Latest 2026/2027 Update | Verified and 100% Correct | A+
Graded
Dubai Real Estate Regulatory Agency (RERA) / Dubai Land
Department (DLD) Licensing Standards
SECTION 1: DUBAI REAL ESTATE LEGAL FRAMEWORK – LAWS, DECREES,
AND REGULATIONS
(Questions 1-40)
Q1: Which Dubai law established the Real Estate Regulatory Agency (RERA) as the
regulatory arm of the Dubai Land Department?
A. Law No. (7) of 2006
B. Law No. (85) of 2006
C. Law No. (16) of 2007
D. Law No. (26) of 2007
Correct Answer: C
Rationale: [CORRECT] C: Law No. (16) of 2007 established RERA as the regulatory arm
of DLD, defining its powers to regulate, license, and supervise real estate activities in
Dubai. A: Law No. (7) of 2006 concerns land registration in the Emirate of Dubai. B: Law
No. (85) of 2006 regulates real estate brokers and their activities. D: Law No. (26) of
2007 regulates the relationship between landlords and tenants (Tenancy Law). Memory
Aid: "16 in '07 made RERA true" – 2007 was pivotal year for RERA establishment.
,2026/2027 Update: RERA's digital transformation initiatives under DLD's 2025-2030
strategy continue to expand.
Q2: Under Law No. (85) of 2006, what is the maximum penalty for practicing real estate
brokerage without a valid RERA license?
A. AED 10,000 fine only
B. AED 50,000 fine and/or imprisonment
C. AED 200,000 fine and property confiscation
D. Warning letter for first-time offenders
Correct Answer: B
Rationale: [CORRECT] B: Law No. (85) of 2006 (Article 15) stipulates penalties up to AED
50,000 and/or imprisonment for unlicensed brokerage activities. Repeat offenses
escalate penalties. A: Underestimates penalty severity. C: Exceeds statutory maximum
for this violation (though higher penalties exist for other violations). D: No warning
system; immediate penalties apply. Key Point: Unlicensed brokerage is a criminal offense,
not merely administrative.
Q3: Which law governs the establishment and operation of escrow accounts for off-plan
property sales in Dubai?
A. Law No. (7) of 2006
B. Law No. (8) of 2007
C. Law No. (13) of 2008
D. Law No. (27) of 2007
,Correct Answer: B
Rationale: [CORRECT] B: Law No. (8) of 2007 (Escrow Account Law) mandates that
developers must deposit all off-plan payments into RERA-approved escrow accounts,
ensuring funds are used only for project construction. A: Land registration law. C:
Interim Real Estate Register law. D: Jointly Owned Property law. Memory Aid: "8 in '07
keeps money safe" – Escrow Law 8/2007 protects buyer funds.
Q4: Under Law No. (8) of 2007, what percentage of the first payment must a developer
deposit as "soft costs" into the escrow account before marketing an off-plan project?
A. 2% of project value
B. 5% of project value
C. 10% of project value
D. 20% of project value
Correct Answer: B
Rationale: [CORRECT] B: RERA regulations under Law No. (8) of 2007 require developers
to deposit 5% of the total project value as "soft costs" (land cost, design fees, permits)
into the escrow account before obtaining RERA approval to market. A: Insufficient. C &
D: Exceed requirement. 2026/2027 Update: Enhanced verification of soft cost deposits
now required through Trakheesi system before NOC issuance.
Q5: Which law established the legal framework for jointly owned property (common
areas, service charges, owners associations) in Dubai?
A. Law No. (16) of 2007
B. Law No. (26) of 2007
, C. Law No. (27) of 2007
D. Law No. (6) of 2019
Correct Answer: C
Rationale: [CORRECT] C: Law No. (27) of 2007 (Jointly Owned Property Law) governs
common property management, service charges, and Owners Association (OA)
formation. A: RERA establishment. B: Tenancy law. D: Foreign ownership law. Memory
Aid: "27 in '07 for condos to thrive" – JOP Law 27/2007.
Q6: Under Law No. (27) of 2007, within how many days must a developer form an
Owners Association (OA) after handover of units to owners?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
Correct Answer: C
Rationale: [CORRECT] C: Article 14 of Law No. (27) of 2007 mandates developers to
form the OA within 90 days of handing over 75% of units or upon request of owners
representing 25% of units. A & B: Too short. D: Too long; 90 days is strict deadline. Key
Point: OA formation is developer obligation; failure triggers RERA penalties.
Q7: Which decree regulates rental increases in Dubai based on the current market rent
vs. existing contract rent?
A. Decree No. (1) of 2009