RERA Real Estate Broker Exam — Questions and Answers
Question 1: A non-UAE national purchases an off-plan apartment in Dubai for AED 2 million. What is the maximum mortgage amount the bank can provide?
- AED 1,400,000
- AED 1,000,000 (Correct answer)
- AED 1,500,000
- AED 1,200,000
Correct answer: AED 1,000,000
Off-plan properties are subject to a 50% maximum LTV regardless of buyer nationality, capping the loan at AED 1,000,000 for a AED 2 million purchase.
Question 2: What factors influence property values in Dubai?
- Only supply and demand
- Only the building's age
- Location, amenities, transport connectivity, developer reputation, building quality, view, floor level, market conditions, and proximity to landmarks (Correct answer)
- Only the purchase price
Correct answer: Location, amenities, transport connectivity, developer reputation, building quality, view, floor level, market conditions, and proximity to landmarks
Dubai property values are influenced by location (waterfront, Downtown), amenities, metro/transport access, developer quality, building condition, views (sea, Burj Khalifa), floor level, market cycle position, and landmark proximity.
Question 3: What is RERA and under which authority does it operate?
- A private real estate standards association
- Real Estate Regulatory Agency — the regulatory arm of the Dubai Land Department (Correct answer)
- An independent federal body separate from DLD
- A subdivision of the Dubai Chamber of Commerce
Correct answer: Real Estate Regulatory Agency — the regulatory arm of the Dubai Land Department
RERA (Real Estate Regulatory Agency) was established in 2007 as a regulatory arm of the Dubai Land Department. It is responsible for regulating the real estate sector including brokers, developers, owners associations, and off-plan projects in Dubai.
Question 4: Who is responsible for registering the tenancy contract in Ejari?
- The bank providing the mortgage
- Primarily the landlord's responsibility; can also be done by the tenant or their broker (Correct answer)
- The Dubai Court registrar
- Only RERA-appointed specialists
Correct answer: Primarily the landlord's responsibility; can also be done by the tenant or their broker
RERA regulations place primary responsibility on the landlord to register the tenancy in Ejari within specific timeframes. In practice, many registered real estate brokers and typing centers facilitate the registration on behalf of either party. Failure to register has implications for utility activation and legal proceedings.
Question 5: What is a 'leasehold' property right under Dubai real estate law?
- A right to use a property for agricultural purposes only
- Absolute permanent ownership of both property and land
- The right to use and occupy a property for a specific period (up to 99 years) without owning the land (Correct answer)
- A right to build on another person's land without owning it
Correct answer: The right to use and occupy a property for a specific period (up to 99 years) without owning the land
Leasehold in Dubai gives the buyer rights to use, occupy, and sometimes sublease the property for a term of up to 99 years, without owning the underlying land. Upon expiry, rights revert to the freeholder. Dubai law recognizes leasehold as a registrable real property right.
Question 6: What is the sinking fund (reserve fund) requirement for Dubai buildings?
- Only new buildings need a reserve fund
- No reserve fund is required
- The developer maintains the reserve fund permanently
- RERA requires a percentage of service charges to be set aside in a reserve fund for future major repairs and replacements of building components (Correct answer)
Correct answer: RERA requires a percentage of service charges to be set aside in a reserve fund for future major repairs and replacements of building components
RERA requires buildings to maintain a reserve fund (sinking fund) with a percentage of service charge income set aside for major future expenditures such as elevator replacement, facade maintenance, and equipment overhauls.
Question 7: What is required to obtain an Ejari certificate?
- Only the signed tenancy contract
- A court order approving the tenancy
- Signed tenancy contract, title deed copy, tenant's passport/Emirates ID, and landlord's ID/authorization (Correct answer)
- Only the tenant's Emirates ID
Correct answer: Signed tenancy contract, title deed copy, tenant's passport/Emirates ID, and landlord's ID/authorization
Ejari registration requires: signed tenancy contract (both parties), copy of title deed (proving landlord's right to lease), passport copies and Emirates IDs of both parties, and relevant fees. The system validates that the landlord is the registered owner before issuing the certificate.
Question 8: What is a 'Common Area' under Dubai's Strata Law?
- Areas exclusively owned by the master developer
- Only the areas directly outside an owner's unit
- Parts of a jointly owned development owned by all unit owners collectively (lobbies, corridors, elevators, pools, parking) (Correct answer)
- Commercial areas leased by the developer
Correct answer: Parts of a jointly owned development owned by all unit owners collectively (lobbies, corridors, elevators, pools, parking)
Common areas are all parts of the building or community that are collectively owned by all unit owners, including lobbies, corridors, elevators, stairwells, pools, gyms, parking (in some cases), and mechanical rooms. Each owner's entitlement is proportional to their unit area.
Question 9: How does the Dubai International Financial Centre (DIFC) real estate market differ from mainland Dubai?
- DIFC follows the same rules as mainland Dubai
- DIFC has no real estate market
- Only offices exist in DIFC
- DIFC has its own freehold ownership laws, separate registration system, and typically commands premium commercial rents due to its financial center status and separate legal jurisdiction (Correct answer)
Correct answer: DIFC has its own freehold ownership laws, separate registration system, and typically commands premium commercial rents due to its financial center status and separate legal jurisdiction
DIFC operates under its own property laws and registration system separate from DLD, commands premium rents due to its status as a financial center, and offers freehold ownership within its designated area under DIFC authority.
Question 10: What is the difference between 'off-plan' and 'ready' properties in Dubai?
- Off-plan properties are in secondary market; ready properties are newly built
- Off-plan refers to commercial; ready refers to residential properties
- Off-plan properties are sold before construction completion; ready properties have a completion certificate (Correct answer)
- Off-plan properties are freehold; ready properties are always leasehold
Correct answer: Off-plan properties are sold before construction completion; ready properties have a completion certificate
Off-plan properties are sold by developers before or during construction, typically at lower prices with staged payment plans. Ready (completed) properties have a completion certificate and can be transferred immediately to the buyer. Both types are regulated, but off-plan has additional RERA protections.
Question 11: A property is being transferred with a mortgage still outstanding. Who must provide consent for the transfer?
- RERA approval is required for all mortgaged transfers
- Only the buyer and seller need to sign
- The Dubai Courts must approve all mortgaged property transfers
- The mortgagee bank, which must issue a liability letter confirming the outstanding balance and consent to the transfer (Correct answer)
Correct answer: The mortgagee bank, which must issue a liability letter confirming the outstanding balance and consent to the transfer
If the property has an existing mortgage, the mortgagee bank must issue a liability letter specifying the outstanding loan balance. The buyer typically settles this at the point of transfer (blocking the funds at DLD). The bank's mortgage is discharged as part of the transfer process.
Question 12: What is the Dubai Brokers' 'Activity Permit' (Taawun) in the context of real estate advertising?
- A permit for operating a real estate training center
- A RERA-issued permit required to advertise a specific property listing, obtained through the Trakheesi system (Correct answer)
- A general permission to practice real estate brokerage
- A permit for hosting open house events
Correct answer: A RERA-issued permit required to advertise a specific property listing, obtained through the Trakheesi system
Before a licensed broker can legally advertise a specific property, they must obtain an advertising Activity Permit through RERA's Trakheesi system for that specific listing. The permit number must appear in all advertisements. This prevents unauthorized advertising and duplicate listings.
Question 13: What is Law No. 26 of 2007 regarding real estate ownership in Dubai?
- It establishes the right of foreign nationals to own freehold property in designated areas of Dubai (Correct answer)
- It regulates construction only
- It prohibits foreign ownership
- It only applies to UAE nationals
Correct answer: It establishes the right of foreign nationals to own freehold property in designated areas of Dubai
Law No. 26 of 2007 grants non-UAE nationals the right to own freehold property in designated areas of Dubai, establishing the legal framework for foreign property ownership that drives Dubai's international real estate market.
Question 14: Which law established the legal framework for real estate ownership and registration in Dubai?
- Federal Law No. 5 of 1985 (Civil Transactions)
- Law No. 7 of 2006 (Real Property Registration Law) (Correct answer)
- Law No. 26 of 2007 (Rental Law)
- Law No. 27 of 2007 (Strata Law)
Correct answer: Law No. 7 of 2006 (Real Property Registration Law)
Dubai Law No. 7 of 2006 is the foundational real property law that established the Dubai Land Department (DLD) as the registrar, defined ownership rights, and set out the framework for property registration, title deeds, and real estate transactions in Dubai.
Question 15: What are the main property valuation methods used in Dubai real estate?
- Only the asking price
- Comparable sales method, income capitalization approach, cost approach, and discounted cash flow analysis (Correct answer)
- Only the price per square foot
- Valuation is not required in Dubai
Correct answer: Comparable sales method, income capitalization approach, cost approach, and discounted cash flow analysis
Dubai property valuation uses multiple methods: comparable sales (comparing similar recent transactions), income capitalization (rental yield analysis), cost approach (replacement cost minus depreciation), and DCF for investment properties.
Question 16: What is an MOU (Memorandum of Understanding) in Dubai property transactions?
- A marketing document
- A government form
- A non-binding letter of interest
- A binding agreement between buyer and seller outlining transaction terms, price, timelines, and deposit, typically accompanied by a 10% security deposit (Correct answer)
Correct answer: A binding agreement between buyer and seller outlining transaction terms, price, timelines, and deposit, typically accompanied by a 10% security deposit
In Dubai real estate, the MOU (Form F) is a binding agreement that sets out the agreed terms including price, payment schedule, completion timeline, and is typically accompanied by a 10% security deposit held by the broker.
Question 17: What happens to an Ejari registration when a tenancy contract is renewed?
- The old Ejari must be cancelled and a new Ejari registration completed for the renewed contract (Correct answer)
- The tenant cancels Ejari and the landlord creates a new one independently
- Ejari only needs to be registered once and remains valid indefinitely
- The existing Ejari automatically updates for any renewal
Correct answer: The old Ejari must be cancelled and a new Ejari registration completed for the renewed contract
Each tenancy contract (including renewals) is a separate legal instrument requiring its own Ejari registration. The previous Ejari registration should be cancelled and a fresh registration obtained for the renewed contract with updated terms. This maintains an accurate rental registry.
Question 18: Which document in Dubai proves that a property has no outstanding financial obligations to the developer or service charges?
- No Objection Certificate (NOC) from the developer or owners association (Correct answer)
- Title deed from DLD
- Ejari certificate
- Sales and purchase agreement
Correct answer: No Objection Certificate (NOC) from the developer or owners association
An NOC (No Objection Certificate) is issued by the developer or owners association confirming that all outstanding service charges, mortgage, and other obligations have been cleared. The DLD requires an NOC before registering any property transfer to ensure the property is free of encumbrances.
Question 19: Under RERA regulations, what must a real estate company (brokerage) display at its premises?
- Only broker business cards
- DLD-issued brokerage license, RERA registration certificate, and names of all licensed brokers employed (Correct answer)
- Only the company trade license
- Photos of available properties with prices
Correct answer: DLD-issued brokerage license, RERA registration certificate, and names of all licensed brokers employed
All DLD/RERA-registered brokerage offices must display their DLD brokerage license number and maintain a current RERA registration. Brokers employed by the firm must be individually RERA-licensed. These requirements ensure accountability and allow consumers to verify legitimacy.
Question 20: What is an 'off-plan' property registration at DLD called?
- Musataha registration
- Title deed transfer
- Ejari registration
- Initial Registration (Oqood) (Correct answer)
Correct answer: Initial Registration (Oqood)
Off-plan property sales are registered in the Oqood system (the developers' off-plan registry maintained by DLD). Upon project completion and full payment, the Oqood registration converts to a full title deed. Oqood registration protects off-plan buyers by recording their purchase officially.
Question 21: Under Dubai's jointly owned property rules, what is a 'Declaration'?
- The foundational governing document of an Owners Association setting out rules, rights, obligations, and the allocation of common area shares (Correct answer)
- The annual budget of the Owners Association
- The developer's marketing brochure
- The title deed for a common area
Correct answer: The foundational governing document of an Owners Association setting out rules, rights, obligations, and the allocation of common area shares
The Declaration (Community Declaration or Master Community Declaration) is the foundational legal document registered at DLD that establishes the jointly owned property, defines the boundaries of each unit, allocates common area shares, and sets the initial community rules. All owners are bound by it.
Question 22: Under Dubai Strata Law, who is responsible for preparing the Owners Association's budget?
- The OA Manager (hired management company) in consultation with the OA Board, subject to approval by the General Assembly (Correct answer)
- The developer retains full budget control in perpetuity
- RERA sets the budget directly for all OAs
- Each owner individually calculates their contribution
Correct answer: The OA Manager (hired management company) in consultation with the OA Board, subject to approval by the General Assembly
The OA Manager (a RERA-licensed management company) prepares the annual budget covering operational costs and reserve fund contributions. The OA Board reviews it, and it must be approved by the General Assembly of owners. RERA oversees the process and caps service charges based on area benchmarks.
Question 23: What maintenance obligations does a landlord have under Dubai rental law?
- Maintain the property in a habitable condition, handle structural repairs, maintain major building systems (HVAC, plumbing, electrical), unless otherwise agreed in the contract (Correct answer)
- Only paint before a new tenant moves in
- No maintenance obligations exist
- Maintenance is entirely the tenant's responsibility
Correct answer: Maintain the property in a habitable condition, handle structural repairs, maintain major building systems (HVAC, plumbing, electrical), unless otherwise agreed in the contract
Under Dubai rental law, landlords must maintain the property in a habitable condition including structural repairs, major building systems (HVAC, plumbing, electrical), and compliance with health and safety standards, unless the contract specifies otherwise.
Question 24: What is the DLD transfer fee for property transactions in Dubai?
- 1% of property value
- No transfer fee exists
- 4% of the property value, typically shared equally between buyer and seller (Correct answer)
- 10% of property value
Correct answer: 4% of the property value, typically shared equally between buyer and seller
The Dubai Land Department charges a 4% property transfer fee calculated on the property transaction value or DLD valuation (whichever is higher), typically shared 2% each between buyer and seller, though this is negotiable.
Question 25: What notice period must a tenant provide to vacate a property at the end of a lease in Dubai?
- No notice required; just vacate on the contract end date
- 7 days notice
- 30 days notice
- 90 days prior notice (if not stated in the contract, 90 days is the standard practice requirement) (Correct answer)
Correct answer: 90 days prior notice (if not stated in the contract, 90 days is the standard practice requirement)
Dubai tenancy law implies a 90-day notice period for a tenant who wishes not to renew. If neither party gives notice, contracts typically auto-renew on the same terms. The specific notice period may be set in the contract; 90 days is the standard market practice and legally defensible.
Question 26: What are the key areas where foreign investors focus in Dubai real estate?
- All areas are equally popular
- Only Downtown Dubai
- Foreign investors cannot buy in specific areas
- Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JBR, Dubai Hills, and emerging areas like Dubai Creek Harbour and MBR City (Correct answer)
Correct answer: Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JBR, Dubai Hills, and emerging areas like Dubai Creek Harbour and MBR City
Foreign investment concentrates in designated freehold areas including Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JBR, Dubai Hills Estate, and newer developments like Dubai Creek Harbour and MBR City.
Question 27: A broker receives a gift from a third party (e.g., a contractor the broker recommended to a client). What is the ethical requirement?
- Reject all gifts regardless of value as a matter of policy
- Disclose the gift to the client, as undisclosed gifts from third parties create a conflict of interest (Correct answer)
- Accept gifts freely; this is normal business practice in Dubai
- Only disclose gifts worth more than AED 1,000
Correct answer: Disclose the gift to the client, as undisclosed gifts from third parties create a conflict of interest
Undisclosed gifts, referral fees, or benefits from third parties whose services you recommend to clients create a conflict of interest and must be disclosed. Under RERA's code of conduct, brokers must act in the client's best interest without undisclosed benefit to themselves from related parties.
Question 28: What is the role of the Rental Dispute Center (RDC) in Dubai?
- Set mandatory rental prices for all properties in Dubai
- Register tenancy contracts (Ejari)
- Issue RERA broker licenses
- Adjudicate landlord-tenant disputes including eviction cases, rent increase disputes, and contract violations (Correct answer)
Correct answer: Adjudicate landlord-tenant disputes including eviction cases, rent increase disputes, and contract violations
The Rental Dispute Center (RDC), part of the Dubai Courts system and supervised by RERA, is the exclusive tribunal for resolving landlord-tenant disputes in Dubai. This includes eviction cases, unlawful rent increases, maintenance disputes, and deposit refund claims. RDC decisions are judicially binding.
Question 29: What is a 'block registration' in Dubai real estate?
- A method of registering commercial floors as a single unit
- A communal leasehold title for an entire residential community
- Registration of all units in a development collectively, commonly used for off-plan bulk sales between developer and a master developer (Correct answer)
- A mortgage that covers multiple properties
Correct answer: Registration of all units in a development collectively, commonly used for off-plan bulk sales between developer and a master developer
Block registration allows a developer to register multiple units in a single transaction, often used for bulk sales to investors or in master developer relationships. DLD's Oqood system facilitates this for off-plan developments, reducing administrative burden for large transactions.
Question 30: What is the 'Dubai REST' app's primary function for real estate brokers?
- Complete sale, lease, and transfer transactions, verify listings, check property ownership, and manage broker activities on mobile (Correct answer)
- Track service charge payments for OA management
- Only process mortgage applications
- Only view available properties for sale
Correct answer: Complete sale, lease, and transfer transactions, verify listings, check property ownership, and manage broker activities on mobile
The Dubai REST app (DLD's smart app) allows brokers to verify property ownership, generate NOC requests, access listing permits, initiate transfer transactions, check title deeds, and manage their RERA-licensed activities. It centralizes multiple DLD services in one mobile interface.
Question 31: What protection does a buyer have if a registered off-plan developer becomes insolvent in Dubai?
- The developer's bank absorbs all losses
- The buyer loses all payments with no recourse
- RERA can appoint a replacement developer or ordered refund from the project escrow account through a court process (Correct answer)
- The buyer can only claim from the developer's personal assets
Correct answer: RERA can appoint a replacement developer or ordered refund from the project escrow account through a court process
RERA can intervene in insolvent developer situations, appoint a qualified replacement developer to complete the project, or oversee the wind-down and refund process. The escrow account protects buyer funds. The Real Estate Trustee (court) may also manage the wind-down for larger failures.
Question 32: What is the minimum notice period a landlord must give a tenant to evict them for personal use of the property?
- 12 months written notice via notary public or registered mail (Correct answer)
- 6 months verbal notice
- 30 days written notice
- 3 months written notice
Correct answer: 12 months written notice via notary public or registered mail
Under Dubai's tenancy law (as amended), a landlord who wants to evict a tenant for their own use, a first-degree relative's use, or for demolition/major renovation must provide 12 months' written notice via registered notary or registered mail. The notice cannot be given mid-contract.
Question 33: What is the Ejari system in Dubai?
- A system for registering property sales
- The mandatory online system for registering all tenancy contracts in Dubai, managed by RERA and DLD (Correct answer)
- An optional tenancy contract template provided by RERA
- A financial credit check system for tenants
Correct answer: The mandatory online system for registering all tenancy contracts in Dubai, managed by RERA and DLD
Ejari (meaning 'my rent' in Arabic) is the mandatory online tenancy contract registration system operated by RERA under DLD authority. All residential and commercial tenancy contracts must be registered in Ejari. It creates an official record and is required for visa applications, utility connections, and legal proceedings.
Question 34: What are the grounds for eviction of a tenant in Dubai?
- Any reason given by the landlord
- Non-payment of rent, subletting without consent, illegal use of property, owner's personal use (with conditions), demolition or major renovation, all requiring proper notice (Correct answer)
- Eviction is not possible in Dubai
- Only non-payment of rent
Correct answer: Non-payment of rent, subletting without consent, illegal use of property, owner's personal use (with conditions), demolition or major renovation, all requiring proper notice
Legal eviction grounds include: non-payment after 30-day notice, unauthorized subletting, illegal use, property endangerment, owner's personal use (2-year prohibition on re-letting), and demolition/major renovation (with RERA approval).
Question 35: Which law governs jointly owned properties (apartments and common areas) in Dubai?
- Law No. 27 of 2007 (Jointly Owned Properties Law — Strata Law) (Correct answer)
- Law No. 26 of 2007
- Law No. 7 of 2006
- Federal Law No. 5 of 1985
Correct answer: Law No. 27 of 2007 (Jointly Owned Properties Law — Strata Law)
Dubai's Strata Law (Law No. 27 of 2007) and its executive regulations govern jointly owned property (JOP) including apartments in multi-unit buildings, townhouses in gated communities, and their common areas. It establishes Owners Associations (OAs) and sets out their powers and obligations.
Question 36: Can a landlord evict a tenant during the term of a valid tenancy contract in Dubai?
- Yes, with 30 days written notice for any reason
- Yes, if offering a 1-month rent-free period as compensation
- Only in limited circumstances (non-payment, property use violations, unauthorized subletting) with proper legal process (Correct answer)
- No, a valid contract cannot be terminated by the landlord for any reason
Correct answer: Only in limited circumstances (non-payment, property use violations, unauthorized subletting) with proper legal process
During a valid tenancy contract term, a landlord can only seek eviction through RDC for specific legal grounds: non-payment, use of property for illegal purposes, unauthorized subletting, or endangering the property. Notice to vacate for personal use requires waiting until contract end plus 12 months' notice.
Question 37: What are the RERA regulations on dual agency (representing both buyer and seller)?
- Dual agency must be disclosed to both parties with their informed consent, ensuring fair representation and avoiding conflicts of interest (Correct answer)
- Dual agency is always acceptable
- Dual agency is prohibited in Dubai
- Only senior brokers can practice dual agency
Correct answer: Dual agency must be disclosed to both parties with their informed consent, ensuring fair representation and avoiding conflicts of interest
While not outright prohibited, dual agency requires full disclosure to both parties, informed consent from each, and the broker must ensure fair representation without favoring either party, avoiding any conflict of interest.
Question 38: How should RERA brokers conduct a comparative market analysis (CMA)?
- Just use listing prices from property portals
- Copy competitor pricing
- Analyze recent actual transaction data, adjust for property differences (size, floor, view, condition), consider current market conditions, and use DLD transaction records (Correct answer)
- Use only one comparable property
Correct answer: Analyze recent actual transaction data, adjust for property differences (size, floor, view, condition), consider current market conditions, and use DLD transaction records
A proper CMA uses recent DLD-recorded transaction data (not asking prices), adjusts for differences in unit characteristics, considers current supply-demand dynamics, and includes multiple comparable properties.
Question 39: What is the fee structure for Ejari registration?
- 1% of the annual rent value
- AED 5,000 fixed fee regardless of contract value
- No fee; Ejari is a free government service
- A nominal fixed fee per registration (approximately AED 220 for online registration), paid by the party registering (Correct answer)
Correct answer: A nominal fixed fee per registration (approximately AED 220 for online registration), paid by the party registering
Ejari registration carries a nominal government fee (approximately AED 220 for online registration through the Ejari portal; typing center fees may be slightly higher). The fee is the same regardless of rent value, making it accessible for all tenants. Fees may be updated periodically by RERA.
Question 40: What is the RERA Rental Index and how is it used?
- A list of all properties for rent
- An index of rental properties only in Downtown Dubai
- An official index that determines the permissible rental increase percentage based on the property's current rent relative to the average market rent (Correct answer)
- A marketing tool for brokers
Correct answer: An official index that determines the permissible rental increase percentage based on the property's current rent relative to the average market rent
The RERA Rental Index (Smart Rental Index) provides a benchmark for rental values by area, property type, and size. It determines the legally permissible rental increase percentage that landlords can apply at contract renewal.
Question 41: What does the title deed (Tabu) in Dubai contain?
- The property's complete maintenance history
- Property address and description, plot number, owner's full name and nationality, usage type, and area in square meters (Correct answer)
- A list of all previous owners only
- Only the owner's name and property price
Correct answer: Property address and description, plot number, owner's full name and nationality, usage type, and area in square meters
The Dubai title deed contains: owner's name, nationality, and ID details; plot/unit number and community; floor area (sq ft/sq m); usage type (residential/commercial); share of common area (if applicable); and any registered encumbrances. It is the definitive evidence of ownership.
Question 42: What is the maximum security deposit a landlord can request under Dubai rental practice?
- 1 month's rent regardless of furnishing
- 5% of annual rent for unfurnished properties; up to 10% for furnished properties (market standard, not a legal cap) (Correct answer)
- 2 months' rent for all properties mandated by RERA
- No limit; landlords can demand any amount
Correct answer: 5% of annual rent for unfurnished properties; up to 10% for furnished properties (market standard, not a legal cap)
There is no statutory maximum security deposit amount in Dubai law. Market practice is 5% of annual rent for unfurnished and up to 10% for furnished properties. The amount is negotiable. Security deposits must be refunded within a reasonable period after vacating, less legitimate deductions.
Question 43: A landlord in Dubai wants to increase a tenant's rent by 20% at renewal. The RERA index shows the unit is 15% below market. What is the maximum legal increase?
- 5% — because the current rent is 11–20% below the RERA index value (Correct answer)
- No increase is allowed as rent is above market
- 20% as requested by the landlord
- 15% because that matches the market gap
Correct answer: 5% — because the current rent is 11–20% below the RERA index value
Under RERA's rent increase regulation: if current rent is 11–20% below the RERA index, the maximum allowable increase is 5%. The landlord's desired 20% exceeds this cap, regardless of market movement. The tenant can challenge excessive increases at the RDC.
Question 44: What are the key property market indicators RERA brokers should monitor?
- Only one or two indicators
- Only asking prices on portals
- DLD transaction volumes, price per square foot trends, rental yields, supply pipeline, vacancy rates, and population growth data (Correct answer)
- Market indicators are not relevant to brokers
Correct answer: DLD transaction volumes, price per square foot trends, rental yields, supply pipeline, vacancy rates, and population growth data
RERA brokers should monitor: DLD-registered transaction volumes and values, price per square foot trends by area, rental yield calculations, upcoming supply pipeline, vacancy rates, population growth, and economic indicators.
Question 45: What sustainability and green building requirements affect Dubai properties?
- Green requirements only apply to government buildings
- No sustainability requirements exist
- Dubai Green Building Regulations mandate energy efficiency standards, sustainable materials, waste management, and water conservation for new construction (Correct answer)
- Only voluntary green certification
Correct answer: Dubai Green Building Regulations mandate energy efficiency standards, sustainable materials, waste management, and water conservation for new construction
Dubai's Al Sa'fat Green Building Rating System and Green Building Regulations mandate sustainability standards including energy efficiency, water conservation, sustainable materials, waste management, and indoor environment quality.
Question 46: What is the significance of the Dubai Property Price Index?
- It has no practical significance
- It only tracks luxury properties
- It is an unofficial estimation
- It tracks property price trends across different areas and property types, helping investors, buyers, and professionals make informed market decisions (Correct answer)
Correct answer: It tracks property price trends across different areas and property types, helping investors, buyers, and professionals make informed market decisions
The Dubai Property Price Index tracks price movements across areas and property categories, providing market transparency that helps buyers, sellers, investors, and professionals make evidence-based property decisions.
Question 47: Which law governs the relationship between landlords and tenants in Dubai?
- Law No. 27 of 2007
- Law No. 26 of 2007 (as amended by Law No. 33 of 2008) (Correct answer)
- Federal Law No. 5 of 1985
- Law No. 7 of 2006
Correct answer: Law No. 26 of 2007 (as amended by Law No. 33 of 2008)
Dubai's rental relationship is governed by Law No. 26 of 2007 (Tenancy Law), which was significantly amended by Law No. 33 of 2008. These laws define landlord-tenant rights, notice periods, rent increases, dispute resolution through RERA/RDC, and Ejari registration requirements.
Question 48: What tenant rights are established by Dubai Rental Law No. 26 of 2007?
- Right to quiet enjoyment, protection from arbitrary eviction (12-month notice required), rent increase caps based on RERA index, and security deposit protection (Correct answer)
- Only the right to live in the property
- Tenant rights depend on the landlord's preference
- Tenants have no legal rights
Correct answer: Right to quiet enjoyment, protection from arbitrary eviction (12-month notice required), rent increase caps based on RERA index, and security deposit protection
Dubai Rental Law establishes tenant rights including quiet enjoyment of the property, protection from arbitrary eviction (12-month notarized notice required), rent increase limits tied to the RERA rental index, and security deposit regulations.
Question 49: What are a landlord's obligations regarding maintenance and repairs under Dubai rental law?
- Landlord is responsible for major structural repairs and maintenance; tenant is responsible for minor day-to-day maintenance as agreed in the contract (Correct answer)
- Maintenance is shared equally between landlord and tenant by law
- Tenants bear all maintenance costs regardless of the type of repair
- Landlords must pay for all repairs including minor items
Correct answer: Landlord is responsible for major structural repairs and maintenance; tenant is responsible for minor day-to-day maintenance as agreed in the contract
Dubai's rental law places responsibility for major structural repairs (plumbing, electrical, structural) on the landlord. Minor maintenance (lightbulbs, minor fixes) is typically the tenant's responsibility as agreed in the contract. The boundary is usually defined in the tenancy agreement.
Question 50: What is the standard real estate broker commission in Dubai for a residential property sale?
- 2% of the transaction value (customary market practice) (Correct answer)
- 0.5% of the transaction value
- AED 5,000 fixed fee regardless of value
- 5% of the transaction value
Correct answer: 2% of the transaction value (customary market practice)
The standard broker commission in Dubai for residential sales is 2% of the transaction value, typically paid by the buyer (or split between buyer and seller by agreement). RERA does not mandate a fixed commission rate but 2% is the established market practice. Commercial and luxury deals may vary.
Question 51: What is the DLD 'Mashrooi' service?
- A service for valuing residential properties
- DLD's service allowing buyers to track the progress of registered off-plan construction projects (Correct answer)
- A mortgage application platform
- A service for resolving landlord-tenant disputes
Correct answer: DLD's service allowing buyers to track the progress of registered off-plan construction projects
Mashrooi (meaning 'my project' in Arabic) is DLD's off-plan project tracking service that provides buyers and brokers with real-time information on construction progress, escrow balances, and project status for registered off-plan developments. It is a buyer transparency tool.
Question 52: Which DLD service allows parties to verify the authenticity of a title deed online?
- DLD's smart app and website title deed verification service (Correct answer)
- Through RERA's Trakheesi system
- Only through physical visit to DLD office
- Through the Dubai Courts system only
Correct answer: DLD's smart app and website title deed verification service
DLD provides a digital title deed verification service through its Smart App and website (dubailand.gov.ae). Buyers, brokers, and banks can verify that a presented title deed is authentic, current, and free of encumbrances before proceeding with a transaction.
Question 53: How long does a standard DLD property transfer take to process?
- 3–5 business days
- Typically 30 minutes to a few hours at the DLD transfer center when all documents are in order (Correct answer)
- 2 weeks minimum
- 1 month from SPA signing to title deed issuance
Correct answer: Typically 30 minutes to a few hours at the DLD transfer center when all documents are in order
When all documents are properly prepared (NOC, transfer application, IDs, payment), DLD property transfers can be completed in one visit to a DLD transfer center (typically 30 minutes to a few hours). The new title deed is issued the same day or within 1–2 business days.
Question 54: What is snagging and when is it relevant in Dubai property transactions?
- A type of property tax
- A marketing technique
- A detailed inspection of a new property to identify defects, damage, or incomplete work before or shortly after handover from the developer (Correct answer)
- Snagging only applies to commercial properties
Correct answer: A detailed inspection of a new property to identify defects, damage, or incomplete work before or shortly after handover from the developer
Snagging is a thorough inspection of a newly completed property to identify construction defects, cosmetic issues, incomplete finishes, or non-functioning systems before or shortly after developer handover for rectification.
Question 55: What is the maximum brokerage commission permitted by RERA for property sales?
- 5% of property value
- 10% of property value
- 2% of the sale price, shared between buyer's and seller's brokers (Correct answer)
- No maximum is set
Correct answer: 2% of the sale price, shared between buyer's and seller's brokers
RERA regulations specify a maximum brokerage commission of 2% of the property sale price for residential transactions, typically shared between the seller's broker and the buyer's broker.
Question 56: A real estate broker receives a commission from both the buyer and seller in the same transaction without disclosing this to both parties. What is this called?
- A legitimate dual commission arrangement
- Dual agency without disclosure — a violation of RERA ethical standards (Correct answer)
- Permitted if the total commission does not exceed 4%
- Standard industry practice requiring no disclosure
Correct answer: Dual agency without disclosure — a violation of RERA ethical standards
Receiving commission from both parties without full informed disclosure to both is a conflict of interest and violates RERA's code of conduct for brokers. Dual agency must be disclosed in writing to both parties, who must consent. Undisclosed dual commission is grounds for license revocation.
Question 57: What are 'service charges' in a Dubai jointly owned property?
- A one-time DLD fee at purchase
- A tax paid to the Dubai government
- Annual fees paid by property owners to the Owners Association for maintenance and management of common areas (Correct answer)
- Monthly rental payments to the landlord
Correct answer: Annual fees paid by property owners to the Owners Association for maintenance and management of common areas
Service charges (also called maintenance fees) are annual fees levied by the Owners Association on each property owner based on their unit's share of common area. The charges fund maintenance, cleaning, security, utilities, and management of shared areas. RERA regulates service charge rates.
Question 58: What is required to register a property transfer at the Dubai Land Department?
- The property's original construction permit
- Original title deed, NOC from developer/owners association, completed transfer form, payment of 4% DLD fee, and valid IDs of both parties (Correct answer)
- Only a signed SPA and the purchase price payment
- A court order confirming ownership
Correct answer: Original title deed, NOC from developer/owners association, completed transfer form, payment of 4% DLD fee, and valid IDs of both parties
DLD requires: original title deed, NOC from developer or owners association (confirming cleared charges), signed transfer application form, 4% transfer fee, passports/Emirates IDs of buyer and seller (or corporate documents), and the SPA. The buyer and seller (or their POA holders) must be present.
Question 59: Under Dubai law, what is the legal status of a verbal agreement to buy or sell real estate?
- Verbal agreements become enforceable after 7 days of non-retraction
- Verbal agreements are binding if witnessed by two people
- A verbal agreement before two witnesses is as valid as a written contract
- Verbal agreements are not enforceable for real estate; a written SPA registered at DLD is required (Correct answer)
Correct answer: Verbal agreements are not enforceable for real estate; a written SPA registered at DLD is required
Real estate transactions in Dubai require written contracts (Sales and Purchase Agreement) to be valid. Verbal agreements for property purchases are not legally enforceable under UAE law. The SPA must be registered at DLD to fully protect both parties' rights.
Question 60: What is the developer's 'defects liability period' under Dubai's off-plan rules?
- 6 months for all defects
- 3 years for all types of defects uniformly
- No statutory defects liability period in Dubai
- 1 year for minor defects; 10 years for structural defects after handover (as per UAE Civil Code provisions) (Correct answer)
Correct answer: 1 year for minor defects; 10 years for structural defects after handover (as per UAE Civil Code provisions)
Under UAE Federal Law (Civil Code), contractors and developers are jointly liable for 10 years for structural defects in completed buildings. Minor defects typically have a 1-year warranty period from handover. RERA requires developers to address reported defects within specified timeframes.
Question 61: What are the RERA requirements for a real estate broker license in Dubai?
- Only a trade license is needed
- Complete the RERA-approved broker course, pass the examination, obtain a broker permit linked to a licensed brokerage firm (Correct answer)
- Any real estate agent from another country can practice immediately
- No license is required to broker property in Dubai
Correct answer: Complete the RERA-approved broker course, pass the examination, obtain a broker permit linked to a licensed brokerage firm
To obtain a RERA broker license, individuals must complete the RERA-approved Real Estate Broker Course, pass the licensing examination, and obtain a broker permit card linked to a RERA-licensed brokerage firm.
Question 62: What is the legal purpose of a Sales and Purchase Agreement (SPA) in a Dubai property transaction?
- An informal memorandum of understanding without legal force
- A document confirming the broker's commission only
- A binding contract between buyer and seller detailing price, terms, payment schedule, and completion date (Correct answer)
- A loan agreement between buyer and bank
Correct answer: A binding contract between buyer and seller detailing price, terms, payment schedule, and completion date
The SPA is the primary legal contract in a property sale, creating binding obligations on both parties. It specifies the agreed price, payment milestones, property description, handover date, and penalties for breach. The SPA is required for DLD registration of the transaction.
Question 63: What penalties can RERA impose on brokers who violate regulations?
- Only a small fine
- No penalties exist
- Only verbal warnings
- Fines, license suspension, license revocation, and referral for criminal prosecution for serious violations (Correct answer)
Correct answer: Fines, license suspension, license revocation, and referral for criminal prosecution for serious violations
RERA can impose graduated penalties including financial fines, temporary license suspension, permanent license revocation, and referral to judicial authorities for criminal prosecution in cases of serious fraud or violations.
Question 64: What mortgage-related considerations must RERA brokers understand?
- Only cash purchases are permitted
- Mortgages do not exist in Dubai
- UAE Central Bank LTV limits (80% UAE nationals, 75% expats for first property), bank pre-approval process, mortgage registration at DLD, and early settlement fees (Correct answer)
- Any bank can offer unlimited mortgage
Correct answer: UAE Central Bank LTV limits (80% UAE nationals, 75% expats for first property), bank pre-approval process, mortgage registration at DLD, and early settlement fees
RERA brokers must understand CBUAE mortgage regulations: LTV limits (80% for UAE nationals, 75-65% for expats depending on property value), bank pre-approval requirements, DLD mortgage registration, and early settlement provisions.
Question 65: What is the role of the Rental Disputes Settlement Centre (RDSC) in Dubai?
- It sets property prices
- It adjudicates disputes between landlords and tenants, including rent increases, evictions, and contract violations (Correct answer)
- It manages property sales
- It issues building permits
Correct answer: It adjudicates disputes between landlords and tenants, including rent increases, evictions, and contract violations
The RDSC is a judicial body that resolves rental disputes in Dubai, handling cases related to rent increases, eviction notices, contract violations, security deposit disputes, and maintenance obligations.
Question 66: Which court in Dubai has jurisdiction over real estate disputes?
- Dubai Courts (with a specialized Real Estate Disputes Resolution Centre under DLD) (Correct answer)
- DIFC Courts only
- Abu Dhabi courts for all UAE property disputes
- Federal Supreme Court
Correct answer: Dubai Courts (with a specialized Real Estate Disputes Resolution Centre under DLD)
Real estate disputes in Dubai are handled by the Dubai Courts. The Real Estate Disputes Resolution Centre (REDRC), which is part of DLD, also adjudicates disputes related to off-plan projects, broker commission disputes, and developer-buyer conflicts before litigation.
Question 67: What fee does DLD charge for a property valuation certificate?
- No fee; valuation is a free DLD service
- AED 4,000 plus VAT for standard valuation (Correct answer)
- AED 10,000 for commercial properties only
- AED 500 per property
Correct answer: AED 4,000 plus VAT for standard valuation
DLD charges approximately AED 4,000 (subject to change) for an official valuation certificate. DLD valuations are used for mortgage approvals, divorce settlements, inheritance cases, and other legal purposes where an official government-issued valuation is required.
Question 68: What is the maximum number of post-dated cheques a landlord can legally request in Dubai?
- There is no legal maximum; the number of cheques is a matter of negotiation, though 4 cheques per year is common (Correct answer)
- A maximum of 12 monthly cheques is the legal maximum
- A maximum of 1 cheque per year is mandated
- Only 2 cheques are permitted under RDC rules
Correct answer: There is no legal maximum; the number of cheques is a matter of negotiation, though 4 cheques per year is common
Dubai law does not set a statutory maximum on the number of cheques. Market practice varies from 1 (single annual cheque) to 12 (monthly). Fewer cheques generally mean lower rent; more cheques allow tenants to manage cash flow. This is negotiated in the tenancy contract.
Question 69: What is an 'Owners Association' (OA) in Dubai?
- An optional committee formed voluntarily by residents
- A private company hired by developers to manage communities
- A government department that manages all apartment buildings in Dubai
- A mandatory legal entity established for jointly owned property developments to manage common areas and enforce community rules (Correct answer)
Correct answer: A mandatory legal entity established for jointly owned property developments to manage common areas and enforce community rules
Under Strata Law, every jointly owned property development must have a registered Owners Association — a mandatory non-profit legal body comprised of all property owners. The OA is responsible for maintaining common areas, collecting service charges, and enforcing the community's declaration.
Question 70: What are the RERA rules on advertising properties in Dubai?
- Any advertising is permitted
- Only print advertising is regulated
- No rules exist for property advertising
- Properties must have a valid Trakheesi permit number, accurate information, no misleading claims, and comply with RERA advertising guidelines (Correct answer)
Correct answer: Properties must have a valid Trakheesi permit number, accurate information, no misleading claims, and comply with RERA advertising guidelines
RERA requires all property advertisements to include a valid Trakheesi (advertising permit) number, contain accurate property information, avoid misleading claims about prices or features, and comply with RERA advertising standards.
Question 71: What is the significance of master-planned communities in Dubai real estate?
- Master-planned communities (Dubai Marina, Downtown, Arabian Ranches) offer integrated amenities, consistent quality, and typically command premium values over unplanned areas (Correct answer)
- Master planning is a marketing term only
- Master planning has no effect on property values
- Only government-planned communities are master-planned
Correct answer: Master-planned communities (Dubai Marina, Downtown, Arabian Ranches) offer integrated amenities, consistent quality, and typically command premium values over unplanned areas
Master-planned communities provide integrated design with planned amenities, infrastructure, retail, and recreational facilities, typically commanding premium values due to consistent quality and comprehensive lifestyle offerings.
Question 72: What document does DLD issue for off-plan property purchases before the project is completed?
- Title deed (Tabu)
- Completion certificate
- Ejari certificate
- Oqood Certificate (Initial Sale Registration Certificate) (Correct answer)
Correct answer: Oqood Certificate (Initial Sale Registration Certificate)
When an off-plan property is purchased and registered in the Oqood system, DLD issues an Oqood Certificate (also called the Initial Sale Registration Certificate). This is the buyer's proof of purchase and registration until the project completes and a full title deed is issued.
Question 73: Which party is responsible for paying the DLD transfer fee — buyer or seller?
- The developer pays for all new unit transfers
- By convention, the buyer pays the full 4% DLD fee, though it is negotiable and can be split (Correct answer)
- Always the seller per DLD mandate
- Always shared equally with no option to negotiate
Correct answer: By convention, the buyer pays the full 4% DLD fee, though it is negotiable and can be split
The 4% DLD transfer fee is not prescribed to any single party by law — it is negotiable between buyer and seller. However, market convention in Dubai is that the buyer pays the full 4%. In negotiations, it is sometimes split or absorbed by the seller, particularly in a buyer's market.
Question 74: What is the difference between gross yield and net yield in Dubai property investment?
- Gross yield is annual rent divided by property price; net yield deducts expenses (service charges, maintenance, vacancy) from annual rent before dividing by total investment cost (Correct answer)
- Only gross yield matters for investors
- Net yield is always higher than gross yield
- They are the same thing
Correct answer: Gross yield is annual rent divided by property price; net yield deducts expenses (service charges, maintenance, vacancy) from annual rent before dividing by total investment cost
Gross yield = annual rent / purchase price. Net yield deducts all expenses (service charges, maintenance, insurance, vacancy periods, agent fees) from rental income before dividing by total acquisition cost including fees.
Question 75: What are the key property market cycles that RERA brokers should understand?
- Market cycles do not exist in Dubai
- Recovery, expansion, hyper-supply, and recession phases that affect pricing strategies, investment timing, and client advisory (Correct answer)
- Only one cycle has occurred in Dubai
- Dubai property prices only go up
Correct answer: Recovery, expansion, hyper-supply, and recession phases that affect pricing strategies, investment timing, and client advisory
Dubai's property market follows cycles: recovery (rising from trough), expansion (growing demand and prices), hyper-supply (oversupply beginning), and recession (price corrections). Understanding these helps brokers advise clients effectively.
Question 76: What is a 'reserve fund' in the context of an Owners Association?
- Money held by RERA for emergency community repairs
- A fund for paying RERA regulatory fees
- An escrow account for developer defect liability
- A mandatory fund accumulated to finance future major repairs and capital expenditures in a jointly owned property (Correct answer)
Correct answer: A mandatory fund accumulated to finance future major repairs and capital expenditures in a jointly owned property
The reserve fund (or maintenance reserve) is collected as part of service charges to accumulate funds for future major repairs — roof replacement, elevator upgrades, facade work. It ensures the OA can afford large-scale maintenance without imposing large special assessments on owners.
Question 77: What is the Dubai 2040 Urban Master Plan and its impact on real estate?
- The plan only affects infrastructure
- A comprehensive plan to guide Dubai's development through 2040, focusing on five urban centers, green spaces, waterfront development, and sustainable growth (Correct answer)
- The plan was cancelled
- No urban plan exists for Dubai
Correct answer: A comprehensive plan to guide Dubai's development through 2040, focusing on five urban centers, green spaces, waterfront development, and sustainable growth
Dubai 2040 Urban Master Plan envisions five main urban centers, doubles green and recreational spaces, emphasizes waterfront development, promotes sustainable density, and directs growth to create investment opportunities in planned development zones.
Question 78: What is the maximum deposit a real estate broker can accept from a client as part of a property reservation?
- Maximum 5% of the property value in any account
- The broker can hold any amount in their personal account
- There is no fixed maximum; the amount must be agreed in writing and held in a client trust account (Correct answer)
- No deposit is ever required before title transfer
Correct answer: There is no fixed maximum; the amount must be agreed in writing and held in a client trust account
RERA requires that client deposits be held in a separate client trust account (not commingled with operating funds). There is no fixed maximum, but the amount must be documented. Misappropriation of client funds is a serious offense leading to license revocation and criminal prosecution.
Question 79: What continuing professional development does RERA require for licensed brokers?
- Only attend one workshop per year
- No CPD is required after initial licensing
- Ongoing training and education to maintain market knowledge, regulatory awareness, and professional competence for license renewal (Correct answer)
- CPD is voluntary for experienced brokers
Correct answer: Ongoing training and education to maintain market knowledge, regulatory awareness, and professional competence for license renewal
RERA requires licensed brokers to participate in continuing professional development to maintain current market knowledge, stay updated on regulatory changes, and demonstrate ongoing professional competence for license renewal.
Question 80: According to RERA's rental increase calculator, when can a landlord increase rent?
- Landlords can increase rent freely at each renewal without any cap
- Only at contract renewal, based on market value comparison with the RERA Rental Index — increases are capped by percentage based on how far current rent is below market (Correct answer)
- At any time during the tenancy contract
- Every 6 months if market rents have increased
Correct answer: Only at contract renewal, based on market value comparison with the RERA Rental Index — increases are capped by percentage based on how far current rent is below market
RERA's decree (under Law 26/2007) allows rent increases only at renewal. The increase is capped based on how far current rent is below RERA index value: if below 10% of market — no increase allowed; 11–20% below — max 5% increase; 21–30% below — max 10%; 31–40% below — max 15%; 40%+ below — max 20%.
Question 81: A tenant in Dubai makes unauthorized modifications to a property (e.g., builds an internal wall). What can the landlord do upon discovery?
- Seek automatic eviction without any legal process
- Accept the modifications as permanent improvements
- Require restoration to original condition and claim damages, or file at RDC for eviction if terms are breached (Correct answer)
- Deduct modification costs from future rent
Correct answer: Require restoration to original condition and claim damages, or file at RDC for eviction if terms are breached
Unauthorized modifications typically constitute a breach of the tenancy contract. The landlord can demand restoration to the original condition, claim the cost of restoration, or file at the RDC for eviction for material breach of contract. The landlord cannot self-help evict.
Question 82: What is the maximum LTV permitted when financing the purchase of an off-plan property in Dubai?
- 65%
- 60%
- 50% (Correct answer)
- 40%
Correct answer: 50%
Off-plan properties carry higher pre-construction risk, so the Central Bank limits financing to a maximum of 50% LTV for all buyer categories.
Question 83: What pest control and hygiene standards apply to Dubai properties?
- No standards exist
- Only annual fumigation
- Pest control is the tenant's responsibility only
- Regular pest control treatments, compliance with Dubai Municipality hygiene standards, waste management protocols, and swimming pool water quality standards (Correct answer)
Correct answer: Regular pest control treatments, compliance with Dubai Municipality hygiene standards, waste management protocols, and swimming pool water quality standards
Dubai properties must maintain regular pest control treatments, comply with Dubai Municipality hygiene regulations, implement proper waste management systems, and maintain recreational facilities (pools, gyms) to health standards.
Question 84: What is the RERA Trakheesi system and its requirements?
- RERA's advertising permit system that requires all property marketing materials to be registered and carry a valid Trakheesi permit number before publication (Correct answer)
- A property listing database
- An optional quality certification
- A tenant screening system
Correct answer: RERA's advertising permit system that requires all property marketing materials to be registered and carry a valid Trakheesi permit number before publication
Trakheesi is RERA's mandatory advertising permit system requiring all property marketing — online listings, brochures, signage — to be registered and display a valid permit number, ensuring compliance with advertising standards.
Question 85: What due diligence should a RERA broker perform before listing a property?
- No due diligence is required
- Verify ownership through title deed, check for existing mortgages or liens, confirm no outstanding service charges, verify property condition, and check for any legal disputes (Correct answer)
- Only verify the asking price
- Only take photos of the property
Correct answer: Verify ownership through title deed, check for existing mortgages or liens, confirm no outstanding service charges, verify property condition, and check for any legal disputes
RERA broker due diligence includes verifying ownership through the DLD title deed, checking for mortgages/liens, confirming service charge status, inspecting property condition, and checking for any legal disputes or encumbrances.
Question 86: What role does the Dubai metro and transport infrastructure play in property valuation?
- Properties near metro stations typically command 10-20% premium, and overall transport accessibility significantly influences both rental and capital values (Correct answer)
- Only affects commercial properties
- Metro reduces property values due to noise
- Transport has no effect on property values
Correct answer: Properties near metro stations typically command 10-20% premium, and overall transport accessibility significantly influences both rental and capital values
Metro proximity significantly increases property values and rental demand in Dubai, with properties near stations typically commanding 10-20% premiums. Overall transport connectivity is a key valuation factor for both residential and commercial properties.
Question 87: What is the 'Trakheesi' system in Dubai real estate?
- RERA's online portal for registering broker listings, activity permits, and real estate transactions (Correct answer)
- A specific type of Dubai property title document
- A type of property ownership exclusive to UAE nationals
- The DLD property valuation system
Correct answer: RERA's online portal for registering broker listings, activity permits, and real estate transactions
Trakheesi (meaning 'licenses' in Arabic) is DLD/RERA's online permission management system. Brokers must register property listings through Trakheesi to obtain an advertising permit number. This prevents duplicate listings and ensures only licensed brokers advertise properties.
Question 88: What is the Dubai Land Department's role in property transactions?
- It builds properties
- It registers property ownership, manages title deeds, oversees real estate transactions, and maintains the official property registry (Correct answer)
- It only collects taxes
- It only manages government-owned land
Correct answer: It registers property ownership, manages title deeds, oversees real estate transactions, and maintains the official property registry
The Dubai Land Department registers all property ownership, issues title deeds, oversees real estate transactions, maintains the official property registry, and implements real estate policies through RERA.
Question 89: What is the difference between a primary and secondary market transaction in Dubai real estate?
- Primary market: buying directly from a developer (new or off-plan); Secondary market: buying from an existing owner (resale) (Correct answer)
- Primary means freehold; secondary means leasehold transactions
- Primary market is for commercial; secondary is for residential properties
- Primary transactions are larger than AED 1 million; secondary are smaller
Correct answer: Primary market: buying directly from a developer (new or off-plan); Secondary market: buying from an existing owner (resale)
Primary market transactions involve buying directly from the developer, often off-plan or at launch. Secondary (resale) market transactions involve buying from an existing owner. Different fees, processes, and documentation apply. Brokers work in both markets but must understand the different procedures.
Question 90: What is the difference between a 'buyer's agent' and a 'seller's agent' in Dubai real estate?
- There is no distinction; brokers represent all parties equally
- Buyer's agent represents the buyer's interests; seller's agent (listing agent) represents the seller's interests — each owes a fiduciary duty to their respective client (Correct answer)
- Buyer's agents are only used in commercial transactions
- Both agents always represent only the seller
Correct answer: Buyer's agent represents the buyer's interests; seller's agent (listing agent) represents the seller's interests — each owes a fiduciary duty to their respective client
When a broker represents a buyer (via Form B), their duty of care, loyalty, and confidentiality runs to the buyer. The listing broker (Form A) owes these duties to the seller. When both are from the same agency, careful management of potential conflicts of interest is required.
Question 91: What anti-money laundering obligations apply to RERA-licensed brokers?
- AML only applies to cash transactions above AED 1 million
- Only banks handle AML
- No AML obligations for brokers
- Customer due diligence, suspicious transaction reporting, record keeping, and compliance with UAE AML/CFT regulations for real estate transactions (Correct answer)
Correct answer: Customer due diligence, suspicious transaction reporting, record keeping, and compliance with UAE AML/CFT regulations for real estate transactions
RERA brokers must comply with UAE AML/CFT regulations: conducting customer due diligence (KYC), reporting suspicious transactions to the FIU, maintaining transaction records, and completing AML training.
Question 92: Who is permitted to own freehold property in Dubai?
- Any person regardless of nationality in any area of Dubai
- UAE and GCC nationals anywhere; foreign nationals in designated freehold areas (Correct answer)
- Only UAE nationals and residents with a 10-year visa
- Only UAE nationals
Correct answer: UAE and GCC nationals anywhere; foreign nationals in designated freehold areas
Under Law No. 7 of 2006, UAE and GCC nationals may own property anywhere in Dubai. Foreign nationals (non-GCC) may only own freehold property in areas designated by the Ruler of Dubai (e.g., Dubai Marina, Palm Jumeirah, Downtown Dubai, Business Bay).
Question 93: What is a Power of Attorney (POA) in the context of Dubai property transactions?
- A mortgage agreement between buyer and bank
- A legal document authorizing a person to act on behalf of a property owner in DLD transactions (Correct answer)
- A developer's authorization to sell units in a project
- An agreement between broker and client
Correct answer: A legal document authorizing a person to act on behalf of a property owner in DLD transactions
A Power of Attorney (Wakalah) allows a representative to sign, register, and complete property transactions on behalf of an owner who cannot be present. Dubai POAs for property transactions must be notarized, and foreign POAs must be legalized (apostilled or attested) for DLD acceptance.
Question 94: A potential buyer asks a broker whether there have been any deaths in a property. What is the broker's obligation?
- Never disclose such information under any circumstances
- Only disclose if the death was violent
- This information is legally protected and cannot be shared
- Disclose if known, as material facts that could affect buyer decisions must be disclosed; UAE cultural sensitivities make this particularly relevant (Correct answer)
Correct answer: Disclose if known, as material facts that could affect buyer decisions must be disclosed; UAE cultural sensitivities make this particularly relevant
Under RERA's material disclosure requirements and the general prohibition on misrepresentation, brokers must disclose facts that a reasonable buyer would consider material. In UAE culture, deaths in a property are generally considered highly material facts. Active concealment could constitute fraud.
Question 95: What is a No Objection Certificate (NOC) and when is it required?
- A visa document
- A building permit
- A certificate from the developer confirming no outstanding payments and no objection to the property transfer, required before ownership can be transferred at DLD (Correct answer)
- An insurance certificate
Correct answer: A certificate from the developer confirming no outstanding payments and no objection to the property transfer, required before ownership can be transferred at DLD
A NOC is issued by the property developer confirming that the seller has no outstanding service charges or payments, and the developer does not object to the ownership transfer. It is mandatory before DLD processes the transfer.
Question 96: A tenant in Dubai fails to pay rent for three months. What is the landlord's legal recourse?
- File a case at the Rental Dispute Center (RDC) for eviction and outstanding rent recovery (Correct answer)
- Disconnect utilities to force the tenant to leave
- Deduct the unpaid rent from the security deposit automatically
- Immediately change the locks without any legal process
Correct answer: File a case at the Rental Dispute Center (RDC) for eviction and outstanding rent recovery
Under Dubai tenancy law, a landlord cannot take self-help remedies (changing locks, cutting utilities) against a non-paying tenant — this is illegal. The correct process is to file an eviction case at the RDC. The RDC will issue an order, and enforcement is through the Courts execution department.
Question 97: How does the DLD handle property registration for non-resident foreign buyers who cannot visit Dubai?
- Foreign buyers must be physically present; no alternatives exist
- By accepting digital signatures only, without any representative presence
- Through a properly legalized Power of Attorney, allowing a local representative to complete the registration on their behalf (Correct answer)
- Foreign buyers are not permitted to purchase without a UAE residency
Correct answer: Through a properly legalized Power of Attorney, allowing a local representative to complete the registration on their behalf
Non-resident foreign buyers can purchase Dubai property through a duly legalized Power of Attorney. The POA must be notarized in the buyer's home country and either apostilled or attested by the UAE Embassy, then authenticated in Dubai. The attorney-in-fact appears at DLD on the buyer's behalf.
Question 98: What is the process for transferring property ownership in Dubai?
- Obtain NOC from developer, sign sale agreement, pay transfer fee at DLD, complete transfer at Dubai Land Department, and receive new title deed (Correct answer)
- Transfer is handled entirely by the broker
- Only sign a contract between buyer and seller
- Simply exchange the money and keys
Correct answer: Obtain NOC from developer, sign sale agreement, pay transfer fee at DLD, complete transfer at Dubai Land Department, and receive new title deed
Dubai property transfer requires: obtaining a No Objection Certificate from the developer, signing the sale and purchase agreement, paying the 4% DLD transfer fee, completing the transfer at DLD, and receiving the new title deed.
Question 99: Under Dubai's off-plan regulations, developers must maintain an escrow account for each project. What is its purpose?
- To hold developer profits during construction
- To hold buyer payments exclusively for construction of the specific project, protecting buyers from misappropriation (Correct answer)
- To compensate brokers when a project is delayed
- To pay RERA regulatory fees
Correct answer: To hold buyer payments exclusively for construction of the specific project, protecting buyers from misappropriation
RERA Law No. 8 of 2007 requires all off-plan developers to maintain a project escrow account with a DLD-approved escrow agent (bank). All buyer payments go into this account and can only be released to the developer as construction milestones are verified by a RERA-registered consultant. This protects buyers from developer insolvency.
Question 100: Under DLD regulations, what is the timeframe within which a property transfer must be completed after signing Form F (MOU) in a typical Dubai secondary market transaction?
- Typically 30 days for cash transactions; mortgage transactions typically 60–90 days depending on bank processing (Correct answer)
- 180 days minimum for all transactions
- There is no timeframe; the SPA sets any completion date the parties agree
- 7 days for all transaction types
Correct answer: Typically 30 days for cash transactions; mortgage transactions typically 60–90 days depending on bank processing
While Form F specifies the completion date agreed by parties (typically 30 days for cash, 60–90 days when a mortgage is involved), market practice and bank processing times drive the timeline. The MOU should reflect realistic timelines to avoid breach of contract claims.
RERA Real Estate Broker Exam
The RERA Real Estate Broker Exam is the official computer-based test administered by Dubai's Real Estate Regulatory Agency (RERA) and the Dubai Land Department (DLD), required for all real estate brokers seeking a Class B broker licence in Dubai. The exam assesses knowledge of Dubai property laws, RERA regulations, broker licensing requirements, property registration, rental law, strata and off-plan rules, the Ejari system, DLD procedures, property valuation, market analysis, transactions, documentation, property management, and professional ethics across approximately 100 multiple-choice questions.
Exam Rules
- You can skip questions and return to them later
- Flag questions for review before submitting
- No feedback shown until you submit the entire exam
- Unanswered questions count as wrong — answer everything
- 10 pretest questions are mixed in and don't affect your score
- Timer auto-submits when time runs out
- Your progress is auto-saved every 30 seconds
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Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- dubailand.gov.ae — Eligibility, fees, score validity, renewal · verified Oct 2026