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ached 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 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 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. (10) of 2015 Concerning the Dubai Aviation City Corporation (the “DACC”); 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.
Ownership, Usufruct, and Long-term Lease Rights
Article (1)
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 and Real Property
Units existing on the following land plots, whose boundaries and areas are demarcated
on the plans attached to this Resolution:
1. Plot No. (205), Madinat Al Mataar (521);
2. Plot No. (206), Madinat Al Mataar (521); and
3. Plot No. (207), Madinat Al Mataar (521).
Previous Dispositions
Article (2)
All dispositions made by the DACC, prior to the effective date of this Resolution, in respect
of the land plots mentioned in Article (1) hereof are hereby deemed valid.
Commencement and PublicationArticle (3)
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 9 June 2016
Corresponding to 4 Ramadan 1437 A.H.
233 232
234
Resolution No. (18) of 2019
Adding Land to the Areas for Ownership by
Non-UAE Nationals of
Real Property in the Emirate of Dubai 237 236Resolution No. (18) of 2019
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;
Decree No. (29) of 2019 Amalgamating Land Plots into 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.
Ownership, Usufruct, and Long-term Lease Rights
Article (1)
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 and Real Property
Units existing in the following land plots, whose boundaries and areas are demarcated on
the plans attached to this Resolution:
- Plot No. (69), Trade Centre Second;
- Plot No. (120), Zaabeel Second;
- Plot No. (121), Zaabeel Second; and
- Plot No. (122), Zaabeel Second.
Publication and Commencement
Article (2)
This Resolution 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.
239 238
241 240
243 242
245 244
247 246
|
DUBAI REAL ESTATE
LEGISLATIONOur Vision:
To be a global real estate leader in attracting investments.
Our Mission:
To create a real estate environment that applies best international practices to guarantee the rights of all stakeholders, and to contribute to the development of society by:
• Developing and applying clear and transparent real estate
regulations
• Providing distinctive and efficient real estate services that help attract investment
• Increasing real estate knowledge55Contents
Law No. (7) of 2013 ...................................................................................................................................................................... 7
Concerning the Land Department
Decree No. (43) of 2013 ........................................................................................................................................................... 17
Determining Rent Increases for Real Property in the Emirate
of Dubai
Decree No. (26) of 2013 ........................................................................................................................................................... 21
Concerning the Rent Disputes Settlement Centre in the
Emirate of Dubai
Executive Council Resolution No. (30) of 2013 ............................................................................................................ 35
Approving Fees of the Land Department
Decree No. (4) of 2010 ............................................................................................................................................................ 47
Regulating the Grant of Title to Allotted Industrial and
Commercial Land in the Emirate of Dubai
Executive Council Resolution No. (6) of 2010 .............................................................................................................. 51
Approving the Implementing Bylaw of Law No. (13) of 2008
Regulating the Interim Property Register in the Emirate
of Dubai
Decree No. (56) of 2009 ......................................................................................................................................................... 63
Establishing a Special Tribunal for the Settlement of Cheque
Disputes Relating to Real Estate Transactions
Law No. (9) of 2009 .................................................................................................................................................................. 67
Amending Law No. (13) of 2008 Regulating the Interim
Property Register in the Emirate of Dubai66Law No. (33) of 2008 Amending Law No. (26) of 2007 .............................................................................................. 73
Regulating the Relationship between Landlords and Tenants in
the Emirate of Dubai
Law No. (13) of 2008 ................................................................................................................................................................ 81
Regulating t |
he Interim Property Register in the Emirate
of Dubai
Law No. (27) of 2007 ................................................................................................................................................................. 87
Concerning Ownership of Jointly Owned Real Property in the
Emirate of Dubai
Law No. (26) of 2007 .............................................................................................................................................................. 101
Regulating the Relationship between Landlords and Tenants in
the Emirate of Dubai
Law No. (16) of 2007 ............................................................................................................................................................. 113
Establishing the Real Estate Regulatory Agency
Law No. (8) of 2007 ................................................................................................................................................................. 119
Concerning Escrow Accounts for Real Estate Development in
the Emirate of Dubai
Regulation No. (3) of 2006 ................................................................................................................................................. 129
Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai
Bylaw No. (85) of 2006 .......................................................................................................................................................... 133
Regulating the Real Estate Brokers Register in the Emirate
of Dubai
Law No. (7) of 2006 ................................................................................................................................................................. 147
Concerning Real Property Registration in the Emirate of Dubai77Law No. (7) of 2013
Concerning the Land Department88Law No. (7) of 2013
Concerning the Land Department (1)
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;
The Government of Dubai Human Resources Management Law No. (27) of 2006 and
its amendments;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate 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 Property Register of the Emirate of Dubai
and its amendments,
Do hereby issue this Law.
Title of the Law
Article (1)
This Law will be cited as “Law No. (7) of 2013 Conce |
rning the Land Department” .
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail. 99Definitions
Article (2)
The following words and expressions, wherever mentioned in this Law, will 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.
Department: The Land Department.
Chairman: The chairman of the Department.
Director General: The director general of the Department.
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 Department and its affiliated entities.
Scope of Application
Article (3)
The provisions of this Law will apply to the Land Department established by virtue of the above mentioned Declaration issued on 24 January 1960.
Head Office of the Department
Article (4)
The head office of the Department will be located in the Emirate, and the Department may establish branches and offices within the Emirate. 1010Objectives of the Department
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 Department will
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 consistent with the latest
international systems;
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 overall development of
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.
Functions of the Department
Article (6)
In addition to the functions assigned to it by virtue of the legislation in force, the Department will 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 Department consistent with the latest international systems in this regard;
3. regulate real property activities through setting the rules regulating the escrow accounts 1111for real property development, real estate 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 Department, 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 the Emirate through organising and participating in local, regional, and international real property conferences, events,
and exhibitions;
10. consider applications of real property investors to obtain the benefits prescribed by
the legislation and the policies adopted by the Department;
11. prepare and issue reports and studies specialised in the real property market to increase awareness, prepare bulletins and data to support these studies, and provide decision-makers with the findings of such 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 estate brokers, and other persons engaging in real property 1212activities in the Emirate, and prepare and conduct educational and awareness
programmes on the rights and duties of those involved in the real property sector;
16. provide specialised real property consultations for real estate 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 so |
lutions
for them;
19. assess the performance of the affiliated entities of the Department 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
Department with opinions and advice on issues referred to it; and
22. perform any other duties required for the achievement of the objectives of the Department.
Chairman of the Department
Article (7)
a. A Chairman will be appointed to the Department pursuant to a decree issued by the Ruler.
b. The Chairman will undertake the general supervision of the Department and make decisions as he deems appropriate to achieve its objectives. In particular, the Chairman will:
1. approve the general policy and strategic plans of the Department and its affiliated entities;
2. approve the organisational structure of the Department and its affiliated entities;
3. approve the draft annual budget and final accounts of the Department;
4. approve the fees and charges for the services provided by the Department and 1313its affiliated entities; and
5. perform any other duties or exercise any other powers related to the work of the
Department and assigned to him by the Ruler.
c. The Chairman may delegate any of the powers vested in him by virtue of this Law or
any other legislation to the Director General.
Director General
Article (8)
a. A Director General will be appointed to the Department pursuant to a decree issued by the Ruler.
b. The Director General will undertake the supervision of the administrative, technical, and financial affairs of the Department, and will represent it before third parties. In
particular, he will:
1. propose the general policy and strategic plans of the Department and its affiliated
entities, and supervise the implementation of these policies and plans upon
being approved;
2. propose the organisational structure of the Department and its affiliated entities;
3. approve the bylaws and resolutions regulating the administrative, financial, and
technical work of the Department and its affiliated entities;
4. propose the annual draft budget of the Department and prepare its final accounts;
5. propose the fees and charges for the services provided by the Department and its affiliated entities;
6. supervise the work of the executive body of the Department and its affiliated entities;
7. supervise the work of the executive directors of the affiliated entities of the
Department 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.1414Executive Body of the Department
Article (9)
The executive b |
ody of the Department will be comprised of a number of administrative
and technical employees. The Government of Dubai Human Resources Management Law No. (27) of 2006 and its amendments will apply to these employees.
Affiliated Entities of the Department
Article (10)
a. Specialised entities working in areas related to regulating, conducting, and developing Real Property Activities in the Emirate may be affiliated with the Department.
b. The Department may, in accordance with its needs and the work requirements of its
affiliated entities, propose redefining the goals and objectives, dissolution, or merger
of these entities. These proposals will be submitted to the competent authorities for approval.
c. Affiliated entities of the Department will implement the adopted plans and policies, and will 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
Department will charge fees as determined pursuant to a resolution of the Chairman of
the Executive Council.
Financial Resources of the Department
Article (12)
The financial resources of the Department will consist of the following:
1. support allocated to the Department in the general budget of the Government; 15152. fees and charges for the services provided by the Department; and
3. any other resources approved by the Executive Council.
Accounts and Financial Year of the Department
Article (13)
In regulating its accounts and records, the Department will follow the Government
accounting rules and standards. The financial year of the Department will commence on
1 January and will end on 31 December of each year.
Issuing Implementing Resolutions
Article (14)
The Chairman of the Executive Council will 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 will be repealed. Any
provision in any other legislation will also be repealed to the extent that it contradicts the
provisions of this Law.
Commencement and Publication
Article (16)
This Law comes into force on the day on which it is issued, and will be published in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 September 2013Corresponding to 13 Thu al-Qidah 1434 A.H.1717Decree No. (43) of 2013
Determining Rent Increases for Real
Property in the Emirate of Dubai1818Decree No. (43) of 2013
Determining Rent Increases for Real Property
in the Emirate of Dubai (1)
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (9) of 2004 Concerning 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 Rent in the Emirate of Dubai;
Decree No. (26) of 2013 Concerning the Rent Disputes Settlement 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 increasefor real property in the Emirate of Dubai will 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;
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However,for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case ofconflict the Arabic text will prevail.1919c. 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 will apply to landlords, whether private or public entities, in the Emirate of Dubai, including those in special development zones and free zones such as 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 will 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 will be published in the
Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 December 2013Corresponding to 15 Safar 1435 A.H.2121Decree No. (26) of 2013
Concerning the Rent Disputes
Settlement Centre in the Emirate of
Dubai2222Decree No. (26) of 2013
Concerning the
Rent Disputes Settlement Centre in the Emirate of Dubai (1)
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 Issu |
ing the Civil Procedure Code and its amendments;
Law No. (3) of 1992 Establishing 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;
The Government of Dubai Human Resources Management Law No. (27) of 2006 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 Rent 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.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.2323Title of the Decree
Article (1)
This Decree will be cited as “Decree No. (26) of 2013 Concerning the Rent Disputes
Settlement Centre in the Emirate of Dubai” .
Definitions
Article (2)
The following words and expressions, wherever mentioned in this Decree, will 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.
Council: The Judicial Council.
Department: The Land Department.
Centre: The Rent Disputes Settlement Centre in the Emirate.
Tribunal: The tribunal formed at the First Instance Division or Appellate Division
of the Centre.
Rent Dispute: A dispute that arises between the landlord and tenant in relation to
leasing and 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 Rent 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 involved with the real property rental sector and other related sectors.2424Scope of Application
Article (4)
a. The provisions of this Decree will apply to the Special Tribunal to Determine Disputes
between Landlords and Tenants established by virtue of the above mentioned
Decree No. (2) of 1993.
b. The name “Rent Disputes Settlement Ce |
ntre in the Emirate of Dubai” will replace the name “Special Tribunal to Determine Disputes between Landlords and Tenants”.
Head Office of the Centre
Article (5)
The Centre will have its head office in the Department, and may establish other offices in the Emirate.
Jurisdiction of the Centre
Article (6)
a. The Centre will have the exclusive jurisdiction to:
1. determine all Rent Disputes that arise between landlords and tenants of real
property situated in the Emirate or in free zones, including 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 thereof; and
3. enforce the decisions and judgments issued by the Centre in the Rent Disputes
that fall within its jurisdiction.
b. The Centre will have no jurisdiction to hear the following Rent Disputes:
1. Rent Disputes that arise within the free zones which have tribunals or special courts having jurisdiction to determine the Rent Disputes that arise within their boundaries;
2. Rent Disputes that arise from a lease finance contract; and25253. disputes that arise from long-term lease contracts covered by the above
mentioned Law No. (7) of 2006.
Organisational Structure of the Centre
Article (7)
a. The organisational structure of the Centre will consist of two sectors: a judicial sector and an administrative sector.
b. The judicial sector will 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 Centre will comprise a number of organisational units charged with the duty of providing technical and administrative support to the
judicial sector.
Chairman of the Centre
Article (8)
A chairman, who must be a judge whose grade is not be lower than the grade of an
appellate court judge, will be appointed to the Centre pursuant to a decree issued by the
Ruler. The chairman will undertake the supervision of the judicial sector of the Centre and
will, in particular, have the powers to:
1. supervise the distribution of claims at the First Instance Division and the Appellate Division;
2. propose the regulations and resolutions necessary for the regulation of the work in the judicial sector of the Centre, including the fees and the charges for services
provided by the Centre; and
3. coordinate with all judicial and government entities with respect to all matters relating
to the work of the Centre in the judicial sector.2626Secretary General of the Centre
Article (9)
A secretary general will be appointed to the Centre pursuant to a resolution issued by the
director general of the Department to undertake the supervision of the administrat |
ive sector of
the Centre and any other duties assigned or delegated to him by the chairman of the Centre.
Mediation and Conciliation Directorate
Article (10)
a. A Mediation and Conciliation Directorate will be established in the Centre with the
power to amicably settle Rent Disputes in accordance with the rules adopted in this
respect by the chairman of the Centre, 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 will be comprised of a number of lawyers
and experts to be appointed by the Department.
c. Rent Disputes submitted to the Mediation and Conciliation Directorate will be heard
and settled by a number of specialists working under the supervision of a judge
assigned to work with the Centre for this purpose.
d. The Mediation and Conciliation Directorate will 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.
e. The time bar periods and limitation periods stipulated by the legislation in force will be suspended
from the date of registering the Rent Dispute with the Mediation and Conciliation Directorate.
f. The Mediation and Conciliation Directorate will 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 2727will be documented in a settlement agreement to be signed by the parties and
approved by the judge supervising the Mediation and Conciliation Directorate. This agreement will 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 will specify the scope of his assignment, the period required for completion of this assignment, his
remuneration, and the party responsible for payment of such remuneration.
i. A fee will 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 at the Centre. One-half of the fee will 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 comprise the First Instance Division and Appellate Division will be appointed pu |
rsuant 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 will take the
following oath before the chairman of the Council:
“I swear by Allah the Almighty that I will administer justice, respect the laws, and discharge
my duties with integrity and honesty”.
The First Instance Division
Article (13)
a. The First Instance Division will be comprised of a sufficient number of Tribunals, each of
which is formed of a chair and two (2) competent and experienced members specialised 2828in law and real property. These Tribunals will have the jurisdiction to determine the Rent
Disputes referred to in Article (6) of this Decree, and the chair of each Tribunal must be a judge. Notwithstanding the foregoing, the chairman of the Council may appoint an
experienced and specialised lawyer as chair of any of these Tribunals.
b. The chairman of the Centre may designate one or more Tribunals within the First
Instance Division to hear certain types of Rent Disputes depending on the nature of
the claim, or the location or nature of use of the leased real property unit.
The Appellate Division
Article (14)
The Appellate Division will be comprised of a sufficient number of Tribunals, each of
which is formed of two (2) judges and one (1) experienced member specialised in
real property. The chair of each Tribunal must be a judge. These Tribunals will have
jurisdiction to determine the appeals from decisions and judgments issued by the First Instance Division. Judgments of the Appellate Division will be final and not subject to
any form of appeal, and will be enforced in accordance with the procedures and rules
adopted by the Centre.
Meetings of Tribunals
Article (15)
Meetings of Tribunals will be valid if attended by all their members, and decisions will 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 rent 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 2929with the rules and procedures adopted in this respect by the chairman of the Council.
Appeals from Decisions of the
First Instance Division
Article (17)
a. Judgments of the First Instance Division will be appealed to the Appellate Division,
with the exception of judgments issued for rent claims whose value is less than one
hundred thousand Dirhams (AED 100,000), which will be final and not subject to any
form of appeal.
b. Judgments issued by the First Instance Division for claims whose value is less than
the value 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 issued breaches the rules of jurisdiction;
3. where the judgment grants relief |
that has not been requested by the parties, which exceeds that which they requested, or where the judgment fails to address relief requested 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 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 testimony that is judicially declared to be false after the judgment has been issued; or
6. where a party to a contract concealed 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 3030(15) days from the day following the date 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 defence, the time limit for appeal will
commence from the date upon which he is served with the judgment.
b. To admit an appeal of a judgment issued by the First Instance Division in claims
involving financial claims, the party against whom the judgment was issued must
deposit half of the judgment amount with the Centre until the appeal is determined.
Notwithstanding the foregoing, the chairman of the Centre may decide to admit the appeal without deposit of that amount or upon payment of a part thereof.
Applicable Sources
Article (19)
The Tribunals will determine Rent Disputes and appeals submitted to it by reference to:
1. the legislation in force in the Emirate;
2. the provisions of Islamic Sharia;
3. principles of natural justice and rules of truth and fairness; and
4. custom, provided that such custom does not contradict the laws, public order, or
public morals.
Operating Procedures of the Centre
Article (20)
The Chairman of the Centre will issue regulations concerning the procedures and rules to be adopted by the Centre 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 such regulations are issued, the Centre may be guided by the provisions
of the procedural rules adopted by the Special Tribunal to Determine Disputes between
Landlords and Tenants.3131Enforcement of Judicial Judgments
Article (21)
All final and irrevocable judgments issued by the First Instance Division and the Appellate
Division will be enforced by the Judgment Enforcement Directorate of the Centre. The
chairman of the Centre may seek assistance from the Execution Department of Dubai
Courts to enforce the judgments issued by the Centre.
Appeals from Decisions and Judgments Issued
before the Effective Date of this Decree
Ar |
ticle (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 such effective date.
Fees
Article (23)
a. In return for registering the claims and applications submitted to the Centre and
other services provided by it, the Centre will charge fees as determined pursuant to
a resolution of the Chairman of the Executive Council.
b. The fees stipulated in the above mentioned Local Order No. (1) of 2004 will 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 will issue regulations concerning the financial remuneration
that may be paid to chairs and members of Tribunals.3232Automation and Use of Technology
Article (25)
The activities of the Centre in the judicial and administrative sectors will be
automated to ensure simplification of procedure and expeditious determination
of Rent Disputes.
Providing Support to the Centre
Article (26)
The Department will provide all necessary support to the Centre to enable it to perform
the functions assigned to it by virtue of this Decree, including providing office premises
and administrative, financial, and technical support.
Financial Resources of the Centre
Article (27)
The financial resources of the Centre will consist of:
1. support allocated to the Centre in the budget of the Department; and
2. fees and charges for the services collected by the Centre with respect to claims,
applications, transactions, and the services provided by the Centre.
Transitional Provisions
Article (28)
a. The Centre will hear and determine all claims and applications being heard by the
Special Tribunal to Determine Disputes between Landlords and Tenants on the
effective date of this Decree. These claims and applications will be referred at their
current status unless the case is reserved for judgment.
b. All employees of the Special Tribunal to Determine Disputes between Landlords and Tenants will be transferred to the Department as of the effective date of this
Decree without prejudice to their existing rights. The Government of Dubai Human 3333Resources Management Law No. (27) of 2006 and its amendments will apply to
these employees.
Repeals
Article (29)
a. This Decree will supersede Law No. (15) of 2009 Concerning Hearing Rent 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 will be repealed to the extent that it contradicts
the provisions of this Decree.
Issuing Implementing Resolutions
Article (30)
The chairman of the Council will issue the resolutions required for the implementation of the provisions of this Decree.
Publication and Commencement
Article (31)
This Decree will be published in the Official Gaz |
ette and will come into force sixty (60) days after the date of its publication.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 September 2013Corresponding to 13 Thu al-Qidah 1434 A.H.3535Executive Council Resolution No. (30)
of 2013
Approving Fees of the Land
Department3636Executive Council Resolution No. (30) of 2013
Approving
Fees of the Land Department (1)
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 2009 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 Grant of Title of Land Allocated for Industrial and Commercial Use in the Emirate of Dubai; and
Executive Council Resolution No. (24) of 2006 Approving Charges for Certain Real
Property Transactions in the Emirate of Dubai,
Do hereby issue this Resolution.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.3737Definitions
Article (1)
The following words and expressions, wherever mentioned in this Resolution, will have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Department: The Land Department.
Fee: The amounts and percentages charged pursuant to this Resolution for the
registration of Real Property Dispositions and for the services provided by
the Department.
Real PropertyRegister:The real property register and 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)
By virtue of 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 Department, as set out
in Table (1) attached hereto, are approved.
Fee P |
ayment Rules
Article (3)
When paying the Fees prescribed by Article (2) of this Resolution, the following will apply:
1. unless agreed otherwise, the Fee for the sale of real property will be shared equally 3838by 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 will be paid by collection of
two percent (2%) of the value of the real property from the owner, landlord, or holder of a 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 will 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 estate will 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, wills, mortgages, debt
conversions, family endowments (Family Waqf), and registering the rights of the heirs of
tenants, will 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 will be paid by the applicant.
Fee Assessment
Article (4)
For the purpose of calculating the Fees payable under this Resolution, the Department will:
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 such
value is undetermined, where it is established that the value stated in the disposition contract is less than the market value, or where false information or data is submitted with respect to these real property and Real Property Dispositions. 3939Evasion of Fees
Article (5)
The following acts will be considered 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 will be punished by a
fine of double the prescribed Fee.
b. Any real property developer or real estate broker who assists any person under
obligation to pay Fees in evading the payment of such Fees will be |
punished by the same penalty stipulated in paragraph (a) of this Article.
Law Enforcement Officers
Article (7)
Employees of the Department determined pursuant to a resolution of the Director General, in coordination with the Director General of the Government of Dubai Legal
Affairs Department, will 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 thereof. 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 against any 4040decision or measure taken against him under this Resolution. The grievance will be
determined, within thirty (30) days from the date of submission of the grievance, by a committee formed by the Director General for this purpose, and the decision on the
grievance will be final.
Payment of Fees and Fines
Article (9)
The Fees and fines collected by virtue of this Resolution will be paid to the Public Treasury
of the Government of Dubai.
Issuing Implementing Resolutions
Article (10)
The Director General will issue the resolutions required for the implementation of the provisions of this Resolution.
Publication and Commencement
Article (11)
This Resolution will be published in the Official Gazette and will 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 2013Corresponding to 13 Thu al-Qidah 1434 A.H.4141Table of Fees for Registration of Real Property Dispositions and
Fees for Services Provided by the Land Department
S Description Fee
1 Registering a real property sale contract4% of the value of the
sale contract
2 Registering a warehouse sale contractAED 10 per square meter of the plot on which the warehouse is
constructed, provided
that the Fee will not be less than AED 10,000
3Grant of title of land allocated for industrial or commercial use to the beneficiary 30% of the market value of the land
4Grant of title of land allocated for industrial or commercial use to the possessor50% of the market value of the land
5 Registering a gift of real property0.125% of the value of the
real property given as a
gift, provided that the Fee will not be less than AED
2,000
6 Registering a rent-to-own contract4.25% (being 4% of the
value of the real property,
and 0.25% of the total
value of the rent-to-own contract)
7Amending the registration of a rent-to-own contractAED 1,000
8Application for transferring the ownership of real property from one financer to another in a rent-to-own contract0.25% of the total value of
the rent-to-own contract4242S Description Fee
9Marking an entry in the real property’s folio in the
register to indicate that a rent-to-own contract is
terminatedAED 1,000
10 Registering a mortgage contract0.25% of the mortgage
(debt) value
11 Varia |
tion of the details of a mortgage AED 1,000
12 Transferring a mortgage0.25% of the mortgage
(debt) value
13 Discharging a mortgage AED 1,000
14 Registering a long-term lease contract4% of the total value of the lease contract
15Amending the registration of a long-term lease
contractAED 1,000
16 Registering a usufruct right2% of the real property value
17Registering a contract for the use and development of the land of another person (Musataha)1% of the consideration paid for the Musataha contract
18Amending the registration of a contract for the use and development of the land of another person (Musataha)AED 1,000
19Transferring a contract for the use and development of the land of another person (Musataha)1% of the consideration paid for the Musataha contract
20Terminating a contract for the use and development of the land of another person (Musataha)AED 1,000
21Supervising the sale of real property by public auction1% of the auction value, provided that the Fee will
not exceed AED 30,0004343S Description Fee
22 Issuing title deed of real property AED 250
23 Holding an electronic public auction AED 10,000
24Licensing a public auction outside the
DepartmentAED 10,000
25Issuing a replacement for a lost or damaged title
deed or possession certificate of real propertyAED 1,000
26 Registering land given as a gift AED 500
27Registering the ownership of real property in the name of heirs AED 1,000 for each inherited real property
28 Registration of a family endowment (family Waqf)AED 2,000 for each real
property
29Transferring the share of real property belonging
to an heir to the other heirs (Takharuj) 1% of the value of the real
property subject to the transfer (Takharuj)
30Subdividing a co-owned real property between co-owners 1% of the value of the real property subject to
subdivision
31 Issuing a ‘To Whom It May Concern’ Certificate AED 50
32 Confirming the ownership of real property AED 5,000
33 Registering a will 0.125% of the value of the
real property, which is the subject matter of the will
34 Valuating vacant land AED 2,000
35Valuating land allocated for a real property
projectAED 10,000
36 Valuating agricultural land AED 6,000
37Valuating a real property unit (exclusive of the land)AED 4,000
38 Valuating land on which a hotel is constructed AED 15,0004444S Description Fee
39Valuating land on which a villa, compound, or a
commercial building is constructedAED 6,000
40Valuating land on which a residential villa is constructedAED 4,000
41 Determining the location of a site AED 200
42Issuing a replacement for a lost or damaged contract or a Real Property Disposition certificateAED 250
43Converting a lease contract with a term of less than ninety-nine (99) years, which is executed prior to the effective date of this Resolution, into a
freehold contract1% of the value of the
real property
44 Issuing a usufruct certificate AED 250
45 Cancelling a Real Property Disposition AED 1,000
46Marking an entry in the Real Property’s folio in |
the register (other than in relation to a mortgage) AED 100
47Registering a lease finance contract of real property in the name of the financer0.25% of the value of the real property
48Amending or removing an entry in the real
property’s folio in the register AED 1,000
49Authorising the cancellation of registration of a
real property unit sale contract AED 500
50 Effecting a real property settlement AED 3,000
51 Amalgamating or separating real property AED 500
52Amending an entry in the Interim Real Property RegisterAED 250 per unit
53Approving the plan of a plot, real property unit,
villa and its appurtenances AED 50
54 Approving the plan of common areas of land AED 2504545S Description Fee
55 Approving a plan of common areas in a building AED 350
56 Approving a building plan AED 500
57Approving a 3D plan of common areas in
a building AED 500
58 Approving a volumetric 3D plan (BMS) AED 1,000
59 Applying for a real property unit survey AED 3,000
60 Issuing a land map AED 100
61 Surveying a business centre AED 2,000
62 Issuing a villa/ real property unit plan AED 250
63 Issuing a plan of common areas in real property AED 3,000
64 Issuing a 3D building plan AED 5,000
65 Issuing a plan of common areas in a building AED 5,000
66 Issuing a building plan AED 2,500
67 Issuing a 3D plan of common areas in a building AED 5,000
68Issuing a plan of common areas (component plan)AED 5,000
69 Issuing a map of an Island AED 450
70 Issuing a land map and conducting a field survey AED 500
71Issuing a villa/real property unit plan and conducting a field surveyAED 600
72Issuing a plan of common areas of land and
conducting a field surveyAED 5,000
73Issuing a building plan and conducting a 2D
surveyAED 3,000
74Issuing a plan of common areas (component plan) and conducting a field survey AED 5,0004646S Description Fee
75Issuing a map of an island and conducting a field
surveyAED 3,000
76 Training a real property registrar AED 2,500
77 Changing the time of a training course AED 500
78Issuing a report on a real property investment project AED 500
79Attending at the client’s premises upon request to
process a real property transactionAED 2,000
80Processing an urgent Real Property
Disposition transaction AED 5,000
81 Subscription to a housing programme AED 400
82 Subscription to the Tayseer Programme AED 10,000
83Subscription to a project in the Tayseer ProgrammeAED 10,000
84Subscription of a real property developer in the
Tanmia ProgrammeAED 1,000
85Subscription to the Real Property Investment Plan
of the Emirate of DubaiAED 500
86Subscription of a real estate developer in the Real Property Investment Plan of the Emirate of DubaiAED 5,000
87Subscription to real property sustainability standards AED 10,0004747Decree No. (4) of 2010
Regulating the Grant of Title to
Allotted Industrial and Commercial
Land in the Emirate of Dubai4848Decree No. (4) of 2010
Regulating the Grant of Title to Allotted
Industrial and Commercial Land in the Emirate of Dubai (1)
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 Allotted by the
Government to UAE Nationals in the Emirate of Dubai;
The Order issued on 20 September 1994 Prohibiting Notaries Public from Attesting any Contract, Agreement, or Deed Relating to Disposition of Allotted Land; and
The Order issued on 12 July 2004 Concerning Land Allotted to UAE Nationals for Housing
Development in the Emirate of Dubai,
Do hereby issue this Decree.
Definitions
Article (1)
The following words and expressions, wherever mentioned in this Decree, will have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Government: The Government of Dubai.
Department: The Land Department.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.4949Allotted Land Land for industrial or commercial use whose usufruct right is conferred
upon UAE nationals, including:
1. land subject to an order of disposition; and
2. Allotted Land which is transferred to third parties by way of succession, assignment, donation, or in return for consideration.
Beneficiary: A UAE national to whom land is allotted.
Grant of Title of Allotted Land
Article (2)
Title to Allotted Land may be granted to the Beneficiary, upon his request, on a freehold basis and without any restriction on its use, exploitation, or disposition.
Procedures for Grant of Title of Allotted Land
Article (3)
Transfer of ownership of Allotted Land to the Beneficiary will be effected in accordance with the following procedure:
1. The Beneficiary submits to the Department an application for grant of title to the Allocated Land. The Department considers the application in coordination with other concerned
entities in the Emirate where required, and makes the appropriate decision in this regard.
2. The Department follows the procedure for the grant of title to the Allotted Land to the
Beneficiary, registers the land in his name in the Property Register, and issues the title deed
upon payment by the Beneficiary of the transfer of ownership fee prescribed in this Decree.
Fees for Grant of Title
Article (4)
The Beneficiary who desires the transfer of ownership of industrial or commercial land
into his name will pay a transfer of ownership fee of thirty percent (30%) of the market
value of the land as determined by the Department at the time of ownership transfer.5050Grant of Title to Persons in
Possession of Allotted Land
Article (5)
a. Notwithstanding any other provision in any other legislation, the occupier of Allocated Land
which has been transfe |
rred to him by a Beneficiary by way of sale may request that title to the
Allocated Land be granted to him on a freehold basis and without any restriction on its use
or exploitation.
b. The Department will grant title to the Allotted Land to the occupier of the Allotted Land upon reviewing his request, ensuring that the land is legally transferable to him, and ensuring that
he has paid the ownership transfer fee of fifty percent (50%) of the market value of the land.
Issuing Implementing Resolutions
Article (6)
The Director General of the Department will issue the instructions required for the
implementation of the provisions of this Decree.
Repeals
Article (7)
Any provision in any other legislation will 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 will be published in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 2 March 2010Corresponding to 16 Rabi al-Awwal 1431 A.H.5151Executive Council Resolution No. (6)
of 2010
Approving the Implementing Bylaw
of Law No. (13) of 2008 Regulating
the Interim Property Register in the
Emirate of Dubai5252Executive Council Resolution No. (6) of 2010
Approving the Implementing Bylaw of Law No. (13) of 2008
Regulating the Interim Property Register in the Emirate of Dubai (1)
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 of Real Estate Development in the
Emirate of Dubai; Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai and
its amendments; and
Bylaw No. (85) of 2006 Regulating the Real Estate Brokers Register in the Emirate of Dubai,
Do hereby issue this Resolution.
Article (1)
The following words and expressions mentioned in this Resolution, will have the meaning
ascribed to them in the Law No. (13) of 2008 Regulating the Interim Property Register in
the Emirate of Dubai and its amendments (the “Law”).
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.5353Article (2)
Where a Master Developer or Sub-developer requests, within the period stipulated in
paragraph (2) of Article (3) of the Law, the registration of the legal disposition of a Real
Property Unit with the Department, it will be deemed that he has complied with the time
peri |
od required by the Law, even if the Department fails to complete the registration procedure within such period.
Article (3)
If the Master Developer or Sub-developer submits a request to register the legal disposition of the Real Property Unit after expiry of the time period stipulated in paragraph
(2) of Article (3) of the Law, the Department must:
1. register the legal disposition in the Interim Property Register; and
2. impose a fine of ten thousand Dirhams (AED 10,000.00) on the developer.
Article (4)
The Master Developer or Sub-developer may not commence implementation of the
project or dispose of its Real Property Units by way of Off-plan Sale unless:
1. he has taken possession of the land plot and has received the demarcation certificate;
2. he has actual control over the land plot where the project is proposed to be
constructed; and
3. he has obtained the required approvals from the Competent Entities to commence
implementation of the project.
Article (5)
1. The Department must, whether on its own initiative or upon request by the concerned
parties, indicate in the record of the land plot where a development project is to be
constructed that the project is designated as “a development project governed by
the provisions of the Law”.
2. The Department will remove the designation referred to in the preceding paragraph upon completion of the development project and registration of its 5454Real Estate Units in the names of the purchasers in the Property Register or
upon cancellation of the project for any of the reasons set forth in Article (23) of this Resolution.
Article (6)
A request for registration of a Real Property Unit in the Interim Property Register must be submitted using the relevant electronic or paper form, along with the supporting
documents and deeds required by the Department.
Article (7)
1. Upon completion of the development project and obtaining the completion certificate
from the Competent Entities, the Master Developer or Sub-developer may not refuse
to hand over or register the Real Property Unit in the name of the purchaser in
the Property Register, provided that the purchaser has fulfilled all his contractual obligations even if there are other financial dues payable by such purchaser to the
developer other than in connection with the sale agreement of the relevant Real
Property Unit.
2. The Master Developer or the Sub-developer must register the Real Property Unit and
all its amenities, such as the car park, in the name of the purchaser.
3. If the Master Developer or Sub-developer refuses to register the Real Property Unit in the name of the purchaser in the Property Register for any reason whatsoever even
though the purchaser has fulfilled all his contractual obligations, the Department may, upon the request of the purchaser or upon its own initiative, register the Real
Property Unit in the name of the purchaser in the Property Register.
Article (8)
A Master Developer or Sub-developer may not charge |
a purchaser any amount for any
reason whatsoever in consideration for any legal disposition of a Real Property Unit,
unless such amounts are approved by the Department.5555Article (9)
Unless otherwise agreed, the Master Developer or Sub-developer and the
purchaser must pay the fees for registration of the legal disposition of a Real
Property Unit as per their respective percentages prescribed in accordance with
the applicable legislation.
Article (10)
If the Master Developer or Sub-developer wishes to market his project through a Real Estate Broker, the Master Developer or Sub-developer must comply with the following:
1. the project to be marketed through the Real Estate Broker must be registered with
the Department;
2. an agreement must be entered into with a licensed Real Estate Broker in accordance with Bylaw No. (85) of 2006 Regulating the Real Estate Brokers Register in the
Emirate of Dubai; and
3. the project marketing agreement with the Real Estate Broker must be registered with
the Department.
Article (11)
Any legal disposition made by the Master Developer, Sub-developer, or the Real Estate Broker for the sale of any Real Property or Real Property Unit off-plan prior to approval
of the project by the Competent Entities and its registration with the Department will be
null and void.
Article (12)
If the Master Developer or Sub-developer agrees with the Real Estate Broker to market the project in full or in part, the Real Estate Broker must deposit the sale proceeds of the
relevant Real Property Unit into the project escrow account. The Real estate Broker may
not deposit the sale proceeds in his own account or deduct his commission from such proceeds before depositing it in the escrow account. Any agreement to the contrary of
the provisions of this Article will be void.5656Article (13)
1. As of the effective date of this Resolution, the net area of the Real Property Unit
will be adopted for the purposes of registration in the Property Register and will be
calculated as determined by the Department.
2. Any area in excess of the net area of the sold Real Property Unit may not be taken into consideration. Unless otherwise agreed, the developer may not claim the value
of such extra area.
3. The developer must indemnify the purchaser if the area of the Real Property Unit is less than the agreed area by more than five percent (5%) of the net area of such unit.
4. The indemnity payable to the purchaser where the percentage of shortage of the
net area exceeds the percentage prescribed in paragraph (3) of this Article will be
calculated based on the price of the Real Property Unit as agreed in the relevant contract between the developer and the purchaser.
5. For the purposes of application of this Article, the net area of a Real Property Unit set out in the sale agreement and the plan of such unit will be taken as the basis for
calculation of any extra area or shortage in the area of the Real Property Unit.
Article (14)
If any disp |
ute arises between the developer and the purchaser, the Department
may attempt conciliation to preserve their contractual relationship and may propose
solutions for such purpose as it may deem fit. If the Department concludes an amicable
settlement, such settlement must be confirmed in writing by an agreement executed by the developer and the purchaser or their respective representatives. Upon confirmation
of such agreement by the Department, it will become binding upon both parties.
Article (15)
In any case where the purchaser breaches any of his obligations under the Real Property
Unit sale agreement concluded between the purchaser and the developer:
a. The developer must serve a notice on the purchaser to fulfil his contractual obligations, either by appearing in person before the Department or in writing by registered mail or 5757email, in which case the developer must provide the Department with a copy of such notice.
b. The Department must give the purchaser a notice period of thirty (30) days to fulfil
his contractual obligations, which will commence from the date on which the notice
is served by the developer on the purchaser.
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:
1. where he has completed at least eighty percent (80%) of the project, retain all the amounts paid by the purchaser and either sell the property by way of public
auction to recover the balance amounts payable to him, or terminate the agreement
and retain a maximum of forty percent (40%) of the value of the Real Property Unit;
2. where he has completed at least sixty percent (60%) of the project, terminate the agreement and retain a maximum of forty percent (40%) of the value of the
Real Property Unit set forth in the agreement;
3. where he has completed less than sixty percent (60%) of the project, terminate
the agreement and retain a maximum of twenty five percent (25%) of the value of the Real Property Unit set forth in the agreement; and
4. where he has not commenced implementation of the project for circumstances beyond his control, terminate the agreement and retain a maximum of thirty percent (30%) of the amounts paid by the purchaser to the developer.
d. The developer may resort to the relevant competent court to seek a judgment entitling him to the percentages as prescribed in paragraph (c) of this Article where the amounts retained by the developer are less than the respective amounts provided
for in sub-paragraphs (1), (2), (3) and (4) above.
Article (16)
A developer who has not commenced implementation of the project may not terminate
the agreement or retain thirty percent (30%) of the payments made by the purchaser
unless the developer provides evidence that he has fulfilled all his contractual obligations
to the purchaser and that failure to commence the project is not due to negligence or default on the part of the developer, or is due |
to circumstances beyond the control of
the developer.5858Article (17)
For the purposes of application of Article (15) of this Resolution:
1. The completion percentage of a project must be confirmed by a technical report
issued by a consultant approved by RERA. Such report must state the completed works based on an actual survey of the project.
2. Completion of levelling works and the infrastructure of the project will be deemed as commencement of the project construction.
Article (18)
The 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 terminating
the agreement or within sixty (60) days from the date of sale of the Real Property Unit,
whichever is earlier.
Article (19)
1. In the event of sale of the Real Property Unit by way of public auction in accordance
with the provisions of Article (15) of this Resolution, the Department may, at its
sole discretion, deposit the sale proceeds of the Real Property Unit in an escrow account and pay to the purchaser or his representative all the balance amounts 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 way of a public auction, provided that the developer must return the
balance amounts to the purchaser within the time period stipulated in Article (18) of
this Resolution.
Article (20)
The purchaser may apply to the relevant competent court to terminate the contractual relationship between the purchaser and the developer in any of the following cases:
1. if the developer refuses, without any reason acceptable to the Department, to deliver
the final sale agreement of the Real Property Unit to the purchaser;59592. if the developer declines to settle the payments in accordance with the construction
milestones as proposed by RERA;
3. if the developer makes material changes to the agreed specifications agreed to in the agreement;
4. if, upon handover of the Real Property Unit, it is found that the Real Property Unit is
unfit for use due to material constructional defects; or
5. any other cases that may require termination of the agreement in accordance with the general principles of law.
Article (21)
The following will be considered as circumstances beyond the control of the developer:
1. if the land plot on which the project to be constructed is expropriated for public
interest purposes;
2. if any Government Entity suspends the project for re-planning purposes;
3. if structures, excavations, or utility lines are found in the site of the project;
4. if the Master Developer makes any variations to the site of the project that change
the boundaries or area of the project in such a manner that affects the performance
of the Sub-developer’s obligations; and
5. any other circumstances determined by RERA.
Article (22)
The developer is deemed to have committed negligence or failed to perform his obligati |
ons in any of the following circumstances:
1. delay, without any valid reason, in taking possession of the land plot or obtaining
the required approvals from the Competent Entities to commence implementation
of the project;
2. a Sub-developer sells the project Off-plan without prior written consent of the
Master Developer;
3. delay in obtaining the written approval of the Master Developer of the plans and designs;
4. delay in preparing the project for the construction works;60605. failure to provide RERA with the information required to approve 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 circumstances determined by RERA.
Article (23)
RERA may, based on a reasoned technical report, decide to cancel the development
project in any of the following circumstances:
1. if the developer fails, without any valid reason, to commence the construction works despite having already obtained all the required approvals from the Competent Entities;
2. if the developer commits any of the offenses set forth in Article (16) of Law No. (8) of 2007 Concerning Escrow Accounts of Real Estate Development in the Emirate of Dubai;
3. if it is proven to RERA that the developer has no intention of implementing the project;
4. if the land plot upon which the project is to be constructed is revoked due to a breach by the Sub-developer of any of his contractual obligations to the Master Developer;
5. if the land plot is substantially 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. any other circumstances determined by RERA.
Article (24)
1. The developer may appeal a decision issued by RERA to cancel a project no later than seven (7) working days from the date on which the developer is notified of such decision.
2. The appeal must be in writing and must include the grounds of objection to the decision.
3. RERA must consider the appeal and render its decision within seven (7) working
days from the date of submission of the appeal to RERA.
4. If RERA allows the appeal, RERA must set the conditions and requirements the 6161developer must satisfy in order to overturn the decision to cancel the project.
5. The developer must undertake in writing to satisfy the conditions and requirements of RERA.
6. If RERA rejects the appeal, its decision in this regard will be final, in which case
RERA must proceed with the project cancellation procedures.
Article (25)
In any case in which RERA cancels a project, it must:
1. prepare a technical report justifying such cancellation;
2. notify the developer in writing, by registered mail or electronic mail, of the
cancellation decision;
3. appoint a certified audit |
or at the cost of the developer to review the financial position of the project and verify the amounts paid to the developer or deposited in the
escrow account of the development project, as well as the expenditures; and
4. request the escrow agent of the project or the developer, if payments are made otherwise than through the escrow account, to refund the amounts deposited in the
escrow account or paid to the developer to the relevant parties no later than fourteen (14) days from the date of such cancellation.
Article (26)
If the funds in the escrow account of the project are insufficient to refund the purchasers the amounts paid by them, the developer must refund the amounts payable to those
purchasers no later than sixty (60) days from the date of the decision cancelling the
project, unless RERA determines to extend such period for valid reasons.
Article (27)
If the developer fails to refund the amounts payable to the purchasers within the time period set forth in Article (26) of this Resolution, RERA must take all necessary actions
to secure the rights of purchasers, including referring the matter to the competent
judicial authorities.6262Article (28)
This Resolution comes into force on the day on which it is issued and will 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 2010Corresponding to 30 Safar 1431 A.H.6363Decree No. (56) of 2009
Establishing a Special Tribunal for
the Settlement of Cheque Disputes
Relating to Real Estate Transactions6464Decree No. (56) of 2009
Establishing a Special Tribunal for the Settlement of Cheque
Disputes
Relating to Real Estate Transactions (1)
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (3) of 1992 Establishing 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 of Real Estate Development in the Emirate of Dubai; and
Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai
and its amendments,
Do hereby issue this Decree.
Article (1)
By virtue of this Decree a special tribunal known as “Tribunal for the Settlement of Cheque
Disputes Relating to Real Estate Transactions” (the “Tribunal”) will be established and
will be comprised of:
1. a judge from the Court of Appeal, Dubai Courts as President;
2. a judge from the Court of First Instance, Dubai Courts as member; and
3. a representative from the Land Department as member.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.656 |
5Article (2)
Before assuming his duties, each member who is not a judge will take the following oath
before the Director of H.H. the Ruler’s Court:
“I swear by Allah the Almighty that I will administer justice, respect the law, and discharge
my duties with integrity and honesty.”
Article (3)
The Tribunal will have exclusive jurisdiction to settle complaints related to dishonoured cheques which are issued by a purchaser and made payable to a real estate developer,
or those cheques issued by those with usufruct rights or with long-term leasehold rights,
whose rights are preserved pursuant to the above mentioned Law No. (7) of 2006.
Article (4)
For the purpose of settlement of cheque-related complaints referred to it, the Tribunal may:
1. cancel the dishonoured cheque payable to a real estate developer if it is proven that
such developer is not entitled to the amount of the cheque;
2. order the cheque issuer to write a new cheque that will replace the cheque which is
the subject of the complaint payable on a date determined by the Tribunal;
3. refer the dishonoured cheque to the competent judicial authority to take the appropriate legal action against the cheque issuer if the real estate developer is
entitled to the amount of the cheque; and
4. seek the assistance of real estate experts and specialists as it deems appropriate.
Article (5)
a. Judicial police officers including the police must refer to the Tribunal all cheque-
related complaints that fall under the scope of this Decree.
b. The Public Prosecution and the Courts may not investigate dishonoured cheques
that fall under the scope of this Decree or settle any dispute related to such cheques
before such disputes are referred to and considered by the Tribunal. Moreover, they must suspend their consideration of any complaint or penal action related to such 6666cheques, and refer these to the Tribunal for consideration in accordance with the
provisions of this Decree.
Article (6)
The judgement rendered by the Tribunal will be final, irrevocable, and not subject to appeal, and will be executed by the Execution Department of Dubai Courts.
Article (7)
Subject to the provisions of this Decree, the Tribunal will exercise its powers in accordance with:
1. the laws in force in the Emirate of Dubai;
2. Islamic Sharia principles;
3. customs, provided that such customs are not in conflict with the law, and public order and morals; and
4. principles of natural justice, and rules of right and fairness.
Article (8)
This Decree comes into force on the day on which it is issued and will be published in
the Official Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 1 November 2009Corresponding to 13 Thu al-Qidah 1430 A.H.6767Law No. (9) of 2009
Amending Law No. (13) of 2008
Regulating the Interim Property
Register in the Emirate of Dubai6868Law No. (9) of 2009
Amending Law No. (13) of 2008
Regulating the Interim Property Register
in the Emirate of Dubai (1)
We, Mohamme |
d bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of:
Law No. (8) of 2007 Concerning Escrow Accounts of Real Estate Development in the Emirate of Dubai;
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency; and
Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai,
Do hereby issue this Law.
Article (1)
Articles (2) and (11) of Law No. (13) of 2008 Regulating the Interim Property Register
(the “Original Law”) will be superseded by the following provisions:
Article (2)
The following words and expressions will have the meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Department: The Land Department.
RERA: The Real Estate Regulatory Agency.
Property Register: The property register maintained by the Department.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.6969Interim Property Register: The documents maintained by the Department in written
or electronic format in an electronic record in which sale contracts, Off-plan Sales, and other off-plan legal
dispositions of real property are registered prior to inclusion
in the Property Register.
Real Property: The land and any fixed structure constructed on it.
Real Property Unit: Any designated part of Real Property including any part
designated as off-plan.
Off-plan Sale: The sale of designated Real Property Units Off-plan or of those which are under unfinished.
Master Developer: Any person licensed to engage in real estate development
and the sale of Real Property Units to third parties in the Emirate.
Sub-developer: Any person who undertakes part of a real estate development project of a Master Developer in accordance
with a mutual agreement.
Real Estate Broker: Any person who undertakes the real estate brokering business in accordance with Bylaw No. (85) of 2006
Regulating the Real Estate Brokers Register in the Emirate.
Competent Entities: The entities authorised to license and register real estate development projects in the Emirate.
Article (11)
1. If the purchaser breaches any of the terms of the sale contract of the Real Property Unit concluded with the developer, the developer must notify the Department of such
breach, and the Department must give a thirty (30) days’ notice to the purchaser, in
person, by registered mail or by email, to fulfil his contractual obligations.
2. If the notice period mentioned in in paragraph (1) of this Article expires and the purchaser fails to perform his contractual obligations, the following provisions will apply:
a. where the developer has completed at least eighty percent (80%) of the real 7070estate development project, the developer may retain all payments and claim
t |
he balance of the contract value from the purchaser, failing which the developer may request the sale of the Real Property by way of public auction to recover the
balance of the amounts to which he is entitled;
b. where the developer has completed at least sixty percent (60%) of the real
estate development project, the developer may terminate the contract and retain a maximum of forty percent (40%) of the value of the Real Property Unit
stipulated in the contract;
c. where the developer starts the construction works but fails to reach the sixty
percent (60%) threshold of the real estate development project, the developer
may terminate the contract and retain a maximum of twenty-five percent (25%)
of the value of the Real Property Unit stipulated in the contract; or
d. where the developer, for reasons beyond his control but without any negligence on his part, fails to start the construction works, the developer may terminate the contract and retain a maximum of thirty percent (30%) of the payments made
by the purchaser.
3. For the purposes of items (c) and (d) of paragraph (2) above, “construction
works” will mean the developer taking possession of the real estate development
project site and starting construction works in accordance with plans approved by
Competent Entities.
4. For the purposes of items (b) and (c) of paragraph (2) above, the developer must return any amounts payable to the purchaser within a period not exceeding one year of the termination date or within a period not exceeding sixty (60) days of selling the
Real Property Unit, whichever is earlier.
5. Notwithstanding paragraphs (1) and (2) of this Article, RERA may, based on a
reasoned report, decide to revoke the real estate development project, in which case
the developer must return all payments received from purchasers, in accordance
with the procedure and provisions stipulated in Law No. (8) of 2007 Concerning Escrow Accounts of Real Estate Development in the Emirate of Dubai.
6. The provisions of this Article will not apply to sale contracts for land which is not
diposed of by of Off-plan Sale. Those contracts will be governed by the terms of the 7171contract concluded by the parties.
7. The provisions of this Article will apply to all contracts concluded before this Law
comes into force.
Article (2)
This Law will be published in the Official Gazette and will 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 2009Corresponding to 16 Rabi al-Thani 1430 A.H.7373Law No. (33) of 2008 Amending Law
No. (26) of 2007
Regulating the Relationship between
Landlords and Tenants in the
Emirate of Dubai7474Law No. (33) of 2008 Amending
Law No. (26) of 2007
Regulating the Relationship between Landlords and Tenants
in the Emirate of Dubai (1)
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 in 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; andDecree No. (2) of 1993 Establishing a Special Tribunal for the Settlement of Disputes
between Landlords and Tenants and its amendments,
Do hereby issue this Law.
Article (1)
Articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of Law No. (26) of 2007
Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai will
be superseded by the following provisions:
Article (2)
In implementing the provisions of this Law, the following words and expressions will have
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.7575the meaning indicated opposite each of them, unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Tribunal: The Special Tribunal for the Settlement of Disputes between
Landlords and Tenants.
RERA: The Real Estate Regulatory Agency.
Real Property: Immovable property and everything affixed or annexed to it, and which is leased out for purposes of accommodation or conducting a
business activity, trade, profession, or any other lawful activity.
Tenancy Contract: A contract by virtue of which the Landlord is bound to allow the Tenant
use of the 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 also includes a person to whom ownership of
the Real Property is transferred during the term of a Tenancy Contract,
an agent or legal representative of the Landlord, or a Tenant who is permitted by the Landlord to sub-let the Real Property.
Tenant: A natural or legal person who is entitled use of the Real Property by virtue of a Tenancy Contract, or any person to whom the tenancy is legally transferred from the Tenant.
Sub-Tenant: A natural or legal person who is entitled use of the Real Property or any part thereof by virtue of a Tenancy Contract entered into with the Tenant.
Rent: The specified consideration which the Tenant must be bound to pay by virtue of the Tenancy Contract.
Notice:
A written notification sent by either party to the Lease Contract to the other through the Notary Public, or delivered by registered post, by
hand, or by any other technological means approved by law.
Article (3)
The provisions of this Law will apply to lands and Real Property leased out in the
Emirate excluding Real Property provided free of Rent by natural or |
legal persons to 7676accommodate their employees.
Article (4)
1. The contractual relationship between Landlord and Tenant will be regulated by
a Tenancy Contract detailing, in a manner allowing no room for uncertainty, a
description of the leased Real Property, the purpose of the tenancy, the term of the
Tenancy Contract, the Rent and payment method, and the name of the owner of the Real Property, if the Landlord is not the owner.
2. All Tenancy Contracts or any amendments to such Tenancy Contracts related to Real Property which are subject to the provisions of this Law will be registered with RERA.
Article (9)
1. The Landlord and Tenant must specify the Rent in the Tenancy Contract. Should the parties omit or fail to specify the agreed Rent, the Rent must be the same as that of
similar Real Property.
2. The Tribunal will determine the Rent of similar Real Property taking into account
the criteria determining the percentage of Rent increase set by RERA, the overall
economic situation in the Emirate, the condition of the Real Property, and the average
Rent of similar Real Property in similar Real Property markets within the same area and in accordance with any applicable legislation in the Emirate concerning Real
Property Rent, or any other factors which the Tribunal deems appropriate.
Article (13)
For the purposes of renewing the Tenancy Contract, the Landlord and Tenant may, prior
to the expiry of the Tenancy Contract, amend any of the terms of the Tenancy Contract or
review the Rent, whether increasing or decreasing it. Should the Landlord and Tenant fail
to reach an agreement, then 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, if either party to the Tenancy Contract wishes to amend 7777any of its terms in accordance with Article (13) of this Law, that party must notify the other party
of same no less than ninety (90) days prior to the date on which the Tenancy Contract expires.
Article (15)
The Landlord will be bound to hand over the Real Property in good condition, which allows the Tenant full use as stated in the Tenancy Contract. However, the parties may
agree upon renting an unfinished Real Property provided that the Tenant agrees to
complete the construction of the Real Property in a manner to render it suitable for use as intended. The identity of the party who will incur the costs of completing the construction
will be determined in the Tenancy Contract.
Article (25)
The Landlord may seek eviction of the Tenant from the Real Property prior to the expiry of
the term of the Tenancy only in the following cases:
1. where the Tenant fails to pay the Rent or any part thereof within thirty (30) days after the
date a Notice to pay is given to the Tenant by the Landlord unless otherwise agreed by the parties;
a. where the Tenant sub-lets the Real Property or any part thereof without obtaining the Landlo |
rd’s approval in writing. In this case, the eviction will apply to both the
Tenant and Sub-Tenant. However, the Sub-Tenant’s right to claim a compensation
from the Tenant will be preserved;
b. where the Tenant uses the Real Property or allows others to use it for any illegal
purpose or for a purpose which breaches public order or morals;
c. where the Tenant of commercial Real Property leaves the Real Property unoccupied
for no valid reason for thirty (30) consecutive days or ninety (90) non-consecutive
days within the same year, unless agreed otherwise by both parties;
d. where the Tenant makes a change to the Real Property that renders it unsafe in a manner that makes it impossible to restore the Real Property to its original state,
or damages the Real Property willfully or through gross negligence, by failing to exercise due diligence, or by allowing others to cause such damage;
e. where the Tenant uses the Real Property for a purpose other than that for which 7878the Real Property was leased, or uses the Real Property in a manner that violates
planning, construction, and use-of-land regulations in force in the Emirate;
f. where the Real Property is condemned, provided that the Landlord must prove this
by a technical report issued by or attested to by Dubai Municipality;
g. where the Tenant fails to observe any obligation imposed on him by this Law or any
of the terms of the Tenancy Contract within thirty (30) days from the date a Notice
to perform such obligation or term is served upon him by the Landlord; or
h. where competent Government entities requires demolition or reconstruction of the
Real Property as per urban development requirements in the Emirate.
For the purposes of paragraph (1) of this Article, the Landlord will give Notice to the Tenant through a Notary Public or registered post.
2. Upon expiry of the Tenancy Contract the Landlord may request eviction of the Tenant
from the Real Property only in any of the following cases:
a. where the owner of the Real Property wishes to demolish the Real Property to
reconstruct it, or to add any new constructions that will prevent the Tenant from using the Real Property, provided that the required permits are obtained from the
competent entities;
b. where the Real Property is in a condition that requires restoration or comprehensive
maintenance that cannot be carried out in the presence of the Tenant in the Real
Property, provided that the condition of the Real Property is verified by a technical
report issued by or attested to by Dubai Municipality;
c. where the owner of the Real Property wishes to take possession of it for his personal
use or for use by any of his first-degree relatives, provided that the owner proves
that he does not own another Real Property appropriate for such purpose; or
d. where the owner of the Real Property wishes to sell the leased Real Property.
For the purposes of paragraph (2) of this Article, the Landlord must notify the Tenant of the evic |
tion reasons twelve (12) months prior to the date set for eviction, provided that this notice is given through a Notary Public or registered post.
Article (26)
If the Tribunal awards the Landlord possession of the Real Property for his personal use 7979or for use by any of his first-degree relatives in accordance with sub-paragraph (c) of
paragraph (2) 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 from the date of possession of the
Real Property by the Landlord in case of residential Real Property and three (3) years in
case of non-residential Real Property, unless the Tribunal, in its discretion, sets a shorter period. Otherwise, the Tenant may request the Tribunal to award him a fair compensation.
Article (29)
1. The Tenant has the right of first refusal to rent the Real Property after it has been demolished and reconstructed or renovated and refurbished by the Landlord,
provided that the Rent is 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 the Tenant is
notified by the Landlord.
Article (36)
The Chairman of the Executive Council will issue the regulations, bylaws, and resolutions required for the implementation of the provisions of this Law.
Article (2)
This Law will be published in the Official Gazette and will 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.8181Law No. (13) of 2008
Regulating the Interim Property
Register in the Emirate of Dubai8282Law No. (13) of 2008
Regulating the Interim Property Register
in the Emirate of Dubai (1)
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 of Real Estate Development in the
Emirate of Dubai;Law No. (27) of 2007 Concerning Jointly Owned Real Property in the Emirate of Dubai;
Regulation No. (3) of 2006 Determining Areas for Ownership by Non-UAE Nationals in
the Emirate of Dubai; andBylaw No. (85) of 2006 Concerning Real Estate Brokers Register in the Emirate of Dubai,
Do hereby issue this Law.
Article (1)
This Law will be cited as “Law No. (13) of 2008 Regulating the Interim Property
Register in the Emirate of Dubai” .
Article (2)
The following words and expressions will have the meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Department: The Land Department.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, f |
or the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.8383Property Register: The property register maintained by the Department.
Interim Property Register: The documents maintained by the Department in written
or electronic format in an electronic record in which sale contracts, Off-plan Sales, and other off-plan legal
dispositions of real property are registered prior to inclusion
in the Property Register.
Real Property: The land and the fixed structures constructed on it which may not be moved without damage or alteration of its structure.
Real Property Unit: Any designated part of Real Property including any part designated as off-plan.
Off-plan Sale: The sale of designated Real Property Units off-plan or of
those which are unfinished.
Master Developer: Any person licensed to conduct the real estate development business and the sale of Real Property Units to third parties
in the Emirate.
Sub-developer: Any person licensed to conduct real estate development business and in the sale of Units to third parties and who
undertakes part of the real estate development project of a
Master Developer in accordance with a mutual agreement.
Real Estate Broker: Any person who undertakes the real estate brokering business in accordance with Bylaw No. (85) of 2006 Regulating the Real Estate Brokers Register in the Emirate
of Dubai.
Competent Entities: The entities authorised to license or register real estate
development projects in the Emirate.
Article (3)
1. Any disposition that occurs in respect of any Real Property Unit sold off-plan will be entered in the Interim Property Register, and any sale or any other legal disposition
that transfers or restricts ownership or any ancillary rights will be void unless entered
in that Register.84842. Any developer, who disposed of a Real Property Unit by way of sale or any other
disposition that transferred or encumbered a Real Property Unit before this Law came into force, must apply to the Department to enter such disposition or encumbrance in
the Property Register or in the Interim Property Register, as the case may be, within
a maximum of sixty (60) days from the date on which this Law comes into force.
Article (4)
No Master Developer or Sub-developer may commence a project or dispose of its Real Property Units by way of Off-plan Sale before taking possession of the land on which the
project will be implemented and obtaining the required approvals from the Competent
Entities in the Emirate.
In all events, the Department must designate the entry of the Real Property as
“under development”.
Article (5)
The application to enter a Real Property Unit in the Interim Property Register must be submitted on the form prepared for such purpose provided that all required information and documents are provided in accordance with the rules and procedure adopted by
the Department.
Article (6)
Real Property Uni |
ts sold off-plan and entered in the Interim Property Register maintained
by the Department 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 on the sale, resale, or on
any other legal disposition of the Real Property Units which are completed or sold off-
plan except those administrative costs which are approved by the Department to be
received by the Master Developer or Sub-developer from third parties.8585Article (8)
Developers must enter completed projects in the Property Register maintained by the
Department once they receive the completion certificate from the Competent Entities.
This includes entering sold Units in the name of purchasers who fulfilled their contractual
obligations in accordance with the procedure adopted by the Department.
For the purposes of this Article, the Department may, either upon the request of the
purchaser or upon its own initiative, register in the Property Register in the name of the purchaser a Real Property Unit entered in the Interim Property Register which was sold
off-plan, provided that the purchaser fulfilled all his contractual obligations.
Article (9)
If a developer wishes to market his project through a Real Estate Broker, the developer
must contract with a certified Real Estate Broker in accordance with the terms and
conditions stipulated by Bylaw No. (85) of 2006 Regulating the Real Estate Brokers
Register in the Emirate of Dubai. The developer must also register that contract with the Department.
Article (10)
No developer or Real Estate Broker may enter into a private sale contract to dispose of Real Property or Real Property Units by way of Off-plan Sale in projects which are not
approved by the Competent Entities. Any contract which is entered into prior to obtaining
such approval will be null and void.
Article (11)
1. If a purchaser breaches any of the terms of the sale contract of the Real Property Unit concluded with a developer, the developer must notify the Department of such
breach, and the Department must give a thirty (30) days’ notice to such purchaser,
in person, by registered mail or by electronic mail, to fulfil his contractual obligations.
2. If the notice period mentioned in paragraph (1) of this Article expires and the purchaser fails to fulfil his contractual obligations, the developer may revoke the
contract and refund the purchaser after deducting up to thirty percent (30%) of the 8686payments made by the purchaser.
Article (12)
The area of a sold Real Property Unit will be deemed to be correct. However, if any
increase in the area of the Real Property Unit takes place after delivery of the Unit,
the developer may not claim any increase in price in consideration for such increase.
However, if a decrease in the area occurs, then the developer must compensate the purchaser for such decrease unless such decrease is inconsequential, in which case the
developer is not l |
iable for compensating the purchaser for such decrease.
Article (13)
If the Department proves that a developer or a Real Estate Broker has committed any act
or omission in breach of the provisions of this Law or any other applicable legislation, the
Director General of the Department must prepare the relevant report and refer the matter
to the competent entities for investigation.
Article (14)
The Chairman of the Executive Council will issue the regulations required for the implementation of the provisions of this Law.
Article (15)
This Law will be published in the Official Gazette and will 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.8787Law No. (27) of 2007
Concerning Ownership of Jointly
Owned Real Property in the Emirate
of Dubai8888Law No. (27) of 2007
Concerning Ownership of Jointly Owned
Real Property in the Emirate of Dubai(1)
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
Title, Definitions, and General Provisions
Article (1)
This Law will be cited as “Law No. (27) of 2007 Concerning Ownership of Jointly
Owned Real Property in the Emirate of Dubai” .
Article (2)
The following words and expressions will have the meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Department: The Land Department.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.8989Chairman: The chairman of the Department.
Property Register: The property register maintained by the Department.
Master Developer: Any person licensed to engage in the real estate development
business and the sale of Units in the Emirate in accordance with the
provisions of a Master Community Declaration.
Sub-developer: Any person licensed to engage in the real estate development business and the sale of Units, and granted by the Master
Developer the right to develop part of a real estate development
project in accordance with the provisions of the Master Community Declaration applicable to the project.
Jointly Owned
Real Property: The whole or any part of a building or land, or both, which is divided into Units intended for separate ownership where parts of such
building or land are designated as Common Areas.
Unit: Any apartment, floor, parcel of land, or house (villa) attached to or detach |
ed from another house which is a part of a Jointly Owned Real Property.
Common Areas: The common parts of a real property, shown on the Site Plan,
designated for common use by the Owners and Occupiers of Units.
Site Plan: A plan registered in the Property Register, showing the Units and their Common Areas.
Owner: Any person registered in the Property Register as owner of a Unit,
including persons who have a long-term leasehold contract or usufruct rights for limited period, or the Master Developer or Sub-
developer in regards to unsold Units.
Master CommunityDeclaration: The terms and conditions governing the development and operation of Jointly Owned Real Property.
Building
ManagementRegulation:
A document issued in accordance with the relevant bylaws and registered in the Property Register. This document sets out arrangements for the
maintenance of shared Utility Services and Common Areas, including
equipment and services in any part of another building which is subject to the provisions of this Law, and cost sharing related thereto.9090Owners
Association: An association established in accordance with the provisions of Article (17) of this Law.
Articles of
Associationof the Owners
Association: The rules and provisions governing the Owners Association which
are issued in accordance with this Law.
Occupier: Any person who rents a Unit, except under a long-term leasehold contract, or any visitor of the Unit Owner.
Utility Services: Any of the following services: 1. water reticulation or supply;
2. gas reticulation or supply;
3. electricity supply;
4. air conditioning;
5. telephone service;
6. computer data or television service;
7. sewerage system;
8. rain water drainage;
9. removal or disposal system for garbage or waste;
10. delivery system for mail, parcels, or goods; and
11. any other system or service intended to improve the utilities in
the Units or Common Areas.
Article (3)
1. Land owned by developers and used for the construction of Jointly Owned
Real Property, and Units sold by such developers will be registered with
the Department.
2. Where a Unit in Jointly Owned Real Property is used by the Owners of another Jointly
Owned Real Property, the Owners Association for the latter real property will become
a member in the Owners Association for the former. 9191Article (4)
The Department will prepare and maintain special registers for the Jointly Owned Real
Property and their Owners and will issue the relevant title deeds, regulate and register
the sale, mortgage or any other disposition of the said Jointly Owned Real Property.
It will also register the long-term leasehold contracts and usufruct rights related to this Jointly Owned Real Property. Such registers must be accessible for review by all
parties concerned.
Article (5)
The provisions of Article (4) of Law No. (7) of 2006 Concerning Real Property Registration
in the Emirate of Dubai will apply to the ownership of Jointly Owned Real Property.
Chapte |
r Two
Ownership of Jointly Owned Real Property
Article (6)
1. The Site Plan, Master Community Declaration, and the Articles of Association of the Owners Association will form part of the title deed of a Jointly Owned Real Property
and must be attached thereto. The Department will, at all times, retain the original
copy of the Master Community Declaration.
2. A Unit Owner will have an obligation to other Unit Owners and Occupiers and to
the Owners Association to comply with the Master Community Declaration and the
Articles of Association of the Owners Association.
3. A Unit Occupier will have an obligation to other Unit Owners and Occupiers and to the Owners Association to comply with the Master Community Declaration and the
Articles of Association of the Owners Association to the extent that their provisions
apply to the Occupier.
Article (7)
1. Unless otherwise indicated on the Site Plan, the Common Areas of a Jointly Owned 9292Real Property will include, without limitation:
a. structural components of the Jointly Owned Real Property, including the main
supports, foundations, columns, structural walls, thresholds, ceilings, ceiling
joists, halls, staircases, stairwells, emergency exits, entrances, windows in the
external wall, facades and roofs;
b. parking areas, watchman rooms, recreational facilities and equipment, swimming pools, gardens, storage facilities and areas intended for the use of the Owners
Association or whomever it appoints or contracts to manage the Jointly Owned
Real Property;
c. equipment and systems of main utilities, including electricity generators, lighting systems, gas systems and equipment, cold and hot water systems, heating and
cooling systems, air conditioning systems and waste collection and treatment facilities;
d. elevators, tanks, pipes, generators, chimneys, ventilation fans and ducts, air
compressor units and mechanical ventilation systems;
e. water mains, sewer pipes, gas pipes and chimneys, and electrical wiring and
conduits serving the Owners of more than one Unit;
f. fittings, connections, equipment and amenities used by Owners of more than
one Unit;
g. equipment used for measuring the provision or supply of Utility Services; and
h. any other parts outside the boundaries of any Unit which are necessary or
required for the existence, maintenance and safety of the real property.
2. Unless otherwise indicated on the Site Plan, the Common Areas of a Jointly Owned
Real Property comprising land rather than a building or part of a building, will include, without limitation:
a. roads, roundabouts, intersections, pathways, pavement edges, drains, median strips, viaducts, drainage systems, and all related structures;
b. lakes, ponds, canals, parks, fountains, water features and other waterways,
including all related equipment;
c. landscaping, public areas and playgrounds;
d. wires, cables, pipes, drains, ducts and the machinery and equipment used to
supply Units or Common Areas wit |
h Utility Services; and9393e. equipment used for measuring the provision or supply of Utility Services
dedicated for common use by the Owners and Occupiers of Units.
Article (8)
1. Unless otherwise indicated on the Site Plan, each Unit in a building or part of a building will comprise the following, without limitation:
a. floors and floor materials and components down to the base of the joists and
other structures supporting the floor of the Unit;
b. plaster ceilings and all other types of ceilings, additions that form part of the interior area of the Unit and the spaces between such ceilings, the ceilings
above the support walls and structures inside the Unit, and walls separating the Unit from other parts of the Jointly Owned Real Property and any adjacent Units
or Common Areas;
c. non-load bearing walls and non-support walls inside the Unit;
d. windows, glass and fixtures that form part of the internal windows, lighting
systems, doors, door frames, and all equipment and fixtures serving the Unit;
e. internal connections serving the Unit;
f. fixtures and fittings installed by the Owner or Occupier of the Unit; and
g. additions, modifications and improvements made to the Unit from time to time.
For the purposes of this paragraph, the Unit will not include the Utility Services in the
Unit that serve the Common Areas or any other Unit.
2. Unless otherwise indicated on the Site Plan, each Unit in a Jointly Owned Real Property comprising land, rather than a building or part of a building, will include,
without limitation, everything within the boundaries of the Unit other than the Utility Services that serve the Common Areas or any other Unit.
3. Each Unit is entitled to appropriate services and rights of way from other Units and Common Areas.
4. The dividing walls between two adjacent Units will be shared by the Owners of both Units provided that these walls are part of the Common Areas. 9494Article (9)
Unless otherwise agreed, Unit Owners and developers will own, in respect of unsold
Units, an undivided interest in the Common Areas in accordance with the proportions
stated in the Master Community Declaration.
For the purposes of this Article, the proportions will be determined on the basis of the
Unit area out of the total area of the Jointly Owned Real Property.
Chapter Three
Disposing of Units in a Jointly
Owned Real Property
Article (10)
A Unit Owner may sell or dispose of his Unit by any means of disposition and may
also mortgage his Unit to any bank or financial institution, provided that such disposition
transfers all his rights in the Unit and Common Areas.
Article (11)
A Unit jointly owned by two or more persons may not be sub-divided amongst them
unless approval of the Department is obtained.
Article (12)
1. Each co-Owner of a Unit will have a pre-emptive right to buy another co-Owner’s share offered for sale to a non-Owner. If more than one co-Owner exercises this right,
they will be entitled to buy a share p |
roportional to their existing interest in the Unit.
2. This pre-emptive right will not apply in case of sale to spouse, lineal ascendants, lineal descendants, brothers or sisters, and their lineal descendants.
Article (13)
1. A pre-emptive right may not be divided and therefore may only be exercised or
waived in whole. In case of multiple co-Owners, each of them may exercise his pre-9595emptive right in proportion to his share, and if any of them waives his right, it will be
transferred to the other co-Owners in proportion to their shares.
2. A pre-emptive right will expire if the selling co-Owner serves on the other co-Owners, through the Notary Public, a notice which includes the name and address of the third-party buyer and the terms of sale, and if the said co-Owners fail to agree to
such terms of sale within one (1) month after receipt of such notice.
3. If a co-Owner agrees to buy the offered share, he must notify the selling co-
Owner of his intention through the Notary Public within fifteen (15) days of
the date of receiving the sale notice and finalise the sale procedures with the
Department within a maximum of ten (10) working days from the expiry of such notification period.
4. If it is proved that the sale has been made under terms that are more favourable to the purchaser than those mentioned in the notice sent to the co-Owners having
the pre-emptive right, such co-Owners will have the right to file, with the competent
courts, claims for compensation for the damage they have suffered.
Article (14)
Jointly Owned Real Property registered pursuant to this Law will not be subject to the provisions of pre-emption stipulated in Federal Law No. (5) of 1985 Issuing the Civil Code.
Article (15)
A Unit Owner may lease his Unit provided that he and the tenant will remain jointly obliged towards the other Unit Owners and Occupiers and the Owners Association
to comply with the Articles of Association of the Owners Association and the Master
Community Declaration.
Article (16)
In all events, Common Areas may not be divided, nor disposed of, in whole or in part, independently from the Units to which they pertain. 9696Chapter Four
Owners Association
Article (17)
1. An Owners Association will be legally constituted upon registration in the Property
Register of the sale of the first Unit in a Jointly Owned Real Property.
2. The Owners Association will comprise the Owners of Units in the Jointly Owned Real Property, including the Master Developer or Sub-developer in respect of unsold Units.
3. Membership of a Unit Owner in the Owners Association will commence on the date the Unit is registered with the Department in his name and will come to an end when
the registration of the Unit ceases to be in his name.
Article (18)
1. The Owners Association will be deemed to be a non-profit entity and will have legal
personality independent from its members. It may sue and be sued in its own name
and may own movable property.
2. The terms |
and conditions of this Law, the Master Community Declaration, and
the Articles of Association of the Owners Association will apply to the Owners Association. The manager of the Owners Association will represent it before courts
and other authorities.
Article (19)
1. A Unit Owner, and the developer in respect of unsold Units, will be entitled to attend
and vote at the meetings of the general assembly of the Owners Association in
accordance with the Articles of Association of the Owners Association.
2. Each Unit Owner will have a number of votes in proportion to his share in the Jointly
Owned Real Property as indicated in the Master Community Declaration.
Article (20)
The name of the Owners Association must feature the phrase “Owners Association”, the 9797number of the Jointly Owned Real Property, and its name, if any.
Article (21)
1. The Owners Association will be responsible for the management, operation,
maintenance, and repair of the Common Areas. For this purpose, the Owners
Association must obtain the relevant licence from the Department.
2. The Owners Association may delegate part of its powers to any person or company
for such remuneration and upon such terms as may be agreed.
Article (22)
1. Each Unit Owner will pay to the Owners Association his share of the annual service fees to cover the expenses of management, operation, maintenance, and repair of
the Common Areas. Such share will be calculated based on the area of the Unit
compared to the total area of the Jointly Owned Real Property. The Master Developer or Sub-developer will pay his share of the annual service fees in respect of the
unsold Units.
2. A Unit Owner may not waive his share in the Common Areas to avoid payment of his
share of the annual service fees.
Article (23)
1. Save as permitted by the Articles of Association of the Owners Association and the Master Community Declaration, a Unit Owner or Occupier may not make any
alterations or modifications to the structure or external appearance of his Unit or any
part of the Jointly Owned Real Property that would materially affect the Unit, or the Jointly Owned Real Property or its external appearance.
2. A Unit Owner who breaches the provisions of paragraph (1) will be liable to repair the resulting damage at his own expense and in the manner requested by the Owners
Association. If the Unit Owner fails to meet this obligation, the Owners Association
will repair the damage and recover the repair costs from the Owner. 9898Chapter Five
Common Areas
Article (24)
Subject to the Articles of Association of the Owners Association, the Owner and Occupier
of a Unit and their visitors will use the Common Areas as permitted, and in such a way
that does not prejudice the rights of others to use these areas, disturb them, or endanger
their safety or the safety of the Jointly Owned Real Property.
Article (25)
1. The Owners Association will have a lien on every Unit for unpaid service fees and other liabilities pay |
able by the Unit Owner in accordance with the provisions of this
Law or the Articles of Association of the Owners Association. This lien will continue
to be valid even if the title of the Unit is transferred to another person.
2. If a Unit Owner fails to pay his share of the service fees or defaults on any of his obligations, a resolution must be issued by the manager of the Owners Association against the Unit Owner and will be enforceable by the execution judge of any competent court, after the lapse of a period of three (3) months from notification to
the Unit Owner of such resolution through a Notary Public. In all events, any affected
person may object to such resolution before the competent court during this period, and the execution will be stayed until the objection is determined.
Chapter Six
Obligations of the Real Property Developer
Article (26)
1. Subject to the provisions of Federal Law No. (5) of 1985 Issuing the Civil Code related to construction contracts, the developer will remain liable, for ten (10) years from
the date of the completion certificate for the project developed by him, to repair or
remedy any defects in the structural components of the Jointly Owned Real Property 9999of which he is notified by the Owners Association or any Unit Owner.
2. The Developer will remain liable, for one (1) year from the date of the completion
certificate for the project or part of the project developed by him, to repair or replace
defective installations in the Jointly Owned Real Property. For the purpose of this Article, such installations include the mechanical and electrical works, sanitary and
plumbing installations and similar installations.
3. Subject to the provisions of the paragraphs (1) and (2) above, nothing in this Law in any way precludes or prejudices any rights or warranties granted to the Unit Owner
by virtue of any other legislation as against the Master Developer or Sub-developer of the real property.
4. Any agreement that contradicts the provisions of this Article and concluded after this Law comes into force will be deemed void.
Article (27)
1. If the Jointly Owned Real Property is developed in phases, the Master Community Declaration must set out the arrangements for dividing the project into phases.
2. If the Jointly Owned Real Property constitutes part of a real estate development project and the Building Management Regulation does not provide for the method
of managing this building, the Building Management Regulation must be recorded
in the Property Register.
Chapter Seven
Insurance on Jointly Owned Real Property
Article (28)
The Owners Association will procure insurance to cover the repair or reconstruction of the Jointly Owned Real Property in the event of its destruction or damage for any reason
whatsoever, provided that the beneficiary of such insurance is the Owners Association. 100100Article (29)
The Owners Association will procure insurance against liability for damage to the Jointly |
Owned Real Property and for the damage and bodily injury suffered by the Owners and
Occupiers of Units.
Article (30)
Insurance premiums payable by the Owners of Units must be included in the service fees
payable to the Owners Association in accordance with Article (22) of this Law.
Chapter Eight
Final Provisions
Article (31)
Subject to the provisions of Article (18) of this Law, the Owners Association may, in its own name and on behalf of its members, sue others including the Owners and tenants of
Units and any person occupying the Jointly Owned Real Property for breach of this Law
or the Articles of Association of the Owners Association.
Article (32)
The Chairman will issue the bylaws and resolutions required for the implementation of the provisions of this Law.
Article (33)
This Law will be published in the Official Gazette and will come into force three (3) months after the date on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 10 December 2007Corresponding to 30 Thu al-Qidah 1428 A.H. 101101Law No. (26) of 2007
Regulating the Relationship between
Landlords and Tenants in the
Emirate of Dubai102102Law No. (26) of 2007
Regulating the Relationship between Landlords and Tenants
in the Emirate of Dubai (1)
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 in Civil and
Commercial Transactions;Decree No. (2) of 1993 Establishing a Special Tribunal for the Settlement of Disputes
between Landlords and Tenants; and
Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency,
Do hereby issue this Law.
Title
Article (1)
This Law will be cited as “Law No. (26) of 2007 Regulating the Relationship 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 will have
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.103103the 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 and which
is leased out for purposes of accommodation or conducting a business activity, trade, profession, or any other lawful activity.
Lease Contract: A contract by virtue of which the Landlord is bound to allow the Tenant use of the 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 also includes a person to whom ownership of the Real Property is transferred during the term of a Lease Contract,
an agent or legal representative of the Landlord, or a Tenant who is
permitted by the Landlord to sub-let the Real Property.
Tenant: A natural or legal person who is entitled to use Real Property by virtue of a Lease Contract, or any person to whom the lease is legally
transferred from the Tenant.
Sub-tenant: A natural or legal person who is entitled use of the Real Property or any
part thereof by virtue of a Lease Contract entered into with the Tenant.
Rent: The specified consideration which the Tenant will be bound to pay by virtue of the Lease Contract.
Tribunal: The Special Tribunal for the Settlement of Disputes between Landlords
and Tenants.
Notice: A written notification sent by either party to the Lease Contract to the
other through the Notary Public, or delivered by registered post, by
hand, or by any other technological means approved by law.
Article (3)
The provisions of this Law will apply to Real Property leased out in the Emirate, including
vacant and agricultural lands, but excluding hotel establishments and Real Property provided
by natural or legal persons as accommodation to their employees at no charge.104104Lease Contract
Article (4)
1. The contractual relationship between Landlord and Tenant will be regulated by a written
Lease Contract signed by both parties and detailing, in a manner allowing no room for
uncertainty, a description of the leased Real Property, the purpose of the Lease Contract, the
name of the owner, the number and type of the land, and the area where the Real Property is located. It will also determine the term of the Lease Contract, the Rent, and payment method.
2. All Lease Contracts related to Real Property which is subject to the provisions of this Law and any amendments thereto will be registered with RERA. Judicial authorities and
Government departments, authorities, and corporations may not consider any dispute
or claim or otherwise take any action relating to a Lease Contract unless such Contract is registered with RERA in accordance with the relevant rules and regulations.
Term of Lease Contract
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 the alleged term, the Lease Contract
will be deemed valid for the period specified 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 will be renewed for
the same term or for a term of one year, whichever is shorter, and under the same terms
as 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 b |
e terminated by mutual consent or in accordance 105105with the provisions of this Law.
Article (8)
The term of a sub-lease contract entered into between the Tenant and Sub-tenant will expire
upon the expiry of the term of the Lease Contract entered into between the Landlord and
Tenant, unless the Landlord expressly agrees to extend the term of the sub-lease contract.
The Rent
Article (9)
Landlord and Tenant must specify the Rent in the Lease Contract. 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 years as of the date when the original contractual relationship
was established.
Article (10)
RERA will have the authority to establish criteria relating to percentages 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 will cover use of the Real Property amenities such as
swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other amenities.
Article (12)
The Tenant will pay the Landlord the Rent on the dates mutually agreed upon. Where there is no agreement or where it is impossible to verify the payment dates, the Rent must
be annually paid in four (4) equal instalments to be paid in advance.106106Article (13)
1. Subject to the provisions of Article (9) of this Law and for the purposes of renewing
the Lease Contract, the Landlord and Tenant may review 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 average Rent of similar Real Property.
2. The Tribunal will determine the average rental value of similar Real Property in accordance with the legislation adopting criteria and amount of Rent, proposed
by RERA, taking into account the condition of the Real Property and the prevailing
market rate of Rent of similar Real Property within the same area.
Article (14)
Where either of the two parties to a Lease Contract do not wish to renew the Lease Contract or wish to amend any of its terms, such party must notify the other party of such
intent no less than ninety (90) days before the date on which the Lease Contract expires,
unless otherwise agreed by the parties.
Landlord’s Obligations
Article (15)
The Landlord will be bound to hand over the Real Property in good condition, which allows the Tenant full use stated in the Lease Contract.
Article (16)
Unless otherwise agreed by the parties, the Landlord will, during the term of the Lease Contract, be responsible for the Real Property’ maintenance works and for repairing any
defect or damage that may affect the Tenant’s intended use of the Real Property.
Article (17)
The Landlord may not make to the Real Property or any of its amenities or annexes any 107107changes that would preclude the Tenant from full use of the Real Property as |
intended.
The Landlord will be responsible for such changes whether made by him or any other person authorised by the Landlord. Further, the Landlord will be responsible for any
defect, damage, deficiency, and wear and tear occurring to the Real Property for reasons
not attributable to the fault of the Tenant.
Article (18)
The Landlord must provide the Tenant with the approvals required to be submitted to the competent official entities in the Emirate whenever the Tenant wishes to carry out
decoration works or any other works that require such approvals, provided that such
works do not affect the structure of the Real Property and that the Tenant has the official documents requesting such approvals.
Tenant’s Obligations
Article (19)
The Tenant must pay the Rent on due dates and maintain the Real Property in such a manner as an ordinary person would maintain his own property. Without prejudice to the
Tenant’s obligation to carry out the restorations that have been agreed upon or which are
customary for Tenants to undertake, the Tenant may not make any changes or carry out any restoration or maintenance works to the Real Property unless so permitted by the
Landlord and after obtaining required licences from the competent official entities.
Article (20)
When entering into a Lease Contract, the Landlord may obtain from the Tenant a security
deposit to ensure maintenance of the Real Property upon the expiry of the Lease Contract,
provided that the Landlord undertakes to refund such deposit or remainder thereof to the
Tenant upon the expiry of the Lease Contract. 108108Article (21)
Upon the expiry of the term of the 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 for damage due to reasons beyond the Tenant’s control. In the event of dispute between the two parties, the matter must be referred to the Tribunal to issue
an award in this regard.
Article (22)
Unless the Lease Contract states otherwise, the Tenant must pay all fees and taxes due
to Government entities and departments for use of the Real Property as well as any fees
or taxes prescribed for any sub-lease.
Article (23)
Unless otherwise agreed by the parties, upon vacating and surrendering possession
of the Real Property, the Tenant may not remove any leasehold improvements made by
the Tenant.
Article (24)
Unless otherwise agreed by the parties to the Lease Contract, the Tenant may not assign
the use of or sub-lease the Real Property to third parties unless written consent of the
Landlord is obtained.
Eviction Cases
Article (25)
1. The Landlord may seek eviction of the Tenant from the Real Property before the
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 Notic |
e to pay on the Tenant by the Landlord;109109b. Where the Tenant sub-lets the Real Property or any part thereof without obtaining
the Landlord’s written approval. In this case, the eviction will apply to the Sub-tenant, who will have 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 breaches public order or morals;
d. Where the Tenant makes a 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 damages the Real Property wilfully, or through gross negligence, by failing to exercise due diligence, or by allowing others to cause such damage;
e. Where the Tenant uses the Real Property for a purpose other than that for which the Real Property was let, or otherwise uses such Real Property in a manner that
violates planning, construction, and use-of-land regulations in force in the Emirate;
f. Where the Real Property is condemned, provided that the Landlord proves this
by a technical report attested to by Dubai Municipality, or
g. Where the Tenant fails to observe any obligation imposed on him by this Law or any of the Lease Contract terms within thirty (30) days from the date a Notice to perform such 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. a competent Government entity requires demolition and reconstruction of the
Real Property as per urban development requirements in the Emirate;
b. the Real Property is in a condition that requires full renovation or comprehensive
maintenance that cannot be carried out in the presence of the Tenant in the Real Property, provided that the condition of the Real Property is verified by virtue of
a technical report attested to by Dubai Municipality;
c. the Landlord wishes to demolish the Real Property to reconstruct it or add any new
constructions that will 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 repossess the Real Property for use by him personally or
by any of his first-degree relatives.
However, for each of the above-mentioned four cases, the Landlord must notify the Tenant 110110of the eviction reasons at least ninety (90) days prior to the expiry of the Lease Contract.
Article (26)
If, upon expiry of the Lease Contract, the Landlord requests possession of the Real
Property for his personal use or for use by any of his first-degree relatives, and the
Tribunal awards him such possession, the Landlord may not rent the Real Property to a
third party before the lapse of at least one (1) calendar year from the date of repossessing the Real Property. Otherwise, the Tenant may request that the Tribunal award him an
appropriate compensation.
General P |
rovisions
Article (27)
The Lease Contract does not expire upon the death of the Landlord or the Tenant. The
contractual relationship continues with the heirs, unless the heirs of the Tenant wish to
terminate such relationship, provided that termination comes into effect no less than thirty
(30) days from the date of notifying the Landlord of such intent or the expiry date of the Lease Contract, whichever comes first.
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 by virtue of the Lease Contract entered into
with the previous owner, provided that such Lease Contract has a fixed term.
Article (29)
1. The Tenant has the right of first refusal to return to the Real Property after it has
been demolished, reconstructed, renovated, or refurbished, provided that the Rent
is 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 111111notified by the Landlord.
Article (30)
If the Tribunal issues an award terminating the Lease Contract and the Real Property is
occupied by a Sub-tenant under a contract entered into with the Tenant and approved by
the Landlord, the Sub-tenant may continue to occupy the Real Property under the terms
of the sub-lease contract.
Article (31)
Filing a claim to evict the Tenant does not exempt the Tenant from paying the Rent for the whole period during which the claim is considered, and until an award is rendered and executed.
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 out 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 such rights and legal position until the arbitration award
is rendered.
Final Provisions
Article (33)
Where a dispute arises and the Landlord and Tenant have not agreed on the arbitrators or if one or more of the agreed on arbitrators refrains from doing the work, resigns, is
removed, or disqualified, or if an issue arises preventing the arbitrator from doing his work,
and there was no agreement between the parties in this regard, the Tribunal, upon the request of either party, will appoint the arbitrator(s). The number of arbitrators appointed
by the Tribunal must be equal to or complete the number of arbitrators agreed on. 112112Article (34)
The Landlord may not disconnect services from the Real Property or disturb the Tenant
in his use of the Real Property in any manner. If this happens, the Tenant may have
recourse to the police station un |
der whose jurisdiction the Real Property falls to seek a remedy for the violation or to file a police report regarding the violation. He also may have recourse to the Tribunal by filing a claim for damages for any loss he may have suffered,
supported by official reports that support the existence of such violation.
Article (35)
The awards relating to vacating the Real Property will be executed through the Tribunal and
pursuant to the rules and procedures issued in this respect. Apart from such awards, other
awards issued by the Tribunal will be executed by the Execution Section of Dubai Courts.
Article (36)
RERA will issue the bylaws and resolutions required for the implementation of the
provisions of this Law and will submit the same to the Chairman of the Executive Council
for approval.
Article (37)
This Law will be published in the Official Gazette and will come into force after sixty (60)
days from the date of 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.113113Law No. (16) of 2007
Establishing the Real Estate
Regulatory Agency114114Law No. (16) of 2007
Establishing the Real Estate Regulatory Agency (1)
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; andThe Decree of 1960 Establishing the Land Affairs Committee,
Do hereby issue this Law.
Article (1)
This Law will be cited as “Law No. (16) of 2007 Establishing the Real Estate
Regulatory Agency” .
Article (2)
The following words and expressions will have the meaning indicated opposite each of
them unless the context implies otherwise:
Ruler: His Highness the Ruler of Dubai.
Emirate: The Emirate of Dubai.
Government: The Government of Dubai.
Executive Council: The Executive Council of the Emirate.
RERA: The Real Estate Regulatory Agency.
CEO: The chief executive officer of RERA.
Department: The Land Department.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.115115Owners Association: The association formed by the owners of real property units
including apartments, floors, or parcels of land in jointly owned real property.
Article (3)
By virtue of this Law, a public corporation named the “Real Estate Regulatory Agency” will be established and will have legal personality, financial and administrative autonomy,
and legal capacity to perform all acts and dispositions that ensure the achievement of
its objectives. It may enter into contracts with third parties, sue and be sued in its own name and appoint any person to represent it for this purpose. It will be affiliated to the
Land Department.
Article (4)
RERA will |
have its head office in Dubai, and it may establish branches within and outside
the Emirate.
Article (5)
The objective of RERA is to regulate the real estate sector in the Emirate by contributing to the preparation of strategies related to this sector and to the development and
implementation of the required action plans, including to:
1. propose the legislation required to regulate the work of real estate brokerages and
Owners Associations;
2. issue the regulatory bylaws related to training and certification of real
estate brokerages;
3. license all types of activities relating to the business of RERA, including the activities of real estate development in the Emirate;
4. accredit financial institutions that are qualified to manage real estate development escrow accounts in accordance with the relevant legislation;
5. license and regulate real estate brokerages and monitor and supervise their activities;
6. license and regulate companies and corporations engaged in the management of real properties and residential compounds and monitor and supervise their activities; 1161167. register and legalise tenancy contracts for various types of real property units in the
Emirate in accordance with the relevant legislation;
8. monitor and supervise the activities of Owners Associations and audit their accounts
and records;
9. monitor real estate advertisements published in various media outlets operating in the Emirate including in free zones;
10. provide support and advice to clients on the principles of valuation of buildings in
accordance with the latest relevant approved standards;
11. issue statistical reports and specialised research and studies on the real estate market, including preparation of bulletins and information that support such studies and contributing to raising awareness about the real estate market in the Emirate;
12. prepare and implement programmes and projects that contribute to promoting the
role of UAE nationals in the real estate sector and encourage them to work in this
sector; and
13. develop and implement educational and awareness programmes on the rights and duties of parties involved in the real estate sector.
Article (6)
The executive body of RERA will be comprised of the CEO appointed pursuant to a resolution of the Chairman of the Executive Council, and a number of employees to whom
the provisions of the Government of Dubai Human Resources Management Law No. (27)
of 2006 will apply.
Article (7)
The CEO will undertake the overall supervision of the business and activities of RERA and will represent it before third parties. This will include without limitation:
1. setting the strategic plan and action plans of RERA and submitting them to the
Executive Council for approval;
2. implementing the general policy approved by the Executive Council and the resolutions it issues in this regard;
3. proposing initiatives, programmes, and projects which are relevant to the business 117117and activities of RERA;
4. |
proposing the organisational structure and financial, administrative, and technical
bylaws regulating work within RERA and submitting them to the Executive Council for approval;
5. supervising the activities of the executive body of RERA and appointing
RERA employees;
6. preparing the annual budget of RERA and submitting it to the Executive Council for
approval; and
7. exercising any other powers vested in him by the Executive Council or by any resolution issued pursuant to this Law.
Article (8)
Pursuant to this Law, the following functions of the Department will be transferred to RERA:
1. regulating the work of real estate brokerages and real estate brokers;
2. conducting real estate studies and research;
3. managing and regulating real estate development escrow accounts; and
4. regulating and supervising Owners Associations.
Article (9)
Subject to the provisions of Article (6) of this Law, RERA may, at its discretion, transfer
any of the Department’s employees working in real estate regulation.
Article (10)
In regulating its accounts and records, RERA will follow the principles and standards of commercial accounting. The financial year of RERA will commence on 1 January and will
end on 31 December of each year, except that the first financial year will commence as
of the date this Law comes into force and will end on 31 December of the following year.
Article (11)
The financial resources of RERA will consist of:1181181. support allocated to RERA in the budget of the Emirate;
2. fees and charges for the services provided by RERA to the public; and
3. any other resources approved by the Executive Council.
Article (12)
The Chairman of the Executive Council will issue the regulations and resolutions required
for the implementation of the provisions of this Law.
Article (13)
Any provision in any other legislation will be repealed to the extent that it contradicts the provisions of this Law.
Article (14)
This Law will be published in the Official Gazette and will come into force on the day on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 30 July 2007Corresponding to 16 Rajab 1428 A.H.119119Law No. (8) of 2007
Concerning Escrow Accounts for
Real Estate Development in the
Emirate of Dubai120120Law No. (8) of 2007
Concerning
Escrow Accounts for Real Estate
Development in the Emirate of Dubai (1)
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 will be cited as “Law No. (8) of 2007 Concerning Escrow Accounts for Real
Estate Development in the Emirate of Dubai” .
Definitions
Article (2)
The following words |
and expressions will have the meaning indicated opposite each of them unless the context implies otherwise:
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.121121Emirate: The Emirate of Dubai.
Department: The Land Department.
Chairman: The chairman of the Department.
Director General: The director general of the Department.
Register: The register maintained by the Department for
registering Developers.
Escrow Account: The bank account of a real estate development project in which the payments made by purchasers of Units sold off-
plan or by the financers of the project are deposited.
Developer: Any natural or legal person licensed to engage in the purchase and sale of Real Property for Real Estate
Development purposes, and this includes the master developer and the sub-developer.
Escrow Agent: The financial or banking institution accredited by the Department to manage an Escrow Account.
Competent Entities: Government entities authorised to license Developers.
Real Estate Development: Projects for the construction of residential or commercial multiple storey buildings or compounds.
Real Property: Anything which is fixed and cannot be moved without
damage or alteration of its structure.
Unit: Any designated part of the Real Property that the Developer sells to third parties.
Article (3)
This Law will apply to Developers who sell Units off-plan in Real Estate Development
projects in the Emirate and who receive payments from purchasers or financers towards
such Units.
Article (4)
The Department will maintain a register known as the “Register of Real Estate Developers”
in which are entered the names of Developers licensed to engage in the Real Estate 122122Development business in the Emirate. No Developer may engage in such business unless
he is recorded in that register and licensed by the Competent Entities in accordance with their relevant requirements.
Article (5)
A Developer may not advertise in local or international media and may not participate in local or international exhibitions to promote the sale of Units or Real Property off-plan,
unless he obtains an authorisation in writing from the Department. The Director General
will issue the resolutions required for the regulation of advertisements in the media and of participation in exhibitions.
Chapter Two
Opening an Escrow Account
Article (6)
Any Developer who wishes to sell Units off-plan must submit to the Department a request to open an Escrow Account. This request must comprise the following:
1. certificate of membership in the Dubai Chamber of Commerce and Industry;
2. trade licence;
3. title deed of the land to be developed;
4. copy of the contract concluded between the master developer a |
nd the sub-
developer;
5. 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 certified by a accredited chartered auditor;
7. an undertaking by the sub-developer to start the construction works of the project
upon obtaining the approval of the master developer for off-plan sale, or an undertaking by the master developer if there is no sub-developer; and
8. standard sale contract between the Developer and the purchaser. 123123Article (7)
An Escrow Account will be opened pursuant to a written agreement between the
Developer and the Escrow Agent whereby the payments made by off-plan purchasers
or by the financers of the project are deposited in an account opened with the Escrow
Agent in the name of the Real Estate Development project.
This agreement will determine the terms of managing the account and the rights and
obligations of the parties to the agreement. A copy of this agreement will be submitted
to the Department.
Article (8)
The Department may update the registry entry of the plot owned by the master developer to indicate that a purchase agreement has been concluded between the master
developer and the sub-developer in respect of this plot or any part thereof. A purchaser
of an off-plan Unit may request that the Department update the registry entry of the plot on which the project will be constructed to indicate that a purchase agreement has been
concluded between the purchaser and the sub-developer.
Chapter Three
Management of an Escrow Account
Article (9)
1. An Escrow Account will be opened in the name of the project and will be dedicated
exclusively to the construction of that Real Estate Development project. No
attachment may be imposed on the payments deposited in this account for the
benefit 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 Department will maintain a special register known as the “Register of Escrow 124124Agents” in which are entered the names of Escrow Agents.
2. An Escrow Agent must be qualified to manage Escrow Accounts.
Article (11)
1. An Escrow Agent must provide the Department with regular statements of the
revenue and expenditure of his Escrow Accounts. The Department may, at any time,
request any Escrow Agent to provide any information or data it requires, and in all
events, the Department may seek assistance from any person it deems appropriate to audit such statements and data.
2. If it is proven to the Department that an Escrow Agent has committed any violation of this Law or of its implementing bylaws, the Department must notify him in writing
and specify a time limit for him to remedy such violation.
Article (12)
Depositors or their representatives may gain access to their own accounting records and
may request copies of such record |
s. Representatives from official authorities may have
access to and obtain copies of such records.
Article (13)
If a Developer mortgages a project in order to obtain a loan from finance institutions or
companies, these institutions or companies must deposit the loan amount in the relevant
Escrow Account so that it is managed in accordance with the provisions of this Law.
Article (14)
An Escrow Agent must retain five percent (5%) of the total value of each Escrow
Account once the Developer obtains the completion certificate. The retained amount
will be released to the Developer one (1) year from the registration of Units in the name
of purchasers.125125Article (15)
In the event of any emergency situation where the Real Estate Development project
is not completed, the Escrow Agent of that project must, after consultation with the
Department, take the required measures to preserve the rights of depositors and
ensure that the Real Estate Development project is completed or depositors are refunded their payments.
Chapter Four
Penalties
Article (16)
Without prejudice to any penalties stipulated by any other legislation, a jail sentence and a fine of at least one hundred thousand Dirhams (AED 100,000), or either penalty, will be
imposed on any person who:
1. engages in a Real Estate Development activity in the Emirate without a licence;
2. provides the Competent Entities with incorrect documentation or information in order
to obtain a licence to conduct the Real Estate Development activity;
3. knowingly offers for sale Units in fraudulent Real Estate Development projects;
4. steals, appropriates, or forfeits any amounts of money delivered to him for the
purpose of implementing Real Estate Development projects;
5. in the case of an auditor, deliberately prepares a fraudulent report upon auditing the financial position of the Developer or deliberately fails to disclose essential facts in
his report;
6. in the case of a consultant, knowingly certifies fraudulent reports on a Real Estate
Development project; or
7. in the case of a Developer, deals with a real estate broker who is not registered on the Real Estate Brokers Register maintained by the Department in accordance with
Bylaw No. (85) of 2006 Concerning the Real Estate Brokers Register in the Emirate
of Dubai.126126Article (17)
A Developer will be struck-off the Register where:
1. he is declared bankrupt;
2. he fails, without an acceptable reason, to commence construction works after the
lapse of six (6) months from the date on which he was granted permission to sell Units off-plan;
3. the licence granted to the Developer by the licensing entity is revoked;
4. he commits any of the violations stipulated in items 2, 3, 4 and 5 of Article (16) of this Law; or
5. he violates any of the laws and bylaws regulating the activity of Real Estate Development in the Emirate.
Chapter Five
Final Provisions
Article (18)
Developers carrying on business at the date on which this Law comes int |
o force must comply with it within six (6) months from the date on which it is published in the Official
Gazette. The Department may extend this period as it deems appropriate.
Article (19)
The Department may charge fees for any services provided in accordance with this Law.
Article (20)
Any provision in any other law or bylaw will be repealed to the extent that it contradicts
the provisions of this Law.
Article (21)
The Chairman will issue the resolutions required for the implementation of this Law.127127Article (22)
This Law will be published in the Official Gazette and will 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 2007Corresponding to 19 Rabi al-Thani 1428 A.H. 129129Regulation No. (3) of 2006
Determining Areas for Ownership by
Non-UAE Nationals of Real Property
in the Emirate of Dubai130130Regulation No. (3) of 2006
Determining Areas for Ownership by Non-UAE Nationals of
Real Property in the Emirate of Dubai (1)
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.
Article (1)
This Regulation will 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)
For the purposes of implementing this Regulation, the following words and expressions will have the meaning indicated opposite each of them unless the context implies otherwise:
Ruler: His Highness the Ruler of the Emirate of Dubai.
Department: The Land Department.
Real Property: Anything which is fixed and cannot be moved without damage or alteration of its structure.
Article (3)
Non-UAE Nationals may acquire freehold ownership rights over Real Property without
time restriction, usufruct rights, or leasehold rights for up to ninety-nine (99) years with
respect to the land plot(s) indicated opposite each of the following areas as shown by the
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.131131maps issued by the Department and attached to this Regulation:
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 Rowyah: 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)
Non-UAE nationals may acquire usufruct rights or leasehold rights for up to ninety-nine
(99) years in plot no. (224) of the Nad al-Sheba area as highlighted by the Department in
the map attached to this Regulation.132132Article (5)
This Regulation will be published in the Official Gazette and will 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 2006Corresponding to 11 Jumada al-Ula 1427 A.H.133133Bylaw No. (85) of 2006
Regulating the Real Estate Brokers
Register in the Emirate of Dubai134134Bylaw No. (85) of 2006
Regulating the Real Estate Brokers
Register in the Emirate of Dubai (1)
The Chairman of the Land Department,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai; Based on Article 6.6 and Article 28 of the above mentioned Law; and
Upon the presentation made by the Director General of the Department,
Does hereby issue this Bylaw.
Chapter One
Definitions and General Provisions
1. Definitions
Article (1)
This Bylaw will be cited as “Bylaw No. (85) of 2006 Regulating the Real Estate Brokers
Register in the Emirate of Dubai” .
Article (2)
The following words and expressions, wherever mentioned in this Bylaw, will have the meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Department: The Land Department.
Chairman: The chairman of the Department.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.135135Director General: The director general of the Department.
Committee: The Permanent Real Estate Brokerage Committee.
Council: The body authorised to settle real estate brokerage disputes.
Division: The Real Estate Brokerage Regulatory Division at the Department.
Competent Entities: Governmental or semi-governmental entities responsible
for licensing.
Real Property: Anything which is fixed and cannot be moved without damage or
alteration of its sturcture.
Register: The electronic or paper record of Real Estate Brokers.
Roll: The roll containing the names of certified category A Real Estate Brokers prepared by the Committee.
Real Estate Broker: Any person who undertakes the real estate brokerage business in
accordance with this Bylaw.
|
Brokerage
Agreement: An agreement whereby a Real Estate Broker undertakes to a client
to find another party with whom to conclude a contract, and to
represent the client in relevant negotiations for renumeration.
Person: Any natural or legal person.
2. General Provisions
Article (3)
No Person may engage in Real Estate Brokerage activities in the Emirate unless he is licensed by the Competent Entities and entered in the Register.
Article (4)
A Register will be maintained by the Department in which the names of licensed Real Estate Brokers in the Emirate are entered and in which any variation of or amendment to
relevant information are also entered. 136136Article (5)
Real Estate Brokers will be of the following two (2) categories:
Category A: Persons who have experience, are registered on the Roll, and who are
certified by the Chairman, but are not licensed by the Competent Entities. Persons from
this category are exempted from registration requirements; and
Category B: Persons who engage in Real Estate Brokerage activities pursuant to a
licence issued by the Competent Entities.
Chapter Two
Requirements for Registration in the
Real Estate Brokers Register
Article (6)
Subject to the provisions of Article (5) regarding Category A above, Persons of Category B who wish to engage in Real Estate Brokerage activities in the Emirate must submit
to the Division an application using the prescribed form for entry in the Register. The
application must include:
1. a valid trade licence issued by the Competent Entities;
2. a certificate of membership in the Dubai Chamber of Commerce and Industry;
3. a passport copy of the applicant(s) for sole establishments or companies;
4. a true copy of the title deed of the Real Estate Brokerage office or a tenancy contract;
5. a certificate of good conduct and repute for the owner of the establishment and the
managing director(s) of the company;
6. none of the directors or the Persons authorised to manage the company have been
declared bankrupt or convicted of a crime affecting honour or trustworthiness;
7. certificates of completion of real estate training courses as part of programmes for certification of Real Estate Brokerage accredited by the Department; and
8. a certificate evidencing that the applicant passed the Real Estate Brokerage test prepared by the Department. 137137Article (7)
The Division will review the application and may, within seven (7) days from the date of
submission thereof, request the applicant, in writing, to provide any required additional
documents or information.
Article (8)
The Division may take all required actions to ensure that applications for registration,
updating, or cancellation meet the requirements stipulated in this Bylaw and any
resolutions issued hereunder.
Article (9)
The Division will refer the registration application to the Committee within seven (7) working
days from the date of submission of the application or of furnishing all the documentation
and inform |
ation, as the case may be, requested by the Division.
Article (10)
The Committee will have the right to approve or reject the application for registration, and
the relevant decision will be communicated to the applicant. Any decision to reject an
application for registration must be reasoned.
Article (11)
If the Committee rejects the registration application, the applicant may re-apply upon
fulfilling all requirements within fourteen (14) days from the date on which he is notified
of the rejection decision.
Article (12)
The Division will issue a Real Estate Broker card to applicant bearing his name,
address, and registration number in the Register. The name and registration number
entered in the Register must appear in all correspondence and reports issued by the
Real Estate Broker. 138138Article (13)
Each Real Estate Broker who is entered in the Register must apply to the Division for
registration renewal on a yearly basis. The renewal application must be submitted to the
Division on the relevant form at least thirty (30) days prior to expiry of the registration
certificate. The Division must renew the registration of the Real Estate Broker in the Register after verifying compliance with the renewal requirements.
Chapter Three
Obligations of Real Estate Brokers
Article (14)
All registered Real Estate Brokers must observe the code of conduct stipulated in the code professional ethics prepared by the Committee in consultation with qualified and
expert Real Estate Brokers.
Article (15)
A Real Estate Broker must record in his private register all the transactions that he
has conducted, keep all the relevant documentation, and deliver a true copy of such
documentation to the contracting parties upon their request.
In case of an off-plan sale or a sale according to a model, the Real Estate Broker must
keep such plan or model until the transaction is concluded.
Article (16)
A Real Estate Broker must provide all information, data, and statistics relating to the Real Estate Brokerage activity as requested by the Department.
Article (17)
A Real Estate Broker must disclose to his client all negotiation details, the stages of the brokerage process, and any other required information that will enable his client to make
the right decision in respect of concluding a contract with the other party. The Real Estate 139139Broker must also disclose to the other contracting party all substantial matters relating to
the subject matter of the agreement, which are deemed necessary to avoid uncertainty.
Article (18)
A Real Estate Broker may not facilitate any transaction that violates the laws or regulations in force in the Emirate.
Article (19)
Despite the fact that a Real Estate Broker represents only one of the parties to the transaction, he must faithfully disclose the transaction details and conditions he is
aware of. The Real Estate Broker will be held responsible for any fraud or mistake he
may commit.
Article (20)
A Real Estate Broker may no |
t hold himself out as second party in the contract he facilitates unless he is so authorised by one of the contracting parties, in which case the Real Estate
Broker will not be entitled to any remuneration.
Article (21)
A Real Estate Broker will be deemed the trustee of any amounts, securities, bonds, or any
other items delivered to him by any of the parties for safekeeping or for delivery to the
other party. The Real Estate Broker must deliver such items as agreed and will be bound
by the relevant trusteeship rules.
Article (22)
A Real Estate Broker will be held 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
relevant rules stipulated in this Bylaw or the code of professional ethics. 140140Article (23)
A Real Estate Broker will forfeit his right to remuneration or to claim refund of expenses if
he breaches his obligations to his client by acting in the interest of the other party or by
accepting a promise of a benefit from the other party, where such actions are inconsistent
with good faith or the code of professional ethics.
Article (24)
If a number of Real Estate Brokers are engaged to carry out one contract, they will be jointly liable unless they are authorised to work severally.
Article (25)
If a number of Persons engage a single Real Estate Broker for the same transaction, they will be held jointly responsible for implementing the engagement unless
otherwise agreed.
Chapter Four
Real Estate 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. The Brokerage
Agreement wil be entered in the record of the Real Property Register .
Article (27)
The Real Estate Broker’s remuneration will be determined by agreement, and in absence
of agreement, remuneration will be determined according to prevailing practice.
Article (28)
1. A Real Estate Broker will be entitled to remuneration for his brokerage services only if 141141a contract is concluded between both parties. A contract will be deemed concluded
if all parties agree on all the conditions provided for in the Brokerage Agreement.
2. A Real Estate Broker will be entitled to remuneration upon signing the sale contract and registering it with the Department unless the Brokerage Agreement
stipulates otherwise.
3. If the sale contract is conditional upon fulfilment of a term which is agreed in the
Brokerage Agreement, the Real Estate Broker will be entitled to his remuneration
only once that term is fulfilled.
Article (29)
If the Brokerage Agreement is terminated, the Real Estate Broker will be entitled to claim
his remuneration as agreed in the Brokerage Agreement, except where he is proven to
have committed fraud or gross negligence.
Article (30)
If a Real Estate Broker’s instructions or negotiations fail to lead to the conclusion of a
con |
tract between the parties, the Real Estate Broker will not be entitled to claim any
compensation or refund of expenses and costs he incurred unless the Brokerage
Agreement stipulates otherwise.
Article (31)
If more than one Real Estate Broker participates in the brokerage or negotiation process on behalf of one party for the purpose of concluding an contract and such contract is in
fact concluded, the fee will be partitioned amongst them as if they were one Real Estate
Broker in accordance with the terms of the contract they concluded.
Article (32)
Subject to Article (30) above, if one party enters into an agreement with a number of Real Estate Brokers severally in respect of a single brokerage or negotiation matter, and only
one Real Estate Broker succeeded in concluding the transaction, then that Real Estate 142142Broker will be exclusively entitled to the whole remuneration.
Article (33)
A Real Estate Broker will be entitled to remuneration paid by the party that appoints him
to conclude the transaction, and if the Real Estate Broker is appointed by both parties,
each party will be severally liable to pay his own share of the remuneration even if they
agree that one of them will incur the Real Estate Broker’s remuneration in full.
Chapter Five
Settlement of Disputes
Article (34)
A Council comprising four (4) Persons and the Legal Advisor of the Department will be established at the Department. Members of the Council will be appointed pursuant to
a resolution of the Director General. The Council will have jurisdiction to settle disputes
relating to Brokerage Agreements.
Article (35)
The Council will not consider real estate brokerage disputes unless the Brokerage Agreement provides for the amicable settlement of disputes by the Department, or unless
the disputants agree at a later stage to refer their disputes to the Department. Agreement
on the amicable settlement of disputes must be in writing and the subject matter of the dispute must be determined in the amicable settlement agreement document.
Article (36)
The Council will perform its duties in accordance with simple procedures whereby disputes are settled quickly, ensuring justice for disputants and following 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 will not be 143143restricted by such rules except those relating to public order.
Article (37)
The Council will have a secretariat that receives requests, opens files, drafts minutes
and correspondence, sends notices to disputants, keeps files, and generally performs
all administrative support tasks. Thesecretariat will be appointed pursuant to a resolution
of the Director General.
Article (38)
1. An amicable settlement application must be submitted to the Committee on the relevant form, to be accompanied with 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 will authorise
the registration of the application. The secretariat will notify the respondent of the application.
3. The respondent must respond in writing to the statement of applicant and to all facts and claims included therein, and must submit such response and any supporting documents with thesecretariat within one week of the notification.
4. The Council must settle the dispute within a maximum of thirty (30) days of the date
of referral of the file, and this period may not be extended without valid reasons.
Chapter Six
Penalties and Loss of a Real Estate 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 Real Estate Broker who violates this Bylaw
or the resolutions or instructions issued hereunder:
1. notice;
2. warning;1441443. suspension of activities for up to six (6) months; or
4. blacklisting.
Article (40)
Registration of a Real Estate Broker in the Register will be cancelled if he breaches
the code of professional ethics, commits a gross violation of the laws, regulations, and
instructions in force in the Emirate, or accumulates three (3) black points. Cancellation
will be effected by a resolution of the Director General upon the recommendation of
the Committee in which the reasons of cancellation are determined. The Real Estate
Broker may, within fifteen (15) days of notification of the cancellation decision, file with the Chairman a grievance against the cancellation decision. The decision of the Chairman
in this respect will be final.
Article (41)
The Real Estate Broker will lose his status as a broker and his registration with the
Department will be cancelled in the following cases:
1. The Real Estate Broker permanently ceases his brokerage business and notifies the
Department of such cessation;
2. The Real Estate Broker suspends his brokerage business for more than twelve (12) successive months without a reason acceptable to the Committee;
3. The Real Estate Broker fails to fulfil any of the requirements stipulated in this Bylaw or in any resolutions or instructions issued hereunder;
4. The Real Estate Broker’s registration is proven to have been granted based on false
information he supplied to the Division; or
5. The Chairman issues a resolution cancelling the registration in accordance with Article (40) of this Bylaw.
Article (42)
The Division must notify the Competent Entities of the decision to suspend the Real
Estate Broker’s activities and to cancel his registration. 145145Chapter Seven
Final Provisions
Article (43)
Real Estate Brokers who are practising at the time this Bylaw is issued must, within
six (6) months of the day on which it is issued, comply with the provisions hereof. The
Chairman may extend this period by up to three (3) months if there are reasons that justify
such extension.
Article (44)
The Committee ma |
y, in consultation with Competent Entities, classify Real Estate Brokers according to their specialty and determine the required number of Real Estate Brokers.
Article (45)
The Department will charge fees for the services provided pursuant to this Bylaw and these fees will be determined pursuant to a resolution of the Chairman.
Article (46)
The Chairman will 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 will be published in the Official Gazette.
Mohammed bin Khalifa Al Maktoum
Chairman of the Land Department
Issued in Dubai on 30 May 2006Corresponding to 3 Jumada al-Ula 1427 A.H.147147Law No. (7) of 2006
Concerning Real Property
Registration in the Emirate of Dubai148148Law No. (7) of 2006
Concerning Real Property Registration
in the Emirate of Dubai (1)
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. (11) of 1992 Issuing the Civil Procedure Law and its amendments;
Law No. (7) of 1997 Concerning Land Registration Fees; andThe Decree of 1960 Establishing the Land Affairs Committee,
Do hereby issue this Law.
Chapter One
Title and Definitions
Article (1)
This Law will 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, will have the meaning indicated opposite each of them, unless the context implies otherwise:
UAE: The United Arab Emirates.
Emirate: The Emirate of Dubai.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.149149Government: The Government of Dubai including any of its departments,
authorities, or public corporations.
Ruler: His Highness the Ruler of the Emirate of Dubai.
Department: The Land Department.
Chairman: The chairman of the Department.
Director General: The director general of the Department.
Real Property: Anything which is fixed and cannot be moved without damage
or alteration of its structure.
Real Property Rights: Any principal or collateral rights in rem.
Property Register: The documents kept in written or electronic format in an
electronic record maintained by the Department in which the
description and location of each real property and the rights
related thereto are stated.
Real Property Unit: Any land plot in a single Real Property Area, including any buildings, anything growing on or attached to it, without any part
of the land plot being separated by any public or private property
and without any part of the land plot being subject to rights
or encumbrances other than those |
rights and encumbrances
which apply to the whole.
Real Property Area: A set of Real Property Units demarcated by main roads or fixed and clear landmarks, having an approved name and a
distinct number, in accordance with the regulations adopted by
the Department.
Person: Any natural or legal person.
Chapter Two
Scope of Application and Right of Ownership
Article (3)
The provisions of this Law will apply to Real Property in the Emirate.150150Article (4)
The right to own Real Property in the Emirate will be restricted to UAE nationals, nationals
of the Gulf Cooperation Council member states and to companies fully owned by these,
and to public joint stock companies. Subject to the approval of the Ruler, non-UAE
nationals may, in certain areas determined by the Ruler, be granted the following rights:
a. Freehold ownership of Real Property without time restrictions; and
b. Usufruct or leasehold over Real Property for a period not exceeding ninety-nine
(99) years.
Chapter Three
General Provisions
Article (5)
Originals of documents and court rulings in accordance with which Real Property registration is made will be kept with the Department and may not be removed from its
premises. Pursuant to the provisions of this Law, interested parties, judicial authorities, or
experts and competent committees delegated by judicial authorities may have access to
the documents kept on record and obtain an attested copy thereof.
Chapter Four
Functions of the Department
Article (6)
The Department will be the only entity authorised to register Real Property Rights and
long-term leasehold contracts provided for in Article (4) of this Law. For such purpose,
the Department will:
1. determine areas to be surveyed or re-surveyed and certify maps drawn for them;
2. prescribe rules relating to surveying and inspection and issue maps of Real Property Units;
3. prepare contract templates relating to Real Property transactions;
4. prescribe rules for organising, archiving, and destroying documents;1511515. prescribe rules for the use of computers for storing and recording of data;
6. prescribe rules for regulating and keeping the real estate brokers register;
7. prescribe rules on valuing Real Property;
8. prescribe rules for voluntary auction sale of Real Property and supervise such sales;
9. determine fees payable for services provided by the Department; and
10. establish branches of the Department as the Director General deems appropriate.
Chapter Five
The Property Register
Article (7)
A Property Register will be maintained in the Department to record all Real Property Rights
and any amendments thereto. This Property Register will have absolute evidentiary value
against all parties and the validity of its data may not be impugned unless it is proven to
be the result of fraud or forgery.
Article (8)
Subject to the provisions of Article (7) of this Law, all electronically recorded Real Property documents and reports will have the same evidentiary value as t |
he originals of such
documents and reports.
Chapter Six
Registration
Article (9)
All transactions that create, transfer, amend, or extinguish Real Property Rights will be recorded
in the Property Register. Likewise, final rulings validating such transactions will also be
registered. Such transactions will not be deemed valid unless recorded in the Property Register. 152152Article (10)
If an obligor is in breach of his undertaking to transfer any Real Property Right, his liability
will be limited to his obligation to pay an indemnity for this breach, regardless of whether
or not an obligation to pay such an indemnity is stated in the undertaking.
Article (11)
If the estate of a deceased contains Real Property Rights, a certificate of inheritance
will be registered in the Property Register, and disposal by any heir of any such rights
will not be effective or recognised against third parties unless also registered in the
Property Register.
Article (12)
The Department may, in accordance with procedures determined under a resolution of the Chairman of the Department, consider applications for registration submitted by
Persons in possession of land that is not registered in their names in order to adjust the
status of such land.
Chapter Seven
Variation or Correction of Property Register Data
Article (13)
The Department may, upon the application of an interested party, or on its own initiative, after giving notification to concerned parties, correct manifest material errors in the
records of the Property Register.
Article (14)
In coordination with competent entities, the Department will update the data of Real
Property Units and of everything thereon such as buildings, plants or otherwise.153153Chapter Eight
Maps
Article (15)
1. Registration of Real Property Units and Real Property Areas will be based upon the
following maps:
a. topographic master map;
b. map of the Real Property Unit; and
c. map of the Real Property Area.
2. Each Real Property Area will have its own separate map indicating the Real Property Units located on it and their numbers.
3. Each Real Property Unit will have its own separate map indicating its site, boundaries,
measurements, area, features, constructions situated on it, and the numbers given
to its adjacent Units.
Chapter Nine
Dividing and Merging
Article (16)
If a dominant Real Property Unit is divided, any existing easement right will continue for each resulting part, provided that this division does not increase the burden on the
servient Real Property Unit. However, if the easement is only beneficial to some of the
resulting parts, the owner of the servient Real Property Unit may apply to the Department to terminate the easement rights in respect of the other parts.
Article (17)
If a servient Real Property Unit is divided, any existing easement rights will continue for each resulting part. However, if the easement right is not used over some parts, or if it is
not possible to use it over some parts, t |
he owner of each part thereof may apply to the
Department, in accordance with the provisions of this Law, to extinguish the easement 154154right in respect of his part.
Article (18)
Easements cease to exist upon the acquisition of the dominant and servient Real Property
Units by the same owner.
Article (19)
If a Real Property Unit encumbered by a collateral right in rem is divided into two or
more Real Property Units, each resulting new Real Property Unit will be encumbered
by the entire right. The new owners may agree with the beneficiary of the collateral right
in rem on division of such right in such a manner that each new Real Property Unit be encumbered by only part of such right as may be specified by mutual consent.
Article (20)
Where two (2) Real Property Units merge and one of them is encumbered by a collateral right in rem while the other is not, the collateral right will extend to cover the entire new
Real Property Unit without approval of the merger by the beneficiary of the collateral
right in rem. However, where each of the two (2) Real Property Units is encumbered by an independent collateral right in rem, the merger must be approved by beneficiaries of
such rights.
Article (21)
Any variation in the Real Property Unit by way of division or merger will be registered in
the Property Register.
Chapter Ten
Title Deeds
Article (22)
The Department will issue title deeds relating to Real Property Rights based on the data 155155recorded in the Property Register.
Article (23)
Without prejudice to the provisions of any other law, apartment buildings and multi-storey
buildings will be treated as a single Real Property Unit and will have one record in the
Property Register to be supplemented by records stating the names of the owners of the
apartments, floors, and common areas.
Article (24)
1. Title deeds mentioned in Article (22) of this Law will have absolute evidentiary value in verifying Real Property Rights.
2. Any conditions, undertakings, or restrictions concerning Real Property Rights and other obligations, will be stated in the record of the Real Property Unit.
Chapter Eleven
Final Provisions
Article (25)
Provisions of Federal Law No. (5) of 1985 Issuing the Civil Code and its amendments will apply to all matters not provided for in this Law.
Article (26)
1. Any agreement or disposition in breach of the provisions of this Law will be null and void. Likewise, any agreement or disposition made with the intention of circumventing
the provisions of this Law will be deemed null and void.
2. The invalidity of such an agreement or disposition may be invoked before the court
by any interested party, the Department, the Public Prosecution, or otherwise ordered by the court on its own initiative. 156156Article (27)
The Decree dated 6 November 1977 Concerning Civil and Criminal Cases in Respect of
Transactions Relating to Disposal of Land in the Emirate of Dubai will be repealed.
Article (28)
The Chairman will issue all regulat |
ions, decisions, orders, and instructions required for the implementation of the provisions of this Law.
Article (29)
This Law will be published in the Official Gazette and will 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.P.O. Box 1166, Dubai, UAE
|
Our Vision:
To be a global real estate leader in attracting investments.
Our Mission:
To create a real estate environment that applies best international
practices to guarantee the rights of all stakeholders, and to contribute to the development of society by: •Developing and applying clear and transparent real estateregulations
•Providing distinctive and effcient real estate services that helpattract investment
•Increasing real estate knowledgeChapter I
EJARI Program 6
Tenancy GuideAbout EJARI
EJARI is an online program developed by RERA for recording tenancy
contracts for all types of property in the Emirate of Dubai, pursuant to Law No. 26 of 2007, as amended by Law No. 33 of 2008. EJARI is the frst step to regulate the process of real estate lease and management. It helps upgrade this important sector and provides distinctive real estate services in terms of registration and regulation. The program aims to preserve rights, regulate the relations between the parties to property lease and management, and to provide encouraging and safe environment for those wishing to engage in this feld, including investors or benefciary tenants.
EJARI Mechanisms
Tenancy Contract Registration
As the registration of tenancy contracts through EJARI is mandatory, plans
have been developed to connect all those engaged in property lease and management sector, including licensed companies in this feld, companies which own and manage properties, or landlords who manage their properties on personal basis, or their legal representatives, and enable them to register and issue contracts.
Registration of Management Contracts
Management contracts concluded between the property owner and the
licensed real estate company is registered through EJARI. This contract determines responsibilities and obligations between the parties to the contract, especially in terms of property management, services provided to tenants, issuance and registration of lease contracts, legal follow-ups, rent collection, maintenance and other obligations. The objective of registration of the management contract is to enable the company to obtain information of the registered property, perform any authorized operations under the management contract, including the registration of tenants and processes associated with the lease contracts, such as rental, renewal, and eviction during the period of the management contract. 7
EJARI Program
Training on Using EJARI
There is a training program for using EJARI in order to qualify people who
need to use it. Arrangements have been made with Dubai Real Estate Institute in this regard in order to send registered persons to be trained and awarded certifcates. Access to EJARI is given to the persons who have obtained the training certifcates that allow them to record data and issue tenancy contracts directly through the website.
Documents Required for Registration in EJARI
Users
Owner Manager (Individual): The person who manages |
the property which is only
personally owned. No license is required in this respect.
Required Documents:
1.Passport copy.
2.Copy of the title deed of any owned property (to verify the number of
the owner).
Owner Manager (Company): The entity (company) which manages the property owned by the company only (i.e. the property registered in the name of the company). This company may have different activities, such as a shopping mall, commercial center, or a governmental or quasi-governmental body.
Required Documents:
1.Copy of the trade license
2.Copy of the title deed of any property owned by the company (to verify the
owner number).
3.Copy of the passport of the offcial representative of the company (manager)
4.Letter from the company that identifes the names of users who will be qualifed for using the program.
5.Copies of the passports of the employees nominated to use the program
Property Management Companies
A company involved in property management licensed by the Department 8
Tenancy Guide
of Economic Development to carry out any of the following activities:
Property lease and management on behalf of third parties: (This activity
gives the company the power to rent property from owners, and then releasing them to third parties).
Lease and management of private property: (This activity grants the company the power to manage the property of the licensor and his relatives only).
Property administrative supervision services: (This activity gives the management company the power to manage the owners’ property under a management contract between the company and the owner, in which the owner determines the authority granted to the company to manage the property for him.
Shopping centers and malls
Businessmen service centers
Department stores and retail shops
Required Documents:
1.Copy of the trade license
2.Copy of the passport of the offcial representative of the company (manager)
3.Letter from the company that identifes the names of users who will be
qualifed for using the program.
4.Copies of the passports of the employees nominated to use the program
Representative of the owner (agent)
The person who represents the owner under the power of attorney granted
by the owner, or an owner in a group having joint ownership of the property, represented by a power of attorney issued by them, or under legal guardianship (such as a receiver, a guardian of minors, or a representative of the heirs).
Required Documents:
1.Copy of the owner passport (whether an individual or a group of owners)
2.Copy of the passport of the agent 3.Copy of the power of attorney and/or (guardianship order or the order
appointing the receiver) Chapter II
How to Register Lease Contracts
with RERA 10
Tenancy Guide
The owner who personally manages the property (no property management license
is required)
1.Completing the property management statement form (CD) which includes
the property and le |
ase contract information.
2.Attaching the required documents, namely:
1.Passport copy 2.Copy of the title deed and land map (Land Department) 3.Copy of the power of attorney of one of the owners, in case of joint ownership of the property
Owner Obligations:
1.If the owner delegates the property management to a property management
company, the owner shall observe the following:
2.The company shall be licensed and registered by RERA and its business shall include property lease and management to third parties, or property administrative supervision (verifying the trade license).
3.Signing a management contract with the company, which identifes the parties to the contract, property details, the obligations of each party, management fees, and the contract period. In the event the building is rented in full, the company shall be licensed to conduct the business of property lease and management on behalf of third parties.
4.The person signing on behalf of the company shall have capacity (offcially authorized).
5.There shall be a premises for the property management company (fxed address)
In case the owner leases and manages the property by himself, the owner shall observe the following:
1.The property should be owned by (granted to) the applicant and its
ownership should not be disputed by any other persons.
2.In the event the property is jointly owned, there should be a power of attorney by the owners to the applicant authenticated at the notary public.
3.The property granted by the government shall not be a popular house and shall be designated as family residence for the person to which it is granted 11
How to Register
only, subject to the conditions laid down by the government bodies.
4.The property shall not be mortgaged for any party that prescribes non-investment (such as Etisalat, certain banks, and donors).
5.The property shall not be fnanced by Zayed Housing Project or Mohammad bin Rashid Housing Establishment.
6.There shall be no amendment or violations in respect of the property plan, and the property shall be constructed according to the applicable conditions and standards stipulated by the regulations in the Emirate of Dubai, according to the completion certifcate issued by Dubai Municipality, and the licenses granted for use and specifcations.
7.The property shall satisfy safety and security conditions (civil defense statement).
8.The purpose of lease and use shall be specifed and shall comply with the authorized conditions in the Emirate of Dubai according to area designation (residential, commercial, industrial, etc.)
9.In the event the property is leased in whole or in part (supplement, part of villa, or any additions), this shall be indicated and the plans approved by Dubai Municipality shall be submitted.
10. In the event of partial lease of the property, an independent electricity meter shall be installed for the part intended to be leased, and the procedures shall be completed and app |
rovals shall be obtained from Dubai Electricity and Water Authority.
11. The party responsible for maintenance shall be identifed and a maintenance contract shall be procured from a building maintenance company.
12. The facilities and services available in the property, the extent to which the tenants may use these facilities, and the obligations to be complied with shall be identifed (e.g. swimming pools, gyms, gardens, parking lots, etc.)
13. The party responsible for cleaning and security of the property and facility management shall be identifed.
14. The specifcations and total area of the property and the area of the leased part shall be identifed (in the event of partial lease).
15. Insurance shall be maintained in respect of the property at one of property insurance companies.
16. The rent value of the property shall be identifed.
17. The duration of the lease contract shall be identifed. 12
Tenancy Guide
18. The insured sum agreed upon by the landlord and the tenant shall be identifed.
19. The landlord shall undertake to comply with RERA regulations and Landlords and Tenants Law issued in the Emirate of Dubai.
20. The landlord undertakes to authenticate the lease contract at RERA and present the documents and tenant information for each contract (lease or renewal).
21. The landlord undertakes not to issue more than one contract for the leased property and for only one person or one entity.
22. In the event the contract with the tenant is terminated, the fnal water and electricity invoice shall be presented, along with the settlement with the former tenant.
23. No new contract shall be registered for a new tenant of the formerly leased property before ending the contract with the former tenant and presenting the settlement and the fnal water and electricity invoice.
The tenant shall be inquired about the following documents:
1.Passport copy, if the tenant is an individual (name, passport number,
residence permit, and expiry dates of the passport and residence permit).
2.Trade license, if the tenant is a company (trade name, license number, expiry date).
The tenant:
In the event of dealing with the landlord directly, the following procedures
shall apply:
1.Verifying property ownership.
2.Passport photocopy of the landlord (name, etc.) 3.Photocopy of the power of attorney given to one of the landlords, in the event of joint ownership, authorizing him to manage the property.
4.Verifying that there are no construction violations (unlicensed additions or amendments).
5.Verifying the type of the licensed use of the building (residential, commercial)
6.Registering all information of the lease contracts (property type, unit, rent amount, landlord name, type of use, land number) 13
How to Register
7.Reading the contract clauses to identify the obligations of both parties.
8.The electricity meter shall be transferred to the name of the tenant upon signing the contract.
In |
the event of dealing with property management company:
1.Copy of the lease contract between the landlord and the company (verifying
the name of the landlord, contract period).
2.Copy of the land ownership and map (verifying the name of the landlord, location, property type, and use).
3.Copy of the trade license to verify the name of the company, type of the licensed activity, and whether it is authorized to lease and re-lease.
4.The contract clauses shall be read to identify the obligations of both parties.
5.All information shall be registered in the lease contract (landlord name, name of the leasing company, property type, land type, rent value, and contract period)
6.Payments shall be in the name of the owner of the property or the name of the leasing company only and not in the name of any other persons.
7.There shall be premises for the company (an offce) and its address shall be identifed.
8.The electricity meter shall be transferred upon signing the contract.
In the event of dealing with a private property lease and management company:
1.Property ownership shall be verifed, so that the property shall be owned by
the company itself, the company owner, or his frst-degree or second-degree relatives, according to the granted license.
2.Copy of the trade license (verifying the trade name, type of license, etc.) 3.The contract clauses shall be read to identify the obligations of both parties.
4.All information shall be registered in the lease contract (landlord name, name of the leasing company, property type, unit type, rent value, and contract period)
5.Payments shall be in the name of the owner of the property or the name of the leasing company only and not in the name of any other persons.
6.There shall be premises for the company (an offce) and its address shall be identifed. 14
Tenancy Guide
7.The electricity meter shall be transferred upon signing the contract.
In the event of dealing with a company licensed for property management
supervision business:
1.Copy of the management contract concluded between the landlord and the
company (to verify the name of the company and the landlord, property type and specifcations, and the contract period).
2.Trade license of the company (company name, business type, expiry date, etc).
3.The contract clauses shall be read to identify the obligations of both parties.
4.All information shall be registered in the lease contract (landlord name, name of the leasing company, property type, unit type, rent value, and contract period)
5.Payments shall be in the name of the owner of the property only and not in the name of the company or any other persons.
6.The electricity meter shall be transferred to the name of the tenant upon signing the contract.
In the event the lessor (landlord/property management company) does not register the lease contract, i.e. registration through the tenant, the required documents shall be as follows:
1.Copy of the tenant passpor |
t, if the tenant is an individual
2.The original contract, or a copy thereof 3.Electricity and water invoice of the last month (the meter shall be in the name of the tenant).
4.Copy of the trade license, if the tenant is a company. 5.Copy of the land map or the title deed of the property.
Instructions to be complied with for registering lease contracts at the printing offces.
1.The applicant for registration of the lease contract shall be relevant to the
transaction, i.e. either the owner of the property or the tenant (the identity and capacity shall be verifed).
2.The applications fled by the real estate companies shall not be accepted and the company shall be obliged to register the contracts through EJARI. 15
How to Register
3.The lease contract shall be effective.
4.The applicant for registration of the lease contract shall fll the online form, shall undertake and declare the accuracy of the information and addresses (phone numbers and email address), and shall assume responsibility in the event of any mistake by signing the form on the designated place. In the case of a company, the seal of the company (whether a tenant or a landlord) shall be affxed in the designated place.
5.The property or the unit shall be registered at the Land Department (title deed in the name of the owner)
6.The purpose of lease and type of use shall be identifed and shall be according to the conditions applicable in the Emirate of Dubai according to designation of areas (as mentioned in the lease contract, residential, commercial, industrial).
7.The contract shall not be restricted by the condition of non-investment, such as using it as a family accommodation, popular house, or funded by entities that prescribe non-investment, such Sheikh Zayed Project, and Mohammad bin Rashid Housing and Telecommunications Establishment.
8.There shall be no amendments or violations to the property plan and the property shall be constructed according to the conditions and applicable standards provided for in the Emirate of Dubai regulations, including the completion certifcate issued by Dubai Municipality (i.e. the lease contract of one room in an apartment, a villa consisting of a number of rooms, or part of an Arab house, i.e. joint accommodation, shall not be registered).
9.Sublease contracts (between one tenant and another) shall not be registered.
10. Attention shall be paid to the contract duration and property type (for instance, if the lease property is an open land and the lease contract is for construction buildings to be invested for a long time, the lease contracts shall not be registered), because it shall be considered musataha (land rental contract) rather than a lease contract.
11. The information stated in the form shall be matched with the information stated in the documents and lease contract.
12. All required documents shall be provided, verifed, and uploaded to the system, as follows:
The original lease contract and a copy t |
hereof (the name of the tenant, landlord, and lessor, the commencement and expiry date of the contract, 16
Tenancy Guide
the registered rent value, property and unit number, and the purpose of the lease shall be verifed). In the event the original contract is not provided, the transaction shall not be accepted.
DEWA invoice for the last month (the name shall be verifed, the meter shall be in the name of the tenant, date, unit number, the address stated on the invoice and name of the landlord shall be verifed and matched with the contract)
Copy of the land map or the title deed of the property (the land number, landlord name, and the location of the registered property shall be verifed and matched with the information stated in the lease contract).
Copy of the tenant passport, if the tenant is an individual (the tenant name, nationality, passport number, and residence permit number, and the expiry dates thereof shall be verifed and matched with the information stated in the lease contract)
Copy of the trade license, if the tenant is a company (trade name, trade license number and expiry date, and the address of the company registered in the license shall be verifed and matched with the information stated in the lease contract).
In the event of a dispute between the lessor and the tenant
1.Registering the lease contract.
2.The parties shall refer to the competent authority to settle the dispute according to the applicable procedures.
Documents required for registration in EJAR as users
Owner Manager (Individual): The person who manages the property which is only
personally owned. No license is required in this respect.
Documents required:
1.Passport copy
2.Copy of the title deed of any property owned (to verify the number of the owner).
Owner Manager (Company): The entity (company) which manages the property 17
How to Register
owned by the company only (i.e. the property registered in the name of the company). This company may have different activities, such as a shopping mall, commercial center, or a governmental or quasi-governmental body.
Required Documents:
1.Copy of the trade license
2.Copy of the title deed of any property owned by the company (to verify the owner number).
3.Copy of the passport of the offcial representative of the company (manager)
4.Letter from the company that identifes the names of users who will be qualifed for using the program.
5.Copies of passports of the employees nominated to use the program
Property Management Companies
A company involved in property management licensed by the Department
of Economic Development to carry out any of the following activities:
Property leasing and management on behalf of third parties (This activity gives the company the power to rent property from owners, and then releasing them to third parties).
Rental and management of private property: (This activity grants the company the power to manage the property of the |
licensor and its relatives only).
Property administrative supervision services: (This activity gives the management company the power to manage the owners’ property under a management contract between the company and the owner, in which the owner determines the authority granted to the company to manage the property for him.
Shopping centers and malls
Businessmen service centers
Department stores and retail shops
Required Documents:
1.Copy of the trade license
2.Copy of the passport of the offcial representative of the company (manager)
3.Letter from the company that identifes the names of users who will be qualifed for using the program. 18
Tenancy Guide
4.Copies of the passports of the employees nominated to use the program.
Representative of the owner (agent)
The person who represents the owner under the power of attorney granted
by the owner, or an owner in a group having joint ownership of the property, represented by a power of attorney issued by them, or under legal guardianship (such as a receiver, a guardian of minors, or a representative of the heirs).
Required Documents
1.Copy of the landlord passport (whether an individual or joint owners).
2.Copy of the agent passport 3.Copy of the power of attorney and/or (custody order or receiver appointment order) Chapter III
Tenancy Regulating Legislations 20
Tenancy Guide
Decree No. (43) of 2013
Determining Rent Increases for Real Property
in the Emirate of Dubai(1)
We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal of: Law No. (9) of 2004 Concerning 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 Rent in the Emirate of Dubai;
Decree No. (26) of 2013 Concerning the Rent Disputes Settlement 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 will be as follows:
a. no rent increase, where the rent of the real property unit is up to ten percent (10%)
b. less than the average rental value of similar units;
c. fve percent (5%) of the rent of the real property unit, where the rent is eleven
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of confict the Arabic text will prevail. 21
Tenancy Regulating Legislations
percent (11%) to twenty percent (20 |
%) less than the average rental value
of similar units;
d. 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;
e. ffteen 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
f. 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 will apply to landlords, whether private or public entities, in the Emirate of Dubai, including those in special development zones and free zones such as 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 will 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 will be published in the Offcial Gazette.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 18 December 2013 Corresponding to 15 Safar 1435 A.H. 22
Tenancy Guide Law No. (33) of 2008 Amending
Law No. (26) of 2007
Regulating the Relationship between Landlords and Tenants
in the Emirate of Dubai 2
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 in 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; and
Decree No. (2) of 1993 Establishing a Special Tribunal for the Settlement of
Disputes between Landlords and Tenants and its amendments,
Do hereby issue this Law.
Article (1)
Articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of Law No.
(26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai will be superseded by the following provisions:
Article (2)
In implementing the provisions of this Law, the following words and expressions will have the meaning indicated opposite each of them, unless the context implies otherwise:
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of confict the Arabic text will prevail. 23
Tenancy Regulating Legislations
Emirate: The Emirate of Dubai |
.
Tribunal: The Special Tribunal for the Settlement of Disputes between
Landlords and Tenants.
RERA: The Real Estate Regulatory Agency.
Real Property: Immovable property and everything affxed or annexed to
it, and which is leased out for purposes of accommodation
or conducting a business activity, trade, profession, or any other lawful activity.
Tenancy Contract: A contract by virtue of which the Landlord is bound to
allow the Tenant use of the Real Property for a specifc purpose, over a specifc term, and in return for a specifc consideration.
Landlord: A natural or legal person who is entitled by law or agreement
to dispose of Real Property. This also includes a person to whom ownership of the Real Property is transferred during the term of a Tenancy Contract, an agent or legal representative of the Landlord, or a Tenant who is permitted by the Landlord to sub-let the Real Property.
Tenant: A natural or legal person who is entitled use of the Real
Property by virtue of a Tenancy Contract, or any person to whom the tenancy is legally transferred from the Tenant.
Sub-Tenant: A natural or legal person who is entitled use of the Real
Property or any part thereof by virtue of a Tenancy Contract entered into with the Tenant.
Rent: The specifed consideration which the Tenant must be bound to pay by virtue of the Tenancy Contract.
Notice: A written notifcation sent by either party to the Lease
Contract to the other through the Notary Public, or delivered by registered post, by hand, or by any other technological means approved by law. 24
Tenancy Guide
Article (3)
The provisions of this Law will apply to lands and Real Property leased out in
the Emirate excluding Real Property provided free of Rent by natural or legal persons to accommodate their employees.
Article (4)
1.The contractual relationship between Landlord and Tenant will be regulated by a Tenancy Contract detailing, in a manner allowing no room for uncertainty, a description of the leased Real Property, the purpose of the tenancy, the term of the Tenancy Contract, the Rent and payment method, and the name of the owner of the Real Property, if the Landlord is not the owner.
2.All Tenancy Contracts or any amendments to such Tenancy Contracts related to Real Property which are subject to the provisions of this Law will be registered with RERA.
Article (9)
1.The Landlord and Tenant must specify the Rent in the Tenancy Contract. Should the parties omit or fail to specify the agreed Rent, the Rent must be the same as that of similar Real Property.
2.The Tribunal will determine the Rent of similar Real Property taking into account the criteria determining the percentage of Rent increase set by RERA, the overall economic situation in the Emirate, the condition of the Real Property, and the average Rent of similar Real Property in similar Real Property markets within the same area and in accordance with any applicable legislation in the Emirate concerning Real Property R |
ent, or any other factors which the Tribunal deems appropriate.
Article (13)
For the purposes of renewing the Tenancy Contract, the Landlord and Tenant may, prior to the expiry of the Tenancy Contract, amend any of the terms of the Tenancy Contract or review the Rent, whether increasing or decreasing it. Should the Landlord and Tenant fail to reach an agreement, then the Tribunal may determine the fair Rent, taking into account the criteria stipulated in Article (9) of this Law. 25
Tenancy Regulating Legislations
Article (14)
Unless otherwise agreed by the parties, if either party to the Tenancy Contract
wishes to amend any of its terms in accordance with Article (13) of this Law, that party must notify the other party of same no less than ninety (90) days prior to the date on which the Tenancy Contract expires.
Article (15)
The Landlord will be bound to hand over the Real Property in good condition, which allows the Tenant full use as stated in the Tenancy Contract. However, the parties may agree upon renting an unfnished Real Property provided that the Tenant agrees to complete the construction of the Real Property in a manner to render it suitable for use as intended. The identity of the party who will incur the costs of completing the construction will be determined in the Tenancy Contract.
Article (25)
The Landlord may seek eviction of the Tenant from the Real Property prior to the expiry of the term of the Tenancy only in the following cases:
1.where the Tenant fails to pay the Rent or any part thereof within thirty (30)
days after the date a Notice to pay is given to the Tenant by the Landlord unless otherwise agreed by the parties;
a. where the Tenant sub-lets the Real Property or any part thereof without
obtaining the Landlord’s approval in writing. In this case, the eviction will apply to both the Tenant and Sub-Tenant. However, the Sub-Tenant’s right to claim a compensation from the Tenant will be preserved;
b. where the Tenant uses the Real Property or allows others to use it for any illegal purpose or for a purpose which breaches public order or morals;
c. where the Tenant of commercial Real Property leaves the Real Property unoccupied for no valid reason for thirty (30) consecutive days or ninety (90) non-consecutive days within the same year, unless agreed otherwise by both parties;
d. where the Tenant makes a change to the Real Property that renders it unsafe in a manner that makes it impossible to restore the Real Property 26
Tenancy Guide
to its original state, or damages the Real Property willfully or through gross
negligence, by failing to exercise due diligence, or by allowing others to cause such damage;
e. where the Tenant uses the Real Property for a purpose other than that for which the Real Property was leased, or uses the Real Property in a manner that violates planning, construction, and use-of-land regulations in force in the Emirate;
f. where the Real Property is condemned, |
provided that the Landlord must prove this by a technical report issued by or attested to by Dubai Municipality;
g. where the Tenant fails to observe any obligation imposed on him by this Law or any of the terms of the Tenancy Contract within thirty (30) days from the date a Notice to perform such obligation or term is served upon him by the Landlord; or
h. where competent Government entities requires demolition or reconstruction of the Real Property as per urban development requirements in the Emirate.
For the purposes of paragraph (1) of this Article, the Landlord will give Notice to the Tenant through a Notary Public or registered post.
2.Upon expiry of the Tenancy Contract the Landlord may request eviction of
the Tenant from the Real Property only in any of the following cases:
a. where the owner of the Real Property wishes to demolish the Real Property
to reconstruct it, or to add any new constructions that will prevent the Tenant from using the Real Property, provided that the required permits are obtained from the competent entities;
b. where the Real Property is in a condition that requires restoration or comprehensive maintenance that cannot be carried out in the presence of the Tenant in the Real Property, provided that the condition of the Real Property is verifed by a technical report issued by or attested to by Dubai Municipality;
c. where the owner of the Real Property wishes to take possession of it for his personal use or for use by any of his frst-degree relatives, provided that 27
Tenancy Regulating Legislations
the owner proves that he does not own another Real Property appropriate
for such purpose; or
d. where the owner of the Real Property wishes to sell the leased Real Property.
For the purposes of paragraph (2) of this Article, the Landlord must notify the Tenant of the eviction reasons twelve (12) months prior to the date set for eviction, provided that this notice is given through a Notary Public or registered post.
Article (26)
If the Tribunal awards the Landlord possession of the Real Property for his personal use or for use by any of his frst-degree relatives in accordance with sub-paragraph (c) of paragraph (2) 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 from the date of possession of the Real Property by the Landlord in case of residential Real Property and three (3) years in case of non-residential Real Property, unless the Tribunal, in its discretion, sets a shorter period. Otherwise, the Tenant may request the Tribunal to award him a fair compensation.
Article (29)
1.The Tenant has the right of frst refusal to rent the Real Property after it has been demolished and reconstructed or renovated and refurbished by the Landlord, provided that the Rent is determined in accordance with the provisions of Article (9) of this Law.
2.The Tenant must exercise the right of frst refusal referred to in the preceding pa |
ragraph within a period not exceeding thirty (30) days from the date the Tenant is notifed by the Landlord.
Article (36)
The Chairman of the Executive Council will issue the regulations, bylaws, and resolutions required for the implementation of the provisions of this Law. 28
Tenancy GuideArticle (2)
This Law will be published in the Offcial Gazette and will 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. 29
Tenancy Regulating Legislations
Law No. (26) of 2007
Regulating the Relationship between Landlords and Tenants
in the Emirate of Dubai 3
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 in Civil and Commercial Transactions; Decree No. (2) of 1993 Establishing a Special Tribunal for the Settlement of Disputes between Landlords and Tenants; and Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency, Do hereby issue this Law.
Title
Article (1)
This Law will be cited as “Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai “.
Defnitions and Scope of Application
Article (2)
In implementing the provisions of this Law, the following words and expressions
will have the meaning indicated opposite each of them, unless the context implies otherwise:
Emirate: The Emirate of Dubai. RERA: The Real Estate Regulatory Agency.
© 2014 The Government of Dubai Legal Affairs Department
(1) Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of confict the Arabic text will prevail. 30
Tenancy Guide
Real Property: Immovable property and everything affxed or annexed to
it and which is leased out for purposes of accommodation or conducting a business activity, trade, profession, or any other lawful activity.
Lease Contract: A contract by virtue of which the Landlord is bound to allow the Tenant use of the Real Property for a specifc purpose, over a specifc term, and in return for a specifc consideration.
Landlord: A natural or legal person who is entitled by law or agreement to dispose of Real Property. This also includes a person to whom ownership of the Real Property is transferred during the term of a Lease Contract, an agent or legal representative of the Landlord, or a Tenant who is permitted by the Landlord to sub-let the Real Property.
Tenant: A natural or legal person who is entitled to use Real Property by virtue of a Lease Contract, or any person to whom the lease is legally transferred from the Tenant.
Sub-tenant: A natural or legal person who is entitled use of the Real Propert |
y or any part thereof by virtue of a Lease Contract entered into with the Tenant.
Rent: The specifed consideration which the Tenant will be bound to pay by virtue of the Lease Contract.
Tribunal: The Special Tribunal for the Settlement of Disputes between Landlords and Tenants.
Notice: A written notifcation sent by either party to the Lease Contract to the other through the Notary Public, or delivered by registered post, by hand, or by any other technological means approved by law.
Article (3)
The provisions of this Law will apply to Real Property leased out in the Emirate, including vacant and agricultural lands, but excluding hotel establishments 31
Tenancy Regulating Legislations
and Real Property provided by natural or legal persons as accommodation to
their employees at no charge.
Lease Contract
Article (4)
1.The contractual relationship between Landlord and Tenant will be regulated by a written Lease Contract signed by both parties and detailing, in a manner allowing no room for uncertainty, a description of the leased Real Property, the purpose of the Lease Contract, the name of the owner, the number and type of the land, and the area where the Real Property is located. It will also determine the term of the Lease Contract, the Rent, and payment method.
2.All Lease Contracts related to Real Property which is subject to the provisions of this Law and any amendments thereto will be registered with RERA. Judicial authorities and Government departments, authorities, and corporations may not consider any dispute or claim or otherwise take any action relating to a Lease Contract unless such Contract is registered with RERA in accordance with the relevant rules and regulations.
Term of Lease Contract
Article (5)
The term of a Lease Contract must be specifed. Where the term is not specifed in the Lease Contract or where it is impossible to prove the alleged term, the Lease Contract will be deemed valid for the period specifed 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 will be renewed for the same term or for a term of one year, whichever is shorter, and under the same terms as the previous Lease Contract. 32
Tenancy GuideArticle (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 sub-lease contract entered into between the Tenant and Sub-tenant will expire upon the expiry of the term of the Lease Contract entered into between the Landlord and Tenant, unless the Landlord expressly agrees to extend the term of the sub-lease contract.
The Rent
Article (9)
Landlord and Tenant must specify the Rent in the Lease Contract. In any event, the Rent may not be increased nor may any of the terms of t |
he Lease Contract be amended before the lapse of two years as of the date when the original contractual relationship was established.
Article (10)
RERA will have the authority to establish criteria relating to percentages 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 will cover use of the Real Property amenities such as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other amenities.
Article (12)
The Tenant will pay the Landlord the Rent on the dates mutually agreed upon. 33
Tenancy Regulating Legislations
Where there is no agreement or where it is impossible to verify the payment
dates, the Rent must be annually paid in four (4) equal instalments to be paid in advance.
Article (13)
1.Subject to the provisions of Article (9) of this Law and for the purposes of renewing the Lease Contract, the Landlord and Tenant may review 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 average Rent of similar Real Property.
2.The Tribunal will determine the average rental value of similar Real Property in accordance with the legislation adopting criteria and amount of Rent, proposed by RERA, taking into account the condition of the Real Property and the prevailing market rate of Rent of similar Real Property within the same area.
Article (14)
Where either of the two parties to a Lease Contract do not wish to renew the Lease Contract or wish to amend any of its terms, such party must notify the other party of such intent no less than ninety (90) days before the date on which the Lease Contract expires, unless otherwise agreed by the parties.
Landlord’s Obligations
Article (15)
The Landlord will be bound to hand over the Real Property in good condition, which allows the Tenant full use stated in the Lease Contract.
Article (16)
Unless otherwise agreed by the parties, the Landlord will, during the term of the Lease Contract, be responsible for the Real Property’ maintenance works and for repairing any defect or damage that may affect the Tenant’s intended use of the Real Property. 34
Tenancy GuideArticle (17)
The Landlord may not make to the Real Property or any of its amenities or
annexes any changes that would preclude the Tenant from full use of the Real Property as intended. The Landlord will be responsible for such changes whether made by him or any other person authorised by the Landlord. Further, the Landlord will be responsible for any defect, damage, defciency, and wear and tear occurring to the Real Property for reasons not attributable to the fault of the Tenant.
Article (18)
The Landlord must provide the Tenant with the approvals required to be submitted to the competent offcial entities in the Emirate whenever the Tenant wishes to ca |
rry out decoration works or any other works that require such approvals, provided that such works do not affect the structure of the Real Property and that the Tenant has the offcial documents requesting such approvals.
Tenant’s Obligations
Article (19)
The Tenant must pay the Rent on due dates and maintain the Real Property in such a manner as an ordinary person would maintain his own property. Without prejudice to the Tenant’s obligation to carry out the restorations that have been agreed upon or which are customary for Tenants to undertake, the Tenant may not make any changes or carry out any restoration or maintenance works to the Real Property unless so permitted by the Landlord and after obtaining required licences from the competent offcial entities.
Article (20)
When entering into a Lease Contract, the Landlord may obtain from the Tenant a security deposit to ensure maintenance of the Real Property upon the expiry of the Lease Contract, provided that the Landlord undertakes to refund such deposit or remainder thereof to the Tenant upon the expiry of the Lease Contract. 35
Tenancy Regulating Legislations
Article (21)
Upon the expiry of the term of the 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 for damage due to reasons beyond the Tenant’s control. In the event of dispute between the two parties, the matter must be referred to the Tribunal to issue an award in this regard.
Article (22)
Unless the Lease Contract states otherwise, the Tenant must pay all fees and taxes due to Government entities and departments for use of the Real Property as well as any fees or taxes prescribed for any sub-lease.
Article (23)
Unless otherwise agreed by the parties, upon vacating and surrendering possession of the Real Property, the Tenant may not remove any leasehold improvements made by the Tenant.
Article (24)
Unless otherwise agreed by the parties to the Lease Contract, the Tenant may not assign the use of or sub-lease the Real Property to third parties unless written consent of the Landlord is obtained.
Eviction Cases
Article (25)
1.The Landlord may seek eviction of the Tenant from the Real Property before the 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 Notice to pay on the Tenant by the Landlord;
b. Where the Tenant sub-lets the Real Property or any part thereof without 36
Tenancy Guide
obtaining the Landlord’s written approval. In this case, the eviction will
apply to the Sub-tenant, who will have 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 breaches public order or morals;
|
d. Where the Tenant makes a 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 damages the Real Property wilfully, or through gross negligence, by failing to exercise due diligence, or by allowing others to cause such damage;
e. Where the Tenant uses the Real Property for a purpose other than that for which the Real Property was let, or otherwise uses such Real Property in a manner that violates planning, construction, and use-of-land regulations in force in the Emirate;
f. Where the Real Property is condemned, provided that the Landlord proves this by a technical report attested to by Dubai Municipality, or
g. Where the Tenant fails to observe any obligation imposed on him by this Law or any of the Lease Contract terms within thirty (30) days from the date a Notice to perform such 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. a competent Government entity requires demolition and reconstruction of
the Real Property as per urban development requirements in the Emirate;
b. the Real Property is in a condition that requires full renovation or comprehensive maintenance that cannot be carried out in the presence of the Tenant in the Real Property, provided that the condition of the Real Property is verifed by virtue of a technical report attested to by Dubai Municipality;
c. the Landlord wishes to demolish the Real Property to reconstruct it or add any new constructions that will prevent the Tenant from using the Real Property, provided that the Landlord obtains the required permits from the 37
Tenancy Regulating Legislations
competent entities; or
d. the Landlord wishes to repossess the Real Property for use by him
personally or by any of his frst-degree relatives.
However, for each of the above-mentioned four cases, the Landlord must notify the Tenant of the eviction reasons at least ninety (90) days prior to the expiry of the Lease Contract.
Article (26)
If, upon expiry of the Lease Contract, the Landlord requests possession of the Real Property for his personal use or for use by any of his frst-degree relatives, and the Tribunal awards him such possession, the Landlord may not rent the Real Property to a third party before the lapse of at least one (1) calendar year from the date of repossessing the Real Property. Otherwise, the Tenant may request that the Tribunal award him an appropriate compensation.
General Provisions
Article (27)
The Lease Contract does not expire upon the death of the Landlord or the Tenant. The contractual relationship continues with the heirs, unless the heirs of the Tenant wish to terminate such relationship, provided that termination comes into effect no less than thirty (30) days from the date of notifying the Landlord of such intent or the expiry date of the Lease Contract, whichever come |
s frst.
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 by virtue of the Lease Contract entered into with the previous owner, provided that such Lease Contract has a fxed term.
Article (29)
1.The Tenant has the right of frst refusal to return to the Real Property after it has been demolished, reconstructed, renovated, or refurbished, provided 38
Tenancy Guide that the Rent is determined in accordance with the provisions of Article (13)
of this Law.
2.The Tenant must exercise the right of frst refusal referred to in the preceding paragraph within a period not exceeding thirty (30) days from the date the Tenant is notifed by the Landlord.
Article (30)
If the Tribunal issues an award terminating the Lease Contract and the Real Property is occupied by a Sub-tenant under a contract entered into with the Tenant and approved by the Landlord, the Sub-tenant may continue to occupy the Real Property under the terms of the sub-lease contract.
Article (31)
Filing a claim to evict the Tenant does not exempt the Tenant from paying the Rent for the whole period during which the claim is considered, and until an award is rendered and executed.
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 out 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 such rights and legal position until the arbitration award is rendered.
Final Provisions
Article (33)
Where a dispute arises and the Landlord and Tenant have not agreed on the arbitrators or if one or more of the agreed on arbitrators refrains from doing the work, resigns, is removed, or disqualifed, or if an issue arises preventing 39
Tenancy Regulating Legislations the arbitrator from doing his work, and there was no agreement between the
parties in this regard, the Tribunal, upon the request of either party, will 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 in his use of the Real Property in any manner. If this happens, the Tenant may have recourse to the police station under whose jurisdiction the Real Property falls to seek a remedy for the violation or to fle a police report regarding the violation. He also may have recourse to the Tribunal by fling a claim for damages for any loss he may have suffered, supported by offcial reports that support the existence of such violation.
Article (35)
The awards relating to vacating the Real Property wi |
ll be executed through the Tribunal and pursuant to the rules and procedures issued in this respect. Apart from such awards, other awards issued by the Tribunal will be executed by the Execution Section of Dubai Courts.
Article (36)
RERA will issue the bylaws and resolutions required for the implementation of the provisions of this Law and will submit the same to the Chairman of the Executive Council for approval.
Article (37)
This Law will be published in the Offcial Gazette and will come into force after sixty (60) days from the date of 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. Chapter IV
Rent Indexes 42
Tenancy GuideRent Indexes
About Property Rent Index
The Property Rent Index in the Emirate of Dubai was created pursuant to Law
No. (1) of 2009. RERA creates, revises and updates this Index periodically.
This Index is used as guidance to determine the rent values of properties of
various uses in all regions of the Emirate of Dubai. This Index serves as a reference in the event of a dispute between landlords and tenants in determining the rates of increase in rental values. There is coordination between RERA and the Judicial Commission for Settlement of Disputes between Landlords and Tenants to implement the provisions of the Law in this regard.
Contents of the Index
For the purpose of creating the Index, all types of properties and rental units
in the various regions of the Emirate of Dubai were listed. An electronic data record was created for each area. The record includes types of units and their uses, the minimum and maximum rent values, and the average rent payment. The Index is divided into three main areas by region, namely: Deira, Dubai, and freehold areas. Property uses are determent as follows: residential, commercial and industrial.
Rent calculators have been also created for commercial complexes and malls,
according to their respective classifcations. Indexes for certain projects in freehold areas have been created.
Rent Increase Calculator
This calculator serves as a guide for calculating rates of increase in rents and
identifying the rent values in the various areas. The benefciary logs into the offcial website of Dubai Real Estate Community, and selects the rent calculator link. The required data are then entered to easily inquire about the increase rate and the average rent for the area and the unit. 43
Rent IndexesRent Increase Calculator Service
Login Form:
Visiting the website:
www.dubailand.gov.ae
E-services
Rent Increase Calculator
Note: The rent increase calculator is updated on regular basis. 44
Tenancy Guide Demonstration of Calculating the Increase in Property Rent
Pursuant to Decree No. 43 of 2013 Determining the Increase in
Property Rent in Dubai
Relation Between Average Rent
And The Prescribed Rent Increase Rate
Prescribed Rent
Increase Rate Current rent stated in the applicant’s
contr |
act compared to the
average comparable rent
00 % 00 % - 10 % No increase in the rent of the real estate
unit, if the rent is less than or equivalent to 10% of the average comparable rent.
05 % 11 % - 20 % 5% of the rent of the real estate unit, if the rent is less by 11% up to 20% of the average comparable rent.
10 % 21 % - 30 % 10% of the rent of the real estate unit, if the rent is less by 21% up to 30% of the average comparable rent.
15 % 31 % - 40 % 15% of the rent of the real estate unit, if the rent is less by 31% up to 40% of the average comparable rent.
20 % 41 % and more 20% of the rent of the real estate unit, if the rent is less by more than 40% of the average comparable rent.
Example of calculating the increase in property rent rate in the Emirate of Dubai according to the fees: Average rent in the offcial index = AED 80,000
Current rate stated in the lease contract = AED 60,000 Calculating the decrease in rent below the average rent in the offcial index
80,000 - 60,000 x 100 80,000
Decrease in rent below the average rent in the offcial index – 25% Upon referral to the cases stated in the Decree, the rate in this case will be from 21-30%, which allows an increase of 10% Increase in rent= 60,000 x 10% = AED 6,000 Rent after increase: 60,000 + 6000 = AED 66,000 |
Page 1 of 19 pages
Direction for General Regulation
Concerning Jointly Owned Properties
Chapter One
Definitions and General Provisions
Article (1)
Terms used in the Law
In these R egulations , the terms and expressions defined in Article ( 2) of the Law
No. (27) of 2007 concerning Jointly Owned Properties in the Emirate of Dubai
shall have the same meanings assigned to them in the said Article, and any
reference to the word “Law” in these regulations shall mean the mentioned Law.
Article (2)
Definitions
The following words and expressions, unless the context otherwise dictates, shall
have the following meanings:
Aggregate Entitlements: The total of all the Entitlements in a Jointly Owned
Property Declaration.
Association Manager: The person appointed as Association Manager in
accordance with the Owners Association’s
Constitution.
Association Manager
Agreement: An agreement under which an Owners Association
appoints and delegates to an Association Manager.
Common Elements: In relation to a building comprising Compon ents,
those parts of the building (including services,
equipment and facilities) which will be used by one or
more of the Components.
Community Rules: The rules set out in the Jointly Owned Property
Declaration.
Page 2 of 19 pages Component: Where a building has been subd ivided by Volumetric
Subdivision into two or more component parts each of
which is intended for separate ownership and use,
either as Jointly Owned Property or otherwise, one of
those component parts.
Component Owner: The owner of a Component.
Consumer: An individual or corporate entity who is purchasing, or
proposes to purchase, a Proposed Unit and who is
not a Developer.
Developer A Master Developer or a Sub -Developer.
Directions: The cadastral survey directions issued by the
Department in accorda nce with Regulation No. ( ) of
2010 Concerning Preparation of Survey Plans in the
Emirate of Dubai.
Disclosure Statement: A written statement under article (4).
Proposed Unit A Unit:
(a) in a project under construction or proposed to
be constructed which will upon completion of
construction become subject to a Jointly Owned
Property Declaration; or
(b) in a completed project where the title to the Unit
has not been issued by the Department and the
seller of the Unit is a Developer.
RERA: The Real Estate R egulatory Agency.
Supply Agreement An agreement for a term of not less than one year for
the supply of goods or services, including Utility
Services, to an Owners Association either directly or
through a Building Management Statement.
Volumetric Subdivis ion A subdivision of a building and the plot of land on
which it is situated into two or more volumetric plots,
each volumetric plot being defined in the manner
prescribed by the Department and comprising part of
the building.
|
Page 3 of 19 pages
Article (3)
Giving eff ect to the Regulation
(1) This Regulation takes effect on the day it is signed by the Chairman.
(2) The Director General of the Department shall issue decisions, instructions and
forms to give effect to and enforce this Regulation.
(3) The Director Gen eral may by instrument in writing delegate any power,
authority, duty or function conferred on him or the Department by this or any
other Regulation under the Law, to RERA .
Chapter Two
Disclosure Statements and Consumer Protection
Article ( 4)
(1) Befor e a Consumer signs a contract to buy a Proposed Unit from a
Developer, the Developer must give to the Consumer a written statement
signed by a representative of the Developer setting out the following
information:
(a) a description of the building or project of which the Proposed
Unit will be part, including –
(i) the intended land uses within the building or project
(e.g. residential, furnished or hotel apartments , retail ,
offices, multi -uses … etc );
(ii) any features of, or equipment or services included in,
the bui lding or project that contribute to ecological
sustainable development;
(iii) any ecological sustainable development rating that
applies to the building or project, including details of
the specifications authority;
(iv) any special use that applies to the Proposed U nit (e.g.
furnished or hotel apartment);
(v) facilities on the proposed Common Areas that will be
available for use by Owners and Occupiers as of right;
(vi) facilities within the building or project that will be
available for use by Owners and Occupiers on a
comme rcial basis; and
(vii) items of furniture and furnishings (if any) for the
proposed Common Areas and the Proposed Unit that
Page 4 of 19 pages the Developer commits to make available without
additional charge;
(b) a copy of the proposed Jointly Owned Property Declarations;
(c) a copy of any proposed Building Management Statement;
(d) a draft land plan for the Proposed Unit clearly showing the
areas of the Unit required by the Directions to be shown on the
plan for registration purposes, but showing no other areas;
(e) a schedule of materials and finishes for both the proposed
Common Areas and the Proposed Unit;
(f) a copy of any Supply Agreement to be entered into by the
proposed Owners Association;
(g) a budget prepared on a reasonable basis having regard to the
Association Constitution for both the gen eral fund and reserve
fund for the first two financial years of operation of the proposed
Owners Association;
(h) an estimate, based on that budget, of the service charges
payable in respect of the Proposed Unit to each of those funds
during those two financia l years;
(i) proposed arrangements for the supply of Utility Services to the
Jointly Owned Property and the Unit;
(j) where any Utility Service will be provided by a non -Dubai
Government entit |
y, other than the Owners Association –
(i) the name of the entity that w ill provide the Utility
Service;
(ii) whether the entity is related to the Developer; and
(ii) a reasonable estimate of the annual cost of the Utility
Service to the Proposed Unit;
(k) whether the Owners Association will on -sell any Utility Service
to Unit Own ers and, if so, details of the supply arrangements;
(l) whether construction has commenced and if not, the estimated
date for completion of construction;
(m) the estimated date on which the property will be handed over to
the purchaser; and
(n) a statement directing t he purchaser’s attention to their
obligation to register the contract in the interim or permanent
real estate register , as applicable, in accordance with the
related laws.
(2) Before a Consumer enters into a contract to sell a Proposed Unit
that they are purchasing from a Developer or another Consumer
they must give the purchaser from them a complete copy of the
statement they received upon buying the Proposed Unit .
Page 5 of 19 pages
Article (5)
Missing, Inaccurate or Incomplete
Disclosure Statements
(1) If a De veloper fails to give a statement under sub -clause (1) of article (4),
then the contract in respect of which the statement should have been
given is void and of no effect.
(2) If a Consumer fails to provide a copy of a statement in accordance with
sub-clause (2) of article (4), then the contract in respect of which the copy
statement should have been provided is void and of no effect.
(3) The Developer is deemed to have warranted the information in a
statement given under sub -clause (1) of article (4) an d if within two years
of the date on which the Unit is transferred from the Developer any of that
information is found to be inaccurate or incomplete in a material way the
Developer will be liable to the Consumer to whom the Unit is transferred
for damages , whether the Consumer purchased from the Developer or
another Consumer.
Article (6)
Completion Certificate Information
Upon handing over to the purchaser of a Proposed Unit that is a building or part
of a building, the Developer must advise the purcha ser in writing of the date of
the completion certificate for the building. The purchaser may rely upon this
advice for the purpose of the warranties in article 26 of the Law.
Article ( 7)
Financial Matters
(1) Subject to any contractual provision existin g at the date of commencement
of these Regulations, a Developer is responsible for all costs and
expenses associated with a plot prior to that plot becoming Jointly Owned
Property.
(2) Once a plot becomes Jointly Owned Property, the Owners Association for
that Jointly Owned Property becomes responsible for all costs and
expenses associated with that Jointly Owned Property that are rightly
attributed to it by the Law, and the regulations , resolutions and directions
ma |
de under the Law.
Page 6 of 19 pages (3) A Developer must bear all costs associated with the rectification of defects
in Jointly Owned Property and must ensure that no such costs are passed
to an Owners Association. Where this Article is breached the Owners
Association may recover the costs from the Developer.
(4) After the date of commencement of these Regulations, the Developer or
any Sub-Developer must not seek to shift responsibility for the costs and
expenses referred to in sub -clause (1) of this article to any Owners
Association or Consumer and any provisio n purporting to do so shall be
void and of no effect.
(5) A Developer must pay the payable fees to the Department upon
registration of the Owners Association.
(6) Sub-clause (4) of this article does not apply to any insurance premiums or
other deposits .
(7) Amounts paid in advance by the Developer and relating to coverage,
goods or services to be provided or delivered after constitution of the
Owners Association shall be reimbursed, provided:
(a) if the amount is payable by or to be borne by the Owners
Asso ciation, the amount does not exceed the amount
that would have been payable by the Owners Association
had it paid for the insurance premium or other deposit
itself; or
(b) if the amount is payable by or to be borne by a
Consumer, the amount does not exceed the proportion of
the insurance premium or other deposit that would have
been payable by the Consumer had the premium or
expense been paid by the Owners Association from
funds raised from service charges.
(8) A Developer must bear the fees for connecting uti lities to the project and
may not claim the amounts paid in this respect from the Purchasers of the
units or Owners or the Associat ion.
(9) A Developer must not collect service charges or Utility Charges obtaining
a written approval from RERA .
(10) Where a Developer has collected service or other charges from
purchasers of Units or Proposed Units the Developer must within 3
months of the date on which the Owners Association was formed:
(a) have a registered auditor undertake an audit of all
moneys received and expended who must certify:
Page 7 of 19 pages (i) that the moneys have been properly expended in
accordance with the purpose of the Service
Charges or Utility Charges ; and
(ii) the reconciled balance of unexpended funds
held by the Developer;
(b) within 21 days of the Owners Ass ociation being
constituted for the units or land concerned, pay to the
Owners Association any funds held by the Developer on
behalf of the Owners Association and when the audit
report is received , the reconciled balance of unexpended
funds so certified; an d
(c) within 21 days of being so directed by the Department,
pay to the Owners Association the whole or part of the
amount of any moneys that were not properly expended
in accordance with the purpose of the service or other
c |
harge, as certified by the audito r.
(11) Before making a direction under paragraph (c) of sub -clause ( 10) of this
article, RERA must serve a written notice on the Developer setting out
particulars of the improper expenditure and the reasons why RERA
believes that the money should be pai d to the Owners Association.
(12) Where a Developer has used service or other charges raised from
purchasers of Units or Proposed Units to acquire goods or equipment and
such goods or equipment are still in existence as at the date of
constitution of the Owners Association constituted by those purchasers,
then the Developer must transfer ownership and possession of such
goods and equipment to the Owners Association. RERA may adjudicate
on any issues arising out of this requirement.
(13) A provision in a Sale and Purchase Agreement, whether relating to a
Proposed Unit or an existing Unit, must not conflict with the Law, this
regulation or any other regulation made under the Law and is invalid to the
extent of any such conflict.
Article ( 8)
Requirements f or Filing
(1) A Building Management Statement shall be filed in the circumstances set
out in article 27(2) of the Law, and shall comply with the provisions of this
regulation as well as resolutions and directions issued by RERA.
Page 8 of 19 pages
(2) All building s subjec t to a Volumetric Subdivision must have a Building
Management Statement.
(3) If a Developer wishes to make a Volumetric Subdivision, it must bear all
relevant costs including without limitation (Volumetric Subdivision,
preparation of the Building Manageme nt Statement, consulting,
preparation of Joint own property Declaration ).
(4) The purpose of a Building Management Statement is to –
(a) identify the Components;
(b) identify the Common Elements;
(c) specify which Component Owners own the various Common
Elements;
(d) specify rights of access, including for Utility Services, to a
Component where those rights are over or through another
Component;
(e) specify rights of support or shelter of the Components;
(f) specify how the Common Elements are to be maintained and
who is to be responsible for their maintenance;
(g) specify how the costs of maintenance, including renewal and
replacement costs, are to be shared by the Component Owners;
and
(h) set out the arrangements for building related insurances,
including the basis on which the costs of insurance will be
shared by the Component Owners.
(5) A Building Management Statement may authorize:
(a) the opening of a bank account in the name of the Owners
Association to which it relates;
(b) specify the way in which signatories to operate that bank
account are determined; and
(c) specify any constraints on the operation of that bank account;
and a bank is authorized to open such an account and allow it to be
operated in accordance with the escrow account of Owners Associations
and ter |
ms of the Building Ma nagement Statement.
Article ( 9)
Optional Contents
A Building Management Statement must contain arrangements about the matters
in sub -clause (4) of article ( 7) and may also contain provisions about any or all of
the following:
Page 9 of 19 pages (a) establishment and operati on of a management group;
(b) calculation, imposition and recovery of maintenance (including renewal
and replacement) charges;
(c) calculation, imposition and recovery of charges to fund the promotion
of commercial or retail facilities within the building;
(d) archite ctural standards for the building the subject of the Building
Management Statement;
(e) waste management, energy and water efficiency and other
environmental management requirements;
(f) rules for use of Common Elements;
(g) administrative arrangements and record kee ping;
(h) dispute resolution; and
(i) such other matters as are reasonably required to protect the interests
of the owners and occupiers of Components.
Article ( 10)
Binding Effect of Building Management Statement
A Building Management Statement shall bind the Component Owners , including
Owners Association s, Unit Owners, Occupiers and persons having an interest in rem
in a Unit.
Article (1 1)
Effect of Easements, Covenants and Restrictions
Any easements, covenants or restrictions in a Building Management St atement shall
have effect according to their terms.
Article ( 12)
Effect of Conflicting Provisions
A provision in a Building Management Statement must not conflict with the Law,
or regulation s, resolutions and directions made under the Law and is inval id to
the extent of any such conflict.
Page 10 of 19 pages Article (1 3)
Form and Content
The Department General Director may specify the form and detail of the content
of a Building Management Statement.
Chapter Three
Supply Agreements
Article (14)
Control Period
The Control Period commences upon registration of the Owners Association and
ends when the combined Entitlements of Owners, other than the Developer,
equal or exceed two thirds of the Aggregate Entitlements.
Article (1 5)
Term Limitation
(1) Supply Agre ements with a term exceeding 3 years, including any option to
renew, are prohibited.
(2) The Association Manager may not enter into a greements with a term
exceeding 3 years .
Article (1 6)
Termination Right
(1) An Association Manager Agreement and Supply Agreements entered into
by an Owners Association during the Control Period may be terminated by
a resolution of a majority of Owners (other than the Developer and related
parties or interest groups) at its first Annual General Assembly.
(2) To terminate the Association Manager Agreement or any other Supply
Agreement the Board will give notice of the resolution passed pursuant to
Article 1 6(1) to the manager or supplier where |
upon the agreement shall be
terminated.
Article (1 7)
Content of Certain Agree ments
(1) A Supply Agreement or Association Manager Agreement to which this
Article applies must include clauses dealing in every respect with the
following:
Page 11 of 19 pages
(a) in the case of a supply of goods, the agreement must include a
complete description of those goo ds and the price to be paid for
them, which must be a price competitive with prices obtainable on
the open market for similar goods; or
(b) in the case of services –
(i) a detailed description of the services to be provided;
(ii) the fee to be charged for th ose services, which must be a fee
competitive with fees obtainable on the open market for
similar services;
(iii) a means of monitoring and assessing the performance of the
service provider;
(iv) provision for termination of the agreement for non -
performan ce or other default;
(v) provision allowing the Owners Association, on reasonable
terms, to vary the services or service levels to be provided,
subject to a corresponding adjustment of the fee; and
(vi) a prohibition on the service provider seeking or acce pting
secret commissions or incentives or bribes in relation to
goods or services to be procured from third party providers.
(c) in the case of supplying goods or providing services –
(i) the supplier or service provider should have a trade license
authoriz ing it to supply the goods and requirements or
provide the required services;
(ii) no supplier or service provider may subcontract a third party
to supply or provide that service; and
(iii) Operational and overheads cost , salaries, appointment of
employees for the company shall not be charged to the
Owner Association or the owners.
(d) in the case of appointing a company to provide management services
for the Common Areas
a. the Owners Association must contract with registered
companies and licensed by RERA to p rovide the management
services to the Common Areas pursuant to Law No. 27 of 2007
and its implementation regulations.
b. The management contract must be registered with RERA.
(6) If a Supply Agreement or Association Manager Agreement does not
comply with any of the above clauses, then any Owner may apply to the
appropriate Court to invalidate the agreement or amend its terms.
Page 12 of 19 pages Chapter F our
Community Rules Enforcement Notices
Article ( 18)
Service of Notice
If the Board of an Owners Association reasonab ly forms the opinion that an
Owner or occupier is in breach of a Community Rule the Board may authorize
the Association Manager to serve a Community Rules Enforcement Notice on the
offending Owner or Occupier. The notice must be in the form provided by the
Department and completed in accordance with instructions on that form.
Article ( 19)
Failure to Comply
(1) If an Owner or Occupier on whom a valid Community Rules |
Enforcement
Notice is served, fails to comply with that notice the Board may, by further
notice, impose a monetary penalty on the Owner or Occupier not
exceeding AED 2,000. That further notice must be in the form provided by
RERA and completed in accordance with instructions on that form.
(2) A monetary penalty imposed under this Chapter may be recovered by the
Owners Association as a debt.
Chapter Five
Appointment of Temporary Administrator
Article ( 20)
If any of the following circumstances exist -
(a) the Owners Association refuses or fails to comply with a dispute
resolution decision mad e by a private adjudicator or RERA ;
(b) the Owners Association fails to discharge a duty imposed on it by the
Law, or the regulations, resolutions or directions made under the
Law; or
(c) the affairs of the Owners Association are in serious disarray,
then RERA may appoint an administrator to take control of the Owners
Association for a specified period of time.
Page 13 of 19 pages
Article ( 21)
Effect of Appointment
Upon appointment of a temporary administrator:
(a) all positions on the Owners Association’s Board are vacated;
(b) the pow ers and functions of the Owners Association Board are
conferred on the administrator for the period specified by RERA ; and
(c) the administrator must comply with RERA ’s written directions,
whether given in the instrument making the appointment or
subsequently.
Article ( 22)
Election of New Board
In a timely manner before the term of appointment of the administrator expires,
the administrator must convene a meeting of the General Assembly to elect a
new Board which will assume responsibility for the governanc e of the Owners
Association from the time of expiry of that term.
Chapter Six
Registration of Owners Associations
Article ( 23)
Requirements for Registration
(1) To establish an Owners Association, the following documents must be
lodged:
(a) Application for Registration;
(b) the Common Areas Site Plan;
(c) the Jointly Owned Property Declaration;
(d) the title document for the plot the subject of the Site Plan or a
letter from the Department stating that the title document is
under process ;
(e) the audit report prepared under sub -article (10 ) of article ( 7) or
an undertaking to lodge it within the specified period;
(f) the transfer of the first Unit :
(g) if the application is made by Unit Owners, evidence of service
of and non -compliance with the notice under article (11), sub -
Page 14 of 19 pages article (3) of the Jointly Owned Property Declaration
Regulations (No # of 2010 );
(h) the Department’s fees; and
(i) such other documents as the Department may require.
(2) The Director General of the Department may require submission of any or
all of the documents in sub -clause (1) of this article, including any part of
any such document, to be lodged electronically. |
Article ( 24)
Management and Accounting System
(1) An Owners Association, once registered, must use an electronic
management and accounting system t o keep its accounting and other
statutory records and to produce the forms and other documents required
to be produced by or under its Constitution and the Regulations.
(2) The electronic management and accounting system referred to in sub -
clause (1) of t his article must be approved by the RERA.
(3) An Owners Association, once registered, must provide the RERA with
such data relevant to its affairs in the form and manner and at the times
required by RERA .
(4) RERA may extend the time, either generally or in a particular case, for
compliance with a provision of this article.
Article (25)
Establishing the Owners Association
(1) The Developer registering an Owners Association in respect of a project
must:
(a) keep the books and records of the Owners Associa tion as
required under its Constitution;
(b) effect in the name of the Owners Association the insurances
that it is required to effect;
(c) prepare all the documents required to be dealt with at the First
Annual General Assembly of the Owners Association;
(d) hold tha t First Annual General Assembly; and
(e) administer the Owners Association and the Common Areas
(including their repair and maintenance) until the First Annual
General Assembly.
(2) The Owners Association is responsible for the reasonable costs of the
things required to be done under sub -article (1) of this article.
Page 15 of 19 pages
(3) The Director General may issue directions in respect of a particular
building or community, or buildings and communities in Dubai generally,
controlling the level of service charges imposed pe nding the establishment
of an Owners Association and the holding of its first Annual General
Assembly.
Article ( 26)
Failure to Maintain Common Areas
(1) If an Owners Association has failed to maintain its Common Areas in
accordance with its Constitution or Jointly Owned Property Declaration,
RERA, or a party authorized by it, may carry out an inspection of the
Jointly Owned Property.
(2) If having carried out such an inspection RERA, or the party authorized by
it, finds out that the Owners Association h as failed to maintain its Common
Areas, then RERA must issue a written notice to the Owners Association
specifying the breach, the work to be carried out by the Owners
Association and a reasonable time in which the work must be completed.
(3) If the Owner s Association fails to comply with the rectification notice ,
RERA may do all or any of the following:
(a) appoint an temporary administrator under Chapter 5 of this
Regulation;
(b) impose a penalty not exceeding AED100,000.
Chapter Seven
Transitional Provisions
Article ( 27)
Definitions
Existing Project: Any existing project on the Effective Date, in respect
of whic |
h:
(a) one or more Proposed Units have been sold by
the Developer to a Consumer; or
(b) the Developer has existing arrangements in
place, which are reason ably achievable, to
release the project to market within the First
Period and such release occurs within that
period.
Page 16 of 19 pages First Period The period commencing on the Effective Date and
ending 3 calendar months after its commencement.
Second Period The period c ommencing upon expiry of the First
Period and ending 6 calendar months after its
commencement.
Interim Disclosure
Statement: A statement in compliance with article ( 31).
Article ( 28)
Exclusion of Articles (4) and (5)
This Chapter applies to the Existi ng Project, while Articles (4) and (5) do not
apply to an Existing Project until the expiry of the Second Period.
Article (29)
First Period Requirements
(1) During the First Period, before a Consumer signs a contract to buy a
Proposed Unit in an Exist ing Project , the Developer must attach to that
contract a Notice to Purchaser in the form approved by RERA .
(2) During the First Period, before a Consumer enters into a contract to sell a
Proposed Unit in an Existing Project that they are purchasing from a
Developer or another Consumer they must attach to that contract a Notice
to Purchaser in the form approved by RERA .
(3) If a Developer fails to comply with sub -clause (1) of this article, the
contract to which the Notice to Purchaser should have been at tached is
void and of no effect.
(4) If a Consumer fails to comply with sub -clause (2) of this article, the
contract to which the Notice to Purchaser should have been attached is
void and of no effect.
Article (30)
Second Period Requirements
(1) Durin g the Second Period, before a Consumer signs a contract to buy a
Proposed Unit in an Existing Project the Developer must:
(a) attach to that contract a Notice to Purchaser in the form
approved by RERA ; and
Page 17 of 19 pages (b) give to the Consumer an Interim Disclosure Statement.
(2) During the Second Period, before a Consumer enters into a contract to
sell a Proposed Unit that they are purchasing from a Developer or another
Consumer, they must:
(a) attach to that contract a Notice to Purchaser in the form
approved by RERA ; and
(b) give the purchaser from them a complete copy of any Interim
Disclosure Statement that they received when they purchased
the Proposed Unit.
(3) If a Developer fails to comply with sub -clause (1) of this article, the
contract to which the Developer’s obligatio n applied is void and of no
effect.
(4) If a Consumer fails to comply with sub -clause (2) of this article, the
contract to which the Consumer’s obligation applied is void and of no
effect.
Article (31)
Interim Disclosure Statement Requirements
An Inte rim Disclosure Statement must be signed by the Developer and set out
the following infor |
mation:
(a) a description of the building or project of which the Proposed
Unit will be part, including –
(i) the intended land uses within the building or project (e.g.
residential, furnished or hotel apartments and retail);
(ii) any features of, or equipment or services included in, the
building or project that contribute to ecological sustainable
development;
(iii) any special use that applies to the Proposed Unit (e.g. serviced
apart ment);
(iv) facilities on the proposed Common Areas that will be available
for use by Owners and Occupiers as of right;
(v) facilities within the building or project that will be available for
use by Owners and Occupiers on a commercial basis; and
(vi) items of furnitur e and furnishings (if any) for the proposed
Common Areas and the Proposed Unit that the Developer
commits to make available without additional charge;
(vii) a draft plan for the Proposed Unit clearly showing the areas of
the Unit required by the Directions to b e shown on the plan for
registration purposes, but showing no other areas;
Page 18 of 19 pages (viii) a schedule of materials and finishes for both the proposed
Common Areas and the Proposed Unit;
(ix) whether any Supply Agreements are to be entered into by the
proposed Owners Associatio n and, if so, which agreements;
(x) proposed arrangements for the supply of Utility Services to the
Jointly Owned Property and the Unit;
(xi) where any Utility Service will be provided by a non -Dubai
Government entity, other than the Owners Association, a
statemen t identifying the Utility Service and indicating how
charges will be made for that Utility Service;
(xii) whether the Owners Association will on -sell any Utility Service
to Unit Owners and, if so, providing details of the supply
arrangements;
(xiii) whether constructio n has commenced and if not, specifying the
estimated date for commencement of construction;
(xiv) a reasonably estimated date on which the property will be
handed over to the purchaser; and
(xv) a statement directing the purchaser’s attention to their obligation
to register the contract in the interim real estate register in
accordance with the related laws including a statement
explaining the consequences of non -registration.
Article ( 32)
Developer warranty
The Developer is deemed to have warranted the informatio n in an Interim
Disclosure Statement and if within two years of the date on which the Unit is
transferred from the Developer any of that information is found to be inaccurate
or incomplete in a material way the Developer will be liable to the Consumer to
whom the Unit is transferred for damages, whether the Consumer purchased
from the Developer or another Consumer.
Article ( 33)
Building Management Statements
(1) The Building Management Statement must contain provisions that are
reasonably necessary to r egulate the rights and obligations of the owners
to be bound |