RERA Strata Law & Off-Plan Property Rules

Question 1

Which law governs jointly owned properties (apartments and common areas) in Dubai?

Accepted Answer

Law No. 27 of 2007 (Jointly Owned Properties Law — Strata Law)

Answer

Law No. 7 of 2006

Answer

Law No. 26 of 2007

Answer

Federal Law No. 5 of 1985

Question 2

What is an 'Owners Association' (OA) in Dubai?

Accepted Answer

A mandatory legal entity established for jointly owned property developments to manage common areas and enforce community rules

Answer

An optional committee formed voluntarily by residents

Answer

A government department that manages all apartment buildings in Dubai

Answer

A private company hired by developers to manage communities

Question 3

What are 'service charges' in a Dubai jointly owned property?

Accepted Answer

Annual fees paid by property owners to the Owners Association for maintenance and management of common areas

Answer

Monthly rental payments to the landlord

Answer

A tax paid to the Dubai government

Answer

A one-time DLD fee at purchase

Question 4

What is a 'Common Area' under Dubai's Strata Law?

Accepted Answer

Parts of a jointly owned development owned by all unit owners collectively (lobbies, corridors, elevators, pools, parking)

Answer

Only the areas directly outside an owner's unit

Answer

Commercial areas leased by the developer

Answer

Areas exclusively owned by the master developer

Question 5

Under Dubai Strata Law, who is responsible for preparing the Owners Association's budget?

Accepted Answer

The OA Manager (hired management company) in consultation with the OA Board, subject to approval by the General Assembly

Answer

The developer retains full budget control in perpetuity

Answer

RERA sets the budget directly for all OAs

Answer

Each owner individually calculates their contribution

Question 6

What is a 'reserve fund' in the context of an Owners Association?

Accepted Answer

A mandatory fund accumulated to finance future major repairs and capital expenditures in a jointly owned property

Answer

Money held by RERA for emergency community repairs

Answer

An escrow account for developer defect liability

Answer

A fund for paying RERA regulatory fees