Law 6 of 2019 Developer Obligations Quiz
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Questions and Answers

What type of ownership owns the land and building forever?

  • Freehold ownership (correct)
  • Leasehold ownership
  • Rental ownership
  • Ownership duration

    • Which online program is used for recording and registering tenancy contracts in Dubai?

  • Ejari System (correct)
  • Trakheesi System
  • Dubai Registration System
  • Oqood System

    • How can Contracts A, B, and F be accessed?

  • Dubai Brokers App
  • Mollak System
  • Dubai Real Estate Institute
  • Dubai REST App (correct)

    • What does the Buyer bank do before issuing the Final Offer Letter?

    <p>Conducts valuation of the property</p> Signup and view all the answers

    Is maintaining a Special Transaction Registers (STR) mandatory for registered brokerage companies?

    <p>Voluntary</p> Signup and view all the answers

    Which factor controls the total property finance amount?

    <p>Property value</p> Signup and view all the answers

    What is the status of bestowal land in terms of registration with Dubai Land Department?

    <p>It is not registered</p> Signup and view all the answers

    Which channel can be used to register property valuation issued by Dubai Land Department?

    <p>Dubai REST app</p> Signup and view all the answers

    What system of Dubai Land Department manages issuing legal notices of unpaid service charge?

    <p>Mollak</p> Signup and view all the answers

    How can an owner request his dues due to termination by the developer?

    <p>Dubai REST - terminated sell contracts refund request</p> Signup and view all the answers

    How can one register for refund/compensation of a cancelled development project?

    <p>Dubai REST - cancelled project committee service</p> Signup and view all the answers

    How can a broker card be validated?

    <p>Dubai REST - validate e-card service</p> Signup and view all the answers

    What is the obligation of the Developer under Law 6 of 2019?

    <p>Repair or correct any defects in the structural parts of the common property for a period of ten years</p> Signup and view all the answers

    What are fixtures defined as under Law 6 of 2019?

    <p>Mechanical and electrical works, sanitary fittings, sewerage</p> Signup and view all the answers

    What are the Dubai Land Department fees for registering a property valued at AED 2,000,000?

    <p>AED 100,000 + knowledge and innovation fees</p> Signup and view all the answers

    Is it possible to obtain a residence permit on a property if its purchase value is at least AED 750,000?

    <p>Yes, if property purchase value is at least AED 750,000 and paid amount is at least AED 750,000</p> Signup and view all the answers

    What is the minimum property purchase value required to get a golden residence permit?

    <p>AED 2 million</p> Signup and view all the answers

    What type of works are included in the definition of fixtures under Law 6 of 2019?

    <p><strong>Mechanical and electrical works</strong>, <strong>sanitary fittings</strong>, <strong>sewerage</strong></p> Signup and view all the answers

    What is the total cost in AED of a house that Jasim wants to sell for AED 900,000, if his total cost is 10% of the sale price?

    <p>AED 810,000</p> Signup and view all the answers

    If a bank earns AED 7,500 on a loan of AED 600,000 with a 5% interest rate after 3 months, what is the principal amount paid back by the borrower?

    <p>AED 592,500</p> Signup and view all the answers

    What will be the yearly net income in AED on an investment of AED 1,260,000 with a rate of return of 12.5%?

    <p>AED 157,500</p> Signup and view all the answers

    If Jasim wants to purchase a townhouse worth AED 4,500,000 with financing from a bank requiring a 20% down payment, what will be the total cost of the townhouse and down payment combined?

    <p>AED 5,625,000</p> Signup and view all the answers

    After buying a townhouse with financing from a bank requiring a 20% down payment on the townhouse value, how much does Jasim owe the bank if he pays AED 3,600,000 as the down payment?

    <p>AED 1,440,000</p> Signup and view all the answers

    If Jasim decides to sell his house for AED 900,000 and incurs a total cost of AED 810,000 based on a 10% cost-to-sale-price ratio, what will be his profit in AED?

    <p>AED 90,000</p> Signup and view all the answers

    What determines the price of a property according to the text?

    <p>The price that a reasonable seller and buyer would agree on</p> Signup and view all the answers

    Which factor controls the total property finance amount based on the text?

    <p>All answers are correct</p> Signup and view all the answers

    In the context of lease renewal, how much can the landlord increase the rent by after giving 90 days notice?

    <p>10%</p> Signup and view all the answers

    Which document is NOT required for a tenant to register the lease in Ejari according to the text?

    <p>No objection certificate</p> Signup and view all the answers

    When should a tenant NOT move in according to the text?

    <p>When the unit is ready</p> Signup and view all the answers

    What is a key factor in determining the price of a property mentioned in the text?

    <p>The willingness of a reasonable buyer and seller</p> Signup and view all the answers

    Study Notes

    Ownership and Land Registration

    • Freehold ownership allows the owner to hold land and buildings indefinitely.
    • The online platform Ejari is used for recording and registering tenancy contracts in Dubai.
    • Contracts A, B, and F can be accessed digitally through the Dubai Land Department's services.

    Buyer Bank Procedures

    • Before issuing the Final Offer Letter, a Buyer bank verifies the buyer’s eligibility and creditworthiness.

    Regulatory Compliance

    • Maintaining a Special Transaction Registers (STR) is mandatory for registered brokerage companies to ensure compliance.
    • The total property finance amount is controlled by the borrower’s income and credit rating.

    Land Status and Registration

    • Bestowal land does not require registration with the Dubai Land Department as it is granted under specific conditions.
    • The Dubai Land Department's online system allows for the registration of property valuations.

    Financial Obligations and Requests

    • The Dubai Land Department manages the issuance of legal notices regarding unpaid service charges through their legal notice system.
    • Owners can request dues due to termination by the developer through formal documentation submitted to the DLD.
    • For refunds or compensation related to canceled development projects, affected parties should follow the procedures outlined by the DLD.

    Broker and Developer Requirements

    • A broker card can be validated through online portal submissions and verification of credentials.
    • Under Law 6 of 2019, developers are obligated to maintain transparency and protect buyers' rights.
    • Fixtures, according to Law 6 of 2019, include installations or equipment permanently attached to the property.
    • Dubai Land Department fees for registering a property valued at AED 2,000,000 are typically calculated as a percentage based on the property's value.

    Residency and Investment

    • Obtaining a residence permit is possible for properties with a purchase value starting at AED 750,000.
    • A minimum property purchase value of AED 2,000,000 is required to qualify for a golden residence permit.

    Financial Calculations

    • Works included in fixtures under Law 6 of 2019 encompass structural improvements and fittings.
    • Jasim aims to sell a house for AED 900,000, with total costs being 10% of the sale price, leading to costs of AED 90,000.
    • For a bank loan of AED 600,000 at a 5% interest rate, AED 7,500 is earned over 3 months, resulting in a principal repayment of AED 607,500.
    • A net yearly income of AED 157,500 on an investment of AED 1,260,000 is calculated at a 12.5% return.
    • If Jasim finances a townhouse worth AED 4,500,000 with a 20% down payment, his total cost combining down payment and property value is AED 4,500,000.
    • After paying a down payment of AED 3,600,000, Jasim owes the bank AED 900,000 if the total townhouse price remains AED 4,500,000.
    • On selling for AED 900,000 with associated costs of AED 810,000, Jasim earns a profit of AED 90,000.

    Property Pricing

    • Property pricing is determined by market demand, location, and economic factors.
    • Rent increases by a maximum of 20% for lease renewals after providing 90 days' notice per regulations.

    Lease Registration Requirements

    • A tenancy contract is required for registration in Ejari, while a landlord's No Objection Certificate (NOC) is not essential.
    • Tenants should avoid moving in until the lease registration is confirmed to ensure legal protection and rights are secured.

    Key Pricing Factors

    • The primary price determinant of property value is the location and amenities offered, which heavily influence market appeal.

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    Description

    Test your knowledge of the obligations of developers under Law 6 of 2019. Choose the correct answers regarding repairs, defects, and fixtures in common property according to the law.

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