Dubai RERA Broker Sample Exam: 100+ Questions With Correct Answers
Q: Which law applies to Land Registration & Ownership (Role of DLD) -
ANSWER- Law No. 7/2006
Which law applies to Designated Areas (Freehold vs Leasehold for non GCC) -
ANSWER- Regulation No. 3 of 2006
Which law applies to Regulation of Real Estate Brokers -
ANSWER- Law No. 85/2006
Which law applies to Establishment of RERA -
ANSWER- Law No. 16/2007
Which law applies to Escrow Accounts -
ANSWER- Law No. 8/2007
Which law applies to Tenancy Law -
ANSWER- Law No. 26/2007 Law No. 33/2008 (amendment)
Which law applies to Jointly Owned Property ("JOPs") -
ANSWER- Law No. 27/2007
Which laws applies to Interim Pre-Title Register -
ANSWER- Law No. 13/2008 Law No. 9/2009 Decree No. 6/2010
Which law applies to Mortgage Law -
ANSWER- Law No. 14/2008
Which laws applies to Rentals Increases / Decreases-
ANSWER-Decree No. 1/2009 Decree No. 2/2001
What does a transaction that is concluded contrary to Law 7 of 2006 result in? -
ANSWER- A Breach of the Criminal Code, which could lead to prosecution and professional sanctions.
Structure of the Dubai Real Estate Legal System?
ANSWER-1. Institutions 2. Registries 3 Laws
Real Property Register?
ANSWER-"A set of documents held in written or electronic format in the electronic register at the Department. Which point out the description and location of Real Property and the rights attached hereto".
Sale of an off-plan unit must be registered?
ANSWER-...in the Interim Real Estate Register Project
Registration with RERA includes -
ANSWER-1. Plans of the unit 2. Apartment numbers 3. Internal and external size 4.
Common area plans Class A Brokers -
ANSWER-Exempt of taking the test
Class B Brokers -
ANSWER-Must take a RERA DREI Test
EJARI System -
ANSWER-System that records all rental agreements
Who must register a rental agreement? -
ANSWER-The landlord
Who pays for registering the rental agreement? -
ANSWER-The tenant
Who's name is a project's trust account created -
ANSWER-The project
Who can market a project's property units? -
ANSWER-An employee of the developer
Who applies for a broker's license?
ANSWER-A registered brokerage company
What are the 3 ratings given to brokers -
ANSWER-Silver, Gold & Platinum
Color of badge for a general broker? -
ANSWER-Blue badge
All properties, Developer; Free zone but not Timeshare Color of badge for a developer specific broker? -
ANSWER-Green badge
Color of badge for a free zone only broker? -
ANSWER- Yellow badge
Color of badge for a time-share broker? -
ANSWER-Red badge (Only Red badges can do time share an vice versa)
Time limit to apply for renewal of broker's license -
ANSWER-1 month
What is ORN? -
ANSWER-Office Registration Number
What is BRN? -
ANSWER-Broker Registration Number
Rental commission norm -
ANSWER-5% (You can charge more if you inform them of the norm)
How much can a developer charge in admin fees (NOC) for a finished property? -
ANSWER-500 dhs
How much can a developer charge in admin fees(NOC) for unfinished property?-
ANSWER-5000 dhs
A developer must establish an OA within x days of the first unit being sold?
ANSWER- x = 90 days
All sales of multi unit properties must be attached to an JOPD-
ANSWER-True
OA appoints a service manager who carries out..-
ANSWER-MOM (Management, Operation and maintenance)
OA convenes an AGM to appoint Board, which numbers: -
ANSWER-5 or 7 with 3 spare.
The developer can own a max of what percentage of a building?-
ANSWER-50%
How long does a developer warrantee the building for?-
ANSWER-10 Years
What is the name of the system every broker must be registered on?-
ANSWER- SIMSARI
What is Form A? -
ANSWER-Between Seller & Broker
What is Form B? -
ANSWER-Between Buyer and Broker
What is for U-
ANSWER-Client terminating broker (7 days notice) (must be attached to form A and B)
What is Form I -
ANSWER-Inter-broker agreements
What is Form F -
ANSWER-Sales agreement between all parties
Max term for form A -
ANSWER-90 days
Form A can be of what 3 types?-
ANSWER-1. Exclusive 2. Sole 3. Open Listed (max 3)
Max number of days that a sales is valid for? -
ANSWER-3 Days -
Valuation CMA is of how many units over what time frame?-6 units in last 6 weeks Who signs form F first?
ANSWER- Buyer signs first = offer Seller signs second = contract
Seller has 3 options in response to a buyer's offer, which are: -
ANSWER-Accept, reject, counteroffer
What is the source of the Law in the UAE-
ANSWER-Civil code
The Master developer can set up a branch of the DLD in-house. True or False? -
ANSWER-True
How much is the transfer fee-
ANSWER-Was 2%, now 4%
How long is the notice period for the end of a lease? -
ANSWER-365 days from the next renewal.
What are service charges used for? -
ANSWER-To maintain the property
What nationality can be a developer?-
ANSWER-GCC or on a project by project basis
To register a project, the developer must own what percentage of the land? -
ANSWER- 100% , or if there is a mortgage, then 20% construction must've been completed.
Sales and Purchased agreements for units in an unfinished project must be registered as what?-
ANSWER-Oqoood
Who can provide an escrow account? -
ANSWER-A registered financial institution.
What is a project's escrow account used for? -
ANSWER-For off plan sales
What is the first payment a developer can take from an escrow account? -
ANSWER- 5% for soft costs eg marketing
What are the 3 basis of UAE "Rule of Law"? -
ANSWER-1. Codes 2. Decrees 3. Regulations
What is the only recognized authority to register real estate transactions outside the DFSA? -
ANSWER-The Dubai Land Department (DLD)
The Real Property Register is held at the DLD and branches held with whom? - ANSWER-Master developers Upon death of owner, legal heirs must register with whom?-
ANSWER-Legal heirs must register with the DLD as heirs of the deceased
Monies in a trust account cannot be used as security for a creditor of the developer? (True or False?)-
ANSWER-True
What are the four factors that a broker must ensure when selling off plan properties? -
ANSWER-1. Validity of project 2. RERA approved trust account established 3. Developer / broker agreements registered with RERA 4. Have seller approve advertising
Which document must a broker obtain from the developer before selling off-plan? -
ANSWER-NOC from RERA to promote and sell "off-plan" units of the project.
How much is the Administration fee payable to DLD upon transfer of title? -
ANSWER- 315 dirhams
A mortgage may be secured by one of what 3 things?-
ANSWER-1. The whole property 2. An undivided interest in the property 3. By right in-rem over an off plan property
A mortgage not registered with the DLD is invalid. (True or False?) -
ANSWER-True
What are the borrower's obligations and restrictions until the loan is discharged? -
ANSWER-1. Not sell or gift the property without permission. 2. Create a right in-rem without permission. 3. Keep the property in good condition
Mortgage registration must include what information? -
ANSWER-1. The property 2. The Mortgagor (borrower) 3. The mortgagee (lender) 4. The Guarantor
Who is first responsible for drafting a preliminary JOP Declaration? -
ANSWER-Each developer must initially draft a preliminary JOP Declaration.
Where must the JOPD be registered with?-
ANSWER-The DLD.
What is the JOP Declaration?-
ANSWER-Jointly Owned Property Declaration dealing with the common areas of the project. 1. A site plan of any common areas. 2. A description of each of the units. 3. A list of the community rules that apply in the development.