
Final Provisions
Article (33)
In case a dispute arises where the Landlord and Tenant have not agreed on the arbitrators
or where one or more of the agreed on arbitrators refrains from doing the work, resigns, is
removed, or is disqualified; or where an issue arises preventing the arbitrator from doing
his work in the absence of an agreement between the parties in this regard, the Tribunal
shall, upon the request of either party, appoint the arbitrator(s).
The number of arbitrators appointed by the Tribunal must be equal to, or complete, the
number of arbitrators agreed on.Article (34)
The Landlord may not disconnect services from the Real Property or disturb the Tenant’s
use of the Real Property in any manner.
If this happens, the Tenant may resort to the police station under whose jurisdiction the
Real Property falls to seek remedy of the disturbance or to file a police report regarding the
same. He may also resort to the Tribunal by filing a claim for compensation for damage,
supported by the official reports proving the disturbance.
Article (35)
Awards relating to vacating Real Property shall be enforced through the Tribunal pursuant
to the rules and procedures issued in this respect.
Other awards issued by the Tribunal shall be enforced by the Enforcement Division of the
Dubai Courts.
Article (36)
RERA shall prepare the bylaws and resolutions required for the implementation of the
provisions of this Law and shall submit the same to the Chairman of the Executive Council
for approval.
Article (37)
This Law shall be published in the Official Gazette and shall come into force sixty (60) days
after the date of its publication.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 26 November 2007
Corresponding to 16 Thu al-Qidah 1428 A.H.Law No. (33) of 2008
Amending Law No. (26) of 2007
Regulating the Relationship between
Landlords and Tenants in
the Emirate of Dubai 163 162Law No. (33) of 2008
Amending Law No. (26) of 2007
Regulating the Relationship between
Landlords and Tenants in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its
amendments;
Federal Law No. (10) of 1992 Issuing the Law of Evidence Governing Civil and Commercial
Transactions and its amendments;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency;
Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the
Emirate of Dubai (the “Original Law”); and
Decree No. (2) of 1993 Establishing a Special Tribunal to Determine Disputes between
Landlords and Tenants and its amendments,
Do hereby issue this Law.
Arti |
cle (1)
Articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of the Original Law are hereby
superseded by the following:
Article (2)
In implementing the provisions of this Law, the following words and expressions shall
have the meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Tribunal : The Special Tribunal to Determine Disputes between Landlords and
Tenants.
RERA : The Real Estate Regulatory Agency.
Real Property : Immovable property, and everything attached or annexed to it, which
is leased out for residential purposes or for practising any commercial
activity, trade, profession, or other lawful activity.
Lease Contract : A contract pursuant to which a Landlord is bound to allow a Tenant
to use Real Property for a specific purpose, over a specific term, and in
return for specific consideration.Landlord : A natural or legal person who is entitled by law or agreement to dispose
of Real Property. This includes any person to whom the ownership of the
Real Property is transferred during the term of lease, agent or legal
representative of the Landlord, or Tenant who is permitted by the
Landlord to sublet the Real Property.
Tenant : A natural or legal person who is entitled to use Real Property pursuant
to a Lease Contract, or any person to whom the lease is legally transferred
from the Tenant.
Subtenant : A natural or legal person who is entitled to use Real Property or any
part thereof pursuant to a Lease Contract entered into with the Tenant.
Rent : The specific consideration which a Tenant is bound to pay pursuant to
a Lease Contract.
Notice : A written notification sent by either party to a Lease Contract to the
other party through a Notary Public; or delivered by registered mail, by
hand, or by any other technological means approved by law.
Article (3)
The provisions of this Law shall apply to land and Real Property leased out in the Emirate,
excluding Real Property provided free of Rent by natural or legal persons as accommodation
for their employees.
Article (4)
1. The contractual relationship between a Landlord and a Tenant shall be regulated by
a Lease Contract which includes a description of the leased Real Property that leaves
no room for uncertainty; the purpose of the lease; the term of the Lease Contract;
the Rent and its payment method; and the name of the Real Property owner if the
Landlord is not the owner.
2. All Lease Contracts related to Real Property which is governed by the provisions of this
Law, and any amendments thereto, shall be registered with RERA.
Article (9)
1. Landlords and Tenants must specify Rent in Lease Contracts. Where the parties fail to
specify the Rent and it is impossible to prove the Rent agreed upon by them, the Rent
shall be the rental value of similar Real Property.165 1642. The Tribunal shall determine the rental value of similar Real Property taki |
ng into
account the criteria for determining the percentage of Rent increase prescribed by
RERA; the prevailing economic situation in the Emirate; the condition of the Real
Property; the prevailing rental value of similar Real Property in other similar Real
Property markets within the same area; the provisions of any legislation in force in the
Emirate regulating Real Property Rent, and any other factors which the Tribunal deems
appropriate.
Article (13)
For the purposes of renewing a Lease Contract, the Landlord and Tenant may, prior to the
expiry of the Lease Contract, amend any of its terms or reconsider increasing or reducing
the Rent. If the Landlord and Tenant fail to reach an agreement in this regard, the Tribunal
may determine the fair Rent, taking into account the criteria stipulated in Article (9) of
this Law.
Article (14)
Unless otherwise agreed by the parties to a Lease Contract, where either party wishes
to amend any of its terms pursuant to Article (13) of this Law, that party must notify the
other party of this intent no less than ninety (90) days before the date on which the Lease
Contract expires.
Article (15)
A Landlord shall be bound to hand over the Real Property in a good condition which allows
the Tenant to fully use it as stated in the Lease Contract.
Notwithstanding the foregoing, the parties may agree upon renting Real Property before
completion of its construction, in which case the Tenant must complete the construction of
the Real Property and make it suitable for its intended use. The agreement shall determine
the party liable to pay the costs of completion of the construction.
Article (25)
1. A Landlord may request eviction of the Tenant from the Real Property before expiry of
the Lease Contract only in the following cases:
a. unless otherwise agreed by the parties, where the Tenant fails to pay the Rent or
any part thereof within thirty (30) days from the date of service of a Notice on the Tenant by the Landlord requesting the payment;
b. where the Tenant sublets the Real Property or any part thereof without obtaining
the Landlord’s written approval, in which case the eviction shall apply to the Tenant
and to the Subtenant, who shall reserve the right to claim compensation from the
Tenant;
c. where the Tenant uses the Real Property or allows others to use it for any illegal
purpose or for a purpose which conflicts with public order or morals;
d. unless otherwise agreed by the parties, where the leased Real Property is used as
business premises and the Tenant leaves it unoccupied without a valid reason for a
period of thirty (30) consecutive days or ninety (90) non-consecutive days in a year;
e. where the Tenant makes any change to the Real Property that endangers its safety
in a manner that makes it impossible to restore the Real Property to its original
state; or causes damage to the Real Property as a result of his deliberate act, or his
gross negligence by failing to exercise due cautio |
n and care or allowing others to
cause that damage;
f. where the Tenant uses the Real Property for a purpose other than that for which it is
leased, or otherwise uses the Real Property in a manner that violates the planning,
construction, and land use regulations in force in the Emirate;
g. where the Real Property is likely to collapse, provided that the Landlord proves this
by a technical report issued by or certified by the Dubai Municipality;
h. where the Tenant fails to comply with any of his obligations under this Law or any
of the Lease Contract terms within thirty (30) days from the date on which a Notice
requesting him to comply with that obligation or term is served upon him by the
Landlord; or
i. where the competent Government entities decide that the demolition and
reconstruction of the Real Property are mandated in accordance with urban
development requirements in the Emirate.
For the purposes of paragraph (1) of this Article, the Landlord shall serve a Notice on
the Tenant through a Notary Public or by registered mail.
2. Upon expiry of the Lease Contract, the Landlord may seek eviction of the Tenant from
the Real Property only if:
a. the Real Property owner wishes to demolish and reconstruct it or to add any new
structures that would prevent the Tenant from using the Real Property, provided
that the owner obtains the required permits from the competent entities; or
b. the Real Property is in a condition that requires restoration or comprehensive
maintenance that cannot be carried out while the Tenant occupies the Real
Property, provided that this condition of the Real Property is verified by a technical
report issued or certified by the Dubai Municipality;167 166c. the Real Property owner wishes to retake possession of the Real Property for his
own use or for use by any of his first-degree relatives, provided that the owner
proves that he does not own any alternative Real Property that is suitable for this
purpose; or
d. the leased Real Property owner wishes to sell it.
For the purposes of paragraph (2) of this Article, the Landlord must notify the Tenant
of the eviction reasons at least twelve (12) months before the date of eviction, and the
notice must be served through a Notary Public or by registered mail.
Article (26)
Where the Tribunal rules in favour of the Landlord retaking possession of the Real Property
for his own use or for use by any of his first-degree relatives, in accordance with sub-
paragraph (2)(c) of Article (25) of this Law, the Landlord may not rent the Real Property to
a third party before the lapse of at least two (2) years in case of residential Real Property,
or three (3) years in case of non-residential Real Property, from the date of retaking
possession of the same. Otherwise, the Tenant may request the Tribunal to award him fair
compensation.
Article (29)
1. A Tenant shall have the right of first refusal to return to the Real Property where it is
demolished and reconstructed, o |
r renovated and restored, by the Landlord, in which
case the Rent must be determined in accordance with the provisions of Article (9) of
this Law.
2. The Tenant must exercise the right of first refusal referred to in the preceding paragraph
within a period not exceeding thirty (30) days from the date on which the Tenant is
notified of the same by the Landlord.
Article (36)
The Chairman of the Executive Council shall issue the regulations, bylaws, and resolutions
required for the implementation of the provisions of this Law.Article (2)
This Law shall be published in the Official Gazette and shall come into force on the day on
which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 1 December 2008
Corresponding to 3 Thu al-Hijjah 1429 A.H.Law No. (8) of 2007
Concerning Escrow Accounts for Real
Property Development in
the Emirate of Dubai 171 170Law No. (8) of 2007
Concerning Escrow Accounts for Real
Property Development in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code and its amendments;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai; and
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai,
Do hereby issue this Law.
Chapter One
Definitions and General Provisions
Article (1)
This Law shall be cited as “Law No. (8) of 2007 Concerning Escrow Accounts for Real
Property Development in the Emirate of Dubai”.
Definitions
Article (2)
The following words and expressions shall have the meaning indicated opposite each of
them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
DLD : The Land Department.
Chairman : The chairman of the DLD.
Director General : The director general of the DLD.
Register : The register maintained by the DLD for registering Developers.
Escrow Account : A bank account of a Real Property Development project in
which the payments made by the purchasers of Units sold off
plan or by the financers of the project are deposited.
Developer : Any natural or legal person who is licensed to engage in the
purchase and sale of Real Property for Real Property
Development purposes. This includes master developers and
sub-developers.Escrow Agent : A financial or banking institution certified by the DLD to
manage an Escrow Account.
Competent Entity : Any of the Government entities in charge of licensing
Developers.
Real Property Development: Projects for the construction of multi-storey buildings or
compounds for residential or commercial purposes.
Real Property : Anything which is fixed and cannot be moved without
damage or alteration of its structure.
Unit : A designated part of Real Property that a Developer sells to
others.
Article (3)
This Law shall apply to Developers who sell Units off- |
plan in Real Property Development
projects in the Emirate and receive payments from purchasers or financers in return for
the same.
Article (4)
The DLD shall maintain a register known as the “Real Property Developers Register”
in which the names of Developers licensed to conduct the Real Property Development
activity in the Emirate shall be recorded. No Developer may conduct the activity unless he
is recorded in that register and licensed by the Competent Entities in accordance with the
relevant requirements prescribed by them.
Article (5)
A Developer may not advertise in local or international media, or participate in local or
international exhibitions, to promote the sale of Units or Real Property off-plan unless he
obtains a written permit from the DLD. The Director General shall issue the resolutions
required for regulating advertisements in the media and participation in exhibitions.173 172Chapter Two
Opening Escrow Accounts
Article (6)
A Developer who wishes to sell Units off-plan must submit to the DLD a request to open
an Escrow Account. The request must be accompanied by:
1. the certificate of membership in the Dubai Chamber of Commerce and Industry;
2. the commercial licence;
3. the title deed of the land to be developed;
4. a copy of the contract concluded between the master developer and the sub-
developer;
5. the initial architectural designs and engineering plans approved by the Competent
Entities and the master developer;
6. a financial statement of the estimated cost and revenues of the project, which is
approved by a certified auditor;
7. an undertaking by the sub-developer to commence the construction works of
the project upon obtaining the master developer’s approval of off-plan sale, or an
undertaking by the master developer in case of no sub-developers; and
8. a sale contract template between the Developer and purchaser.
Article (7)
An Escrow Account shall be opened pursuant to a written agreement between the
Developer and the Escrow Agent whereby the payments made by off-plan Units purchasers,
or by the financers of the project, shall be deposited in a special account with the Escrow
Agent in the name of the Real Property Development project.
The agreement shall prescribe the account management terms and the rights and
obligations of contracting parties. A copy of this agreement shall be deposited with the
DLD.
Article (8)
The DLD may create an entry on the registry folio of the land owned by the master developer
to denote that a sale agreement is concluded between the master developer and the sub-
developer in respect of this land or any part thereof. A purchaser of an off-plan Unit may
apply to the DLD to create an entry on the registry folio of the land on which the project
is to be constructed to denote that a sale agreement is concluded between that purchaser
and the sub-developer.Chapter Three
Management of Escrow Accounts
Article (9)
1. An Escrow Account shall be opened in the name of each Real |
Property project, and shall
be exclusively dedicated for the purpose of implementing that project. No attachment
may be imposed on the amounts deposited in this account in favour of the creditors of
the Developer.
2. In the event of multiple projects implemented by the Developer, each project must
have a separate Escrow Account.
Article (10)
1. The DLD shall maintain a special register known as the “Escrow Agents Register” in
which the names of Escrow Agents are recorded.
2. An Escrow Agent must be competent to manage Escrow Accounts.
Article (11)
1. An Escrow Agent must provide the DLD with periodic statements of the revenues and
expenditures of the Escrow Account. The DLD may, at any time, request the Escrow
Agent to provide any information or data it requires. In all events, the DLD may, as it
deems appropriate, seek assistance from any person to audit these statements and
data.
2. If it is proven to the satisfaction of the DLD that an Escrow Agent has committed any
violation of this Law or its implementing bylaws, the DLD must notify the Escrow
Agent in writing and grant him a time limit to remedy that violation.
Article (12)
Depositors, or their representatives, may have access to their accounting records and
request copies of these records. Representatives of official authorities may also have
access to, and obtain copies of, these records.175 174Article (13)
Where a Developer mortgages a project in order to obtain a loan from a finance institution
or company, this institution or company must deposit the loan amount in the relevant
Escrow Account to be managed in accordance with the provisions of this Law.
Article (14)
An Escrow Agent must retain five percent (5%) of the total value of the Escrow Account
after the Developer obtains the completion certificate. The retained amount shall be
released to the Developer only upon the lapse of one (1) year from the registration of Units
in the names of purchasers.
Article (15)
In case of any emergency resulting in non-completion of a Real Property project, the
Escrow Agent of that project must, upon consultation with the DLD, take the necessary
measures to preserve the rights of depositors by ensuring the completion of the Real
Property project and refund of the payments made by the depositors.
Chapter Four
Penalties
Article (16)
Without prejudice to any penalties stipulated in any other legislation, an imprisonment
sentence and a fine of not less than one hundred thousand Dirhams (AED 100,000.00), or
either penalty, shall be inflicted on:
1. any person who conducts the Real Property Development activity in the Emirate
without a licence;
2. any person who submits to the Competent Entities false documents or information in
order to obtain a licence to conduct the Real Property Development activity;
3. any person who knowingly offers for sale Units in fraudulent Real Property projects;
4. any person who embezzles, steals, or misappropriates any payments made to him for
the p |
urpose of implementing a Real Property project;
5. any auditor who deliberately issues a false report on the financial position of a
Developer, or deliberately refrains from disclosing essential facts in his report;
6. a consultant who knowingly certifies false documents related to a Real Property
project; or7. a Developer who deals with a broker who is not registered on the Real Property Brokers
Register maintained by the DLD in accordance with Bylaw No. (85) of 2006 Concerning
the Real Property Brokers Register in the Emirate of Dubai.
Article (17)
A Developer shall be struck-off the Register if:
1. he is declared bankrupt;
2. he fails, without a valid reason, to commence construction works within six (6)
months from the date on which he is granted the approval to sell Units off-plan;
3. the licence granted to him by the relevant licensing authority is revoked;
4. he commits any of the violations stipulated in sub-paragraphs (16)(2), (16)(3), (16)
(4), and (16)(5) of this Law; or
5. he violates any of the laws and bylaws regulating the Real Property Development
activity in the Emirate.
Chapter Five
Final Provisions
Article (18)
All Developers existing by the effective date of this Law must comply with its provisions
within six (6) months from the date on which it is published in the Official Gazette. The
DLD may extend this grace period as it deems appropriate.
Article (19)
The DLD may charge fees for any of the services provided under this Law.
Article (20)
Any provision in any other law or bylaw shall be repealed to the extent that it contradicts
the provisions of this Law.176Article (21)
The Chairman shall issue the resolutions required for the implementation of this Law.
Article (22)
This Law shall be published in the Official Gazette and shall come into force on the day on
which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 6 May 2007
Corresponding to 19 Rabi al-Thani 1428 A.H.Law No. (7) of 2006
Concerning
Real Property Registration in the
Emirate of Dubai 179 178Law No. (7) of 2006
Concerning
Real Property Registration in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its
amendments;
Federal Law No. (11) of 1992 Issuing the Civil Procedures Code and its amendments;
Law No. (7) of 1997 Concerning Land Registration Fees; and
The Decree of 1960 Establishing the Land Affairs Committee,
Do hereby issue this Law:
Chapter One
Title and Definitions
Article (1)
This Law shall be cited as “Law No. (7) of 2006 Concerning Real Property Registration in
the Emirate of Dubai”.
Article (2)
The following words and expressions, wherever mentioned in this Law, shall have the
meaning indicated opposite each of them, unless the context implies otherwise:
UAE : The United Arab Emirates.
Emirate : The Emirate of Dubai.
Government : The Government of Dubai, including a |
ny of its departments,
authorities, or public corporations.
Ruler : His Highness the Ruler of the Emirate of Dubai.
DLD : The Land Department.
Chairman : The chairman of the DLD.
Director General : The director general of the DLD.
Real Property : Anything which is fixed and cannot be moved without damage
or alteration of its structure.
Real Property Right : Any principal or ancillary real right in Real Property.
Real Property Register : A set of documents which are created or maintained by the
DLD in paper format or in electronic format as part of its
electronic registry, and which state the description and location
of each Real Property and the rights attached thereto.Real Property Unit : Land plot which is located in a Real Property Area, including
any buildings, plants, or other thing existing thereon, without
any part thereof being separated from other parts by any
public or private property, and without any part thereof having
rights or encumbrances other than those which the other parts
have.
Real Property Area : A set of Real Property Units which are demarcated by main
roads or fixed and clear landmarks and which have an approved
name and a distinct number, in accordance with the regulations
adopted by the DLD.
Person : Any natural or legal person.
Chapter Two
Scope of Application and Right of Ownership
Article (3)
The provisions of this Law shall apply to Real Property existing in the Emirate.
Article (4)
The right to own Real Property in the Emirate shall be restricted to UAE nationals, nationals
of the Gulf Cooperation Council Sates, companies fully owned by these nationals, and
public joint stock companies. Subject to the approval of the Ruler, non-UAE nationals may
be granted the following rights in the relevant areas determined by the Ruler:
a. Freehold ownership of Real Property, without time restrictions; and
b. Usufruct or lease rights in Real Property for up to ninety-nine (99) years.
Chapter Three
General Provisions
Article (5)
Original documents and court judgments pursuant to which Real Property is registered
shall be maintained by the DLD and may not be taken out of its premises. Pursuant
to the provisions of this Law, any interested parties, judicial authorities, or experts
and specialised committees appointed by judicial authorities may have access to the
documents maintained in the register and obtain certified copies thereof.181 180Chapter Four
Functions of the DLD
Article (6)
The DLD shall be exclusively authorised to register Real Property Rights and long-term
lease contracts provided for in Article (4) of this Law. For this purpose, the DLD shall:
1. determine areas to be surveyed or re-surveyed and certify their plans;
2. prescribe rules relating to survey and inspection, and issue plans of Real Property
Units;
3. prepare contract templates relating to Real Property dispositions;
4. prescribe rules for organising, archiving, and destr |
oying documents;
5. prescribe rules for using computers for storing and recording data;
6. prescribe rules for regulating and maintaining the Real Property brokers register;
7. prescribe rules for Real Property valuation;
8. prescribe rules for the sale of Real Property by voluntary public auctions, and
supervise these auctions;
9. determine fees for the services provided by the DLD; and
10. establish branches for the DLD as the Director General deems appropriate.
Chapter Five
Real Property Register
Article (7)
A Real Property Register shall be maintained by the DLD to record all Real Property Rights
and any variation thereto. This register shall have conclusive evidentiary value as against
all persons, and the authenticity of its data may only be challenged on grounds of fraud
or forgery.
Article (8)
Subject to the provisions of Article (7) of this Law, all Real Property documents and
instruments electronically stored in computers shall have the same evidentiary value as
original documents and instruments.Chapter Six
Registration
Article (9)
All dispositions that create, transfer, change, or extinguish Real Property Rights, and all the
final rulings validating these dispositions, must be recorded in the Real Property Register.
These dispositions shall not be deemed effective unless recorded in the Real Property
Register.
Article (10)
Where a Person fails to comply with his undertaking to transfer a Real Property Right,
his liability shall be limited to the obligation to pay compensation, whether or not
compensation is stipulated in the undertaking.
Article (11)
Where an estate includes Real Property Rights, the decree of distribution shall be registered
on the Real Property Register. A disposition by any heir of any of these rights shall not be
effective or binding as against third parties unless it is registered on the Real Property
Register.
Article (12)
The DLD may, in accordance with the procedures prescribed pursuant to the relevant
resolution of the Chairman of the DLD, consider any applications for registration submitted
by persons in possession of land that is not registered in their names, in order to ensure
compliance with the requirements of registration of this land.
Chapter Seven
Variation or Correction of Real Property Register Data
Article (13)
The DLD may, upon the request of any interested party or on its own initiative and subject
to notifying all concerned parties, correct any manifest material errors in the folios of the
Real Property Register.183 182Article (14)
The DLD shall, in coordination with the competent entities, update the data of Real
Property Units, including any buildings, plants, or other things existing thereon.
Chapter Eight
Plans
Article (15)
1. The registration of a Real Property Area or Real Property Unit shall be based upon the
following plans:
a. the Topographic Master Plan;
b. the Real Property Unit Plan; and
c. the Real Property Area Plan.
2. Each Real Property Area shall have a sep |
arate plan which shows the Real Property
Units located therein and their numbers.
3. Each Real Property Unit shall have a separate plan which shows its location, boundaries,
dimensions, area, landmarks, and structures; as well as the numbers of adjacent units.
Chapter Nine
Subdivision and Amalgamation
Article (16)
If a dominant Real Property Unit is subdivided, each resulting part shall continue to have
an easement over the servient Real Property Unit, provided that this does not increase the
burden on that servient unit. However, if the easement is beneficial only to some of these
parts, the owner of the servient Real Property Unit may apply to the DLD to extinguish the
easement that other parts have.
Article (17)
If a servient Real Property Unit is subdivided, each resulting part shall continue to be
subject to the easement. However, if the easement is actually exercised only over some
of these parts, or cannot be exercised over some parts, the owner of each of these parts
may apply to the DLD, in accordance with the provisions of this Law, to extinguish the
easement over his part.Article (18)
An easement shall be terminated if the dominant and servient Real Property Units become
owned by the same Person.
Article (19)
Where a Real Property Unit encumbered by an ancillary real right is subdivided into two
or more Real Property Units, each resulting new Real Property Unit shall be encumbered
by the entire right. The new owners may agree with the holder of the ancillary real right
to divide his right so that each new Real Property Unit be encumbered by only part of that
right as agreed.
Article (20)
In the event of amalgamation of two (2) Real Property Units, of which one is encumbered
by an ancillary real right while the other is not, the entire new Real Property Unit shall be
encumbered by the ancillary real right without the need for approval of the amalgamation
by the holder of the right.
However, where each of the Real Property Units is encumbered by a separate ancillary real
right, the amalgamation must be approved by the holders of these rights.
Article (21)
Any subdivision or amalgamation of Real Property Units must be registered in the Real
Property Register.
Chapter Ten
Title Deeds
Article (22)
The DLD shall issue title deeds in respect of Real Property Rights based on the records of
the Real Property Register.185 184Article (23)
Without prejudice to the provisions of any other law, a multi-apartment or multi-storey
building shall be deemed a single Real Property Unit and shall have one Real Property folio
in the Real Property Register, which shall be accompanied by other supplementary folios
that contain the names of owners of the apartments, floors, and common areas of the
Real Property.
Article (24)
1. The title deeds referred to in Article (22) of this Law shall have conclusive evidentiary
value in proving Real Property Rights.
2. Any conditions, covenants, or restrictions applicable to the Real Property Rig |
hts in a
Real Property Unit, as well as any other relevant obligations, shall be recorded in folio
of the Real Property Unit.
Chapter Eleven
Final Provisions
Article (25)
The provisions of Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab
Emirates and its amendments shall apply to all matters not provided for in this Law.
Article (26)
1. Any agreement or disposition concluded in breach of the provisions of this Law shall
be null and void. In addition, any agreement or disposition concluded with the intent
to circumvent the provisions of this Law shall be null and void.
2. A judgment invalidating that agreement or disposition may be sought by any interested
party, the DLD, or the Public Prosecution; or otherwise issued by the court on its own
initiative.
Article (27)
The Decree Dated 6 November 1977 Concerning Civil and Criminal Lawsuits Related to
Disposition of Land in the Emirate of Dubai is hereby repealed.Article (28)
The Chairman shall issue the bylaws, decisions, orders, and instructions required for the
implementation of the provisions of this Law.
Article (29)
This Law shall be published in the Official Gazette and shall come into force on the day on
which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 13 March 2006
Corresponding to 13 Safar 1427 A.H.Law No. (7) of 2019
Amending Law No. (7) of 2006
Concerning
Real Property Registration in the
Emirate of Dubai 189 188Law No. (7) of 2019
Amending Law No. (7) of 2006
Concerning
Real Property Registration in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Federal Law No. (5) of 1985 Issuing the Civil Code of the United Arab Emirates and its
amendments; and
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai,
Do hereby issue this Law.
Superseded Article
Article (1)
Article (9) of the above-mentioned Law No. (7) of 2006 is hereby superseded by the
following:
Registration
Article (9)
a. All dispositions that create, transfer, change, or extinguish Real Property Rights, and all
the final rulings validating these dispositions, must be recorded in the Real Property
Register. These dispositions shall not be deemed effective unless recorded in the Real
Property Register.
b. Without prejudice to the rights of Persons acting in good faith, and subject to the
provisions stipulated in the above-mentioned Federal Law No. (5) of 1985 concerning
claims for infectiveness of debtors’ dispositions as against creditors, all Real Property
dispositions that create Real Property Rights, and are recorded in the Real Property
Register of the Land Department, are hereby deemed effective as against all Persons
even if the party undertaking the Real Property disposition is indebted to a third party,
unless the disposition is intended to be detrimental to the rights of that third party.Publication and Commencement
Article (2)
This Law shall be published i |
n the Official Gazette and shall come into force on the day on
which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 4 September 2019
Corresponding to 5 Muharram 1441 A.H.Bylaw No. (85) of 2006
Regulating the Real Property Brokers
Register in the Emirate of Dubai 193 192Bylaw No. (85) of 2006
Regulating the Real Property Brokers
Register in the Emirate of Dubai
The Chairman of the Land Department,
After perusal of Law No. (7) of 2006 Concerning Real Property Registration in the Emirate
of Dubai;
Pursuant to paragraph (6) of Article (6) and Article (28) of the above-mentioned Law No.
(7) of 2006; and
Upon the presentation of the Director General of the Land Department,
Does hereby issue this Bylaw.
Chapter One
Definitions and General Provisions
I. Definitions
Article (1)
This Bylaw shall be cited as “Bylaw No. (85) of 2006 Regulating the Real Property Brokers
Register in the Emirate of Dubai”.
Article (2)
The following words and expressions, wherever mentioned in this Bylaw, shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate : The Emirate of Dubai.
DLD : The Land Department.
Chairman : The chairman of the DLD.
Director General : The director general of the DLD.
Committee : The Permanent Brokerage Committee.
Council : The council authorised to settle Brokerage disputes.
Division : The Brokerage Regulatory Division at the DLD.
Competent Entity : Any of the government or semi-government entities in charge
of licensing the conduct of business activities.
Real Property : Anything which is fixed and cannot be moved without damage
or alteration of its structure.Register : The electronic or paper record of Brokers.
Roll : The roll prepared by the Committee, which contains the names of
certified Category A Brokers.
Broker : Any Person who conducts the Brokerage business in accordance with
this Bylaw.
Brokerage : A service provided under an agreement whereby a Broker undertakes
to a client to find another party to conclude a contract with, and to
represent that client in the contract negotiations, in return for a fee.
Person : Any natural or legal person.
II. General Provisions
Article (3)
No Person may conduct the Brokerage activity in the Emirate unless he is licensed by a
Competent Entity and is registered on the Register.
Article (4)
A Register shall be maintained by the DLD to record the details of the Brokers licensed
to conduct the Brokerage activity in the Emirate. Any variation or amendment of these
details must be recorded in the Register.
Article (5)
Brokers shall be classified into two (2) categories as follows:
Category A
Experienced Persons registered on the Roll, who are approved by the Chairman but
are not licensed by the Competent Entities. These persons are exempt from the
requirement to be registered on the Register.
Category B
Persons who conduct the Brokerage activity p |
ursuant to licences issued by the
Competent Entities.waiting for
final text195 194Chapter Two
Requirements for Registration on the
Real Property Brokers Register
Article (6)
Subject to the provisions of Article (5) above regarding Category A Brokers, a Person of
Category B who wishes to conduct the Brokerage activity in the Emirate must submit to
the Division an application for registration on the Register on the form prescribed for this
purpose. The application must meet the following requirements:
1. A valid commercial licence issued by a Competent Entity must be attached.
2. A certificate of membership in the Dubai Chamber of Commerce and Industry must
be attached.
3. In case of sole proprietorships or companies, a copy of the passport(s) of the
applicant(s) must be attached.
4. A true copy of the title deed or lease contract of the premises of the applicant must
attached.
5. A certificate of good conduct and repute of the owner of the sole proprietorship, or
the manager(s) of the company, must be attached.
6. None of the managers or managing partners of the company may have been
declared bankrupt or convicted of a crime affecting honour or trustworthiness.
7. Certificates of completion of Real Property training courses must be obtained
as part of the programme accredited by the DLD for certification of Brokerage
corporations and companies.
8. The applicant must passe the Brokerage profession test prescribed by the DLD.
Article (7)
The Division shall review the applications for registration on the Register. The Division may,
within seven (7) days from the date of submission of an application, request the applicant
in writing to provide any documents or information the Division deems required.
Article (8)
The Division may take all necessary actions to ensure that applications for registration,
adding entries, or deregistration meet the requirements stipulated in this Bylaw and any
resolutions issued hereunder.Article (9)
The Division shall present the registration application to the Committee within seven (7)
working days from the date of submission of the application or the date of completion of
the documents and information required by the Division, as the case may be.
Article (10)
The Committee shall have the right to approve or reject any application for registration,
and the relevant decision shall be communicated to the applicant. A decision rejecting an
application for registration must be reasoned.
Article (11)
Where the Committee rejects an application for registration, the applicant may re-apply
for registration, upon fulfilling all relevant requirements, within fourteen (14) days from
the date on which he is notified of the rejection decision.
Article (12)
The Division shall issue each Broker an identification card bearing his name, address, and
number of registration on the Register. A Broker must include his name and registration
number in all correspondence and reports issues.
Article (13)
A Broker registere |
d on the Register must apply annually to the Division for renewal of his
registration. The renewal application shall be submitted to the Division on the prescribed
form at least thirty (30) days prior to expiry of the registration certificate. The Division
must renew the registration of the Broker on the Register upon verifying compliance with
the renewal requirements.197 196Chapter Three
Obligations of Real Property Brokers
Article (14)
All registered Brokers must comply with professional code of conduct in accordance with
the Code of Ethics prepared by the Committee in consultation with experienced and well-
advised persons.
Article (15)
A Broker must enter in his own record all transactions he has conducted, maintain all
documents related to these transactions, and deliver a true copy of the documents to the
contracting parties upon their request.
In case of off-plan sale or sale based on a model, the Broker must keep the plan or model
until the transaction is completed.
Article (16)
A Broker must provide all information, data, and statistics relating to his Brokerage activity,
as requested by the DLD.
Article (17)
A Broker must disclose to his client all negotiation details, the stages of the brokerage
process, and any other information required to enable the client to make the right decision
in respect of concluding a contract with the other party. The Broker must also disclose
to the other contracting party all essential details relating to the subject matter of the
agreement, as deemed necessary to avoid uncertainty on his part.
Article (18)
A Broker may not broker any deal that violates the laws or regulations in force in the
Emirate.Article (19)
Even if a Broker is engaged by only one of the parties to a deal, he must faithfully present
the details of the deal to the parties and inform them of any relevant conditions he is
aware of. The Broker shall be responsible towards the parties for any fraud or fault he
commits.
Article (20)
A Broker may not hold himself out as a party to the contract he brokers unless he is so
authorised by the contracting parties, in which case the Broker shall not be entitled to any
fees.
Article (21)
A Broker shall be deemed as the trustee of any amounts, securities, bonds, or other items
delivered to him by either party for safekeeping or for delivery to the other party. The
Broker must return or deliver these items as per the conditions stipulated for him, and
shall be governed by the trusteeship rules in this respect.
Article (22)
A Broker shall be liable for any loss or damage suffered by the contracting parties as a
result of his fraudulent act or deceit or as a result of failure to observe any applicable rules
stipulated in this Bylaw or in the Code of Ethics.
Article (23)
A Broker shall forfeit his right to receive fees or to claim reimbursement of expenses if
he breaches his obligations towards his client by acting in the interest of the other party,
or if he accepts a promise |
of a benefit made by the other party in circumstances where
the acceptance of that promise is prohibited under the rules of good faith or the Code of
Ethics.
Article (24)
Where several Brokers are engaged under one contract, they shall be jointly responsible
for the work assigned to them unless they are authorised to work severally.199 198Article (25)
Unless otherwise agreed, where several Persons engage a single Broker for the same
assignment, they shall be jointly responsible towards him for performing the engagement.
Chapter Four
Real Property Broker Remuneration
Article (26)
A Brokerage agreement must be in writing and must state the names of the contracting
parties, the specifications of the Real Property, and the Brokerage terms. An entry shall
be created on the registry folio of the Real Property to denote that it is subject to the
Brokerage agreement.
Article (27)
Broker’s fees shall be determined by agreement. In absence of an agreement, the fees
shall be determined according to the prevailing customary practice.
Article (28)
1. A Broker shall be entitled to fees for his Brokerage only if it leads to concluding a
contract between the parties. A contract shall be deemed concluded if all parties agree
on all the conditions provided for in the Brokerage agreement.
2. A Broker shall be entitled to his fees upon signing the sale contract and registering it
with the DLD unless the Brokerage agreement stipulates otherwise.
3. If the sale contract is conditional upon the fulfilment of a condition which is agreed
upon in the Brokerage agreement, the Broker shall be entitled to his fees only upon
fulfilment of that condition.
Article (29)
Where a Brokerage agreement is terminated, the Broker shall be entitled to claim his fees
as stipulated in the Brokerage Agreement, except where he is proven to have committed
fraud or gross negligence.Article (30)
Unless the Brokerage agreement stipulates otherwise, if the Broker’s advices or
negotiations fail to lead to the conclusion of a contract between the parties, the Broker
shall not be entitled to claim any compensation or reimbursement of any expenses or
costs he has incurred.
Article (31)
Where more than one Broker participates in the Brokerage or negotiation process
on behalf of one party for the purpose of concluding a contract, and this leads to the
conclusion of the contract, they shall share the fees as if they were one Broker. The fees
shall be distributed among these Brokers in accordance with the terms of the contract
entered into by them.
Article (32)
Subject to Article (30) above, if a party enters into separate agreements with several
Brokers for the same Brokerage or negotiation assignment, and only one Broker succeeds
in concluding the transaction, that Broker shall be exclusively entitled to the full fees.
Article (33)
A Broker shall be entitled to receive fees only from the party who engages him to broker
a deal. If the Broker is engaged by both parties, each par |
ty shall be severally liable to pay
his own share of the fees even if they both agree that one of them shall pay the Broker’s
fees in full.
Chapter Five
Settlement of Disputes
Article (34)
A Council comprised of four (4) Persons in addition to the DLD Legal Advisor shall be
established at the DLD. Members of the Council shall be appointed pursuant to a resolution
of the Director General. The Council shall have jurisdiction to settle disputes relating to
Brokerage.201 200Article (35)
The Council shall consider a Brokerage dispute only if the relevant Brokerage agreement
provides for the amicable settlement of disputes by the DLD, or if the disputants
subsequently agree to refer their disputes to the DLD. The agreement to settle disputes
amicably must be in writing and the subject matter of dispute must be specified in the
amicable settlement agreement document.
Article (36)
The Council shall perform its duties in accordance with simplified procedures aimed at
settling disputes expeditiously and ensuring justice for disputants. In this regard, the
Council shall follow the general principles of law. The Council’s decisions must be issued in
accordance with the rules of law unless the Council is authorised to conduct conciliation,
in which case the Council shall not be bound by these rules, except for those relating to
public order.
Article (37)
The Council shall have a secretariat, which shall receive requests, open case files, draft
reports and minutes of meetings, serve notices on disputants, maintain case files, and
generally provide all administrative support services to the Council. The secretariat shall
be appointed pursuant to a resolution of the Director General.
Article (38)
1. An amicable settlement application shall be submitted to the Committee by the
applicant on the form prescribed for this purpose. The application shall be accompanied
by the supporting documents in a number of copies equal to the number of disputants.
2. Upon payment of the prescribed fee, the chairman of the Committee shall order the
registration of the application, and the secretariat shall notify the adversary of the
application.
3. The adversary must reply in writing to the application statement and to all facts and
claims included therein, and must submit this reply and any relevant supporting
documents to the secretariat within one (1) week from the date of being notified of
the application.
4. The Council must determine the dispute within thirty (30) days from the date of
referral of the dispute file, and this period may not be extended without valid reasons.Chapter Six
Penalties and Loss of a Real Property Broker’s Status
Article (39)
Without prejudice to any penalty prescribed by applicable laws, the Committee may
impose any of the following penalties on any Broker who violates this Bylaw or the
resolutions or instructions issued in pursuance hereof:
1. notice;
2. warning;
3. suspension of activity for up to six (6) months; or
4. bl |
acklisting.
Article (40)
The registration of a Broker in the Register shall be revoked if he breaches the Code of
Ethics; commits a gross violation of the laws, regulations, or instructions in force in
the Emirate; or receives three (3) black points. Revocation shall take effect pursuant to
a resolution of the Director General upon the recommendation of the Committee, and
this resolution shall state the reasons for the revocation. The Broker may submit to the
Chairman a grievance against the revocation decision, within fifteen (15) days from the
date of being notified of the decision. The decision of the Chairman in this respect shall
be final.
Article (41)
A Person shall cease to be a Broker and his registration with the DLD shall be revoked if:
1. he ceases his Brokerage activity permanently and notifies the DLD of the cessation;
2. he suspends his Brokerage activity for more than twelve (12) consecutive months
without a valid reason acceptable to the Committee;
3. he ceases to meet any of the requirements stipulated in this Bylaw or in any
resolutions or instructions issued in pursuance hereof;
4. his registration is proven to have been granted based on false information supplied
by him to the Division; or
5. the Chairman issues a resolution revoking the Broker’s registration in accordance
with Article (40) of this Bylaw.202Article (42)
The Division must notify the Competent Entities of any decision suspending the activity
of a Broker or revoking his registration.
Chapter Seven
Final Provisions
Article (43)
All Brokers operating by the date of issue of this Bylaw must comply with its provisions
within six (6) months from the day on which it is issued. The Chairman may extend this
period by up to three (3) months based on valid reasons justifying that extension.
Article (44)
The Committee may, in consultation with Competent Entities, classify Brokers according
to their specialisation or limit their number based on the need for their services.
Article (45)
The DLD shall collect fees for the services provided pursuant to this Bylaw. These fees shall
be determined pursuant to a resolution of the Chairman.
Article (46)
The Chairman shall issue the orders, resolutions, and instructions required for the
implementation of this Bylaw.
Article (47)
This Bylaw comes into force on the day on which it is signed, and shall be published in the
Official Gazette.
Mohammed bin Khalifa Al Maktoum
Chairman of the Land Department
Issued in Dubai on 30 May 2006
Corresponding to 3 Jumada al-Ula 1427 A.H. Regulation No. (3) of 2006
Determining Areas for Ownership by
Non-UAE Nationals of
Real Property in the Emirate of Dubai 205 204Regulation No. (3) of 2006
Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai,
Do hereby this Regulation.
Artic |
le (1)
This Regulation shall be cited as “Regulation No. (3) of 2006 Determining Areas for
Ownership by Non-UAE Nationals of Real Property in the Emirate of Dubai”.
Article (2)
In implementing this Regulation, the following words and expressions shall have the
meaning indicated opposite each of them unless the context implies otherwise:
Ruler : His Highness the Ruler of the Emirate of Dubai.
DLD : The Land Department.
Real Property : Anything which is fixed and cannot be moved without damage or
alteration of its structure.
Article (3)
A Non-UAE National may acquire freehold ownership rights, without time restriction, and
usufruct and lease rights for up to ninety-nine (99) years, in the land plot(s) indicated
opposite each of the following areas, which are shown on the plans issued by the DLD and
attached hereto:
1. Umm Hurair 2 Plot No. (013);
2. Al Barsha South 2 Plot No. (002);
3. Al Barsha South 3 Plot No. (002);
4. Emirates Hills 1 Plots No. (004) and (814);
5. Emirates Hills 2 Plots No. (001) and (049);
6. Emirates Hills 3 Plot No. (001);
7. Jebel Ali Plots No. (051), (074), (081), (082), (083), (084),
(142), (143), and (391);8. Al Jaddaf Plots No. (003), (007), and (008);
9. The World Islands Plot No. (001);
10. Ras al Khor Plot No. (165);
11. Al Rowaiyah Plots No. (063) and (065);
12. Sheikh Zayed Road Plots No. (118) and (147);
13. Sofouh 1 Plot No. (069);
14. Sofouh 2 Plot No. (005);
15. Al-Qouz 3 Plots No. (005) and (006);
16. Al-Qouz Industrial Area 2 Plots No. (010) and (030);
17. Al-Qouz Industrial Area 3 Plot No. (028);
18. Mirdif Plots No. (143) and (144);
19. Dubai Marina Plots No. (007), (014), (015), and (033);
20. Palm Jebel Ali Plot No. (001);
21. Palm Jumairah Plot No. (001);
22. Nad Al Sheba Plots No. (209), (215) and (222); and
23. Warsan 1 Plot No. (002).
Article (4)
A Non-UAE national may acquire usufruct or lease rights for up to ninety-nine (99) years
in Plot No. (224), Nad Al Sheba, which is shown on the relevant plan approved by the DLD
and attached hereto.
Article (5)
This Regulation shall be published in the Official Gazette and shall come into force on the
day on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 7 June 2006
Corresponding to 11 Jumada al-Ula 1427 A.H.Regulation No. (1) of 2010
Amending Regulation No. (3) of 2006
Determining Areas for
Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai 209 208Regulation No. (1) of 2010
Amending Regulation No. (3) of 2006 Determining Areas for
Ownership by Non-UAE Nationals of Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai; and
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai,
Do hereby issue this Regulation.
Article |
(1)
Article (4) of the above-mentioned Regulation No. (3) of 2006 is hereby superseded by the
following:
Article (4)
A non-UAE national may acquire freehold ownership rights, without time restriction, in
the Real Property existing on Plot No. (224), Nad Al Sheba, shown on the plan attached to
this Regulation.
Article (2)
Any provision in any other legislation shall be repealed to the extent that it contradicts the
provisions of this Regulation.
Article (3)
This Regulation shall be published in the Official Gazette and shall come into force on the
day on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 March 2010
Corresponding to 2 Rabi al-Thani 1431 A.H.
Regulation No. (1) of 2011
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in
the Emirate of Dubai 213 212Regulation No. (1) of 2011
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai; and
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai and its amendments,
Do hereby issue this Regulation.
Article (1)
Plot No. (126), Al Lisaili, and Plot No. (1), Me’aisam 2, whose boundaries and areas are
demarcated on the plans attached to this Regulation, are hereby designated as land to
which Article (3) of the above-mentioned Regulation No. (3) of 2006 applies and in which
non-UAE nationals may acquire freehold ownership rights, without time restriction, and
usufruct and lease rights for up to ninety-nine (99) years.
Article (2)
This Regulation comes into force on the day on which it is issued, and shall be published
in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued on 24 April 2011
Corresponding to 21 Jumada al-Ula 1432 A.H.
214
Regulation No. (2) of 2012
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in
the Emirate of Dubai 217 216Regulation No. (2) of 2012
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai; and
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai and its amendments,
Do hereby issue the following Regulation.
Article (1)
A non-UAE national may acquire usufruct rights, for up to eighty-five (85) years, in the Real
Property existing on Land Plot No. (1), Dubai Investment Park First, and Land Plot No. (1),
Dubai Investment Park Second, whose boundaries and areas are demarcated on the plans
attached to this Regulation.
Article (2)
This Regulation comes into force on the day on which it is iss |
ued, and shall be published
in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 7 June 2012
Corresponding to 17 Rajab 1433 A.H.
218
Regulation No. (3) of 2012
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in
the Emirate of Dubai 221 220Regulation No. (3) of 2012
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai; and
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai and its amendments,
Do hereby issue this Regulation.
Article (1)
A non-UAE national may acquire usufruct rights, for up to ninety-nine (99) years, in the
Real Property existing on Plot No. (2780-251), Mirdif, whose boundaries and area are
demarcated on the plan attached to this Regulation.
Article (2)
This Regulation comes into force on the day on which it is issued, and shall be published
in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 7 October 2012
Corresponding to 21 Thu al-Qidah 1433 A.H.
Resolution No. (14) of 2015
Adding Land to the Areas for Ownership
by Non-UAE
Nationals of Real Property in the
Emirate of Dubai 225 224Resolution No. (14) of 2015
Adding Land to the Areas for Ownership by Non-UAE
Nationals of Real Property in the Emirate of Dubai
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (9) of 2015 Concerning the Dubai World Trade Centre; and
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai and its amendments,
Do hereby issue this Resolution.
Real Property Ownership Right
Article (1)
A non-UAE National may acquire freehold ownership rights, without time restriction,
in commercial and residential Real Property Units existing on the following land plots,
whose boundaries and areas are demarcated on the plans attached to this Resolution:
- Plot No. (21), Madinat Al Mataar (521);
- Plot No. (22), Madinat Al Mataar (521);
- Plot No. (23), Madinat Al Mataar (521); and
- Plot No. (24), Trade Centre Second (336).
Commencement and Publication
Article (2)
This Resolution comes into force on the day on which it is issued, and shall be published
in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 November 2015
Corresponding to 6 Safar 1437 A.H.
227 226
228
Resolution No. (8) of 2016
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in
the Emirate of Dubai 231 230Resolution No. (8) of 2016
Adding Land to the Areas for Ownership by
Non-UAE Nationals of Real Property in the Emirate of Dubai
We, Mohammed b |