RERA Property Transactions and Documentation 2 — Questions and Answers
Question 1: What anti-money laundering obligations apply to RERA-licensed brokers?
- 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)
- Only banks handle AML
- AML only applies to cash transactions above AED 1 million
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 2: What tenant rights are established by Dubai Rental Law No. 26 of 2007?
- Tenants have no legal rights
- 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
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 3: 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)
- Only non-payment of rent
- Eviction is not possible in Dubai
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 4: What is the Oqood system used by the Dubai Land Department?
- A property marketing platform
- An interim registration system for off-plan property sales that registers the buyer's interest before the project is completed and title deed can be issued (Correct answer)
- A maintenance management system
- A tenant registration system
Correct answer: An interim registration system for off-plan property sales that registers the buyer's interest before the project is completed and title deed can be issued
Oqood is DLD's interim registration system for off-plan properties, recording the buyer's interest in a property under construction. Upon project completion, the Oqood registration converts to a final title deed.
Question 5: What are the key clauses a RERA broker should review in a tenancy contract?
- Only the rent amount
- Rent amount, payment terms, contract duration, renewal terms, maintenance responsibilities, security deposit, permitted use, and termination conditions (Correct answer)
- Only the tenant's name and rent
- Contract clauses are standard and do not need review
Correct answer: Rent amount, payment terms, contract duration, renewal terms, maintenance responsibilities, security deposit, permitted use, and termination conditions
RERA brokers should review: rent and payment terms, contract duration and renewal provisions, maintenance obligations (landlord vs tenant), security deposit amount and return conditions, permitted use, and early termination provisions.
Question 6: What is the power of attorney (POA) requirement in Dubai property transactions?
- POA is not used in Dubai real estate
- A notarized POA is required when a party cannot be physically present for the transaction, with specific requirements for property-related POAs (Correct answer)
- Any written authorization is sufficient
- POA is only for government employees
Correct answer: A notarized POA is required when a party cannot be physically present for the transaction, with specific requirements for property-related POAs
When a buyer or seller cannot attend the DLD transfer in person, a notarized Power of Attorney specific to the property transaction is required, typically attested by the UAE embassy if issued abroad and notarized in Dubai courts.
RERA Property Transactions and Documentation 2
What anti-money laundering obligations apply to RERA-licensed brokers?