RERA UPDATED COMPREHENSIVE QUESTIONS AND
SOLUTIONS RATED A+
✔✔What is incompetent? - ✔✔less then 21 years old or crazy
✔✔What is an asset? - ✔✔It is something of value that one owns. Assets can include
land, houses, cars, furniture, cash, bank deposits and securities.
✔✔What is liability? - ✔✔It is the opposite of asset; it is a debt or obligation that one
owes
✔✔What is the difference between real estate (real property) and personal property? -
✔✔Real estate or real property is everything more or less permanently affixed to land
Personal property is everything else
✔✔What is needed to prove the ownership of a real estate property? - ✔✔1. Title deed
for finished properties 2. Oqood for off-plan properties.
✔✔Can a broker initiate a contract between seller and buyer without the existence of a
proof of ownership? - ✔✔Absolutely NOT! A broker must exercise due diligence.
✔✔What is an appraisal? - ✔✔It has 3 meanings:
A professional opinion or estimate of the value of property
The act or process of estimating value
The report that describes the process and data used to provide the value
✔✔When a broker should make sure that an official certified appraisal is available prior
transaction? - ✔✔When the property is gifted, in order to determine the value of the
property to calculate the transfer fees.
✔✔What are the traditional appraisal approaches? - ✔✔Sales comparison (market)
Cost (summation)
Income (capitalization)
✔✔TYPE OF OWNERSHIP - ✔✔INDIVIDUAL (UAE, GCC Nationals)
INDIVIDUAL (Foreign Investors) LOCAL COMPANIES
INDIVIDUAL ESTABLISHMENT
FREE ZONE COMPANIES
OFFSHORE COMPANIES
✔✔When there is an existing mortgage/loan on the property. - ✔✔When there is an
existing mortgage/loan on the property, the outstanding loan amount must be settled
prior to transfer of Title Deed to the Buyer.
, ✔✔FORM "A" - ✔✔Listing Contract between Seller and Broker
✔✔FORM "B" - ✔✔Contract between Buyer and Broker
✔✔FORM "I" - ✔✔Agent to Agent agreement
✔✔FORM "F" - ✔✔Contract between Buyer and Seller
✔✔FORM "U" - ✔✔Notice of Termination by the Client to be issued with Form A or B
✔✔What is the law No. 26 of 2007 - ✔✔It regulates the relationship between the tenant
and landlord. The Law No. (26) of 2007 is applicable to leased properties in the Emirate
excluding free accommodation provided by natural persons or judicial persons to their
employees.
✔✔Law no (27) of 2007 - ✔✔Jointly Owned Property (Owner Association)
✔✔The Owners Association is required - ✔✔To manage the common areas of the
building or community;
To operate in the common areas of the building or community; and
To maintain the common areas of the building or community.
✔✔Role of Key Players: Developer - ✔✔The Developer
Obliged to and provides the required documentation to RERA within 6 months of the 1
title to be registered within the building
RERA approved and ready to form the Owners Association (obligation by Law)
Hand over to the Owners Association at the first Annual General Assembly meeting of
the Owners (including monies in Escrow)
Has an obligation to provide defect warranty / guarantee for a 10 year period
Is responsible for any unsold units within the building
✔✔Role of Key Players: The Individual Owners - ✔✔Register their Property The
Individual
Owners Pay their Owners Association maintenance fees annually (or as per OA
majority rule)
Vote on decisions and at elections for the Board annually (AGA) Respect the
Constitution and rules of conduct & regulations
Ensure their visitors, tenants, guests also respect the rules
✔✔Role of Key Players: Role of the BOARD - ✔✔Calling for meetings, forwarding
agendas, circulating to members necessary documents.
Maintaining & ensuring safe keeping of accurate records
Keeping minutes of all meetings Maintaining the General & Reserve fund accounts,
payment of accounts
SOLUTIONS RATED A+
✔✔What is incompetent? - ✔✔less then 21 years old or crazy
✔✔What is an asset? - ✔✔It is something of value that one owns. Assets can include
land, houses, cars, furniture, cash, bank deposits and securities.
✔✔What is liability? - ✔✔It is the opposite of asset; it is a debt or obligation that one
owes
✔✔What is the difference between real estate (real property) and personal property? -
✔✔Real estate or real property is everything more or less permanently affixed to land
Personal property is everything else
✔✔What is needed to prove the ownership of a real estate property? - ✔✔1. Title deed
for finished properties 2. Oqood for off-plan properties.
✔✔Can a broker initiate a contract between seller and buyer without the existence of a
proof of ownership? - ✔✔Absolutely NOT! A broker must exercise due diligence.
✔✔What is an appraisal? - ✔✔It has 3 meanings:
A professional opinion or estimate of the value of property
The act or process of estimating value
The report that describes the process and data used to provide the value
✔✔When a broker should make sure that an official certified appraisal is available prior
transaction? - ✔✔When the property is gifted, in order to determine the value of the
property to calculate the transfer fees.
✔✔What are the traditional appraisal approaches? - ✔✔Sales comparison (market)
Cost (summation)
Income (capitalization)
✔✔TYPE OF OWNERSHIP - ✔✔INDIVIDUAL (UAE, GCC Nationals)
INDIVIDUAL (Foreign Investors) LOCAL COMPANIES
INDIVIDUAL ESTABLISHMENT
FREE ZONE COMPANIES
OFFSHORE COMPANIES
✔✔When there is an existing mortgage/loan on the property. - ✔✔When there is an
existing mortgage/loan on the property, the outstanding loan amount must be settled
prior to transfer of Title Deed to the Buyer.
, ✔✔FORM "A" - ✔✔Listing Contract between Seller and Broker
✔✔FORM "B" - ✔✔Contract between Buyer and Broker
✔✔FORM "I" - ✔✔Agent to Agent agreement
✔✔FORM "F" - ✔✔Contract between Buyer and Seller
✔✔FORM "U" - ✔✔Notice of Termination by the Client to be issued with Form A or B
✔✔What is the law No. 26 of 2007 - ✔✔It regulates the relationship between the tenant
and landlord. The Law No. (26) of 2007 is applicable to leased properties in the Emirate
excluding free accommodation provided by natural persons or judicial persons to their
employees.
✔✔Law no (27) of 2007 - ✔✔Jointly Owned Property (Owner Association)
✔✔The Owners Association is required - ✔✔To manage the common areas of the
building or community;
To operate in the common areas of the building or community; and
To maintain the common areas of the building or community.
✔✔Role of Key Players: Developer - ✔✔The Developer
Obliged to and provides the required documentation to RERA within 6 months of the 1
title to be registered within the building
RERA approved and ready to form the Owners Association (obligation by Law)
Hand over to the Owners Association at the first Annual General Assembly meeting of
the Owners (including monies in Escrow)
Has an obligation to provide defect warranty / guarantee for a 10 year period
Is responsible for any unsold units within the building
✔✔Role of Key Players: The Individual Owners - ✔✔Register their Property The
Individual
Owners Pay their Owners Association maintenance fees annually (or as per OA
majority rule)
Vote on decisions and at elections for the Board annually (AGA) Respect the
Constitution and rules of conduct & regulations
Ensure their visitors, tenants, guests also respect the rules
✔✔Role of Key Players: Role of the BOARD - ✔✔Calling for meetings, forwarding
agendas, circulating to members necessary documents.
Maintaining & ensuring safe keeping of accurate records
Keeping minutes of all meetings Maintaining the General & Reserve fund accounts,
payment of accounts
