RERA UPDATED QUESTIONS AND SOLUTIONS RATED A+
✔✔Variation in Property Size - ✔✔• If the unit handed over is smaller by less than or
equal to 5% than the size in the Contract, Buyer is not entitled to compensation from
Developer, because difference in size is considered marginal and acceptable based on
the engineering industry.
• If the unit handed over is more than 5% smaller than the size in the Contract, then the
Buyer is entitled to compensation for any decrease in the property size.
• If the unit is materially or substantially smaller, then the Buyer may have a valid Civil
Claim against the Developer for cancellation and refund of the contract price (material
breach).
• If the unit handed over is larger than size in the Contract, Developer may not demand
more money for the difference, unless the Contract states otherwise. Case Study All
measurements now in square metres.
✔✔Cancelled Projects
Law No. 13 of 2008 (Resolution No. 6 of 2010) - ✔✔If a Developer's project is cancelled
by order of RERA, then the Developer must refund the full amount paid by Buyer.
Decree No. 21 of 2013 • All matters regarding liquidation of assets of cancelled real
estate projects will be decided by the Special Judicial Committee (consisting of a panel
of Dubai Court judges).
• This law specifically relates to "cancelled" projects only and not "on hold" projects.
• The Committee liquidates real estate projects cancelled by RERA, and settles any
debts with respect to such cancelled projects, after deduction of liquidation expenses.
• The Committee considers and decides any issues, demands and claims that may arise
between Developers and Buyers relating to cancelled real estate projects. All claims in
relation to cancelled real estate projects will only be considered by the Committee and
not by the courts in the Emirate of Dubai (including not by the DIFC Court). Decisions of
the Committee are final and binding and may not be appealed.
✔✔Landlord-Tenant Laws
Law No. 26 of 2007 & Law No. 33 of 2008 - ✔✔Lease Agreements
• Must be in writing
• Must be registered on Ejari to be valid Subleases
• Landlord must give written consent for Sublease to be valid.
• If Landlord consents to a Sublease, a novation (new contract) is effected, and the
Subtenant may continue his tenancy, even if the Primary Tenant is rightfully evicted.
• If Landlord does not consent to Sublease, Subtenant can be evicted. • If Subtenant is
evicted, he reserves the right to file a claim against Primary Tenant in RDC.
• Brokers may not broker Sublease Agreements, only those with Property Management
licence may do so.
✔✔Landlord Obligations - ✔✔• No alteration to the premises or its services (for example
utilities or facilities). If so, Landlord will be liable for any damage caused, faults or
shortages to the premises.
, • On handover the Landlord must provide the premises to the Tenant in good condition,
that enables the Tenant to occupy and enjoy the premises.
• Landlord is responsible for maintaining the premises and must rectify any defects or
faults that affect the Tenant's right of occupation and enjoyment.
• Landlord prohibited to disconnect services or to obstruct the Tenant from occupying
the premises for their quiet enjoyment and use. If so, Tenant has the right to file a Police
Report, in addition to filing a case with the Rental Dispute Settlement Centre (RDC).
✔✔Tenant Obligations - ✔✔• Pay the rent on the due dates.
• Pay Security Deposit to guarantee and/or cover the condition of the premises at the
end of Lease.
• No alterations, renovations or performing maintenance work without the Landlord's
permission and, if required, any approval from relevant authorities.
• Return the premises to the Landlord in good condition, with only reasonable wear and
tear. Any dispute over the condition decided upon by the Rental Dispute Settlement
Centre, if no agreement is reached.
• Pay all fees and taxes due for to the utility authorities that benefit the premises, unless
otherwise agreed.
• Not remove any fixtures, unless agreed otherwise by both Landlord and Tenant.
✔✔Rental Increase Caps - ✔✔Notice must be given to Tenant at least 90 days prior to
expiration of Lease term.
If Tenant was paying:
• 10% or less than the average similar rent - Landlord cannot increase the rent.
• 11-20% less than the average similar rent - Landlord may increase rent by up to 5%.
• 21-30% less than the average similar rent - Landlord may increase rent by up to 10%.
• 31-40% less than the average similar rent - Landlord may increase rent by up to 15%.
• Over 40% less than the average similar rent - Landlord may increase rent by up to
20%.
✔✔Legal reasons for eviction during Lease term: - ✔✔• Non-payment of rent (30 day
notice);
• Breach of Lease terms (30 day notice);
• Illegal or immoral use of premises; • Alterations made by Tenant to premises that
endangers its safety;
• If the premises are dangerous and likely to collapse (Technical Report from Dubai
Municipality);
• Commercial premises - if Tenant fails to occupy the premises, without legal cause, for
30 days continuously or 90 non-continuous days in one year (unless otherwise agreed).
✔✔Landlord must give 12 month Notice of Eviction by Notary Public or Registered Mail:
- ✔✔i. If the Landlord wants to sell the property;
ii. If the Landlord wishes to use the property for his own personal use or direct relatives
(Landlord has burden of proof that he has no other properties for that use);
✔✔Variation in Property Size - ✔✔• If the unit handed over is smaller by less than or
equal to 5% than the size in the Contract, Buyer is not entitled to compensation from
Developer, because difference in size is considered marginal and acceptable based on
the engineering industry.
• If the unit handed over is more than 5% smaller than the size in the Contract, then the
Buyer is entitled to compensation for any decrease in the property size.
• If the unit is materially or substantially smaller, then the Buyer may have a valid Civil
Claim against the Developer for cancellation and refund of the contract price (material
breach).
• If the unit handed over is larger than size in the Contract, Developer may not demand
more money for the difference, unless the Contract states otherwise. Case Study All
measurements now in square metres.
✔✔Cancelled Projects
Law No. 13 of 2008 (Resolution No. 6 of 2010) - ✔✔If a Developer's project is cancelled
by order of RERA, then the Developer must refund the full amount paid by Buyer.
Decree No. 21 of 2013 • All matters regarding liquidation of assets of cancelled real
estate projects will be decided by the Special Judicial Committee (consisting of a panel
of Dubai Court judges).
• This law specifically relates to "cancelled" projects only and not "on hold" projects.
• The Committee liquidates real estate projects cancelled by RERA, and settles any
debts with respect to such cancelled projects, after deduction of liquidation expenses.
• The Committee considers and decides any issues, demands and claims that may arise
between Developers and Buyers relating to cancelled real estate projects. All claims in
relation to cancelled real estate projects will only be considered by the Committee and
not by the courts in the Emirate of Dubai (including not by the DIFC Court). Decisions of
the Committee are final and binding and may not be appealed.
✔✔Landlord-Tenant Laws
Law No. 26 of 2007 & Law No. 33 of 2008 - ✔✔Lease Agreements
• Must be in writing
• Must be registered on Ejari to be valid Subleases
• Landlord must give written consent for Sublease to be valid.
• If Landlord consents to a Sublease, a novation (new contract) is effected, and the
Subtenant may continue his tenancy, even if the Primary Tenant is rightfully evicted.
• If Landlord does not consent to Sublease, Subtenant can be evicted. • If Subtenant is
evicted, he reserves the right to file a claim against Primary Tenant in RDC.
• Brokers may not broker Sublease Agreements, only those with Property Management
licence may do so.
✔✔Landlord Obligations - ✔✔• No alteration to the premises or its services (for example
utilities or facilities). If so, Landlord will be liable for any damage caused, faults or
shortages to the premises.
, • On handover the Landlord must provide the premises to the Tenant in good condition,
that enables the Tenant to occupy and enjoy the premises.
• Landlord is responsible for maintaining the premises and must rectify any defects or
faults that affect the Tenant's right of occupation and enjoyment.
• Landlord prohibited to disconnect services or to obstruct the Tenant from occupying
the premises for their quiet enjoyment and use. If so, Tenant has the right to file a Police
Report, in addition to filing a case with the Rental Dispute Settlement Centre (RDC).
✔✔Tenant Obligations - ✔✔• Pay the rent on the due dates.
• Pay Security Deposit to guarantee and/or cover the condition of the premises at the
end of Lease.
• No alterations, renovations or performing maintenance work without the Landlord's
permission and, if required, any approval from relevant authorities.
• Return the premises to the Landlord in good condition, with only reasonable wear and
tear. Any dispute over the condition decided upon by the Rental Dispute Settlement
Centre, if no agreement is reached.
• Pay all fees and taxes due for to the utility authorities that benefit the premises, unless
otherwise agreed.
• Not remove any fixtures, unless agreed otherwise by both Landlord and Tenant.
✔✔Rental Increase Caps - ✔✔Notice must be given to Tenant at least 90 days prior to
expiration of Lease term.
If Tenant was paying:
• 10% or less than the average similar rent - Landlord cannot increase the rent.
• 11-20% less than the average similar rent - Landlord may increase rent by up to 5%.
• 21-30% less than the average similar rent - Landlord may increase rent by up to 10%.
• 31-40% less than the average similar rent - Landlord may increase rent by up to 15%.
• Over 40% less than the average similar rent - Landlord may increase rent by up to
20%.
✔✔Legal reasons for eviction during Lease term: - ✔✔• Non-payment of rent (30 day
notice);
• Breach of Lease terms (30 day notice);
• Illegal or immoral use of premises; • Alterations made by Tenant to premises that
endangers its safety;
• If the premises are dangerous and likely to collapse (Technical Report from Dubai
Municipality);
• Commercial premises - if Tenant fails to occupy the premises, without legal cause, for
30 days continuously or 90 non-continuous days in one year (unless otherwise agreed).
✔✔Landlord must give 12 month Notice of Eviction by Notary Public or Registered Mail:
- ✔✔i. If the Landlord wants to sell the property;
ii. If the Landlord wishes to use the property for his own personal use or direct relatives
(Landlord has burden of proof that he has no other properties for that use);
