Regulations

Article (1-30)

Article (1)

Title 1 - Definitions

In application of the provisions of this Law, the following terms and expressions shall have the meanings assigned thereto, unless the context stipulates otherwise.

Country: The United Arab Emirates.

Emirate: The Emirate of Abu Dhabi.

Government: The government of Abu Dhabi.

Executive Council: The Executive Council of the Emirate.

Department: The Department of Municipal Affairs.

Municipality: Abu Dhabi City Municipality or Al Ain City Municipality or the Western Region Municipality and any Municipality that may be established in the future in the Emirate.

Competent Entities: The Department or the government entities determined by the Department.

Chairman: The Chairman of the Department.

Real Estate Register: The Real estate register that is established according to the provisions of Abu Dhabi Law No. 3/2005 concerning the regulation of real estate registration in the Emirate of Abu Dhabi.

Real Estate Development Register: The hand-written or electronic register prepared for keeping all the data and documents related to real estate projects.

Interim Real Estate Register: The hand-written or electronic register prepared for the registration of all dispositions and judgments related to the real estate units sold off the plan.

Licensees: The persons who work in the real estate sector and who are licensed by the Department, including the developer, broker, employee of the broker, auctioneer, director of the owners' union, appraiser and surveyor.

Licence: The authorisation issued by the Department whereby the licensees may practice their activities according to the provisions of this Law.

Person: The normal or juristic person.

Broker: The person who searches, pursuant to a brokerage contract, for a second party to conclude a particular contract and to mediate in the contract negotiations for a commission.

Broker's Employee: The normal person who works for the account and in the name of the broker to conduct the works of a broker

Auctioneer: The person who is registered with the Department and authorised to sell real estates at auctions.

Surveyor: The person who in exchange for payment determines the dimensions and demarcate the borders of any real estate in order to submit it for registration with the department, except for any person who works for any governmental entity with the same function.

Evaluator: The person who gets paid to assess and appraise, or express an opinion on, the value of a real estate and any associated property rights.

Real Estate Development Project: The project of constructing multi-storey buildings, or complexes for residential, commercial or mixed purposes and their utilities or the construction of the infrastructure and service facilities in the event of selling vacant lands.

Developer: The main developer or the sub-developer.

Main Developer: The person who is licensed to practice development works, sell, manage and lease out real estates as a main developer of a real estate development project.

Sub-Developer: The person who is licensed to practice development works, sell, manage and lease out real estates in a part of a major complex pursuant to an agreement concluded thereby with the main developer or another sub-developer.

Account Trustee: The bank or financial institution accredited by the Department to manage the escrow account of a project according to the provisions of this Law.

Project Escrow Account: The bank account for the real estate development project where the amounts paid by the buyers of the real estate units sold off the plan or the loan payments given by the funders for financing the real estate development projected, are deposited.

Mortgage: A contract whereby the creditor acquires with regard to the mortgaged property allocated for the settlement of his debt, a real right or a contractual benefit whereby he may have priority over ordinary creditors and other creditors who are ranked next in order of preference.

Mortgaged Property: The real estate, the real right or the contractual right related to a property right, encumbered for the benefit of the mortgagee.

Off-The-Plan Sale: The contract whereby the buyer shall be granted property rights to a real estate unit suggested according to the site plan and the recurring floor plan.

Real Estate: All kinds of properties including lands, buildings and fixtures and properties by allotment including a real estate units.

Real Estate Unit: The apartments, levels, shops and any part of a house (villa) linked to another house or independent, or a vacant land located in a joint property, whether existing or suggested on the compound plan or the floor plan, and are allocated for a commercial, residential or mixed purpose.

Original Real Right: The right of ownership.

Musataha Right: A real right that entitles its holder to construct a building or plant a land for others.

Usufruct Right: A real right that entitles its holder to use a property that belongs to others and exploit the same as long as it is kept as is.

Long-Term Lease: The right of lease of which the initial period is no less than 25 years.

Property Right: The original property right, Musataha right, usufruct right and long-term lease right.

Owner: The person registered according to the provisions of aforesaid Abu Dhabi Law No. 3 of 2005 as the owner of the real estate or any of the property rights.

Occupant: whoever rents an existing real estate unit or resides or works therein, excluding the owner of the real estate unit or any of the property rights holders.

Owners' Union: The Owners' Union formed pursuant to the provisions of this Law to manage and operate the common parts including the repair, maintenance and proper usufruct thereof.

Board of Directors: The Board elected by the owners according to the provisions of this Law to manage the Owners' Union.

Director of the Owners' Union: The person who is appointed by the developer or the owners' union to manage the daily works of the Owners' Union.

Articles of Association of the Owners' Union: The rules and provisions that regulate the Owners' Union.

Plans: The compound plan, the floor plan, the model plan and the volumetric plan among other plans to be determined by the Department.

Main Development Plan: The plan determines the real estate which will be developed by the main developer.

Subsidiary Development Plan: A subsidiary plan derived from the main plan and determining the real estate to be developed through the sub-developer.

Compound plan: The plan which divides the real estate horizontally into two real estate units or more and to common parts.

Floor plan: The plan which vertically divides the building or any part thereof as well as the land on which it is located, into two real estate units or more and to common parts, and that by referring to the levels, walls and ceilings.

Model plan: The plan which divides the piece of land into many parts without establishing common parts.

Volumetric plan: The plan which vertically divides the building or any part thereof as well as the land on which it is located into two volumetric spaces or more without any common parts resulting from such division for the relevant building or land.

Joint Property: The whole building or any part thereof, the land or both of them, which is divided into real estate units and a part or more of such building is determined as common parts.

Common Parts: The common parts of the joint property, which are allocated to be used by the real estate units' owners and occupants as determined in the floor plan or the compound plan according to the provisions of this Law.

Real Estate Development Project Completion Certificate: The certificate issued by the Municipality to confirm the completion of the real estate development project according to the licences and plans approved by the Building Permits Department at the Municipality.

Volumetric Space: The volumetric space shown in the volumetric plan in 3D perspective by using the spatial coordinates.

Service Fees: The fees imposed by the owners' union on the owners of the real estate units to cover the costs of the common parts management and maintenance.

Compound Fees: The fees imposed by the developer on the real estate development projects for the use of the infrastructure, services or facilities by the owners or occupants as well as the parts and areas owned by the developer in a real estate development project.

Public Services: Any of the following services:

• Water networks or water supply.
• Gas networks or gas supply
• Electricity networks or power supply.
• Air Conditioning
• Water cooling.
• Phone service.
• Services related to computer data or TV services.
• Security services.
• Sewage system.
• Rain water drainage.
• Waste or residues removal or disposal system.
• Mail, parcel or merchandise delivery system.
• Any other system or service allocated for enhancing the utilities of the units or common parts.

Service facilities: Water pipes, wires and cables and other facilities including the structural walls, thresholds and ceilings within the perimeter of a particular real estate unit and which may serve other real estate units different than the unit where it is located.

Building Management Regulation: The regulation which determines the conditions and obligations related to the management of the building and land covered by the volumetric plan.

Compound Management Regulation: The regulation which determines the conditions and obligations related to the management and use of the real estate covered by the compound plan.

Floor Management Regulation: The regulation which determines the conditions and obligations related to the management and use of the real estate covered by the floor plan.

Contribution percentage: the percentage allotted to real estate units which shows its share in rights and obligations imposed on all real estate unites.

Article (2)

Title 2 - The Competencies and Administrative Structure of the Department and the Real Estate Development Register
 Chapter 1 - Competencies and Powers of the Department

1. The Department shall have the competence to organise and develop the real estate sector in the Emirate as well as to supervise and control all the matters related to this sector, and coordinate between the municipalities in this regard, and it shallin particular assume the following functions:
   a. Issuing the licences of brokers, Brokers’ employees, auctioneers, Directors of the owners' union, Evaluators and surveyors.
   b. Supervising and auditing the management of the project escrow account.
   c. Issuing developers' licences and registering the same in the real estate development register.
   d. Reviewing the plans and documents related to it and register the same in the real estate development register.
   e. Accredit the account trustees who are approved by the Department to operate the project escrow account.
   f. Controlling the compliance of the owners' union with the obligations determined in this Law and its Executive Regulation, including the auditing of the owner's unions' accounts.
   g. Managing and supervising the real estate development register, the Intial Real Estate Register and the Real Estate Register.
   h. Supervising the application and implementation of the provisions of this Law as well as the executive regulations and resolutions issued in implementation thereof.
   i. Enhancing the professional development of the licensees and any person who shall be registered with the Department and providing advices thereto according to the provisions of this Law.
   j. Controlling the compliance of the concerned entities with the obligations determined in the provisions of this Law and its Executive Regulation concerning the promotion and advertising in the real estate sector and the marketing of real estate projects.
   k. Issuing the statistical reports, indicators and specialised researches concerning the real estate sector in the Emirate, including the preparation of the bulletins and statements which serve such researches.
   l. Preparing and developing the programs which contribute in the activation of the role of the Nationals of the Country in the real estate sector and their encouragement to work therein.
   m. Implementing educational and extension programs about the rights and obligations of the concerned parties in the real estate sector in the Emirate.
   n. Examining customer complaints and working to resolve them.
   o. Working on the provision of mechanisms to resolve the disputes related to the real estate sector in the Emirate.
   p. Any other competencies or tasks entrusted to the Department by the Executive

1. The Department may have recourse to any legal person to work under its supervision to exercise any of its competencies and powers determined pursuant to the provisions of this Law. It may as well, assign some or all of its competences and powers to the Municipality.

Article (3)

Chapter 2 - The Administrative Structure of the Department

The Department shall set the appropriate administrative structure to assume its competencies and powers and exercise its functions pursuant to the provisions of this Law in preparation for its approval by the Executive Council.

Article (4)

Chapter 3 - The Real Estate Development Register

1. The Department shall prepare a real estate development register in order to keep all information of any statements or documents related to real estate development projects, including:
   a. The statements or documents related to the licensees.
   b. The statements or documents related to the account trustees and the agreements of the project escrow account.
   c. The statements or documents related to the permits of marketing real estate development projects.
   d. The details of the main or subsidiary development plans of the real estate development project, including the initial compund plan and the floor plan deposited with the Department.
   e. Any other statements or documents of which registration in the real estate development register is deemed necessary by the Department.

1. The Department may use the documents kept with the relevant entities in order to implement the aforementioned.

Article (5)

Title 3 - Licensees
 Chapter 1 - Licensing and Categories and Conditions Thereof
License

1. No person may carry out any activity as a developer, broker, brokers’ employee, auctioneer, director of owners' union, evaluator or surveyor, nor may they introduce themselves in such capacity without a licence issued by the Department.

1. No person that violates the provisions of Clause (1) of this Article, may be entitled to any remuneration, profits or fees for any works conducted thereby. In the event of receiving such amounts, they shall be returned to the customer who shall be compensated for the value of the remuneration or profit should it be non-refundable in nature.

1. Obtaining a licence according to the provisions of this Article shall not release any person from the obligation to obtain any other licences, permits or approvals required by any other governmental entity to be able to conduct their work.

1. The Executive Regulation shall determine the conditions to be fulfilled by the licence applicants as well as the categories, form and substance of any licence issued according to the provisions of this Law.

1. The licence issued by the Department shall be renewed annually according to the rules, conditions and provisions specified in the Executive Regulation, and the Department may request that the licensees undergo training programs to be specified by the Executive Regulation as a condition to renew the licence.

Article (6)

Chapter 2- Obligations of Licensees
Code of Conduct

All licensees shall abide by the provisions of the handbook on the code of conduct and professional ethics issued by the Department pursuant to the provisions of this Law.

Article (7)

Rights and Obligations of the Broker

1. The broker shall commit to conclude a written brokerage contract on the format prepared by the Department before carrying out any works for the party with whom the contract is concluded, and shall submit such contract to the Department in order to register it in the real estate development register before receiving any amounts from the client, and within maximum (15) fifteen days from the date of signing said contract.

1. If the developer agrees with the broker that the latter will be in charge of marketing the real estate development project, in part or in whole, the broker shall deposit the price of the real estate unit of which the sale was mediated thereby in the project escrow account, and may not deposit the amount in his personal account nor may he deduct his commission from the price without depositing the same in the escrow account. Any agreement to the contrary shall be considered null and void.

1. The broker may not achieve any personal benefit from the amounts deposited in the project escrow account nor may he withdraw any amount from such account unless in the cases approved by the Department.

1. The funds deposited by the broker in the project's escrow amount shall not be subject to the procedures of mortgage, attachment, liquidation or bankruptcy or any other procedures to which the broker may be subject as a result of the legal obligations incurred by him.

1. The maximum remuneration or commission to be paid to the broker by the customer shall be determined by a resolution issued by the Chairman from time to time.

1. The broker shall not be entitled to any remuneration or commission for his brokerage service unless such service led to the conclusion of a contract between the parties. The contract shall be considered as having been concluded when both parties agree on all the substantive issues in the contract. The broker shall be entitled to his remuneration once the contract is concluded, even if it was not executed, unless otherwise agreed.

1. If the contracting party appoints more than one broker for the same work, a main brokerage contract shall be concluded with any of these brokers who shall, in their turn, draw a written sub-contract between them according to the form approved by the Department in order to distribute the commission or remuneration consistently with the manner specified in the sub-contract.

1. The broker may not represent more than one party for the same transaction. By way of exception, two brokers or two employees of a broker at the same office or company may represent more than one party separately for the same transaction provided that:
   a. The contracting parties know that the broker or the employee of the broker represents more than one party for the same transaction, and agree on this matter.
   b. Each of the contracting parties separately sign with the broker a written brokerage contract.
   c. The broker or the employee of the broker shall represent the contracting party in all honesty and independently.

1. The broker may not achieve any personal benefit in any transaction concluded in favour of the contracting party, other than the remuneration or commission due thereto in consideration of the works carried out for the customers pursuant to the brokerage contract. The broker shall keep the contracting party informed concerning all the details of negotiations conducted thereby on the latter's behalf.

1. The broker shall note down the number of his registration in the Real Estate Register outside his workplace and it shall also appear on all the correspondences, advertisements and documents issued thereby as well as the business cards and any printouts or material used thereby.

1. The broker shall keep the registers specified pursuant to the provisions of the Executive Regulation and register all the transactions concluded through him in the real estate development register in the manner specified by the Department.

1. The broker shall serve as a secretary concerning any financial instruments, securities or title deeds received from the contracting party and he shall deliver them according to the terms laid down by said party.

Article (8)

Functions of the Evaluator

The Evaluator shall perform his work according to an agreement concluded between him and the contracting party who shall specify the obligations and liabilities of the Evaluator as well as the remuneration due to him for his work. In all cases, his functions shall include the expression of opinion on the value of the real estate or any property rights related thereto, and appraise it according to the adopted basis and standards.

Article (9)

Obligations of the Evaluator

1. The Evaluator shall be committed to conclude a written agreement with the contracting party upon conducting any works in the latter's favour.

1. The Evaluator shall keep a register where all the appraisals conducted thereby are recorded, and should include the following:
   a. A description of the real estate being appraised.
   b. The value or overall value of the real estate.
   c. Statement on the appraisal type adopted.
   d. Statement on the method used for appraisal.
   e. Any assumptions related to appraisal.
   f. Any other matters that may be requested by the Department.

1. The Evaluator shall conduct his appraisal with total independence from the contracting party and without any influence from the latter on how to conduct the appraisal or the manner to determine the value of the real estate being appraised.

Article (10)

Functions of the Surveyor

The surveyor shall perform his work according to an agreement concluded between him and the contracting party who shall specify the obligations and liabilities of the surveyor as well as the remuneration due to him for his work. In all cases, his functions shall include the determination of the borders and dimensions of any real estate and carry out any surveying work according to the basis and standards specified by the competent authorities, without exceeding the achievement of the objectives of this Law.

Article (11)

Obligations of the Surveyor

1. The surveyor shall be committed to conclude a written agreement with the contracting party upon conducting any surveying works in the latter's favour.

1. The surveyor shall submit all the plans and statements to the competent entities according to the format approved by such entities.

1. The Department may use the plans and statements submitted thereto by the surveyor.

Article (12)

Title 4 - Real Estate Development
 Chapter 1 - Real Estate Development Projects
 Obligation of Registering the Developer

1. No person may practice a real estate development activity unless they are registered in the Real Estate Development Register as main developers or sub-developers.

1. The developer registered in the Real Estate Development Register according to the provisions of this Article shall not be exempt from the obligation of obtaining any other licences, permits or approvals from any other governmental entity to be able to conduct its work.

Article (13)

Registration of Real Estate Projects

1. The developer shall register the real estate projects with the Department according to the provisions of this Law and its Executive Regulation and the Department's instructions.

1. The Department shall mark an annotation on the Real Estate Register regarding the land where the real estate development project will be constructed, indicating that the project is subject to the provisions of the Law and that no disposition of the land is permitted without the approval of the Department.

1. The Department shall delete the annotation mentioned in the previous Clause following the execution of the real estate development project and registration of its units in the names of the buyers in the Real Estate Register, or because of cancellation of the project according to the provisions of this Law.

Article (14)

Marketing Real Estate Development Projects Sold Off-Plan

1. Developers may not have recourse to advertising through the local or foreign media nor may they participate in local or foreign exhibitions to promote the off-the-plan sale of the real estate units of the real estate development projects, before obtaining a written permit from the Department which shall issue such permit within (30) days from the date of submitting the application along with all the documents requested by the Department from the developer to this effect according to the provisions of the law and the Executive Regulation.

1. If the developer wishes to market his own real estate development project through a broker, he shall conclude a contract with the licensed broker pursuant to the provisions of this Law and deposit the brokerage contract concluded therewith with the department for registration in the real estate development register.

1. The Department shall issue the decisions and instructions required for the organisation of the conditions of advertising in the local and foreign media as well as the participation in the local and foreign exhibitions.

Article (15)

Off-Plan Sale

1. No real estate unit may be sold off-plan unless the following conditions are fulfilled:
   a. The approval of the competent entities on the real estate development project.
   b. The deposit of the main or subsidiary development plan of the real estate development project before the Real Estate Register at the Department, including the initial floor plan and initial compound plan.
   c. The developer shall hold any of the property rights to the land on which the real estate development project will be established or the contractual rights, which allow him to develop the land and grant property rights to the real estate units to be constructed on the land.
   d. The developer shall submit proof that he owns the land on which the real estate development project will be constructed.
   e. The developer shall have opened a project escrow account.
   f. Obtaining the approval of the Department on the disclosure statement related to the real estate unit as per the form prepared by the Department and which shows all the data related to the real estate unit and the real estate development project.

1. The buyer shall be bound to pay the value of the off-the-plan real estate unit according to the actual completion percentage of the construction works, unless otherwise agreed with the developer.

1. The Department shall issue the resolutions required for the organisation of the matters related to the methods and mechanisms of off-plan sale as well as the documents that should be exchanged between the concerned parties in this regard.

Article (16)

Inadmissibility of Imposition of Registration Fees

The developer may not collect any fees, whether registration fees or other fees, expenses or remuneration related to any dispositions of the real estates, except for the administrative fees received from others and within the maximum limit specified by the Department.

Article (17)

Breach of Execution of the Off-Plan Sale Contract

1. The developer or the buyer may rescind the off-plan sale contract should there be any substantial violation committed by any of them, and that, following the notification of either party of the correction of the violation. Any of the following cases are, without limitation, considered as a fundamental breach by the developer:
   a. Should he reject, without any justification accepted by the Department, to deliver the final contract of sale of the real estate unit to the buyer.
   b. Should he abstain from linking the payments to the construction completion phases.
   c. Should he substantially change the specifications agreed-upon.
   d. Should it be proved, following the delivery of the real estate unit, that it is unusable because of fundamental defects in construction.
   e. Any other cases determined by the Department according to the procedures specified in the Executive Regulation.

1. The developer shall not be considered as having breached his obligations in the following cases:
   a. Should the land on which the real estate development project be expropriated for public benefit.
   b. Should any of the governmental entities freeze the real estate development project because of re-planning.
   c. Should there be buildings, excavations or service lines found within the site of the real estate development project.
   d. Should the main developer have introduced amendments to the site of the real estate development project, which resulted in the change of the borders and area of the project in a manner that affects the implementation of the sub-developer's obligations.
   e. Any other cases determined by the Department.

1. The Developer shall notify the mortgagee creditor of the buyer's breach before rescinding the contract in order to give the mortgagee the chance to correct the violation committed by the mortgagor debtor.

Article (18

Chapter 2 - Creating the Project Escrow Account
Opening the Project Escrow Account

1. The developer who wishes to sell off-plan real estate units of the real estate development project shall submit an application to the Department along with the supporting documents specified by the Department to open the project escrow account where all the amounts paid by the buyer of the real estate units or any other amounts are deposited according to the provisions of this Law and its Executive Regulation.

1. The developer and the account trustee shall conclude an agreement under the name of “The Escrow Account Agreement” as per the form prepared and approved by the Department to create the account in the name of the relevant real estate development project.

1. An escrow account shall be opened for each individual real estate development project, provided that the amounts deposited therein are exclusively allocated for the purposes of construction of this project as well as for the settlement of its financing payments according to the provisions of this Law and the conditions determined in the project escrow account agreement. Should the real estate development project be consisting of many projects that will be completed in different stages, the developer shall open an escrow account for each individual project.

1. The real estate development projects executed prior to the application of the provisions of this Law shall be exempt from the conditions of this Article, provided that all the approvals required for the commencement of the projects are issued and that the percentage of completion of construction is not less than (70%) of the whole project.

Article (19)

Chapter 3- Management of the Project Guarantee Account
Disposition of the Funds Deposited in the Project Escrow Account

The terms and conditions of the agreement of the project escrow account shall be observed when disposing of any amounts thereof. In all cases, no amount may be disposed of unless the developer has completed not less than (20%) of the construction works of the relevant real estate development project, provided that the Executive Regulation determines the manner of assessment of the completion percentage.

Article (20)

Attachment of the Funds Deposited in the Project Escrow Account

The amounts deposited at the project escrow account may not be attached, without prejudice to the right of the buyer of the real estate unit sold off-plan in the real estate development project and that of the contractor and funder of such project to claim any money paid or due thereto pursuant to the construction or financing contract in any of the following cases:
a. The real estate development project is cancelled or abandoned by the developer.
b. The real estate development project is suspended by the developer and the Department considers such suspension as a cancellation or abandonment of the project.
c. The registration of the developer is cancelled according to the provisions of this Law.
d. A final judicial decision is issued.

Article (21)

Obligations of the Account Trustee

1. The account trustee shall provide the Department with periodic statements every three months concerning the receipts and payments of the project escrow account, an annual report prepared by an accredited auditor on the relevant account, the paid amounts and the extent to which they are consistent with the provisions of this Law and the project escrow account agreement.

1. The Department may at any time request that the account trustee provides it with the statements of receipts and payments or any other information or data it deems necessary for access thereto.

1. Should the account trustee violate any of the provisions of this Law and its Executive Regulation or the conditions of the project escrow account agreement, the Department shall notify this trustee of such violation and grant him a deadline to correct it. The account trustee shall respect the conditions of notification and implement the same within the period specified therein.

Article (22)

Access to Data

Any person who deposits any money in the project escrow account according to the provisions of this Law may access the statements related thereto and which are kept with the account trustee, and may obtain copies thereof.

Article (23)

Mortgage of the Real Estate Related to the Real Estate Development Project

The developer may not place the land of the real estate development project or any property right pertaining thereto under mortgage, unless for the exclusive purpose of obtaining a funding for the construction of this project and provided that the developer and his funder respect the following:

1. The buyer of the real estate unit shall be notified that the land of the real estate development project or the property right pertaining thereto is placed under mortgage and stipulate such matter explicitly in the sale and purchase contract.

1. The developer undertakes and the funder of the developer approves, that the mortgage of the real estate unit, for which the buyer has fully paid its price and deposited it in the project escrow account. shall be removed.

1. The bank or the funding institution shall be bound to deposit the whole amount of funding in the project escrow account and not pay it directly to the develpoer.

Article (24)

Amount of the Performance Bond

1. The account trustee shall retain not less than (5%) of the overall value of the real estate development project as a performance bond surety to repair the defects that may appear after completion of the project.

1. The amount abovementioned in the previous Clause or any part thereof may be disbursed by the developer only after the lapse of one year from the date of the real estate development completion certificate and the fulfilment of all the conditions of the performance bond during this year.

1. The Department may approve the application of the developer to withdraw the amount of the performance bond mentioned in the first Clause of this Article before the lapse of one year from the date of completion thereof in return for a bank guarantee submitted by the developer to cover the withdrawn amount.

Article (25)

Delay in the Start or Delivery of the Real Estate Development Project

1. Should the developer fail to start the real estate development project according to his contractual obligations, and buyers owning not less than (5%) of the sold real estate units file a complaint before the Department, the latter shall conduct an investigation concerning such project. If it is found that the developer has delayed the start of the project without an acceptable excuse in violation of the provisions of this Law, its Executive Regulation or the developer's contractual obligations, the Department may cancel the project, in which case, the amounts deposited in the project escrow account shall be distributed to the depositors according to the provisions of Article (26) of this Law.

1. The Department may impose a delay penalty on the developer to be paid in favour of the buyer of the real estate units if said developer delays the delivery of the real estate development project for more than (6) months from its expected date of delivery in accordance with the schedule to which the developer was committed before the Department, unless he proves that such delay was due to a reason beyond his control.

1. The provisions of this Article shall not be applied to the real estate development projects of which the works started before the effective date of this Law and the completion percentage is not less than (50%).

Article (26)

Failure to complete the project

1. If the developer fails to complete the real estate development project, the account trustee shall, following the approval of the Department, take the measures required to preserve the rights of the depositors in order to ensure the completion of the real estate development project according to the permits granted thereto. Such measures may include the completion of the real estate development project by the funder or another developer.

1. If it becomes impossible to find a solution for the completion of the real estate development project within the period of (6) months from the date of approval of the Department according to the provisions of Clause (1) of this Article, the account trustee shall distribute the remaining amounts deposited in the project escrow account according to the following order and under the supervision of the Department:
   a. The unpaid expenses of the account management to the account trustees and up to a maximum limit specified by the Department.
   b. A pro rata division between the real estate development project's funders, the buyers of the real estate units in the project or their funders if the amounts available in the project escrow account are not sufficient.
   c. A pro rata division between the project's contractors and suppliers if the amounts remaining in the project escrow account are not sufficient.
   d. Developer.

1. The distribution abovementioned in the previous Clause shall not cause prejudice to the right of the creditors to have recourse against the developer for any shortage according to the provisions of the agreements and contracts concluded with the developer.

Article (27)

Title 5 - Initial Real Estate Register
Obligation of Registering the Dispositions

1. A Register shall be established in the Department under the name of “Initial Real Estate Register” where all the dispositions pertaining to the real estate units sold off-plan shall be recorded. These dispositions shall not be binding upon any of the parties thereto or towards others, unless they are registered in the Initial Real Estate Register according to the provisions of this Law.

1. All dispositions related to the real estate units sold off-plan and which occurred before the effective date of this Law shall be recorded in the Initial Real Estate Register within (6) months from its effective date. The Department may extend this period by virtue of a resolution issued thereby.

Article (28)

Registration Responsibility

1. The assignor of the off-plan real estate unit shall be responsible for registering the assignment, otherwise, the assignee may do whatever it takes to register such assignment in the Initial Real Estate Register at the expense of the assignor, unless the Chairman decides otherwise.

1. The Department may impose a delay penalty on the registration of any assignment existing at the time of entry into force of the provisions of this Law, which is completed after the lapse of the period specified in this Law. The Executive Regulation shall determine the amount of the penalty as well as the procedures of its implementation.

Article (29)

Disposition of the Registered Real Estate units

The real estate units recorded in the initial Real Estate Register may be offered for sale or placed under mortgage or disposed of in any other way, according to the rules specified in the Executive Regulation.

Article (30)

Moving the Registration to the Real Estate Register

1. The developer shall, upon completion of the real estate development project and after obtainment of the completion certificate from the Municipality, register the final recurring floor and compound plans as well as the compound or levels management regulation in the Real Estate Register and transfer the property of the real estate units sold off-plan to the buyers registered in the initial Real Estate Register to the Real Estate Register, provided that they have settled the full price of their real estate units to the developer or in accordance with the agreement and the procedures issued by the Department.

1. The Department shall, based upon the request of the buyer or by itself, transfer the real estate units that were sold off-plan as well as any rights and obligations pertaining thereto from the initial Real Estate Register to the Real Estate Register in the name of the buyer, provided that the latter has fulfilled his contractual obligations and that the developer has registered the final recurring floor and compound plans in the Real Estate Register.

 

Article (31-60)

Article (31)

Area of the Real Estate Unit

1. The area of the real estate unit sold off-plan shall be registered in the Initial Real Estate Register upon the deposit of the plans of the real estate development project before the Department, and the area of the real estate unit shall be calculated according to the procedures and standards specified by the Department.

1. The area of the real estate unit recorded in the initial real estate unit shall be considered the contracted area, and in case of any increase in the area of the real estate unit, the following provisions shall be observed:
   a. The developer may not claim any compensation for any increase in the area of the real estate unit after the delivery of the real estate unit to the buyer.
   b. Should there be any increase found in the area of the real estate unit by (5%) or less, no compensation or increase in the purchase price shall be calculated.
   c. Should there be any increase found in the area of the real estate unit by more than (5%) and up to (10%), the purchase price shall be increased based on the agreed purchase price and equally to the area increase percentage.
   d. Should there be any increase found in the area of the real estate unit by more than (10%), the buyer may have the choice to either pay the increase of the purchase price based on the agreed purchase price and equally to the increase percentage,or rescind the contract.

1. Should there be any decrease found in the area of the real estate unit before or upon delivery of such unit to the buyer, the following provisions shall be observed:
   a. Should the decrease in the area of the real estate unit be less than (5%), the purchase price shall not be reduced.
   b. Should the decrease in the area of the real estate unit ranges between (5%) and (10%), the purchase price shall be reduced equal to the area decrease percentage based on the agreed purchase price.
   c. Should the decrease in the area of the real estate unit be more than (10%), the buyer may have the choice to either reduce the purchase price equal to the area decrease percentage,or rescind the contract.

Article (32)

Title 6 - Mortgage
Chapter 1 - General Conditions
Mortgagee

If the mortgagee creditor was a bank or a financing company or institution, they shall be licensed and duly registered with the Central Bank for the practice of real estate financing in the Country.

Article (33)

Mortgagor and Mortgage

1. The mortgagor shall be the owner of the mortgaged property and eligible to dispose thereof.

1. The mortgagor may be the debtor himself or an in-kind surety which offers a mortgage in favour of the debtor.

1. Taking into account the provisions of Chapter (3) of this Title concerning special mortgages, the mortgaged property shall be an existent collateral upon conclusion of the mortgage agreement.

1. Mortgages shall only be placed on the property and rights which can be dealt with according to the provisions of this Law.

Article (34)

Comprehensiveness of the Mortgage

The mortgage shall include the appurtenances of the mortgaged property such as the buildings, plants and granted properties among many others as well as any constructions completed after the conclusion of the contract, unless otherwise agreed.

Article (35)

Registration of Mortgage

1. The mortgage shall be recorded in the Initial Real Estate Register or the Real Estate Register as the case may be.

1. The application for the registration of the mortgage shall be submitted to the manager of the Real Estate Registration administration at the relevant Municipality, signed by the mortgagee and mortgagor or the in-kind surety and enclosed with the documents and data specified by the Department in the Executive Regulation.

1. The manager of the Real Estate Registration administration at the Municipality shall, upon registration of the mortgage, deliver to the contracting parties, a mortgage deed to be signed by the competent employee and sealed with the Municipality's stamp. The mortgage deed may be electronic and shall be considered as having the binding force of an official document in evidence.

Article (36)

Consideration for Mortgage

A mortgage shall be completed in consideration for a debt that is evidenced or promised and specified upon conclusion of the mortgage agreement, or against any of the guaranteed real estate.

Article (37)

Enforcement of the Mortgage

The mortgage shall be completed only by recording it in the Real Estate Register or the Initial Real Estate Register, as the case may be, according to the controls developed by the Department. Any agreement to the contrary shall be considered null and void. The Mortgagor shall be bound to pay the expenses and fees of mortgage and its registration, unless otherwise agreed.

Article (38)

Chapter 2- Legal Effect of Mortgage
Restrictions on Dispositions

The mortgagor may not dispose of the mortgaged property through sale or donation among many others, nor may such property be subjected to any real or personal right without the approval of the mortgagee creditor, unless otherwise agreed.

Article (39)

Ownership Clause

Should the mortgage contract stipulate that the mortgaged property shall be acquired by the mortgagee in return for his debt in the event of failure of the mortgagor to settle it within the prescribed time limit, or that such mortgaged property shall be sold without taking into account the legal procedures, the mortgage shall be considered valid while this clause shall be deemed null and void.

Article (40)

Rights of the Mortgagor

1. The mortgagor shall have the right to use and manage his mortgaged property and receive the proceeds thereof up to the date of compulsorily removing his property right, depriving him from his property right, by offering it for sale in public auction in the event of failure to settle the debt.

1. The Court may order to seize the proceeds of the real estate from the date of registering the foreclosure lawsuit should it find that the mortgagor is delaying the settlement of his debt in prejudice to the mortgagee.

Article (41)

Loss of the Mortgaged Property

The mortgage shall be transferred, upon the loss or damage of the mortgaged property, to the money which replaces it such as the compensation, the amount of insurance or the consideration for expropriation for public benefit. The mortgage may in this case fulfil his right from such money as per his rank in bedt priority.

Article (42)

Claiming the Debt

Should the mortgagor be an in-kind surety, claim of debt shall be made only from the mortgaged property and he may not have recourse against the money of the debtor before foreclosure of the mortgaged property.

Article (43)

Assignment of rights and Ranks

1. The mortgagee creditor may assign his right to another mortgagee creditor subject to the approval of the latter.

1. The mortgagee may assign the rank of the mortgage on the same mortgaged property to another creditor within the amount of the debt and such rank may be pleaded against such creditor by all aspects of defence that may be pleaded against the first creditor, except for what is related to the forfeiture of the right of the first creditor, should such forfeiture be subsequent to the assignment of the rank.

1. In all cases, the assignment of the mortgage or its rank shall not be executed until said assignment is registered on the deed of the original real right and in the Real Estate Register or the Initial Real Estate Register.

Article (44)

Secured Amount

The effect of the mortgage shall be limited to the amount determined in the mortgage deed and evidenced in the Real Estate Register or the Initial Real Estate Register, unless the law or the agreement stipulates otherwise.

Article (45)

Rank of the Mortgage

1. The debts of the mortgagee creditors shall be paid from the price of the mortgaged property or the money which replaces it as per the rank of each of them, even if registration was completed on the same day.

1. The rank of mortgage shall be determined according to the date of registration and the serial number allocated thereto by the manager of the Real Estate Registration administration in the concerned Municipality. In the event of multiple persons applying at the same time for the registration of their mortgages against one mortgagor and one specific property, the registration of such mortgages shall be made under one number and such creditors shall be considered at the same rank when distributing the amount received from the public auction. Should the sale price be not sufficient to settle the debt of any of the mortgagees, the mortgagee may claim, in the capacity of creditor, for the remaining debt from the mortgagor debtor.

Article (46)

The Right to Trace

1. The mortgagee creditor shall have the right to trace the mortgaged property in the possession of any holder thereof, in order to satisfy his debt on its due date according to his rank.

1. The holder of the relevant property shall mean whoever the ownership of the property was transferred to or any of the pertaining property rights are acquired thereby.

Article (47)

Insurance of the Mortgaged property

The mortgagor shall protect the mortgaged property with an insurance and he shall be fully responsible for its integrity until the date of the debt settlement. The mortgagee may object to any shortage in the property insurance and may take any of the legal procedures which preserve its right, provided that he claims the expenses from the mortgagor.

Article (48)

Termination of Mortgage

The mortgage shall be terminated by the expiry of the whole mortgage-secured debt and by all other ways of the mortgage termination stipulated in the legislations in force. Should the reason of the debt expiry exist no more, the mortgage shall be valid again as it was without prejudice to the rights of other bona fide parties who acquired such rights between the termination and return of the mortgage.

Article (49)

Chapter 3 - Special Mortgages
Musataha and Usufruct Rights

The holder of the usufruct or Musataha right, for a period of more than 10 years and without the permission of the owner, may dispose thereof, inter alia placing it under mortgage. However, the owner of such property may not place it under a new mortgage without the approval of the holder of the usufruct or Musataha right. In all cases, an agreement may be made otherwise.

Article (50)

Long-term Lease

The holder of the long-term lease right may place his right under mortgage for the duration of the long-term lease.

Article (51)

Termination of Special Mortgages

The mortgage of the Musataha, usufruct or long-term lease right shall be terminated and all related entries shall be deleted from the Initial Real Estate Register or the Real Estate Register, as the case may be, by the expiry of the mortgage-secured debt or the expiry of the Musataha, usufruct or long-term lease period.

Article (52)

Mortgage of Contractual Rights

The buyer of the property right may place his contractual right to the real estate unit sold off-plan under mortgage in order to settle the sale price of the real estate unit, provided that such unit is registered in the Initial Real Estate Register and that the mortgagee creditor pays the debt amount directly in the project escrow account.

Article (53)

Chapter 4 - Foreclosure Procedures
Notifications of Violation

1. The mortgagee creditor or his designated or non-designated successor may initiate the procedures of foreclosure of the mortgaged property and offer it for sale in public auction in the event of failure to settle the debt on the fixed date, or if a clause stipulating the maturity of debt before the expiry of such date is fulfilled.

1. The mortgagee shall, prior to the initiation of the procedures of foreclosure of the mortgaged property and submission of a request before the judge of urgent matters to attach the mortgaged property and offer it for sale in public auction, send a written notification to the mortgagor and guarantor, if any, by registered mail with acknowledgment of receipt to inform the latter of the occurrence of violation and claim the settlement of the debt and other dues within a period of no less than (30) days from the date of notification.

Article (54)

Violation of the Mortgagor

Taking into account the provisions of Clause (2) of the previous Article of this Law, should the mortgagor or his guarantor or their designated or non-designated successor fail to settle the debt, the judge of urgent matters shall issue, at the request of the mortgagee creditor, a decision to sell the mortgaged property in public auction according to the procedures applicable at the competent court.

Article (55)

Postponing the Sale in Public Auction

Taking into account the provisions of the previous Article, should the mortgagor or his guarantor request from the judge of urgent matters to postpone the sale in public auction, the latter may accept such request by postponing the sale for one time only and for a period not exceeding (60) days if he finds that the mortgagor or his guarantor or their successor may be able to settle the debt within said period or that the sale of the mortgaged property may cause serious damage to the debtor.

Article (56

Early Settlement and Repayment

1. The mortgagor or his guarantor may settle the mortgage-secured debt and other related charges before its maturity date.

1. The mortgagee may impose early repayment fees or penalty provided that such fees or penalty reflect the real estimation of the additional expenses incurred by the mortgagee as a result of the early repayment and do not exceed the rates specified in the regulations of the Central Bank.

1. Except for what was provided for in Clause (2) of this Article, the mortgagee may not conduct or omit an act to prevent or hinder the early repayment of the mortgage-secured debt and its charges.

Article (57)

Binding Force of Mortgage

The mortgage registered according to the provisions of this Law shall have a binding force upon others concerning what was provided for therein and shall be considered a writ of execution to be executed before the competent execution judge.

Article (58)

Title 7 - Levels, Apartments and Jointly Owned Parts
Chapter 1 - Real Estate Development Plans
Development Plans

1. The developer shall register the main or subsidiary development plan of the concerned real estate after obtaining the approval of the competent entities, before selling any real estate unit off-plan, and shall deposit the original copy thereof with both the Department and Municipality.

1. The subsidiary development plan of any real estate may not be registered unless such real estate is a part of a registered main development plan, and in case of any contradiction in the data of the main and subsidiary development plans, the data of the main development plan shall be adopted unless it was amended.

1. Only one main development plan or subsidiary development plan may be registered for the same real estate.

1. The development plan may not be registered unless it has fulfilled the terms and conditions and enclosed with the documents determined by the competent entities.

1. No main or subsidiary development plan may be amended unless according to the conditions specified in the Executive Regulation.

Article (59)

Division Plans

1. The developer may divide the real estate by virtue of any of the following plans:
   a. Typical plan.
   b. Floor plan.
   c. Compound plan.
   d. Volumetric plan.
   e. Any other plan specified by the Department.

1. The real estate may be sub-divided and the plans may be amended by any methods or ways allowed by the Executive Regulation.

1. The Department may compel the developer to register the floor plan or the compound plan should it deem it more appropriate than the plan to be registered by the developer, in case it finds the common use of equipment, facilities, or services to be possible.

Article (60)

Division pursuant to the compound and Floor Plans

The developer may divide the real estate pursuant to the compound plan or the floor plan, and he shall enclose the compound management regulation or the levels management regulation with the compound plan or the floor plan, as the case may be. The compound management regulation or the levels management regulation shall specify the conditions and obligations related to the management and use of the real estate, subject-matter of the compound plan or the floor plan. This regulation shall be binding upon each of the owner, tenant or occupant of the real estate unit subject to the regulation, and they shall all implement its terms and conditions towards each other and towards the Owners' Union.

 

Article (61-79)

Article (61)

Division pursuant to the Volumetric Plan

1. The developer may volumetrically divide the building and land where the building is located pursuant to a volumetric plan. He shall enclose the building management regulation with the volumetric plan before dividing the volumetric spaces in such plan through the floor plan. Should the volumetric space be subject to the floor plan, the Owners' Union shall be considered as the owner of the volumetric plan for the purpose of applying and implementing the building management regulation.

1. The building management regulation aforesaid in Clause (1) of this Article shall specify the conditions and obligations related to the management of the building and land, subject-matter of the volumetric plan. This regulation shall be binding upon the owner, tenant or occupant of any volumetric space or real estate unit subject to the regulation, and they shall all commit to implement its terms and conditions.

Article (62)

Dividing the Rights related to the Ground and Real Estate

1. Except for the original real rights, the division plan aims at dividing the property rights pertaining only to the land subject to division, and shall grant upon its registration rights that are of lower degree than the original real right. In case of termination or expiry of these rights, the division comes to an end and the borders and ownership of the land shall return to what they were before the registration of the division plan, unless otherwise agreed with the owner of the land or the nature of disposition requires that the division remains as is.

1. Upon dividing the property rights pertaining to the real estate by the floor plan or the compound plan, property rights pertaining to the real estate units resulting from such decision may be granted to another person, provided that these rights are of lower degree than the property right that has been divided, unless otherwise agreed with the owner of the original real right.

1. The owner of the original real rights shall become, upon termination of the lower-degree rights resulting from the division of the real estate, the owner of the real estate unit. The holder of the terminated rights of lower degree shall remain responsible for any amounts due on the real estate unit to the Owners' Union upon termination of the property rights of lower degree.

Article (63)

Property Rights Related to the Real Estate Unit

The holder of the property right pertaining to a real estate unit shall commit to assign, upon assignment of his property right to such unit, all his rights and obligations pertaining thereto and the assignee may not introduce any change to the nature of this property right nor may he grant or cause the emergence of new property rights related thereto except for the mortgage.

Article (64)

Chapter 2 - Owners’ Union
Formation of the Owners’ Union

1. The owners' union shall be established following the registration of the floor plan or the compound plan with the Department, and shall assume its competencies after its registration. The owners' union shall consist of the developer until the latter assigns the ownership of one real estate unit or one property right or more in a floor plan or compound plan to another person, in which case the owners' union shall consist of the total owners including the developer with respect to unsold real estate units. The membership of the owner of the real estate unit in the owners' union shall start from the date of registering the same in his name in the Real Estate Register and forfeit upon termination of such right.

1. The owners' union is considered a non-profit institution having a legal personality which is independent of that of its members. It shall have the right to litigate and bring cases against the owners and tenants of the real estate units as well as any person occupying the real estate unit should any of them violates any provision of this Law or the Articles of Association of the owners' union.

1. The Articles of Association as well as the complex or levels management regulation shall apply to the owners' union consistently with the provisions of this Law and its Executive Regulation. The Department shall lay down a form for the Articles of Association of the owners' union and may amend it from time to time. The developer or the owners' union may not amend it or change its clauses.

1. The owners' union may be a member in another owners' union of a higher rank in the same real estate development project.

1. The owners' union shall be in charge of a Board of Directors to be elected by the owners' union during the general assembly of the union, and the Executive Regulation shall determine the provisions related to the method of electing its members, the procedures of the general assembly, the right to vote and the legal quorum required for the validity of its decisions.

1. The Board of Directors shall appoint the director of the owners' union to follow up the works and the Executive Regulation shall determine the provisions related thereto.

Article (65)

Common Parts

The floor plan or compound plan shall specify the common parts of the joint property and the Executive Regulation shall determine the provisions related thereto.

Article (66)

Rights and Obligations related to Common Parts

1. The owners' union shall have the right to own real estates and movables related to the floor plan and compound plan as well as stocks and shares in the service companies related to the plans which contributed to its establishment and to grant exclusive rights to common parts.

1. The ownership of the common parts shall be transferred to the owners' union which shall be in charge of managing and operating the same, including the repair and maintenance thereof. The compound plan, the floor plan, the compound management regulation, the levels management regulation, the building management regulation and the union's Articles of Association shall be considered a part of the title deed of the real estate.

1. In exception to the provisions of Articles (64 and 66) of this Law, the Chairman may, following the approval of the Executive Council, issue a resolution whereby the developer or any other party shall replace the owners' union with respect to all the rights and obligations as well as the responsibility to manage, operate, repair and maintain the common parts, public services and service facilities in the real estate development projects, provided that the owners' union is entitled to express its opinion and advice. The Executive Regulation shall determine the terms and conditions regulating the work of the developer or the other party.

1. The Department may appoint a director to control the owners' union in the event of its failure or refusal to manage the common parts as specified in the Executive Regulation.

1. The owners' union may not sell any common parts, real estates, or movables pertaining thereto, nor may it put any mortgage or debt burden thereon.

Article (67)

Contribution Percentage

1. A contribution rate shall be specified for each real estate unit whereby the owner of such real estate unit in the owners' union shall have the following rights and obligations:
   a. To have a common share in the assets of the owners' union without acquiring any original real rights to the land which is a part of the common parts.
   b. The right to vote in the general assembly of the owners' union while taking into account the exceptions indicated in the Executive Regulation or the union's Articles of Association.
   c. To pay a specific percentage of the service fees imposed by the owners' union.
   d. To receive his share in the entitlements should the owners' union be dissolved pursuant to the provisions of this Law.

1. The Executive Regulation shall indicate how to determine and calculate the contribution percentage and other conditions related thereto in addition to the cases where such rate may be changed.

Article (68)

Service Fees

1. The owners' union may collect the service fees from the owners in order to finance its activities, as per the contribution percentage of each real estate unit. The owner of each real estate unit shall pay the service fees due on him to the owners' union on their due date, provided that the developer pays his share in the fees with respect to unsold units. The union's Articles of Association shall determine the type of service fees, how to collect them, and the records that are related thereto and should be kept.

1. A preferential right for the owners' union shall automatically arise on every real estate unit upon the failure of its owner to settle the service fees or other financial obligations imposed thereon by the owners' union. This right shall remain valid with the ownership of the real estate unit without being affected by the change of owner when the liability for settling the abovementioned fees is transferred to the new owner from the date of the ownership transfer.

1. The owners' union shall, according to the decision of its Board of Directors upon proceeding with the exercise of the abovementioned preferential right, notify the owner of the real estate unit by the registered mail with acknowledgment of receipt to settle the overdue service fees within three months from the date of notification. Should the owner of the real estate unit fail to pay them within the period specified in the notification, without expressing an acceptable excuse, the owners' union may submit an application before the judge of urgent matters to issue an order to sell the real estate unit for the settlement of the due service fees according to the provisions of the Civil procedure Law.

1. The owners' union shall pay any service fees imposed pursuant to the provisions of this Law by an owners' union of a higher rank on or before their due date. The Department may impose the conditions and restrictions it deems appropriate concerning the service fees and issue the regulations and instructions related to this matter.

Article (69)

Compound Fees

The Department may impose the conditions and restrictions it deems appropriate with respect to the compound fees and issue the regulations and instructions related to this matter, including:
a. The condition of obtaining the approval of the Department before imposing any compound fees.
b. Prohibiting the imposition of new fees or increasing the fees imposed.
c. Determining the increase permitted.
d. Determining the method of settlement of the payments, including the possibility to settle by instalments.
e. The procedures which may be taken to collect the compound fees.
f. Compelling the contributors in the owners' union to settle amounts for a credit account, to be opened with any of the banks operating in the Emirate, to cover any deficit in the collected fees.

Article (70)

Insurance

1. The owners' union shall ensure the common parts or the joint property - as specified in the Executive Regulation - with an amount that covers its repair or reconstruction in the event of its perish or demolition for any reason whatsoever, and the owners' union shall be the beneficiary of this insurance. The union shall also commit to an insurance against the damage and bodily injury that may be sustained by the owners and occupants of the real estate units during their presence on the joint property, and shall include it in the cost of the service fees due to the owners' union.

1. Should the premium paid by the owners' union be increased as a result of the manner and nature of use of a particular real estate unit by the owner or the occupant of such unit, the union may recover any increase of the premium from the owner and such increase shall be considered as a debt for which the owner or occupant shall be liable.

1. The owner of the unit may benefit from any insurance contract concluded by the owners' union for the joint property if such insurance covers any part of its unit, and the owners' union shall do what is necessary to enable such owner to benefit from his right under such insurance.

Article (71)

Chapter 3 - Rights and Obligations
Right of Support and Public Services

1. The floor plan shall grant the right of lateral support in the case of real estate units that are horizontally adjacent and the right of subjacent support in the case of real estate units that are vertically adjacent, in favour of the real estate units and common parts against each other, and that, to the extent of availability of the capacity to ensure such lateral or subjacent support. The floor plan also grants rights in favour of the real estate units and common parts against each other in order to provide public services to the real estates or common parts, as the case may be.

1. The building management regulation applicable to the volumetric plan shall determine the easement rights and the rights of entrance, support, services and protection in favour of any volumetric space in the volumetric plan which shall abide by the conditions of such regulation.

1. Without prejudice to the original real rights, the rights granted pursuant to this Article shall be terminated automatically upon the termination of the rights of lower degree resulting from the division of the real estate.

Article (72)

Modifications and Changes by the Owner

1. Except for what is authorised by the Articles of Association of the owners' union and the floor or compound management regulation, the owner, tenant or occupant of the real estate unit may not introduce any modifications or changes to the structure, the external appearance or any part of the real estate unit in such a way that fundamentally affects the real estate unit or the joint property or its external appearance.

1. The owner shall, in the event of violation of the provisions of Clause (1) of this Article, repair the damage caused at his own expense and in the manner requested by the owners' union. Should the owner of the real estate unit fail to commit to this clause, the owners' union may repair the damage and recover the repair costs from the owner.

Article (73)

Developers Liability for Defects

1. Without prejudice to the provisions of liability stipulated in any other law, the developer shall remain liable for the repair or correction of any defects that threaten the durability and safety of the building, with respect to the structural parts of any building or the common parts in any real estate development project or any part thereof, for ten years from the date of the final certificate of completion issued by the Municipality.

1. The developer shall remain liable for the repair or replacement of the defective installations in the building for one year from the date of receiving the final certificate of completion of the building from the Municipality.

Article (74)

Pre-emption

The provisions related to pre-emption shall not be applicable to common parts or the percentage rate in the owners' union.

Article (75)

Chapter 4 - Termination of the plans and Liquidation of the Owners’ Union
Termination of the Floor Plan or Compound Plan

1. The floor plan or the compound plan may be terminated or cancelled by a resolution of the owners' union, issued by the majority of owners holding at least (95%) of the overall shares of contribution to the owners' union, or by a decision of the competent court upon an application submitted by the owners' union following the perish of or serious damage caused to the common parts or any building including common parts.

1. The floor plan or the compound plan shall be automatically terminated upon the termination of the rights of lower degree resulting from the division of the real estate. The Executive Regulation shall determine the procedures related to the termination of the floor plan and compound plan.

Article (76)

Liquidation of the Owners' Union

1. The owners' union shall, upon termination of the floor plan or the compound plan, continue to hold the remaining rights on the joint property, subject-matter of said plans, until the completion of the liquidation of the owners' union.

1. The owners' union shall be liquidated by a decision of the competent court following the termination of the floor plan or the compound plan. The application for liquidation shall be submitted by the union itself or the last owner of a real estate unit in the relevant building. Should the owners' union neglect or refrain from submitting the application, the Department may submit an application before the court for the liquidation of the owners' union.

1. The court decision issued according to Clause (2) of this Article shall include the following:
   a. An order of payment of all liabilities of the owners' union.
   b. How to sell the assets of the owners' union, including the rights pertaining to real estates and movables owned by the owners' union.
   c. How to divide the proceeds of the sale of assets between the last owners of the real estate units after paying all liabilities of the owners' union.

Article (77)

Title 8- Penalties
Practicing an Activity without a Licence

Without prejudice to any more severe penalty provided for by any other law, any person who practices any activity as a broker, brokes’ employee, auctioneer, director of the owners' union, Evaluator or surveyor or who introduces himself in this capacity without being licensed or adjusting his situation according to the provisions of this Law, shall be punished by imprisonment for a period of not more than six months and/or a fine of not less than AED 50,000 (Fifty thousand) and not more than AED 200,000 (Two hundred thousand).

Article (78)

Violations of Practicing the Activity of Real Estate Development

Without prejudice to any more severe penalty provided for by any other law, a fine of not less than AED 100,000 (One hundred thousand) and not more than AED 2,000,000 (Two million) shall be imposed on whomever:
a. Practiced the real estate development activity without being registered or without adjusting his situation according to the provisions of this Law.
b. Submitted incorrect documents or statements to the competent authorities in order to obtain a licence for carrying out the activity of real estate development.
c. Offered fictitious units in real estate projects for sale with his knowledge.
d. Refrained from paying any amounts due thereon in the project escrow account.
e. Embezzled, illegally used, or wasted financial payments that were delivered thereto for the purposes of establishing real estate development projects.
f. Any auditor who deliberately developed a false report on the outcome of his review of the financial position of the developer or deliberately concealed fundamental facts in his report.
g. Any person who authenticated incorrect documents related to a real estate development project with his knowledge.
h. Any developer who dealt with a broker without being recorded in the Real Estate Development Register.

Article (79)

Cancellation and Suspension

1. The Department may cancel or suspend the licence in any of the following cases:
   a. If the licensee does not fulfil any of the conditions stipulated in the provisions of this Law and its Executive Regulation as well as any regulations, resolutions or instructions issued pursuant thereto.
   b. If the licensee violates the provisions of this Law or its Executive Regulation as well as any regulations, resolutions or instructions issued pursuant thereto, or the code of conduct imposed thereon.
   c. If the licensed natural person was condemned of a crime involving moral turpitude or dishonesty.
   d. If the licensee is no longer of good conduct according to the Department.
   e. If the licensee is no longer capable of assuming his work efficiently at the discretion of the department.
   f. Insolvency or bankruptcy of licensee.

1. The Department shall, prior to taking any procedure to cancel or suspend the licence, send a written notification to the licensee where the reasons and justifications of cancellation or suspension are indicated and a period of twenty one days is granted thereto to respond to such reasons and justifications.

1. The Department may only warn the licensee instead of cancelling or suspending the licence, provided that this warning is taken into consideration upon the evaluation of the licensee's performance and renewal of his licence.

1. The licensee may file an appeal before the competent court against the resolution of the Department cancelling or suspending his licence or the warning sent thereto, within sixty days from the date of issuance of the Department's resolution.

 

Article (80-90)

Article (80)

Deletion of Registration of the Developer

1. The Department may delete the registration of the developer from the Real Estate Development Register in any of the following cases:
   a. He was declared bankrupt or subjected to liquidation.
   b. If he failed to start the construction works of the real estate development project after the lapse of six months from the date of obtaining the approval to sell off the plan, without an acceptable excuse.
   c. If he committed any of the violations mentioned in Clauses (b, c, d and e) of Article (78) of this Law.
   d. If he violated the laws, regulations or resolutions concerning the regulation of the real estate sector.

1. The Department may, in addition to the deletion of the registration of the developer, impose any additional conditions on the developer in order to protect the public interest.

Article (81)

Renewal of Registration

The developer whose registration was deleted according to the provisions of this Law may not submit an application for re-registration before the lapse of 12 months from the date of deletion.

Article (82)

The Procedures of Violations

If it was proved for the Department that any of the licensees conducted or refrained from doing an act imposed by the provisions of this Law and its Executive Regulation and the regulations, resolutions and instructions issued pursuant thereto, the Department shall prepare a report on the incident and refer the matter to the public prosecution. Should this person be condemned by a final decision, the Department shall have the power to impose administrative penalties according to the provisions of this Law.

Article (83)

Capacity of Judicial Officer

For the purposes of this Law, the Head of the Judicial Department shall issue in agreement with the Chairman, a resolution determining the employees of the Department and concerned municipalities which have the capacity of judicial officers.

Article (84)

Title 9 - Final Provisions
Adjusting the Situation

1. The persons who start any of the activities aforesaid in Article (5) of this Law, shall adjust their situation according to the provisions thereof within (90) days from its effective date and the Department may extend this period for all categories of licensees or for a particular category as it deems it appropriate.

1. The developers who have real estate development projects that are ongoing or were completed at the time of application of the provisions of this Law, shall adjust their situation in conformity with its provisions within (12) months from its effective date. The Department may extend this period to any other period (s).

Article (85)

Plans Registration

1. The developer shall register with the Department the main or subsidiary development plan, as the case may be, for any real estate development project existing before the effective date of this Law.

1. The developer shall register with the Department the floor plan or compound plan for any real estate development project that was started before the effective date of this Law and that includes a real estate unit or a property jointly owned or used.

Article (86)

Fees

The Department may collect fees for the services offered thereby pursuant to the provisions of this Law. These fees shall be specified in the Executive Regulation issued by the Department in this regard following the approval of the Executive Council.

Article (87)

Issuance of Executive Regulations

The Chairman shall issue the Executive Regulations required for the implementation of the provisions of this Law following the approval of the Executive Council.

Article (88)

Issuance of Regulations and Resolutions

The Chairman shall issue the rules and resolutions required for the implementation of this Law.

Article (89)

Contrary Provisions

Any text or provision contrary to the provisions of this Law shall be repealed.

Article (90)

Applicability of the Provisions of the Law

This Law shall be published in the Official Gazette and shall be effective six months following its publication.

 

Article (1-2)

Article (1)

Article 1 - Definitions

Emirate: Emirate of Abu Dhabi.

Department: Department of Municipal Affairs.

Municipality: Abu Dhabi Municipality or Al Ain Municipality and Western Region Municipality or any municipality that may be established in the future in the Emirate.

Property: Various types of real estate, including land, buildings, establishments and real estate by destination.

Concerned Municipality: Abu Dhabi Municipality or Al Ain Municipality and Western Region Municipality or any municipality that may be established in the future in the Emirate.

Survey Works: Works and procedures to be carried out and taken in order to determine the shape or size or level or depth or limits or any technical or procedural matter of a land area or to determine the locations on, above or below the surface of the earth on both horizontal and vertical levels, whether on land or at sea or any natural or artificial spaces in the Emirate of Abu Dhabi.

Surveyor: The authorised person who possesses the qualifications, ability, licence and experience necessary for the conduct of survey works.

Competent Department: Spatial Data Department.

Appendix to the Decision: Appendix to the Administrative Decision no. () of 2015 on the unified mechanism for the measurement and calculation of buildings, villas and real estate areas in the Emirate of Abu Dhabi.

Article 1 was repeated twice in the text published in the Official Gazette; it is more correct to be mentioned one time, followed by Article 2 and the remaining articles according to the correct number order, mention is an order.

The Unified Mechanism for the Measurement and Calculation of Buildings, Villas and Real Estate Areas in the Emirate of Abu Dhabi, annexed to this Decision shall be adopted and provisions thereof shall be applied as of the date of entry into force of the present Decision.

Article (2)

Standards and Mechanism for the Measurement and Calculation of Buildings, Villas and Real Estate Areas in the Emirate of Abu Dhabi aim to 4:

1. Develop and adopt ways and methods for the measurement and calculation of areas in the real estate field.

1. Enhance the effectiveness of the real estate market through the confidence of investors, property owners and financiers in the standards and mechanisms related to the real estate market.

1. Unify and adopt such standards and mechanisms at the level of the Emirate of Abu Dhabi.

1. Ensure the application and use of the unified mechanism in all real estate works, which may include, for example, ownership schemes, architectural plans, contractors' executive schemes, used in credits, financing, offices, residential, industrial and commercial buildings real estate appraisal, and for sale and rent purposes and other.

 

Article (3-4)

Article (3)

Submission of the Application for the Calculation of a Property Area

The application for the calculation of a property area shall be submitted to the competent department in the concerned municipality provided that it includes the following data:

1. The property type-space or construction - along the construction type.

1. Name of the property owner as per his identity card.

1. A copy of the identity card.

1. The purpose of the calculation of the area. In the event the purpose is a contractual relationship, a copy of the contract shall be attached to the application.

Article (4)

Procedures of Calculation of a Property Area

The real estate surveyor shall review the data of the property, subject of the area, and shall for this purpose observe the following steps:

1. Make sure that the applicant for the survey has an authority over the property, under a certified document.

1. Obtain the register of the real estate, subject of the survey.

1. Review all data contained in the register and compare them with those provided by applicant for the survey in terms of:
   a. Providing a copy of the identity card.
   b. Matching the name contained in the family book with the register or the certified document submitted by the survey applicant.
   c. The real estate number and address, according to the register.

1. In the event the property is owned by a juristic person, the property data shall match with the certificate of incorporation or memorandum of association or the commercial register of the entity.

1. Prepare a detailed description of the property status according to data and documents collected.

 

Article (5-6)

Article (5)

Procedures of a Property Inspection

The real estate inspection shall be deemed a key step in the process of calculating real estate areas since it provides the surveyor with a realistic picture and information to be used in the area's calculation, in accordance with the following controls:

1. Obtain the owner's approval on the inspection and the physical inspection of the property, and agree with him on the appropriate time to carry it out.

1. Prepare the property file, provided that it contains, for example, official data such as land scheme, certificate of the buildings completion.

1. Provide the necessary equipment for the inspection and physical inspection of the property and dimensions measurement (measuring device, a camera).

Article (6)

Procedures of Appeal against the Survey Report

The following controls shall apply in respect of the appeal against the survey report:

1. Surveyors shall comply with the cadastral standards and legislation in force in the Emirate.

1. Surveyors shall abide with regards to the survey report by the following:
   a. Use spatial tools in accordance with the practical and legal requirements.
   b. Explain the name of the tools and the methods and reasons of use.
   c. Documents relied upon in the calculation of the real estate area.
   d. Seal and adopt the report in accordance with the legislation in force.

1. Any interested party may appeal against the survey report, after depositing an amount of money to be determined by the municipality and equivalent to the costs incurred for the survey.

1. Two other surveyors may be assigned by the municipality to carry out the surveying work each individually.

1. If the result of the last two reports is different than that of the first, the first surveyor shall bear all surveying costs.

1. If the reports of the two surveyors are identical or one of them is identical to the first report in a way acceptable by the municipality, the appellant shall bear the costs of the other two reports.

 

Article (7-8)

Article (7)

Any text or provision contrary to or inconsistent with the provisions of this Decision shall be abrogated.

Article (8)

This Decision shall be published in the Official Gazette and shall come into force 30 days after the date of its publication.

 

Article (1-15)

Article (1)

Chapter 1 - General Provisions
Definitions

In application of the provisions of this Regulation, the following terms and expressions shall have the meanings assigned hereto unless the context otherwise requires:

Emirate: Emirate of Abu Dhabi.

Department: Department of Municipal Affairs.

Municipality: Abu Dhabi Municipality or Al Ain Municipality and Western Region Municipality and any municipality that may be established in the future in the Emirate.

Law: Abu Dhabi Law No. 3/2005 on the Regulation of the Real Estate Registration in the Emirate of Abu Dhabi.

Common Areas: the common parts of the Joint Property designated for common use by Real Estate Units Owners and Occupiers as shown on the Recurring Floor Plan or the Site Plan in accordance with the provisions of the Law and this Regulation.

Site Management System: the regulation determining the conditions and obligations relating to the management and use of the property, subject of the Site Plan.

Building Management System: the regulation determining the conditions and obligations relating to the management of the building and land, subject of the Volumetric Plan.

Floor Management System: the system determining the conditions and obligations relating to the management of the property, subject of the Recurring Floor Plan.

Statute of the Owners' Association: the rules and provisions governing the Owners' Association.

Supply Agreement: the agreement concluded between the Owners' Association and the supplier for the supply of goods or services, including utilities, to the Owners' Association independently or as subject to the provisions of the Building Management System.

Board of Directors: the Board elected by the Owners, according to the provisions of the Law and this System for the management of the Owners' Association.

Site Plan: the plan that divides the property horizontally into two Real Estate Units or more or into common areas.

Recurring Floor Plan: the plan that divides vertically the building or any part thereof and the land where the building is established into two units or more or into common areas, with reference to the floors, walls and ceilings.

Volumetric Plan: the plan that divides vertically the building or any part thereof and the land where the building is established into two Volumetric Spaces or more, without such partition resulting in the creation of any common areas for the relevant building or land.

Public services: Any of the following services:

1-Water networks or supply.

2-Gas networks or supply.

3-Electric networks or supply.

4-Air conditioning.

5-Water Cooling.

6-Telephone service.

7-Computer data or television service.

8-Security services.

9. Sewage system.

10-Rainwater drainage.

11-A system for the removal or disposal of waste.

12-A system for the delivery of mail, parcels or goods.

13-Any other system or service dedicated to enhance improve the facilities in units or common areas.

Developer: the Main Developer or Sub-Developer licensed in the Emirate to carry out real estate development activities.

Person: a physical person or a juristic person.

Owner: a person registered according to Law No. (3) of 2005 referred to, as Owner of the property or holder of any property rights.

Occupier: anyone who rents or resides or works in a Real Estate Unit except for Unit Owners or any Property Rights Holders.

Owners' Association: the Owners' Association formed under the provisions of the Law for the management and operation of Joint Properties including repair, maintenance and good use thereof.

Acting Agent / Agent acting on behalf of the Owners' Association: the Developer or the Person appointed by a decision of the Chairman of the Department, after presentation thereof to the Executive Council, to implement the tasks of the Owners' Association, take the responsibility and carry out the management and operation of Common Areas, public services and utility services in accordance with the provisions of this Regulation.

Manager of the Owners' Association: the person appointed by the Developer or the Owners' Association to manage the daily work of the Association.

Share: the Real Estate Unit's share in Common Areas, and the Owner's rights and obligations arising therefrom.

Property: Various types of real estate, including land, buildings, facilities and real estate by destination including the Real Estate Unit.

Real Estate Development Project: Project of construction of multi-storey buildings or sites for residential or commercial or mixed-use purposes, in addition to their facilities, or construction of infrastructure and services facilities in the event of sale of vacant lands.

Property Right: the original rights in rem, the Musataha right, the usufruct right and the long-term lease.

Real Estate Unit/Unit: Any apartments, storeys and shops or any part of the house (Villa) attached to another house or detached therefrom or a vacant land within a common property, whether existing or proposed on the Recurring Floor Plan or the Site Plan and allocated for a commercial or residential or mixed-use purpose.

Volumetric Space: the Volumetric Space shown in the Volumetric Plan and determined in three dimensions through the use of spatial coordinates.

Existing Real Estate Development Project: the real estate development project, where a Real Estate Unit or more was sold by the Developer to the Purchaser before the effective date of this Regulation, or the one with regard to which the Developer has obtained permits from the concerned authorities to initiate the sale of the project's units.

Article (2)

Chapter 2 - Registration of the Plans
Requirements of the Survey

1. The requirements of survey shall be determined pursuant to the Department's instructions and shall comprise the following:
   a. Method used for the conduct of the survey and equipment to be used therein.
   b. Accuracy requirements for the survey process.
   c. Method of development of plans and contents thereof.
   d. Requirements of submission of plans and data attached thereto.
   e. Any other requirements that the Department considers necessary for the ensuring of the Survey's highest accuracy standards, and the preparation and registration of the plan.

1. The Surveyor shall conduct and supervise the survey, and shall accurately produce the plan and comply with the instructions issued by the Department.

Article (3)

Property Rights and Plans

1. The Property Rights Holder may register a plan on such rights, provided that he submits the certificate of registration of holder-ship of such rights.

1. The Holder of the Original Rights in Rem on the land may do the following:
   a. Register the Recurring Floor Plan or the Site Plan associated therewith in accordance with the provisions of this Regulation.
   b. Grant or transfer the Original Rights in Rem in an off-plan Real Estate Unit referred to in paragraph (a) above, taking into account the following:

• The Holder of the off-plan Property Right shall be deemed the Owner of the Real Estate Unit for the purpose of this Regulation except as determined by the Statute of the Owners' Association.
• When the off-plan Property Right expires or the building is completed, the Holder of the Original Rights in Rem shall become the Owner of the Unit, for the purposes of this Regulation and the Statutes of the Owners' Association.

Article (4)

Registration of the Development Plans

1. For the purposes of registration, the Main or Subsidiary Development Plan shall meet the following requirements:
   a. It shall be approved by Abu Dhabi Urban Planning Council.
   b. It shall be produced in accordance with the form specified by this Regulation and the instructions issued by the Department in this respect.
   c. It shall be signed by the Owner and any mortgagee of Original Rights in Rem in the land, subject of the Main Development Plan.
   d. It shall be signed by the Owner and any mortgagee of Property Rights, subject of the Main Development Plan, if the Original Right in Rem is not the subject of the Main Development Plan.
   e. In the case of Subsidiary Development Plan, the plan shall be approved by the Main Developer.
   f. The plan shall show the method of amendment of the Main or Subsidiary Development Plan, as the case maybe, including the consultation with the Holders of Property Rights.
   g. The plan shall show the procedures of delivery, use and request for payment of costs of the utilities services provided with, at the main or subsidiary development level, as the case may be.
   h. The plan shall show the details of the management of waste, water and energy, or any other environmental conditions to be complied with, at the Main or Subsidiary Development Plan level, as the case may be, by the holders of the Property Rights or beneficiaries therefrom.
   i. Submission of the Floor Management System, Site Management System and Building Management System in accordance with the requirements set out in this Regulation.

1. The Department may require the attachment of any documents, information or data to the application for registration of the Main or Subsidiary Development Plans.

Article (5)

Contents of the Plans’ Model

The Main or Subsidiary Development Plan shall be produced according the model adopted by Abu Dhabi Urban Planning Council and shall include the following data:

1. Developer's name.

1. Details on the land where the Real Estate Development Project is established as per the Real Estate Register.

1. Property Rights to which the plan pertains.

1. A statement describing the purpose of the land referred to in clause (2) of this Article.

1. A plan illustrating the basic infrastructure that will be established by the Main Developer or the Sub-Developer, and will be made available for use by Owners and Property Rights Holders.

1. Details on the method of the basic infrastructure's maintenance and renovation and the parties bearing costs thereof.

1. In the case of contribution of the Holders of the Property Rights, subject of the Main or Sub-Development, or beneficiaries therefrom, to the cost of maintenance and renovation of the basic infrastructure mentioned in the preceding clause, the following shall be stated:
   a. The budget set for such costs and the Property Rights Holders' contribution thereto.
   b. The manner by which such costs are apportioned between Property Rights Holders.
   c. Calculation, imposition and audit of such costs.
   d. Authorisation of use of the basic infrastructure by Property Rights Holders.
   e. The rules of use of the basic infrastructure and the manner by which such rules can be altered.

Article (6)

Contents of the Plans

The Main or Subsidiary Development Plans shall include the following:
a. Codes, including architectural codes and gardens organisation, regulating the land development project, subject of the Main development or Subsidiary Development Plan.
b. Restriction of use of the Land or Property Rights.
c. Duties and obligations of Property Rights Holders.
d. Rights of easement or covenant or restriction associated with Property Rights.
e. Policies and control measures in the management of the main or subsidiary site.
f. Obligations of the Main Developer or Sub Developer.

Article (7)

Obligations of Units Owners and the Owners’ Association

1. The relevant Property Rights Holders, Units Owners and Owners' Association shall comply with the Main Development or Subsidiary Development Plans.

1. Easements, including the restrictions associated with Property Rights in the Main Site's land, shall take effect as per the date mentioned in the Main or Subsidiary Development Plan and shall be binding to the Property Right Holder. Provisions of the Main Development Plan may not be contrary to the Law or this Regulation or any other provision in the legislation in force.

Article (8)

Chapter 3 - Partition Plans (Partition)
Partition Plans

1. Repartition of the sub-developed property and amendment of the Recurring Floor Plan, Site Plan, Volumetric Plan or Typical Floor Plan, are subject to the approval of the Municipality.

1. The Municipality may compel the Developer to submit the Recurring Floor Plan, Site Plan, and Volumetric Plan when it deems it more convenient than the plan proposed to be submitted by the Developer, and if it appears to it that the use of equipment, utilities or services can be shared.

1. The plan dividing the property into Recurring Floor Plan, Site Plan, Volumetric Plan or Typical Plan, shall be prepared in accordance with the instructions and directives issued by the Department.

1. The Developer shall deposit the plans provided for in this Article before the Municipality, to be noted in the Real Estate Register after providing the Real Estate Development Project with the infrastructure services and issuance of the property completion certificate.

Article (9)

Registration of the Site Plan or the Recurring Floor Plan

1. For the purposes of registration, the Recurring Floor Plan or the Site Plan shall meet the following requirements:
   a. The Recurring Floor Plan shall pertain to a building licensed by the Municipality.
   b. The Site Plan shall pertain to the partition of the Property Right in the land, approved by the Municipality where the land is located.
   c. The Recurring Floor Plan and the Site Plan shall take into account the following requirements:

• They shall be prepared according to the form defined by this Regulation and the instructions issued by the Department.
• The Floor Management System or the Site Management System shall be attached thereto as the case may be.
• The plans shall be signed by the Owner or any mortgagee of Original Rights in Rem in the land, subject of the plan.
• The plans shall be adopted by the Main Developer or the Sub-Developer.

1. The Floor Management System and Site Management System shall contain all the necessary information in accordance with the form determined by the Department.

1. For the purpose of access, use, or usufruct of any land or part thereof or any building or part thereof or the Recurring Floor Plan or the Site Plan relating to another land or building, the required rights of occupancy or usufruct shall be established in the plans being part of the Common Areas.

1. The provisions of clause (1) of this Article shall not apply to the basic infrastructure.

1. The Department may require the attachment of any documents to the application for registration of the plans or submission of any other data therewith.

Article (10)

Areas of Mosques and Future Development Regions

1-Any space that has been allocated in the Recurring Floor Plan or Site Plan as a mosque or have been reserved for the purpose of building a mosque shall be deemed a part of the land covered in the plan and shall not be taken into account for the purpose of calculation of the land gross area in the plan, or imposition of any type of service charges in favour of the Owners' Association and membership thereof.

3-Any space that has been allocated in the Recurring Floor Plan or Site Plan as a proposed future development region shall be deemed a part of the land covered in the plan, and despite the Developer's responsibility to bear the services fees imposed on the buildings, it shall not be taken into account for the purpose of calculation of the gross area of the land in the plan, or imposition of any type of service charges in favour of the Owners' Association and membership thereof.

Article (11)

Floor Management System and Site Management System

1. The Floor Management System or Site Management System shall be produced pursuant to the model adopted by the Department and shall include the following:
   a. The name of the compound or building, subject of the Site Plan or Recurring Floor Plan, as the case may be.
   b. Description of the land where the building or any part thereof is established in the Recurring Floor Plan or the land relating to the Site Plan as per the Real Estate Register.
   c. Real Estate Rights on the land.
   d. Name of the Owners' Association.
   e. Method of numbering of Real Estate Units.
   f. A table determining the number of each Real Estate Unit and its contribution ratio.
   g. Standards and methods used to determine and apportion contribution ratios between units as determined by this Regulation and description of such methods.
   h. Arrangements for the delivery and use of public services and request for the payment of costs thereof.
   i. Details of any of the Owners' Association or Owners or Occupiers' obligations related to waste, energy, water or environment.
   j. The Site rules in accordance with the Statute of the Owners' Association.
   k. Where the Owners' Association is a part of another Owners' Association, the structure thereof together with the method of its operation and management shall be stated.
   l. If the project is staged, the following shall be considered:

• The project land plan shall illustrate the existing Real Estate Units and Common Areas and the development areas proposed in the future.
• Description of the project stages, including other Common Areas that are supplied and any changes proposed to the Recurring Floor Plan or Site Plan.

1. The Department may require the attachment of any documents, information or data to the application for registration the Recurring Floor Plan or the Site Plan.

Article (12)

Contents of the Site Management System

1. The Site Management System shall include the following:
   a. Restrictions with regards to the use of Real Estate Units in the Site.
   b. Architectural standards of Real Estate Units, subject of the Site Management System.
   c. Restrictions with respect to the use of specific parts of Common Areas.
   d. Any rights or obligations pertaining to easement rights or obligations or restrictions related to the Common Areas or Real Estate Units.
   e. Allocations to specific units of rights of exclusive use over specified parts of Common Areas including conditions attaching those rights.
   f. Any special administrative arrangements where the Owners' Association is a party.
   g. Duties and functions of Owners, Occupiers, and Owners' Association.
   h. Duties and functions of the Developer.
   i. Any other matters determined by the Department.

1. The Property Rights applicable to the Floor Management System or the Site Management System pertaining to a Property Right other than the original right in rem shall comprise the Common Areas and Real Estate Units.

1. The Lease Contract, Usufruct Contract or Musataha Agreement with respect to Units shall be identical (i.e. a single document shall be applicable to all Units) and shall expire upon expiration of the relevant benefit in Common Areas.

1. The title deed of the Real Estate Unit or Volumetric Space on the plan registered under the Law shall include a reference to any Main Development Plan or Subsidiary Development Plan or Recurring Floor Management System or Site Management System or Building Management System lodged in the registers with respect to the Real Estate Unit or the Volumetric Space.

1. The title deed of the Real Estate Unit or the Volumetric Space on the plan registered under the Law shall include the plan of the Real Estate Unit or Volumetric Space or a reference to the number of the plan lodged in the registers where the Real Estate Unit or Volumetric Space falls.

Article (13)

Validity of the Floor Management System or the Site Management System

1. The easements rights, including restrictions associated with Property Rights shall be applicable pursuant to the conditions contained in the Floor Management System or Site Management System and according to the date specified.

1. In accordance with the Floor Management System or Site Management System or Building Management System, obligations may be imposed on persons bound to these regulations in favour of the Main Developer or Sub-Developer.

1. Provisions of the Floor Management System or Site Management System shall not be contrary to the following:
   a. Any former and registered Main Development Plan or Subsidiary Development Plan or Recurring Floor Management System or Site Management System in respect of the land itself.
   b. The Law or this Regulation or any legislation in force.

1. Provision of the Recurring Floor Management System shall not be contrary to any provisions of the Building Management System registered in respect of the land itself and shall be deemed ineffective to the extent of contradiction thereto.

Article (14)

Contribution Ratio

1. A contribution ratio shall be allocated to each Real Estate Unit, to be identified with regards to the Real Estate Unit in the Recurring Floor Plan or Site Plan according to the following:
   a. If the Real Estate Unit is within a building, the Unit area shall be measured as a percentage of Gross Real Estate Units' Area in the building.
   b. If the Real Estate Unit is in a land, the land area shall be measured as a percentage of the gross land area in the Site Plan.
   c. In both cases above mentioned, the following shall be observed:

• The value of the Real Estate Units.
• The extent of the Real Estate Units' benefit from other financial resources of the Owners' Association.

1. The contribution ratio may be modified by any of the following procedures:
   a. The Owners' Association's submission of a request to the Department for the change of the contribution ratios.
   b. Appointment of an independent expert to determine the extent of need for the change or otherwise and the proposed percentage of such change.

1. The Owners' Association shall bear the fees and costs of the expert appointed by the Department.

Article (15)

Amendment of the Development Plans and Management Systems

1. Main Development Plan may be amended subject to the approval of the Department and the consent of the two-thirds majority of the Owners of the land subject of the Main Development Plan.

1. Subsidiary Development Plans may be amended subject to the approval of the Department and the consent of the two-thirds majority of the Owners of the land subject of the Subsidiary Development Plan.

1. The Recurring Floor Management System or the Site Management System may be amended by a decision of the Owners' Association, subject to approval of the Department.

1. For the purposes of this Article, the majority mentioned in clauses (1 and 2) of this Article shall be calculated on the basis of the area of the land owned by persons voting in favour of the proposal, as a percentage of the gross area of the land, subject of the Main or Sub-Development Plan.

1. The Recurring Floor Management System or the Site Management System that includes provisions relating to a phased development for the purpose of completion of its specific stages in the Development Plan may be amended without need for a decision by the Owners' Association to this effect.

1. Changes in the Recurring Floor Management System or Site Management System shall not affect any right of exclusive use over Common Areas without the written consent of the Owner of the Real Estate Unit to which the right pertains.

1. If the Developer votes in accordance with the Statute of the Owners' Association to amend the Recurring Floor Management System or the Site Management System, any Owner who voted against such decision and suffered therefrom may claim compensation from the Developer.

1. The Amendment of the Main or Subsidiary Development Plan or the Recurring Floor Management System or the Site Management System or the Building Management System shall become effective after the issuance of a registration notice or approval of the amendment in the form determined by the Department.

 

Article (16-30)

Article (16)

Partition under a Volumetric Plan

1. The Developer may divide the building and the land on which the building is established under a Volumetric Plan, and he shall register the Building Management System at the Department before proceeding with the partition of any other Volumetric Space according to the Recurring Floor Plan; where the Volumetric Space is subject to the Recurring Floor Plan, the Owners' Association shall be considered Owner of the Volumetric Space for the purposes of management and implementation of the Building Management System.

1. The Building Management System shall include all provisions and obligations related to the management of the building and land on which the building is established and subject to the volumetric division, and all the necessary data, in accordance with the model set by the Department.

1. Landlords, Tenants and Occupiers of any Volumetric Space or Real Estate Unit, subject to the volumetric division, shall implement the provisions and the terms of the Building Management System.

Article (17)

Registration of the Volumetric Plans

1. The plan may be registered as a Volumetric Plan if it vertically divides the Property Right in the building and the land where it is located into two or more Volumetric Spaces, in accordance with the instructions and decisions issued by the Department.
   The Volumetric Plan may be registered according to the following:
   a. The Plan shall pertain to a building licensed by the Municipality.
   b. It shall be prepared according to the form determined by this Regulation, and the instructions and decisions issued by the Department.
   c. It shall be attached to the Building Management System unless the partition of a Property Right in a Volumetric Space in said plan is not intended by the Recurring Floor Plan.
   d. It shall be signed by the Owner and any mortgagee of the Original Right in Rem on the land, subject of the Volumetric Plan.
   e. It shall be signed by the Owner and any mortgagee of Property Rights, subject of the Volumetric Plan if the original right in rem on the land is not subject of the Volumetric Plan.
   f. It shall be approved by the Main Developer or Sub-Developer of that land.
   g. It shall meet the other requirements determined by the Department.

Article (18)

The Building Management System

The Building Management System shall be in accordance with the model approved by the Department provided that the following is taken into account:
a. Identification of the name of the building subject to volumetric schema.
b. Identification of the land on which the building is located.
c. Statement of the Property Right on the land.
d. Determination of Volumetric and Common Areas.
e. Identification of Volumetric Spaces' Owners possessing different Common Areas.
f. Determination of the rights of access, including Utilities Services, to the Volumetric Space where such rights exist on or through another Volumetric Space.
g. Determination of the rights of support or protection of Volumetric Spaces.
h. Determination of the methods of maintenance of the Common Areas and the party responsible thereof.
i. Determination of the method adopted for the apportionment of the maintenance costs, including the renovation and replacement costs by Owners of Volumetric Spaces.
j. Development of insurance arrangements related to the building, including the rule on the basis of which the insurance cost is shared between Owners of Volumetric Spaces.
k. Any other information determined by the Department.

Article (19)

Contents of the Building Management System

The Building Management System shall include the following provisions:
a. Restrictions in respect of the methods of use of private Volumetric Spaces.
b. Architectural standards for Volumetric Spaces subject of the Building Management System.
c. Rules for the use of Common Areas.
d. Description of Volumetric Spaces Owners' obligations with regards to the waste, energy, water or environment.
e. Any rights or obligations or conditions associated with easements, covenants or restrictions concerning Volumetric Spaces.
f. Establishment and operation of the management group.
g. Imposition of costs to finance the promotion of commercial facilities and retail stores in the building and calculation and recovery thereof.
h. Administrative arrangements and record keeping.
i. Rules and procedures for the settlement of disputes.

Article (20)

Provisions of the Building Management System

1. The Building Management System shall allow the following:
   a. Opening a bank account in the name of the building.
   b. Determining the method adopted for the operation of the bank account by the authorized signatories, and any restrictions thereon.
   c. Authorizing the bank to open such account and to operate the same in accordance with the Building Management System.

1. Owners of relevant units, Holders of Property Rights and the Owners' Association shall comply with the Building Management System.

1. Any easements including restrictions relating to the Property Rights shall take effect according to the date set in the Building Management System and shall be binding to Owners and Occupiers of Volumetric Spaces.

1. For the purposes of this Article, the Owners' Association shall be deemed the Owner of the Volumetric Spaces.

1. The Department may refuse to register the Building Management System in the event of conflict with the following:
   a. Any registered Main or Subsidiary Development Plan or Site Management System on the land itself.
   b. The law or this Regulation or any legislation in force; any provisions to the contrary shall be deemed null and void.

1. Any party affected by the Department's decision, issued in accordance with this Article may appeal said decision before the Competent Court within sixty days.

Article (21)

Chapter 4 - Property Rights
Division of the Rights Related to the Land and Property

1. Except for the original right in rem, the Partition Plan shall apply to Property Rights related thereto throughout the period of their validity, and for the purposes of membership of the Owners' Association, the holder of the Property Right in the Real Estate Unit shall be deemed the last Property Right Holder registered in the Real Estate Register.

1. Subject to the provisions of clause (1) of this Article, holders of Property Rights, subject of the Partition Plan may arrange any other Property Rights, including Musataha, Usufruct and long lease term over the property, in accordance with the provisions of the Law, and the right in joint Ownership shall be transferred to the last Property Right Holder registered in the Real Estate Register.

1. Upon expiration or termination of any Property Rights on the property subject of the Partition Plan, the holder of said right shall pay all outstanding financial obligations on the Real Estate Unit at the date of expiry or termination thereof, to the Owners' Association.

Article (22)

Rights of Musataha / Usufruct / Long-Term Lease on the Property

1. Upon registration of the Recurring Floor Management System or the Site Management System concerning a Property Right, other than Original Rights in Rem, the following provisions shall apply:
   a. The Long-Term Lease or Usufruct Contract or Musataha Agreement relating to Common Areas shall apply on such parts.
   b. The Long-Term Lease or Usufruct Contract or Musataha Agreement relating to Real Estate Units shall apply on each Unit as being a document separately registered with respect to each Real Estate Unit.

1. Upon transfer of a Property Right, other than Original Rights in Rem, in a Real Estate Unit, the Long-Term Lease or Usufruct Contract or Musataha Agreement relating to Real Estate Units shall be deemed allocated to the new Real Estate Unit Owner upon registration of such transfer at the Department without the need for another assignment.

1. The Long-Term Lease or Usufruct Contract or Musataha Agreement relating to Real Estate Units and Common Areas may not be disposed of and in the case of disposal thereof, the right continue to exist until its expiry.

1. The Property Right Holder last granted registration in the Real Estate Register may mortgage such right.

1. The provisions of this Article shall not apply to Long-Term Lease or Usufruct Contract or Musataha Agreement relating to Real Estate Units if the Property Right in the Recurring Floor Plan or the Site Plan is an Original Right in Rem.

Article (23)

Repeated Repartition

1. A parcel of land may be partitioned and re-partitioned in the Main or Subsidiary Development Plan through the submission of a suitable plan and registration thereof in accordance with the requirements established in the Emirate.

1. The Real Estate Unit may be divided in the Site Plan according to the following:
   a. Repartition thereof through another Site Plan.
   b. Division thereof through a Recurring Floor Plan.
   c. Division thereof through a Volumetric Plan.

1. The Real Estate Unit in the Recurring Floor Plan may be divided through another Recurring Floor Plan.

1. An additional Owners' Association may be formed if the subdivision plan referred to in the previous plan indicates so.

1. The Volumetric Space in the Volumetric Plan may be repartitioned by way of:
   a. A Volumetric Plan for the creation of two Volumetric Spaces or more.
   b. A Recurring Floor Plan for the creation of Units, Common Areas and establishment of an Owners' Association.

1. The Real Estate Unit or Volumetric Space may not be repartitioned through any category of the plans if the registration thereof will lead to the establishment of more than three Owners' Associations.

1. Common Areas in the Recurring Floor or Site Plan may not be repartitioned if:
   a. The re-partition of the Recurring Floor Plan of a Real Estate Unit is included in another Recurring Floor Plan.
   b. The re-partition of the Site Plan of the Real Estate Unit is included in another Site Plan.
   c. The partition leads to the creation of additional Common Areas within the Recurring Floor Plan or the original Site Plan.

1. The re-partition under this Article shall be made in accordance with the instructions and decisions issued by the Department and provisions relating to the Recurring Floor Plans and Site Plans and the percentage of contribution contained in the Law and this Regulation.

Article (24)

Common Areas in the Recurring Floor Plan

Unless otherwise indicated in the Recurring Floor Plan, Common Areas in the Recurring Floor Plan shall include without limitation:

1. Structural components of the Real Estate Unit including the Main supports, foundations, columns, structural walls, thresholds, ceilings, ceiling joists, halls, staircases, stairwells, emergency exits, entrances, windows in the external wall, facades and roofs;

1. Parking areas, watchman rooms, recreational facilities and equipment, swimming pools, gardens, storage facilities and areas intended for the use of the Owners' Association or whomever it appoints or contracts to manage the Real Estate Unit;

1. Equipment and systems of main utilities, including electricity generators, lighting systems, gas systems and equipment, cold and hot water systems, heating and cooling systems, air conditioning systems and waste collection and treatment facilities;

1. Elevators, tanks, pipes, generators, chimneys, ventilation fans and ducts, air compressor units and mechanical ventilation systems;

1. Water mains, sewer pipes, gas pipes and chimneys, and electrical wiring and conduits serving the Owners of more than one Unit;

1. Fittings, connections, equipment and amenities used by Owners of more than one Unit;

1. Equipment used for measuring the provision or supply of public services allocated for the common use by the Owners and Occupiers of the Units;

1. Any other parts outside the boundaries of any Unit which are necessary or required for the existence, maintenance and safety of the real property

1. Utility Services that serve other Common Areas or Units located within the boundaries of any Real Estate Unit.

Article (25)

Common Areas in the Recurring Floor Plan

Unless otherwise indicated in the Recurring Floor Plan, Common Areas in the Recurring Floor Plan shall include without limitation:

1. Roads, roundabouts, intersections, pathways, pavement edges, drains, median strips, viaducts, drainage systems, and all related structures;

1. Lakes, ponds, canals, parks, fountains, water features and other waterways, including all related equipment;

1. Landscaping, public areas and playgrounds;

1. Wires, cables, pipes, drains, ducts and the machinery and equipment used to supply Units or Common Areas with Utility Services.

1. Equipment used for measuring the provision or supply of Utility Services dedicated for common use by the Owners and Occupiers of Units;

1. Utility Services that serve other Common Areas or Units located within the boundaries of any Real Estate Unit.

Article (26)

Boundaries of the Units in Buildings

1. Unless otherwise indicated in the Recurring Floor Plan, each Unit in a building or a part thereof shall include without limitation:
   a. Floors and floor materials and components down to the base of the joists and other structures supporting the floor of the Unit;
   b. Plaster ceilings and all other types of ceilings, additions that form part of the interior area of the Unit and the spaces between such ceilings, the ceilings above the support walls and structures inside the Unit, and walls separating the Unit from other parts of the Joint Property and any adjacent Units or Common Areas;
   c. Non-load bearing walls and non-support walls inside the Unit;
   d. windows, glass and fixtures that form part of the internal windows, lighting systems, doors, door frames, and all equipment and fixtures serving the Unit;
   e. Internal connections serving exclusively the Unit;
   f. Fixtures and fittings installed by the Owner or Occupier of the Unit;
   g. Additions, modifications and improvements made to the Unit from time to time;
   h. For the purposes of this clause, the Real Estate Unit shall not include Utility Services in the Unit that serve the Common Areas or any other Unit;
   i. Owner or Occupier of each Unit is entitled to appropriate services and rights of way from other Units and Common Areas.

1. The dividing walls between two adjacent Units will be shared by the Owners of both Units provided that these walls are part of the Common Areas.

Article (27)

Rights and Obligations relating to Common Areas

1. The Developer shall be responsible for the management, maintenance, operation and repair of the Common Areas pending the establishment of the Owners' Association.

1. Obligations of the Developer in Common Areas and referred to in clause (1) of this Article shall devolve to the Owners' Association that shall become responsible for their management, operation, repair and maintenance, upon its formation.

1. The Site Plan, Recurring Floor Plan, Site Management System, Recurring Floor Management System, and Statute of the Owners' Association will form part of the property title deed.

1. A Unit Occupier shall be under an obligation towards other Unit Owners and Occupiers and the Owners' Association to comply with the provisions of the Statute of the Owners' Association to the extent their provisions apply to the Occupier or Owner.

1. Subject to the Statute of the Owners' Association, the Owner and Occupier of a Unit and their visitors shall use the Common Areas as permitted, and in such a way that does not prejudice the rights of others to use these areas, disturb them, or endanger their safety or the safety of the Joint Property.

1. The Owners' Association may not sell any of the Common Areas or properties or movables, or mortgage or burden the same with debt.

Article (28)

Owners and Occupiers

1. The Owner shall be under an obligation towards all Owners and the Owners' Association to comply with the provisions of the Site Management System or Floor Management System or Building Management System which apply to their Units, respectively.

1. A Unit Owner shall have an obligation towards other Unit Owners and Occupiers and to the Owners' Association to comply with the provisions of Site Management System, Recurring Floor Management System or Building Management to the extent of their applicability on the Owner.

1. A Volumetric Space Owner shall have an obligation towards other Volumetric Spaces Owners in the same building to comply with the provisions of the Building Management System applicable thereto.

1. A Volumetric Space Occupier shall have an obligation towards other Volumetric Space Owners and Occupiers in the same building to comply with the provisions of the Building Management System applicable thereto.

1. A Unit Owner or Occupier may not make any alterations or additions to the Unit without the written consent of the Owners' Association, and in the absence of any explicit clause authorising to do so in the Site Management System, Recurring Floor Management System or Building Management as the case may be.

1. A Unit Owner or Occupier may not use his Unit or Common Areas in a manner inconsistent with the way of use of other Units Owners and Occupiers of their Units or Common Areas.

Article (29)

Protection of Common Areas

1. The Owners' Association shall have an obligation towards the Main Developer or the Sub-Developer to comply with the provisions of the Main Development Plan or Subsidiary Development Plan applicable to Common Areas.

1. The sub-Developer shall have an obligation towards the Main Developer to take into account the Main Development Plan applicable to his land.

1. Any obligation imposed and enforceable under this Article shall be deemed a commitment to the person benefiting therefrom.

1. Subject to the provisions of the Site Management System or the Recurring Floor Management System or the Building Management System, a Unit Owner or Occupier may use the Unit and Common Areas and benefit therefrom without any interference from other Units Owners or Occupiers, or any other person using Common Areas legally.

Article (30)

Chapter 5 - Owners’ Association
Article 30 - Establishment of the Owners’ Association

1. Subject to the provisions of Article (64) of the Law and this Regulation, an Owners' Association may be established upon registration of the sale of the first Unit in the Real Estate Register before the concerned Municipality, after completion of the registration requirements.

1. The Owners' Association shall comprise the Units Owners, and the Main Developer or Sub-Developer in their capacity as Owners of unsold Units.

 

Article (31-44)

Article (31)

 Article 31 - Registration of the Owners’ Association

1. The Municipality shall accept the application for registration of the Owners' Association submitted by the Developer provided that it is accompanied by the following:
   a. The application form for registration.
   b. The address of the Owners' Association for the purposes of notification.
   c. A copy of the Recurring Floor Plan or Site Plan.
   d. A copy of the Recurring Floor Management System or Site Management System or Building Management System as the case may be.
   e. Information on the Real Estate Development Project as required by the Municipality.
   f. Payment of the prescribed fees.
   g. Any other documents or information requested by the Municipality.

1. The Municipality may allow the completion of all or part of the registration procedures through electronic services.

1. After the application for registration is completed, the Municipality shall register the Owners' Association by noting the same in the Real Estate Register.

1. Upon registration, the Owners' Association shall bear the name of the "Owners' Association and the name of the building or Site and the number allocated thereto by the Municipality".

Article (32)

Obligations of the Developer towards the Owners’ Association

1. The Developer shall have an obligation towards the Owners' Association until the first Annual General Meeting to comply with the following:
   a. Keeping and organising books and records required in accordance with the Statute of the Owners' Association.
   b. Allocation of a seal for the Owners' Association use.
   c. Obtaining of the required insurance documents on behalf of the Owners' Association in accordance with its Statute.
   d. Organisation of all documents to be handled in the first Annual General Meeting of the Owners' Association.
   e. Holding and organising the first Annual General Meeting of the Owners' Association in accordance with its Statute.
   f. Management of the Owners' Association and management, operation and repair of Common Areas.

1. The Owners' Association shall bear all expenses necessary for the implementation of the Developer's obligations provided for in this Article.

Article (33)

Management of the Owners’ Association

1. The management of the Owners' Association shall be carried out by a Board of Directors elected by Owners at the Owners' Association's First Annual General Meeting in accordance with its Statute.

1. The Owners' Association's Board of Directors shall appoint a Manager for the Owners' Association to be responsible for the daily management thereof in accordance with its Statute.

1. The remunerations of the Owners' Association's Manager shall be calculated on the basis adopted under the Owners' Association Manager Agreement, provided that they are not calculated on the basis of the Unit Volumetric Space.

1. In the absence of election of the Owners' Association's Board of Directors for any reason, the Owners holding 10% of the total Owners' Association shares or more, shall have the right to appoint an independent company to carry out the functions and powers of the Board of Directors for a period not exceeding one year against a fee approved by Owners present at the meeting.

1. In the case of failure of application of clause (2) of this Article, the Developer may, subject to the approval of the Department, appoint a Manager for the Owners' Association for a period not exceeding one year against a remuneration, provided that such appointment is presented at the Owners' Association's First General Assembly Meeting for approval.

1. The Board of Directors may delegate in writing any of his powers and competences to the Manager of the Owners' Association; as well, the Board may cancel such delegation at any time, and in spite of any authorisation granted to the Owners' Association's Manager under this Article, the Board may continue to exercise any powers vested in it under Law and previously delegated to the Manager.

1. When providing any public services by a person other than government agencies, the Owners' Association shall verify the following:
   (1) The identity of the public services provider.
   (2) Whether the person is connected to the Developer or not.
   (3) A reasonable estimate of the annual cost of the public services for the Real Estate Unit.

Article (34)

Obligations of the Owners’ Association’s Manager

Subject to the provision of Article (66) of the Law:

1. The relationship between the Owners' Association's Manager and the Owners' Association that appointed him shall be deemed as a relationship between the client and its agent and shall be based on trust and honesty.

1. The Manager of the Owners' Association shall, before carrying out his activity to this effect, obtain an appointment letter issued by the concerned Owners' Association according to the form approved by the Department.

1. An appointment letter shall state the competences and powers delegated to the Manager, and the tasks and functions entrusted to him; the Manager shall deposit the appointment letter to represent the Owners' Association before the Department to lodge it in the Real Estate Development Register.

1. The Owners' Association's Manager, when practicing his activity shall comply with the provisions of the Law and this Regulation and any regulations or decisions or instructions issued thereunder.

1. The Owners' Association's Manager shall, upon termination of its employment and without any delay, hand all the books and records of the Association and any other information saved electronically or otherwise, to the Owners' Association or its new Manager.

Article (35)

Electronic Management and Accounting System

1. Upon registration, the Owners' Association shall use an electronic management and accounting system to keep accounts and other legal records and shall use the electronic forms or documents prescribed under the Law and the implementing regulations issued thereunder or the Statute or any other instructions and decisions issued by the Department.

1. The electronic management and accounting system referred to shall be approved by the Department.

1. Upon registration, the Owners' Association shall provide the Department with the relevant data in the form, manner and period determined by the Department.

Article (36)

Failure to Maintain Common Areas

1. If the Department finds out that the Owners' Association failed to maintain the Common Areas in accordance with its Statutes or the management system, it may conduct or instruct to conduct an inspection thereon.

1. If the Department establishes, after inspection, that the Owners' Association has failed in the maintenance of the Common Areas in accordance with its Statutes or the management system, it may serve the Owners' Association a notice of maintenance.

1. The notice shall specify the work to be carried out by the Owners' Association and the maximum time limit for its completion.

1. If the Owners' Association refuses or fails to comply with the notice, the Department may do all or any of the following:
   a. Appoint a Manager to control the Owners' Association in accordance with clause (4) of Article (66) of the Law.
   b. Request the competent court to issue the appropriate decision regarding the Owners' Association.

Article (37)

Chapter 6 - The Owners’ Association’s Contracts and Agreements
Restrictions Relating to the Duration of Supply Agreements

1. The Owners' Association shall not to enter into any Supply Agreement or renew the same for a period exceeding three years, without the approval by the Municipality and in accordance with the instructions issued by the Department in this regard; and in all cases, a Supply Agreement's duration shall not to exceed twenty-five years.

1. The Manager of the Owners' Association may not be appointed for a period exceeding three consecutive years and if the Owners' Association appoints a Manager for a period beyond that, the appointed Director-General of the Owners' Association shall carry out his duties for three years only as of the date of his last appointment.

Article (38)

Contents of the Supply Agreements

1. Supply Agreements referred to in the preceding Article shall include:

• In the case of the supply of goods, a description of such goods and the price to be paid. The price shall be competitive with prices obtainable on the market for similar goods.
• In the case of supply of services, the following provisions shall be observed:
• A detailed statement of the services to be procured.
• Fees to be paid for such services. The fee must be competitive with fees obtainable on the open market for similar services.
• The means of monitoring and assessing the performance of the Service Provider.
• A clause to terminate the agreement for non-performance or other default.
• A clause allowing the Owners' Association, based on reasonable grounds, to vary the services or levels thereof whereupon adjustments of the fee will also take place.
• A clause preventing the Service Provider from seeking or accepting commissions or any secret incentives in respect of goods or services to be procured by other suppliers.
• In the case of the supply of goods and / or services, the following provisions shall be taken into account:
• The goods supplier or service provider shall be holder of a valid commercial license relating to goods and services to be supplied or rendered.
• In the event of subcontracting between the original supplier and sub-supplier for the supply of goods and / or services, the following provisions shall be considered.
  • The original supplier's commitment to obtain competitive supply sub-contracts in way that ensures the procurement of the best price and terms in favour of the Owners' Association, after the conduct of a tender for three bids minimum.
  • The Owners' Association shall have the right to review, approve or reject the terms of the supply sub-contracts.
  • The profit margin for the original supplier shall be reasonable and the duties of the original suppler and the market conditions shall be taken into consideration when contracting between the original supplier and the take into consideration.
  • The original supplier remains liable to the Owners' Association in the implementation of his duties and responsibilities in case of contracting with a sub-supplier.

1. In case of failure to observe the provisions of clause (1) of this Article in the Supply Agreement, the Owners' Association may refer to the competent court to request termination of the agreement and any condition or restriction to the contrary in the agreement shall be deemed null and void.

1. Notwithstanding the provisions of clause (2) of this Article, the parties to the supply agreements may agree on alternative means of dispute settlement.

1. A supply agreement shall be drafted in writing and certified by a decision of the General Assembly of the Owners' Association.

Article (39)

Termination of the Owners’ Association’s Manager Agreement

1. The Owners' Association may terminate the Manager Appointment Agreement during the control period that starts upon registration of the Owners' Association and ends when the total of Association's entitlements, except for those of the Developer, becomes two-thirds or more of the total entitlements.

1. The Manager Appointment Agreement shall be terminated by a decision issued by the Owners' Association's General Assembly to this effect and by serving a notice of said decision to the Manager of the Owners' Association.

1. Upon termination of the said agreement in accordance with this Article, the following shall be observed:
   a. No compensation shall be imposed on the Owners' Association.
   b. All financial entitlements shall be paid to the Manager of the Owners' Association by virtue of the Agreement until the date of termination.
   c. Any obligation binding the Manager and arising under the Agreement shall remain in force to the extent necessary for its implementation even after its expiry.

Article (40)

Chapter 7 - Management of Common Areas
 Management of Common Areas

1. The property of Common Areas shall devolve to the Owners' Association who shall be responsible for management, operation, repair and maintenance thereof. The Site Plan, Recurring Floor Plan, Site Management System, Floor Management System, Building Management System and the Statutes of the Owners' Association shall form part of the property title deed.

1. The Department may issue a decision to assign an agent acting on behalf of the Owners' Association regarding clause (1) above for special considerations at the discretion of the Department provided that the project area, the multiplicity and uses of buildings and the location of the project, without limitation, are taken into account.

1. The Department shall put the necessary instructions to implement its decision provided for in clause (2) of this Article.

Article (41)

Role of the Owners’ Association

1. The Owners' Association shall provide opinion and advice to the Agent acting on its behalf as the case may be, concerning the management, operation, maintenance and repair of Common Areas, according to the Main Site Regulation, and in this case, the Owners' Association shall do the following:
   a. Study and examine the problems and difficulties related to the management, operation, maintenance and repair of Common Areas and notify the Agent thereof.
   b. Notify the Agent acting on its behalf of any defects in the structural parts of the Joint Property.
   c. Coordinate with the Agent acting on its behalf in all matters relating to the safety, environment, security and other aspects of the Joint Property.
   d. Discuss the annual budget proposed by the Acting Agent to the Department only with respect to projects it runs.
   e. The Owners' Association shall elect a member among its members to represent it before the Acting Agent.

1. If the Agent fails to manage, operate, maintain, or repair Common Areas, the Owners' Association shall notify the Department thereof, and the Department shall have the right to apply the procedures provided for in Article (36) of this Regulation.

1. Except as provided for in this Article, the Owners' Association shall not intervene in any way in matters relating to the management, maintenance and operation and repair of Common Areas, and in particular the ballot, the vote or meetings held to discuss any of these matters.

Article (42)

Services Charges

1. Each Unit Owner shall pay to the Owners' Association his share of the annual service charges to cover the expenses of management, operation, maintenance, and repair of the Common Areas. Such share will be determined as per the Unit Volumetric Space‘s percentage of the Gross Area of the Joint Property. The Main Developer or Sub-Developer shall pay his share of the annual service fees in respect of unsold Units.

1. A Unit Owner may not waive his share in the Common Areas to avoid payment of his share of annual services fees.

1. The Owners' Association may not impose any service charge on the Owner for the management, operation, maintenance and repair of Common Areas prior to the approval of the Department. The Department may amend such charges from time to time.

Article (43)

Service Charges’ Deposit and Disposal thereof

1. The Owners' Association shall deposit the services charges collected from Owners to cover the expenses of management, operation, maintenance and repair of the Common Areas, in an account allocated for this purpose before a bank licensed in the Emirate.

1. Services charges referred to in clause (1) of this Article shall be allocated to cover the expenses of management, operation, maintenance and repair of Common Areas.

1. The Department may, when necessary, request the Owners' Association to access or to be provided with any information or an account statement of revenues and expenses related to services charges.

1. The Owners' Association or its Acting Agent shall have a lien on every Unit for unpaid service fees and other liabilities payable by the Unit Owner in accordance with the provisions of this Law. This lien will continue to be valid even if the title of the Unit is transferred to another person.

1. If a Unit Owner fails to pay his share of the annual service fees, the financial claim issued by the Owners' Association against the Owner shall be enforceable by the execution judge of any competent court, after the lapse of a period of three (3) months from notification to the Unit Owner thereof by registered mail with acknowledgment of receipt.

Article (44)

Modifications of the Structure or External Appearance of the Joint Property

1. A Unit Owner or Occupier may not make any alterations or modifications to the structure or external appearance of his Unit or any part of the Joint Property, except after obtaining the consent of the Owners' Association, and without prejudice to the existing construction legislation in force in the Emirate.

1. A Unit Owner or Occupier who breaches the provisions of clause (1) shall be liable to repair the damage resulting from the change or modification at his own expense and in the manner requested by the Acting Agent. If the Unit Owner or Occupier fails to meet this obligation, the Acting Agent shall repair the damage and recover the repair costs from the Owner or Occupier as the case may be.

1. A Unit Owner or Occupier and visitors shall use the Common Areas for the purpose set for them and in a way that does not affect the rights of others in the use of such parts or bother them or endanger their safety or the safety of the Joint Property.

 

Article (45-63)

Article (45)

Management of Common Areas

1. The Owners' Association shall comply with the Main Site Regulation and controls and requirements issued in this regard by the Department.

1. The Owners' Association may, subject to the approval of the Department, entrust some of the tasks prescribed under this Article to any person or company for a fee and under the terms of agreed upon, and shall adopt the fees resulting therefrom, if any, by the Department.

Article (46)

Chapter 8 - Finance and Fees
 Finance

1. The Developer shall be bound to all costs and expenses, including annual service charges, related to the building or the Site and arising prior to the registration of the Real Estate Unit in the name of the Owner before the Municipality, unless otherwise agreed in the contract between the Developer and the Purchaser of the Real Estate Unit, for contracts in force at the effective date of this Regulation.

1. Upon division of the building or compound under the Recurring Floor Plan or Site Plan and deposit thereof before the municipality and establishment of the Owners' Association, the Association shall be liable for all costs and expenses related to the plan and arising under the Law, the Statute of the Association or this Regulation.

1. The Developer may impose the Site fees after obtaining the approval of the Department, in accordance with the provisions of the Law and this Regulation, otherwise, the Site fees shall be considered illegal and ineffective, and the Developer may not impose or collect or recover them.

Article (47)

Annual Budget

1. The annual budget of the Owners' Association shall consist of service charges, which include estimates of income and expenditure accompanied by an allocation of goods and services, including management and maintenance costs, the necessary updates and any major basic equipment.

1. The annual budget may not include the following:
   a. Any fees related to the agreements that are contrary to the provisions of this Regulation.
   b. Any fees related to public services imposed in contravention of the provisions of this Regulation.
   c. Any fees directly or indirectly relating to the recovery of the costs of provision of any major basic equipment.
   d. Any fees directly or indirectly related to the recovery of the costs of any capital expenses finance.

1. The annual budget may include the contribution to the reserve bank account for the renewal and replacement of the main basic equipment in accordance with the Statute of the Owners' Association.

1. The annual budget shall be annexed with a detailed and complete list of goods and services provided by the Developer.

1. Each beneficiary shall be handed a full copy of the annual budget, and if said beneficiary has given his e-mail or fax number for this purpose, he shall be delivered an electronic copy.

Article (48)

Rejection of the Annual Budget

1. Any Owners' Association or thirty individual beneficiaries or more may reject the annual budget within thirty (30) days as of receipt of a copy thereof by a written notice addressed to the Developer. The notice shall include the detailed reasons for rejection.

1. The Developer shall meet with the beneficiaries signatories to the notice or their representatives for the purpose of finding a remedy to their rejection, within (14) days as of the his receipt of the rejection notice.

1. If a remedy for the rejection is not found in said meeting or any adjourned meeting, within (14) days as of the meeting date, the beneficiaries, signatories to the notice, or their representatives may request the Department to take a decision on the annual budget rejection issue.

1. The Department, in considering the request referred to in clause (3) of this Article, may ratify the annual budget as presented or request amendments thereto as it deems appropriate.

1. Services fees may be charged in the following cases:
   a. Failure to submit any request to the Department under clause (3) of this Article at the end of the fourteen day period referred to in clause (2) of this Article.
   b. Submission of a request to the Department under clause (4) of this Article, after issuance of a final decision on this request by the Department.

1. Annual service fees are payable in the form of monthly or quarterly instalments and the Developer may insist on their payment as a one fee annual.

1. The beneficiary shall pay the fees imposed on him in accordance with the provisions of this Regulation; and the Developer may collect them as a debt.

Article (49)

Goods and Services Supply Agreement

1. The Developer may not enter into agreements relating to the supply or use of goods or the provision of public services which costs would directly or indirectly affect the fees prescribed for services, or lead to the gain of special profits.

1. The Developer shall obtain the approval of the Department on any agreement of supply of goods or provision of services, mentioned in clause (1) of this Article.

1. Any fees paid to the Developer contrary to the provisions of this Regulation are deemed undue, and shall be returned to the person who paid them.

1. The Department shall set principles and rules of the supply of goods or services set forth in this Article.

Article (50)

Conditions and Restrictions of Public Service Charges

1. The imposition of public services charges and increase of their specified amount shall not be permissible after being approved by the Department.

1. The Department shall determine the principles and rules of calculation of public service charges.

1. Any public service fees imposed and collected in violation of the provisions of this Article shall be deemed null and void and their payer shall have the right to recover them.

1. The Agreement concluded between the provider of public services and the beneficiary therefrom shall not include the obligation to pay illegal public services fees, and shall comprise explanatory provisions concerning the following:
   a. The basis on which the public services are provided.
   b. The availability of the services that are rendered.
   c. The circumstances in which the supply may cease.
   d. A statement of the commissions or incentives offered to other parties and the identity of such parties.

Article (51)

Share of the Contribution Rate

Taking into account the provision of Article (15) of this Regulation and the Statute of the Owners' Association, a share of contribution ratio must be allocated to each Unit imposing upon its Owner, with regards to the Owners' Association, the following rights and obligations:
a. A common share in the assets of the Owners' Association without the Unit Owner acquiring any original rights in-kind in the land that is part of the Common Areas.
b. The right to vote in the General Assembly of the Owners' Association subject to the exceptions contained in this Regulation or the Statute of the Owners' Association.
c. Payment of his share of the service charges imposed by the Owners' Association.
d. His entitlements in the event of liquidation of the Owners' Association under the provisions of the Law and this Regulation.

Article (52)

Service Charges

The Developer shall prepare a mechanism for the calculation of service charges and obtain the approval of the Municipality thereon until the first Annual General Meeting; he shall as well deposit before the Municipality a detailed report to which shall be attached the budget describing the mechanism for the calculation of the services fees imposed on Owners.

Article (53)

Chapter 9 - Final and Transitional Provisions
Appointment of the Manager for the Control of the Owners’ Association

1. The Department shall appoint a Manager to monitor the Owners' Association for a specific period of time in any of the following cases:

• If the Owners' Association refuses or fails to abide by the following:
• Decision on the dispute issued by a special arbitrator or department.
• Order issued by a competent court, comprising the repayment of the debt.
• Correction notice issued in the event of failure to maintain the Common Areas in accordance with these Regulations.
• Failure to implement the Owners' Association's tasks imposed on by virtue of the Law or the Statute of the Owners' Association or this Regulation.

1. The Department may, at any time during the term of office of the Manager appointed to monitor the Owners' Association, extend or shorten the term of his appointment.

1. When appointing a Manager to monitor the Owners' Association, the following shall be taken into account:
   a. The Department shall delegate the powers and functions of the Board of Directors to the Manager for a specified period.
   b. The Manager shall comply with the written instructions of the Department, whether contained in the nomination document or issued on a later stage.

1. The Manager appointed to monitor the Owners' Association shall convene the General Assembly in a suitable time frame before the expiry date of his appointment, in order to elect a new Board that shall be responsible of the Owners' Association's management as of the date of expiry of this period.

1. At the end of term of appointment of the Owners' Association's Manager, the Owners' Association's control shall be delegated to the Board of Directors and the General Assembly.

Article (54)

Disclosure Statement for the Purchaser’s Protection

1. The Developer shall, prior to the Purchaser's signature of a contract to purchase a Real Estate Unit off-the plan, hand to the purchaser a written statement signed by the representative of the Developer and comprising the following information:
   a. Details of the building or the project, where the Unit constitutes a part thereof, including the following:
   o Land use in the building or project (such as apartments, services and retail stores).
   o Any features or equipment or services included in the building or project and contributing to the sustainable environmental development.
   o Measure of any sustainable environmental development applied to the building or project, including the specifics of Emirates Authority for Standardization and Metrology and the Environment Authority in the Emirate.
   o Any special use applied to the Unit (such as the serviced apartment).
   o Utilities on Common Areas that will be available for use by Units Owners and Occupiers as of right
   o Utilities within the building or project that will be available for the use of in the building or project for use by Units Owners and Occupiers on a commercial basis.
   o Clauses on furniture and furnishings (if any) for the proposed Common Areas and Unit that the Developer commits to provide without any additional charges.
   b. A copy of the Site Development Plan or sub-Development Plan that applies to the building or the project.
   c. A copy of the Recurring Floor Management System or Site Management System.
   d. A copy of the proposed Building Management System.
   e. The draft Recurring Floor or Site Plan, which clearly illustrates the Unit's areas required by the instructions to be shown in the plan for the purposes of registration.
   f. A table of materials and finishes for each proposed Common Areas and Real Estate Units.
   g. A copy of the draft Supply Agreement that will be signed by the proposed Owners' Association.
   h. A budget prepared on a reasonable basis with respect to the general bank account and reserve bank account for the first two fiscal years of operation of the proposed Owners' Association.
   i. An estimate based on the budget of the Services charges payable to the Owners' Association concerning the Real Estate Unit for both general and reserve bank accounts during the first two fiscal years.
   j. Agreements proposed for the supply of public services to the Owners' Association and the Real Estate Unit.
   k. In the case of the Owners' Association's sale by of any of public services to Unit Owners, such sale shall be mentioned in the specifics of the Supply Agreements.
   l. If the construction works are not yet initiated, an approximate date shall be scheduled for the commencement of work.
   m. A reasonably estimated date on which the property will be handed over to the Purchaser.
   n. A statement indicating the Purchaser's obligation to register the contract of the off-plan purchase of the Unit in the Interim Real Estate Register in accordance with the Law and this Regulation, including the statement explaining the consequences of non-registration.

1. The off plan Unit Purchaser, before the conclusion of a contract to resell his Unit, shall hand the new Purchaser a full copy of the statement delivered to him under clause (1) of this Article or the Interim Disclosure Statement in accordance with this Regulation.

1. In the case of the Developer's failure to provide the Statements required under clause (1) of this Article, the Purchaser of the Real Estate Unit may request to terminate the contract for breach thereof.

1. The provision mentioned in the previous clause shall be applied if the Purchaser of the Real Estate Unit off the plan does not submit upon resale thereof a copy of the required data according to clause (2) of this Article.

1. The Developer shall guarantee that the information in the Disclosure Statement submitted under clause (1) of this Article are correct and valid, and where the information is fundamentally incomplete or inaccurate, the Developer shall be liable, for a period of two years from the date where the Unit is transferred from the Developer to the Purchaser who suffered damage as a result of such transfer whether he purchased it directly from the Developer or from a previous Purchaser.

1. If the Real Estate Unit delivered to the Purchaser is a building or a part thereof, the Developer shall notify the Purchaser of the building's delivery date and the date of the work completion certificate issued by the Municipality.

1. The Purchaser may rely on the date of the building work completion certificate issued by the Municipality that have been submitted under clause (6) of this Article for the purposes of guarantees established in the Law.

Article (55)

Limitations of the Developer’s Financial Liability

1. Subject to the terms of the contract concluded between the Developer and the Purchaser in respect of any Real Estate Unit, the Developer shall bear all costs and expenses related to the property before the subdivision under the Recurring Floor Plan or Site Plan as of the date of entry into force of this Regulation.

1. When subdividing the property in the Recurring Floor Plan or Site Plan, the Owners' Association shall bear all costs and expenses related to the plans attributed thereto under the Law, the Statutes and this Regulation.

1. The Developer shall bear all costs relating to the correction of defects in accordance with the guarantees contained in the Law and ensure the non-transfer of such costs to the Owners' Association; in the case of violation of this Article, the Owners' Association may recover such costs from the Developer who may not impose on any Owners' Association or Real Estate Unit Purchaser the costs and expenses referred to in clause (1) this Article, except for any insurance premiums or any other expenses or deposits (including expenses paid to the Department upon registration of the Owners' Association) previously paid by the Developer and relating to the insurance coverage or goods or services to be provided or delivered after the establishment of the Owners' Association, subject to the following:
   a. If the amount paid or to be borne by the Owners' Association does not exceed the value of the insurance or deposit or other expenses if they were paid by the Owners' Association itself.
   b. If the amount paid or to be borne by the Unit Purchaser does not exceed the insurance premium ratio or other expenses or deposits that the Purchaser will pay, if paid by the Owners' Association from the funds of the services fees imposed in accordance with this Regulation and the Statute of the Owners' Association.

1. When the Developer collects from the Unit Purchaser any funds as expenses of management or maintenance of the building or the compound prior to the registration of the Recurring Floor Plan or Site Plan, he shall not collect such amounts for a period of more than three months prior to the date set for their disbursement.

1. When the Developer collects the amounts referred to in clause (4) of this Article, he shall within a period of three months from the date of the founding of the Owners' Association, do the following:

• Appoint an auditor to audit all received amounts that have been spent and where he testifies the following:
• That all amounts have been spent appropriately in accordance with the purpose for which they were collected (according to this Regulation and the Statutes of the Owners' Association), and if they were not disbursed in such form, he shall state the circumstances that caused failure thereof.
• That the balance agreed upon for unspent funds is in the possession of the Developer.
• Pay to the Owners' Association the balance agreed upon and relating to the remaining amounts.
• Pay to the Owners' Association all or part of any amounts not being spent appropriately if the Department ordered him so, according to the purposes for which they were collected in its favour.

1. The Department shall, before issuing the order by virtue of paragraph (c) of clause (5) of this Article, serve a notice to the Developer stating the specifics of the inappropriate agreement and the reasons why the Department has ordered the Developer to pay any amounts to the Owners' Association.

1. When the Developer collects the amounts referred to in clause (4) of this Article and spends the same for the purchase of goods and equipment, the Developer shall transfer Ownership thereof to the Owners' Association.

Article (56)

Notices

1. Any notice provided by the Law or this Regulation or the Statute to be served to the Owners' Association or from the Owners' Association to any other person, may be notified to the concerned person by a written document or electronic form to the adopted address or fax number or the e-mail address.

1. If the notice is served in a written document, it shall be sent by registered mail or handed over to the address adopted.

1. If a notice was faxed, the receipt of a transmission report confirming that it has been successfully sent shall be deemed a proof of receipt.

1. If the notice sent by e-mail the recipients shall be deemed a receiver once he read the receipt notice.

1. The necessary registers, where the date of notices' submission in addition to the fax transmission reports and notices of e-mails non-receipt are shown, shall be kept by the party concerned with the notification or by the Owners' Association, as the case may be.

Article (57)

Adjustment of Situations

1. The Main Developer or Sub-Developer shall register before the Department the Main or Subsidiary Development Plan, as the case may be, any Existing Real Estate Development Project before the effective date of the Law.

1. Developers shall register at the Department the Recurring Floor Plan or Site Plan of any Existing Real Estate Development Project before the effective date of the Law, which includes a Real Estate Unit or property jointly owned or used according to the following:
   a. Registration of a project that has been completed within a period of three months from the effective date of this Regulation.
   b. Registration of a project, which is still under construction at the end of the project and before the delivery of Real Estate Units.

1. For the purposes of implementation of clauses (1and 2) of this Article, the Developer shall submit a notification in the form adopted by the Department to the Unit Owner or Occupier requesting them to enable the accredited surveyor, to enter the unit in order to carry out the survey work, and in this case, the Owner or Occupier shall allow access to the Real Estate Unit in accordance with the instructions of the Department.

1. The Department may take action it considers appropriate for the implementation of the obligation imposed under clause (3) of this Article.

1. Any three Owners or more of Units in an existing project, may collectively, and during or after the three month period referred to in clause (2) of this Article, serve a notice to the Developer requesting him to deposit the Recurring Floor Plan or Site Plan to the Department and if the Developer refuses or fails to take the basic steps to deposit the plan within thirty (30) days from the date of the notice, the following provisions shall be applied:
   a. The Owners in person or their representatives shall deposit plans in addition to the existing project-related documents.
   b. The Owners or their representatives shall recover the costs and expenses they incurred during the preparation and filing of plans and related documents in addition to the costs of registration of the Owners' Association.
   c. The Owners' Association may recover the costs and expenses from the Developer.

1. In case the Developer has ceased his works, or in the event of his disqualification for any reason, the notice mentioned in clause (5) of this Article may be published in the concerned section of a daily newspaper issued in the Emirate.

1. The Department may refuse to register the Recurring Floor Plan or Site Plan and relevant documents that have been deposited by the Owners if it deems that the Developer did not refuse or fail to take basic steps to register the plans within thirty (30) days from the date of submission of relevant notification.

1. The provisions of this Article shall apply to the existing project, however the Disclosure Statement provisions prescribed under the present Regulation shall only apply on the existing project upon completion of its second phase.

Article (58)

Disclosure Requirements

1. within three months as of the effective date of the Regulation:

• The Developer shall, before the Purchaser's signature of a contract to purchase Real Estate Unit in the Existing Real Estate Development Project, attach to the contract a statement to the Purchaser in the form approved by the Department, comprising the requested Disclosure Statement.
• The Purchaser shall, before signing a contract to resell the Real Estate Unit he had bought in the Existing Real Estate Development Project, attach to the contract a statement to the new Purchaser in the form approved by the Department, comprising the requested Disclosure Statement.
• If the Developer fails to comply with paragraph (a) above, or the Purchaser fails to comply with paragraph (b) above, the injured party may terminate the contract.

1. During the subsequent six months following the three month period as of enforcement of the Regulations:

• The Developer shall, prior to the Purchaser's signature of a contract to purchase a Real Estate Unit in the Existing Real Estate Development Project, do the following:
• Attach to the contract a statement to the Purchaser in the form approved by the Department.
• Submit to the Purchaser a copy of the Interim Disclosure Statement in accordance with this Regulation.
• The Purchaser shall, before entering into a contract for the re-sale of Unit he had bought from the Developer or from another person, do the following:
• Attach to that contract a statement for the new Purchaser in the form approved by the Department.
• Hand the Purchaser a copy of the Interim Disclosure Statement he had received when he purchased the Real Estate Unit.

1. In the event of the failure of the Developer or the Purchaser in fulfilling the obligation imposed on them in clause (2) of this Article, the injured party may terminate the contract.

Article (59)

Requirements of the Interim Disclosure Statement

1. The Interim Disclosure Statement shall be signed by the Developer or his representative and shall include the following data:
   a. A description of the building or project, where the Real Estate Unit will be a part thereof, including:
   1- The land use in the building or project (apartments, services and retail stores).
   2- Any features or equipment or services included in the building or project and that contribute to sustainable environmental development.
   3- Any special use applied to the building (such as serviced apartments).
   4- Utilities on the Common Areas that will be available for use by Units Owners and Occupiers as of right
   5- Utilities within the building or project that will be available for the use of in the building or project for use by Units Owners and Occupiers on a commercial basis.
   6- Clauses on furniture and furnishings (if any) for the proposed Common Areas and Unit that the Developer commits to provide without any additional charges.
   b. A preliminary plan of the unit showing the Real Estate Unit areas required to be shown in the Recurring Floor Plan or the Site Plan under the instructions for registration purposes.
   c. A table of materials and finishes for each of the proposed Common Areas and Real Estate Units.
   d. Whether it is necessary to enter into any Supply Agreements proposed by the Owners' Association and to state such agreements.
   e. An estimate of paid services charges regarding the Real Estate Unit (if any) and statement thereof.
   f. Proposed agreements for the supply of public services to the Owners' Association and Real Estate Unit.
   g. When it is necessary to provide any public services by non-government agencies other than the Owners' Association, statement determining the services and methods of payment of such services fess shall be prepared.
   h. In the event the Owners' Association sells any public services to the Unit Owners, the specifics of the supply arrangements agreements shall be provided.
   i. Whether construction works are initiated or not, an estimate reasonable date shall be scheduled for the commencement of work
   j. A reasonable estimate date for the transfer of Ownership to the Purchaser.
   k. A statement indicating the Purchaser's obligation to register the contract in the Interim Real Estate Register in accordance with the Law, including a statement explaining the consequences of non-registration.

1. The Developer shall guarantee that the information in the Interim Disclosure Statement are correct and valid, and where the information are fundamentally incomplete or inaccurate, the Developer shall be liable, for a period of two years as of the date of transfer of the Unit from the Developer, for the damages the Purchaser had suffered whether the latter had purchased the Unit directly from the Developer or from a another Purchaser.

Article (60)

Powers of the Developer in Supply Agreements

1. A Developer who registers the Owners' Association may enter into a Supply Agreement on behalf of the Association being the Owners' Association's duly authorised agent, and such power shall only be applicable for a (30) day period as of the date of registration of the Association.

1. Regarding the Supply Agreement concluded in accordance with clause (1) of this Article, the following shall be taken into account:
   a. The Developer shall draft a minutes for the exercise of power entrusted to him in the minutes register of the Owners' Association.
   b. The Supply Agreement shall be binding to the Owners' Association.
   c. Disclosure of the Supply Agreement to the Units Owners on the first Annual General Meeting of the Owners' Association.
   d. Application of the provisions and procedures laid down in Article (38) of this Regulation as appropriate to the termination of the agreement concluded by the Developer during the control period.

Article (61)

Services Charges Due to the Developer

1. If a Unit Owner at the date of registration of the Owners' Association owes services charges to the Developer, the Developer may request the Department a certificate proving the service charges debt in relation with the amount due and the Department shall issue such a certificate if it is established that the amount or any other amount less than the amount agreed upon by the Developer has become outstanding.

1. Upon presentation of the certificate issued to the Owners' Association in accordance with clause (1) of this Article, the Owners' Association shall record the debt in its registers as an amount due to it by the concerned Unit Owner regarding the unpaid services fees, and upon registration of the debt, it shall become payable by the Unit Owner to the Owners' Association and shall be recovered in the same manner as other unpaid services fees, including attachment of the Real Estate Unit, pursuant to the Law.

1. If the Owners' Association has collected the debt registered in accordance with clause (2) of this Article, such amount shall be transferred to the Developer to whom the certificate was issued after deduction of any compensation or expenses recovered with respect to the debt.

1. For the purpose of this Article, services charges shall signify the fees imposed by the Developer on any Unit Owner or any Purchaser to cover the costs of management and maintenance of the building or site pending the registration of the Recurring Floor Plan or Site Plan with regards to that building or site.

1. For the purposes of application of clause (1) of this Article, the Department shall have the right to request any requirements or documents from the concerned parties.

Article (62)

The Department shall issue decisions, instructions and models necessary for the implementation of the provisions of this Decision.

Article (63)

This Decision shall be published in the Official Gazette and shall come into force as of the effective date of the provisions of the Law.

 

Article (1-3)

Article (1)

Definitions

In application of the provisions of these Regulations, the following terms and expressions shall have the meanings assigned hereto, unless the context otherwise requires.

Department: Department of Municipal Affairs.

Municipality: Abu Dhabi Municipality or Al Ain City Municipality or Western Region Municipality and any municipality that may be established in the future in the Emirate.

Law: Abu Dhabi Law No. 3/2015 on the Regulation of the Real Estate Sector in the Emirate of Abu Dhabi.

Disposition: Any deal that affects the existing rights on a real estate or results in new rights, including but not limited to the real estate sale, purchase; and mortgage, usufruct and long-term rent transactions; and deeds of assignment relating to any real estate disposition.

Off Plan Sale: Contract whereby the Purchaser is granted realty rights over a Real Estate Unit proposed on the strata or complex scheme.

Survey Requirements: Instructions issued by the Department under the Implementing Regulation on real estate common properties and owners associations in accordance with the Law.

Real Estate Register: Real Estate Register established according to the provisions of Abu Dhabi Law No. 3/2005 referred to.

Real Estate Development Register: Written or electronic register prepared to save all data and documents pertaining to real estate development projects.

Interim Real Estate Register: Written or electronic register prepared for the registration of all dispositions and provisions related to real estate units sold off plan.

Property: Various types of real estate, including land, buildings, facilities and real estate by destination including the Real Estate Unit.

Real Estate Development Project: Project of construction of multi-storey buildings or complexes for residential or commercial or mixed-use purposes, in addition to their facilities, or construction of infrastructure and services facilities in the event of sale of vacant lands.

Developer: Master developer or sub-developer.

Master Developer: A person licensed to practice real estate development, sales, management and rental activities in a part of the main complex by virtue of an agreement signed between him and the master developer or another sub-developer.

Real Estate Unit: Apartments, storeys and shops or any part of the house (Villa) connected to another house or independent therefrom or a vacant land within a common property, whether existing or proposed on the strata plan or the complex scheme and allocated for a commercial or residential or mixed-use purpose.

Owners Association: Owners association formed under the provisions of the Law for the management and operation of common properties including repair, maintenance and good use thereof.

Article (2)

Obligation of Registration in the Interim Real Estate Register

1. Subject to Article 28 of the Law, the Alienator shall, immediately after conclusion of any real estate Disposition, submit to the Department an application for registration thereof in the Interim Real Estate Register according to the electronic or paper form approved by the Department, in which the following data shall be stated:
   a. Date of the contract.
   b. Data related to the Alienator and the Alienee.
   c. Price or value specified in the Disposition Contract (in AED)
   d. Name and registration number of the Real Estate Development Project and any relevant major development.
   e. The date expected for the completion of the Real Estate Development Project.
   f. Details of the property subject of (Disposition), including details of the suggested parcel of land or storey in the building when necessary, and a scheme determining its location and surface area (m2) according to the current registered title deed.
   g. Any other data or details determined by the Department at any time.

1. Subject to Article 28 of the Law, if the Alienator of the contract, subject of the off plan disposition, does not submit the application mentioned in clause (1) of this Article, the Department shall inform him to provide it with a copy of the Disposition Contract and relevant information, and the Alienator of the Real Estate Unit shall implement the content of such notice and pay the fees prescribed for the registration of the contract in the Interim Real Estate Register in addition to the Disposition registration delay fines.

1. Subject to Article 28 of the Law, if the Alienator of the Real Estate Unit refuses or fails to register the Disposition in the Interim Real Estate Register within 21 days as of the date of its conclusion, the Alienee may submit the application for registration to the Department and shall have the right to recover the costs he incurred from the Alienator, and in the case of non-payment of such costs by the Alienator, the Alienee may deduct their amount from the purchase price specified in the contract.

1. In the event the Alienator of the Real Estate Unit submits an application for registration of the Real Estate Disposition after expiry of the period specified in clause (3) of this Article, the Department shall register such Disposition and impose a delay fine of (AED 10,000) ten thousand Emirati Dirham to be collected from the Real Estate Unit Alienator.

Article (3)

The Application for Registration Documents

1. The application for registration of the Off Plan Disposition Contract shall include the following:
   a. The receipt of payment of the prescribed fees.
   b. A signed copy of the Contract.
   c. The details of the Real Estate Unit Alienee and Alienator.

1. If the Alienee is a physical person, the following documents shall be attached to the application for registration of the Off Plan Disposition Contract:
   a. A copy of a valid passport.
   b. A residence visa for the Alienee resident in the state.
   c. A copy of the identity card of the Alienee resident in the state.
   d. An identification document accepted by the Department for the Alienee resident outside the state.
   e. The address of the current residence and phone numbers.
   f. The e-mail, which can be used by the Department for the purposes of notification.

1. If the Alienee is a juristic person, the following documents shall be attached to the application for registration of the Off Plan Disposition Contract:
   a. A copy of a valid commercial licence at the date of application.
   b. The Statute and the Articles of Association.
   c. The names and nationalities of the directors and shareholders of the Company.
   d. The e-mail, which can be used by the Department for the purposes of notification.
   e. A copy of the Board of Directors' decision, which includes the delegation of one of its members or the Director to represent the company, and a copy of the passport of the person authorized to sign for the company.

1. After completion of the Disposition registration, the Department shall notify the Alienee and Alienator of the registration and number of the registered contract and shall hand them a notice thereof in accordance with the form adopted by the Department.

 

Article (4-6)

Article (4)

Registration of Completed Real Estate Development Projects

1. In the event the Real Estate Development Project is completed and has been granted a certificate of completion from the concerned municipality, the Developer shall observe the following:
   a. Register the completion of the real estate development project in the Real Estate Register at the Department.
   b. Register and transfer the ownership of the real estate unit subject of disposition to the Real Estate Register on behalf of the Purchaser, who paid the purchase price.

1. The Developer shall submit the application for registration of the completed Real Estate Development Project to the Department in accordance with the approved form, accompanied by the receipt of the payment of the prescribed fees in addition to the following:
   a. Copies of the current certificates and title deeds of all land parcels comprising the Real Estate Development Project.
   b. Copies of approvals of authorities concerned with the Real Estate Development Project.
   c. Completion certificate from the concerned municipality and the approved project consultant confirming the completion of the Real Estate Development Project.
   d. A letter of no objection from the Master Developer if the project Developer is a sub-developer.
   e. A table showing the details related to each real estate unit or parcel of land in the project and stating the entry references in the Interim Real Estate Register, which include the following:

• The number of the Real Estate Unit or parcel of land.
• The surface of the Real Estate Unit or parcel of land measured in the manner required by the Survey Requirements.
• The number and surface of the parking or storage space or additional Real Estate Unit spaces that are part of or related to the real estate unit or parcel of land, when necessary.

1. The Department shall register the completion of the Real Estate Development Project and details of the Real Estate Units or parcels of land in the Real Estate Register.

Article (5)

Transfer to the Real Estate Register

1. If the Purchaser has fulfilled his contractual obligations and paid the full purchase price under the Agreement registered in the Interim Real Estate Register, the Developer shall within 21 days as of the payment of the purchase price, submit an application to the Department for the transfer of the ownership of the Real Estate Unit or parcel of land, subject of the agreement, to the Purchaser, as well as all real estate rights associated with the ownership right, if any.

1. The Developer shall submit, to the Department, the application for the transfer of the ownership of the Real Estate Unit to the Real Estate Register in accordance with the form adopted by the Department and accompanied by the following documents:
   a. The receipt of payment of the prescribed fees.
   b. A certificate confirming redemption of the mortgage on the property subject of disposition to which the transfer relates.
   c. Any new or alternative mortgage registered immediately after registration of the transfer.
   d. Any other documents or requirements established by the Department.

1. The Department shall register the transactions according to the following order:
   a. Redemption of the mortgage on the property subject of Disposition.
   b. The transfer of ownership; the ownership right may be transferred along with the mortgage in the absence of redemption thereof, subject to the consent of the mortgagee creditor.
   c. The new or alternative mortgage of the Off Plan Disposition.

1. The transfer of the ownership right and the new or alternative mortgage, if any, shall be registered and all Dispositions associated with the Real Estate Unit shall be transferred from the Interim Real Estate Register to the Real Estate Register as need may be.

Article (6)

Transfer of the Ownership Right by the Purchaser

1. If the Developer does not transfer the ownership of the real estate unit or the parcel of land in accordance with Article (5) of these Regulations, the Purchaser, under the Disposition, or the mortgagee creditor, may submit to the Department a request to enforce the transfer, and provide it with copies of the documents and information to prove his right in the transfer of the Disposition from the Interim Real Estate Register to the Real Estate Register.

1. The Department shall notify the Developer of the request referred to in clause (1) of this Article, and grant him (21) days as of the date of his notification to state the reasons that prevented him from transferring the Disposition of the Real Estate Unit or parcel of land to the Alienee.

1. The Department may, after considering any reports provided by the Developer, transfer the Disposition of the Real Estate Unit or parcel of land from the Interim Real Estate Register to the Real Estate Register on behalf of the Alienee, and the Developer shall bear the Disposition transfer costs unless otherwise agreed with the Purchaser.

1. If the Developer fails to respond to the notification within the period prescribed in clause (2) of this Article, the Department may proceed with the transfer of the Real Estate Unit or parcel of land disposition from the Interim Real Estate Register to the Real Estate Register on behalf of the Alienee without further notice to the Developer, at the expenses of the Developer.

1. The Department shall notify the Developer of its decision on the registration issued pursuant to clauses (3) and (4) of this Article.

1. The Developer may file a grievance before the Chairman of the Department against the decision referred to in clause (5) of this Article within two weeks as of the date of his notification thereof.

1. The Chairman of the Department shall decide on the grievance within thirty days from the date of its registration before the Department.

1. The concerned party shall have the right to appeal the decision mentioned in clause (7) of this Article before the competent court within sixty days as the date of his notification thereof.

 

Article (7-8)

Article (7)

Transfer of Ownership by the Department

1. If the Department finds out that the Developer did not comply with the provisions of Article (5) of these Regulations, it may, at its sole discretion and after conducting a research and investigation, transfer the Real Estate Unit or parcel of land disposition from the Interim Real Estate Register to the Real Estate Register on behalf of the Alienee under the Disposition Contract, and may recover any costs and expenses it incurred in the implementation of the Disposition transfer, including the prescribed fees from the Developer.

1. The Department shall exercise its powers by virtue of clause (1) of this Article after satisfaction of the following:
   a. Completion of Real Estate Development Project registration after its achievement.
   b. Registration of the relevant partition schemes (strata scheme and complex scheme).
   c. Registration of any Owners Association.
   d. The Alienee's fulfilment of all his contractual obligations established under the Disposition Agreement.

Article (8)

Disposition of the Registered Real Estate Units

1. Subject to the registration requirement provided for in Article 27 of the Law and the provisions of these Regulations, the Real Estate Units registered in the Interim Real Estate Register may be disposed of as well through sale or mortgage or any other dispositions.

1. The Department shall register all security mortgages imposed on real estate units registered in the Interim Real Estate Register in accordance with the procedures governing the security mortgages in general pursuant to the provisions of the Law and the Implementing Regulations on security mortgages.

1. Any security mortgage imposed on Real Estate Units registered in the Interim Real Estate Register shall not be deemed valid unless registered in the Interim Real Estate Register and such mortgage shall be binding on any of its parties or on third parties.

1. The Department shall issue the instructions and controls when necessary to regulate the registration of security mortgages related to Real Estate Units registered in the in Interim Real Estate Register.

 

Article (9-10)

Article (9)

Executive provisions

The Department shall issue its decisions, instructions, directives and models necessary to implement the provisions of these Regulations.

Article (10)

This Decision shall be published in the Official Gazette and shall take effect as of the date of entry in force of the provisions of the Law.

Article (1)

Without prejudice to the Table of fees annexed to the aforementioned Abu Dhabi Law No. 3/2005, the fees specified in the following Table shall be collected in return for the services provided by the Department and the concerned Municipalities according to the aforementioned Abu Dhabi Law No. 3/2015 and the Implementing Regulations issued by virtue thereof.

Table of Fees in Return for Services

	Service	Fee/in AED
1	Licensing/renewal of licence of the main developer including registration in the Real Estate Development Register.	50000
2	Licensing/renewal of licence of the sub-developer including registration in the Real Estate Development Register.	25000
3	Approving the (new) real estate development project and registering same in the Real Estate Development Register, including the registration and deposition of development and division plans and management systems (floors/compound/building) as the case may be.	150000 for each project
4	Approving and registering the (existing) real estate development project in the real estate development register, including the registration and deposition of the development and division plans as well as the management systems (floors/compound/building) as the case may be.	50000 for each project
5	Registering and accrediting the secretary at the department and entering the name thereof in the Real Estate Development Register.	75000 at once
6	Issuing a certificate of approval of the project's guarantee account.	5000 for each account
7	Registering the agreement of the project's guarantee account in the Real Estate Development Register.	1000 for each agreement
8	Licensing/renewal of licence of the broker (juridical person), including entering the name thereof in the Real Estate Development Register.	10000
9	Licensing/renewal of licence of the broker (natural person), including entering the name thereof in the Real Estate Development Register.	5000
10	Licensing/renewal of licence of the employee of the broker (natural person), including entering the name thereof in the Real Estate Development Register.	2500
11	Licensing/renewal of licence of the employee of the seller of the real estates at auction (juridical person), including entering the name thereof in the Real Estate Development Register.	10000
12	Licensing/renewal of licence of the employee of the seller of the real estates at auction (natural person), including entering the name thereof in the Real Estate Development Register.	5000
13	Licensing/renewal of licence of the director of the owners union (juridical person), including entering the name thereof in the Real Estate Development Register.	10000
14	Licensing/renewal of licence of the director of the owners union (natural person), including entering the name thereof in the Real Estate Development Register.	5000
15	Licensing/renewal of licence of the resident (juridical person), including entering the name thereof in the Real Estate Development Register.	10000
16	Licensing/renewal of licence of the director of the resident (natural person), including entering the name thereof in the Real Estate Development Register.	5000
17	Licensing/renewal of licence of the surveyor (juridical person), including entering the name thereof in the Real Estate Development Register.	10000
18	Licensing/renewal of licence of the director of the owners union (natural person), including entering the name thereof in the Real Estate Development Register.	5000
19	Issuing an authorisation for announcement of marketing of real estate development projects through the local or foreign media to promote the off- plan sale of real estate units.	1000 for each advertising campaign for a period of one month or less
20	Licensing a platform for the marketing of a real estate development project for the promotion of off plan sale of real estate units.	1000 for each month
21	Authorising participation in a local real estate development exhibition in the State for the promotion of off-plan sale of real estate units.	1000 for each participation
22	Authorising participation in a foreign real estate development exhibition inside or outside the State for the promotion of off-plan sale of real estate units.	2000 for each participation
23	Licensing the establishment of a real estate project launching event for the promotion of off-plan sale of real estate units.	5000 for each event
24	Registering the real estate brokerage contract concluded between the broker and the principal in the Real Estate Development Register (including the contract or sub-contract of agency).	500 for each contract
25	Registering the real estate brokerage contract concluded between the developer and the real estate broker for the promotion of the real estate development project in the Real Estate Development Register.	1000 for each contract
26	Registering the mortgage on real estate in the Initial Real Estate Register or the Real Estate Register.	One in a thousand of the mortgage's value up to a maximum amount of AED 2 million for each transaction
27	Registering the application for transfer of rights of the mortgage bond in the Initial Real Estate Register or the Real Estate Register.	200
28	Registering the bond of assignment of the mortgage rank in the Initial Real Estate Register or the Real Estate Register.	200
29	Registering the mortgage redemption bond in the Initial Real Estate Register or the Real Estate Register.	1000
30	Registering the mortgage bond related to the musataha agreement.	One in a thousand of the mortgage's value up to a maximum amount of AED 2 million for each transaction
31	Registering the mortgage bond related to the usufruct contract.	One in a thousand of the mortgage's value up to a maximum amount of AED 2 million for each transaction
32	Registering the redemption mortgage related to the long-term lease contract.	One in a thousand of the mortgage's value up to a maximum amount of AED 2 million for each transaction
33	Registering the bond of clear off of mortgage on real estate or the mortgages related to (musataha, usufruct and long term lease).	200
34	Registering the off-plan dispositions made with respect to the real estate units in the Initial Real Estate Register.	- In case of sale, 2% of the value of the real estate equally between the seller and the buyer up to a maximum amount of AED 2 million for each transaction. - In case of donation: AED 2000 if the donation is among the ascendants, descendants, spouses and juridical persons that are fully owned thereby. Otherwise, the donation shall be treated as sale with respect to fees. - In case of bequest: AED 2000
35	Registering and transferring the off-plan dispositions made to the real estate units from the Initial Real Estate Register to the Real Estate Register.	- (1000) - in case of donation (200) - In case of bequest (100)
36	Registering the owners union in the Real Estate Register.	1000 for each owners union
37	Issuing a certificate of claim of the funds deposited in the Project's guarantee account.	500 for each certificate
38	Correction request issued according to the provisions of the Implementing Regulation concerning the Project's guarantee account.	500 for each correction request

 

Article (2)

 

The present Decision shall be published in the Official Gazette and shall come into force from the date of entry into force of the aforementioned Abu Dhabi Law No. 3/2015.

Decision No. (248) of 2015 Issuing the Executive Regulations on Registering Real Estate Valuers Pursuant to Law No. (3) of 2015 concerning Regulating Real Estate Sector in the Emirate of Abu Dhabi

Article (1-3)

Article (1)

Definitions

In application of the provisions of the present Regulation, the following terms and expressions shall have the meanings assigned thereto unless the context requires otherwise:

Emirate: Emirate of Abu Dhabi.

Department: Department of Municipal Affairs.

Municipality: Municipality of Abu Dhabi City, Al Ain City Municipality, Western Area Municipality and any Municipality that would be established in the Emirate in the future.

Law: Law no. (3) of 2015 concerning the regulation of the Real Estate Sector in the Emirate of Abu Dhabi.

Licensees: Persons who work in the real estate sector and who are licensed by the Department. Those persons are: the developer, the broker, the broker's employee, the auctioneer, the owners' association manager, the appraiser and the surveyor.

Licence: Authorisation issued by the Department to permit the licensees to exercise their activities in accordance with the provisions of the Law and the Implementing Regulation.

Person: Natural or juridical person.

Director General: Director General of the concerned municipality.

Office: Real Estate Registration Office at the Municipality.

Director of the Office: Director of the Real Estate Registration Office.

Real Estate Appraiser: Person who takes charge, in return for remuneration, of appraising and estimating the value of a real estate or any other property rights on said real estate and giving opinion thereon.

Real Estate Appraisal: Specialised activity exercised by the Real Estate Appraiser to set a value for the real estate on a specified date through a written report.

Real Estate Development Register: Paper or electronic Register for keeping all data and documents related to the real estate development projects.

Real Estate Appraisal Standard: Real estate valuation standards that are approved by the Department, constitute technical reference for the real estate appraisers/valuators, which are intended for helping the real estate appraiser provide trusted appraisals and full reports containing the necessary data and requirements that are based on scientific principles, to reach the highest degree of accuracy and transparency of real estate appraisal in the Emirate.

Article (2)

Real Estate Appraisers Register

1. A special register, annexed to the Real Estate Development Register, called Real Estate Appraisers Register shall be established for the registration of the persons licensed to exercise the real estate appraiser profession in the Emirate. Every change or modification that occurs to the data related to said persons and all information including disciplinary penalties imposed on them shall be written down in said Register.

1. Whoever obtains the required licence, registers his name in the Register mentioned in Clause (1) of the present Article and obtains the practitioner card for the real estate profession from the Municipality shall be considered a Real Estate Appraiser.

1. No one may practice the real estate profession in the Emirate or present a report to this effect to any private or public authority, unless they are licensed and registered in the Register mentioned in Clause (1) of the present Article.

Article (3)

Duties and Powers of the Real Estate Registration Office

In addition to the administration duties and powers, the Office shall have the following duties and powers:

1. Setting the principles required for the regulation of work of the real estate appraisers and the control of their abidance by the provisions of the present Regulation.

1. Proposing the conditions of licensing Real Estate Appraisal Committees and submitting them to the Department. The Office may propose amending said conditions in the future as required.

1. Registering the real estate appraisers in the concerned register and issuing the practitioner card.

1. Issuing a bulletin containing the names of its accredited real estate appraisers.

1. Examining the complaints submitted to the Office against the real estate appraisers and taking the appropriate decision on said complaints.

1. Supervising the training programs and the tests required for raising the efficiency of real estate appraisers.

1. Proposing the amendments required for the real estate legislations related to real estate appraisal and submitting them to the director general to take decisions thereon as he deems appropriate.

1. Proposing the real estate evaluation standards and the modifications to be made thereto according to the requirements of the real estate sector in the Emirate.

1. Setting special system for keeping the registers required for the Office's work.

1. Setting the code of conduct of the real estate appraisal profession and proposing the required amendments to be made thereto.

 

Article (4-7)

Article (4)

Card and Registration Number of the Real Estate Appraiser

1. Under the provisions of the present Regulation, the Office shall issue the real estate appraiser card which authorizes its holder to practice the real estate appraisal profession.

1. The real estate appraiser card contains the appraiser's name and the authority to which he reports in addition to the appraiser's registration number in the Real Estate Appraisers Register. The appraiser shall have his name associated with his registration number in all the correspondences and reports issued thereby.

Article (5)

Renewal of licences and Registration in the Register

Without prejudice to the licensing conditions, the renewal of licence, registration of the real estate appraiser and the re-registration thereof in the concerned register require the following:

1. The real estate appraiser shall provide a certificate proving that he has attended training sessions, in case such certificated is requested by the Department.

1. The real estate appraiser shall not have been subject to any of the disciplinary penalties specified in Article (10) of the present Regulation.

Article (6)

Real Estate Appraisal Training

1. The application for attending Real Estate Appraisal Training, for the purposes of licensing and registration in the Register in order to practice the real estate appraisal profession, shall be submitted to the Office upon the fulfilment of the following conditions:
   a. The required documents mentioned in the prescribed registration instructions shall be attached.
   b. A no objection certificate shall be provided by a licensed and registered real estate appraiser to indicate that the latter approves that the applicant receives the training.

1. The real estate appraiser who in is charge of training the new appraisers shall submit to Office each 3 months, to show the extent of perseverance and assiduity of the trainee.

1. The real estate appraiser who is in charge of training the appraisers shall bear all the responsibility for the reports prepared by said appraisers and shall sign them formally.

Article (7)

Duties of the Real Estate Appraiser

1. If the real estate appraiser develops a health condition that prevents him from performing his duties based on a report issued by a competent medical authority, he shall notify the Office of the matter.

1. The real estate appraiser shall perform real estate appraisal works only on behalf of the authority for which he works or by which he is assigned.

1. Before commencing real estate appraisal works, the real estate appraiser shall receive from the party requesting appraisal a written assignment request showing the task entrusted to him and the purpose sought from the real estate appraisal.

1. The real estate appraiser shall abstain from performing any real estate appraisal task if he finds out that such task requires special expertise or knowledge that are not met by him to perform it efficiently.

1. After receiving all data and information needed thereby, the real estate appraiser shall perform the task entrusted to him with high professional efficiency.

1. The real estate appraiser shall fulfil the requirements of the real estate appraisal standards, the code of conduct, code of professional ethics as well as the technical and administrative instructions related to the profession issued by the Department.

1. The real estate appraiser shall comply with the international scientific methods set forth in the real estate valuation policy applicable in the Emirate to determine the value of the real estate.

1. The real estate appraisal tasks and duties shall be based on a written contract wherein the names of the contracting parties and the description of the real estate to be appraised shall be specified.

 

Article (8-15)

Article (8)

Mechanism of Action of the Real Estate Appraiser

1. When the real estate appraiser has recourse to external services to carry out his task, he shall make sure that the parties who are assisting him have the required skills and he shall obtain the approval of the employer to this effect and mention any party who has assisted him upon drafting the final assessment report.

1. The real estate appraiser shall prepare a paper and electronic work file for each real estate appraisal task carried out thereby and upon completion of said task the file shall contain valid copies in addition to all written reports, correspondences and memorandums for the purposes of the required real estate appraisal.

1. The real estate appraiser shall keep the records of the reports and files related to the real estates appraised thereby during the last five years.

1. Should the work of the real estate appraiser require entering to the real estate subject-matter of appraisal, he shall give prior notice to the owner of the real estate, his agent or its occupant. For that purpose, he shall have the right to enter the real estate within the working hours with any of his assistants.

Article (9)

Preparing Reports and Registers

1. The real estate appraiser shall undertake to draw up the requested report according to the form adopted by the Department and the Office in this regard and in a timely manner, taking into account the form, basic requirements and data concerning the real estate and the right related thereto, which shall be contained in said report, and shall deliver same to the concerned party with a soft copy thereof to be submitted to the Department.

1. The Chairman of the Department or any delegate thereof my commission any employee of the Department or the Municipality to inspect the records mentioned in Article (8) of the present Regulation to verify that the real estate appraiser has abided by the provisions and instructions issued by virtue of the present Regulation.

1. Every real estate appraiser who is licensed and registered in the concerned register shall be granted the competences required for the use of his electronic transactions register in case it is set by the Office for the purpose of identification of characteristics of each real estate appraiser operation carried out thereby.

Article (10)

Cancelation or Suspension of the Licence

1. Without prejudice to Article 79 of the Law, the Department may cancel or suspend the licence of the real estate appraiser in the following cases:
   a. In case of insolvency or bankruptcy of the real estate appraiser.
   b. If he is convicted for an offence involving moral turpitude or dishonesty or if his conduct and reputation become bad.
   c. If he no more fulfils any of the conditions set forth in the provisions of the Law and its Implementing Regulation and any regulations, decisions or instructions issued by virtue thereof.
   d. If he commits any acts, practices or violations that makes him a person who is unfit to continue to act as a licensee in the field of real estate appraisal, or if becomes no more able to efficiently perform his duties.
   e. If he violates any provision of the Law and its Implementing Regulation and the decisions issued in implementation of said Law or if he violates any code of ethics that applies to him.

1. Before cancelling or suspending the licence, the Department shall send a written notice to the real estate appraiser containing the reasons behind such procedure.

1. Subject to Clause (2) of the present Article, the real estate appraiser may reply to the abovementioned notice within 21 days.

1. Should the Department decide to cancel or suspend the licence, it shall take into consideration the reasons (if any) stated by the concerned party in the reply to the notice.

1. Instead of cancelling or suspending the licence, the Department may send a warning taking into account the professional register of the real estate appraiser.

1. The Department shall register the information related to the violations committed by the real estate appraiser and the disciplinary penalties in the Real Estate Development Register.

1. The real estate appraiser who is affected by the Department's decision of cancellation or suspension of the licence or the warning sent to him may challenge the Department's decision before the competent court within 60 days from the date of issuance of the Department's decision.

Article (11)

Notification with Respect to the Decisions Concerning the Real Estate Appraisers

1. The Department shall notify the concerned parties including banks, financial institutions, the Ministry of Justice, the Judicial Department and other authorities concerned with the decisions issued with respect to real estate appraisers, including the disciplinary penalties issued against the real estate appraiser.

1. The Department or the Office shall notify the official authorities such as the Ministry of Interior, the Ministry of Labour, the Department of Economic Development, the Judicial Department/and the Expert's Department in case any person is caught while practicing the real estate appraiser profession without being licensed and registered in the concerned register, to take appropriate measures against such person.

Article (12)

Real Estate Appraisal Standards

1. Based on the recommendation of the Office, the Department shall issue the instructions regulating the real estate appraisal standards, which are considered as the professional reference for all the real estate appraisers/valuators in the Emirate.

1. The real estate appraisal standards shall contain the rules and provisions to be observed by all the real estate appraisers /valuators to act based on scientific principles in order to reach the highest level of accuracy and transparency in the practice of their work, which leads to the promotion of the real estate market standing in the Emirate.

1. The real estate appraisal/valuation standards shall contribute positively to the fulfilment of the following:
   a. Creating a trusted database for the prices of real estates that are considered as a historical documentation that may be referred to when needed for the purpose of finding information concerning a specific area.
   b. Giving a true description of the prices of real estates in the Emirate to allow the real estate appraiser/valuator to gain a useful experience on the real estate market through knowing the true values of the real estates.
   c. Applying an international real estate appraiser system that goes in line with the modern and agreed-upon standards according to the international practices, based on the International Valuation Standards Counsel (IVSC).
   d. Promoting trust of the real estate appraisers/valuators which leads to avoiding random valuation, in a manner ensuring transparency in dealing with the market partners and guaranteeing their rights.

Article (13)

Rectification of Situations

Without prejudice to Article (84) of the Law, the persons who practice real estate appraisal activity in the Emirate shall rectify their situations according to the provisions of the present Regulation.

Article (14)

The Department shall issue the decisions, instructions, directives and forms required for the execution of the provision of the present Regulation.

Article (15)

The present Decision shall be published in the Official Gazette and shall come into force from the date of enforcement of the provisions of the Law.

 

Article (1-3)

 

Article (1)

Definitions

In application of the provisions of the present Regulation, the following terms and expressions shall have the meanings assigned thereto unless the context requires otherwise:

Department: Department of Municipal Affairs.

Municipality: Municipality of Abu Dhabi City, Al Ain City Municipality, Western Area Municipality and any Municipality that would be established in the Emirate in the future.

Law: Abu Dhabi Law No. 3/2015 concerning the regulation of the Real Estate Sector in the Emirate of Abu Dhabi;

Initial Real Estate Register: Paper or electronic register prepared for the registration of all acts and provisions related to real estate units that are sold off-plan.

Registrar: Director of the Real Estate Registration Department at the Municipality and any employee delegated for the Real Estate Register or the Initial Real Estate Register.

Mortgage on Real Estate: Contract by virtue of which the debtor acquires, on the mortgaged property designated for the settlement of his debt, an in-kind right or contract benefit by virtue of which he may surpass the ordinary debtors and those following him in ranking.

Mortgagor: debtor holding the property right or contractual right, including the in-kind surety, who is a mortgage debtor.

Mortgagee: Debtor having fulfilled the conditions set forth in Article (32) of the Law, who lends the mortgagor, and the loan is secured to him by mortgage on real estate.

Mortgaged property: Real estate, property right or contractual right associated to a property right that is mortgaged in favour of the mortgagee.

Mortgage Bond: Bond issued by the Department by virtue of Article (3) of the present Regulation.

Preference Bond: Bond, among an number of mortgagee creditors who hold the mortgage right for the same real estate, by virtue of which one or more mortgagees accept to give priority to another mortgagee over them.

Article (2)

Registration of mortgage and documents to be offered

1. The mortgage on real estate shall be registered in the Initial Real Estate Register or the Real Estate Register as the case may be, according to the form prepared for that purpose by the Department.

1. The application for registration of a mortgage on real estate shall be submitted to the Registrar after being signed by the mortgagor (creditor or in-kind surety), the mortgagee or the in-kind surety.

1. The applicant for registration of a mortgage on real estate shall attach the following documents:
   a. Three copies of the real estate mortgage contract that shall be drafted according to the form adopted by the Department.
   b. If the mortgagee creditor is a bank, a company or a finance institution, the application shall be submitted along with an evidence proving that the mortgagee creditor is licensed and duly registered at the Central Bank of the United Arab Emirates according to the provisions of Article (32) of the Law.
   c. The original title deed or the initial registration certificate of the mortgaged property in addition to an evidence proving the registration of said property in the Real Estate Register.
   d. A no objection notification by the mortgagee creditor should there be any existing mortgage, according to the form adopted for that purpose by the Department.
   e. Receipt of payment of the fees prescribed for the submission and registration of the application.
   f. Any other document or information requested by the Department.

1. If the mortgager is a natural person in the State, he/shall submit the following documents in addition to what was specified in Clause (3) above:
   a. Copy of the ID or of a valid passport and a resident visa for non-resident foreigners as the case may be.
   b. Current address as well as the land and telephone line numbers.
   c. E-mail for the purpose of sending other notifications and correspondences by the Department.

1. If the mortgager is a juridical person, the latter shall submit the following documents in addition to what was specified in
   Clause (3) above:
   a. Copy of a commercial licence that is valid at the time submission of the application (if it is a company registered in the State).
   b. Copy of the registration certificate that is valid at the time of submission of the application (if it is a non-resident company /registered in the State).
   c. Articles of Incorporation and Statute of the Company.
   d. Names of the directors and shareholders of the Company and the nationality of each of them.
   e. Email for the purpose of sending notices and other correspondences by the Department.

1. All the documents required to be attached to the application for registration of the real estate on mortgage shall be endorsed, approved and translated into Arabic as specified by the Department in case of a foreign company.

1. Each of the contracting parties or their legal representatives shall appear to sign the contract before the Registrar. If any of the owners is a minor, an approval of the mortgage shall be submitted by the competent court.

Article (3)

Real Estate Mortgage Bond

1. After its registration, the real estate mortgage contract drafted according to the form adopted by the Department shall be deemed as a writ of execution of the mortgage, according to the provisions of Article 57 of the Law.

1. A copy of the mortgage bond shall be delivered to each of the mortgager and the mortgagee and it shall be signed and sealed by the Registrar, on the sooner date following the registration of the mortgage.

1. The real estate mortgage bond may be electronic and have the binding force of a legal instrument in matters of proof.

 

Article (4-6)

 

Article (4)

Transfer of Real Estate Mortgage Rights

1. A mortgager who wishes to dispose of the mortgaged property either by sale, donation or other dispositions, or give rise to any in-kind or personal right as a result thereof, shall obtain the approval of the mortgagee unless otherwise agreed according to the provisions of Article 38 of the Law.

1. The mortgager shall conclude a deed of transfer of real estate mortgage rights with the mortgagee and the transferee and shall expeditiously deposit the aforementioned deed at the Department.

1. The application for transfer of real estate mortgage rights shall be submitted according to the form adopted for that purpose by the Department. The application shall be submitted along with four copies of the transfer documents, an original copy of the real estate mortgage bond that shall be signed and sealed, in addition to all the documents mentioned in Article (2) of the present Regulation as the case may be.

Article (5)

Sealing and Signing the Transfer Document and Transferring the Mortgage

1. After its registration, the application for transfer of mortgage on real estate, that is drafted according to the form adopted by the Department, shall be deemed as writ of execution of the mortgage according to the provisions of Article 57 of the Law.

1. A copy of the deed of transfer of the real estate mortgage shall be delivered to each of the mortgager, the mortgagee and the transferee after being signed and sealed by the Registrar, on the sooner date following the registration of the mortgage.

1. The deed of transfer of the real estate mortgage shall may be electronic based on the decision of the Department, and it shall have the binding force of a legal instrument in matters of proof.

Article (6)

Assignment of Real Estate Mortgage Rank

Without prejudice to the provisions of Clause (2) of Article (43) of the Law, the mortgagee creditor who wishes to assign the real estate mortgage rank thereof to another mortgagee who holds a security right for the same real estate, may conclude a preference bond with that mortgagee and other mortgagee whose rank would be affected. The first mortgagee shall submit an application to the Registrar, with the following attached thereto:

1. Mortgage deferral document (number of copies equal to the number of parties), according to the form adopted by the Department.

1. Preference Bond (number of copies equal to the number of parties), according to the form adopted by the Department.

1. Original copy of the real estate mortgage documents that are signed and sealed for each of the debts that are affected by the reduction of ranking.

1. A no objection notification according to the form adopted by the Department by the mortgagee creditor having the highest ranking for any mortgages in the preference bond in case there were any existing mortgage, whereby the mortgagee creditor accepts the reduction of rank of his mortgage.

1. An evidence proving the payment of the prescribed fees.

1. Any other document or information requested by the Department.

 

Article (7-9)

 

Article (7)

Payment of a mortgage debt

1. If the debt secured by the real estate mortgage is paid, the mortgager or the mortgagee may jointly or severally submit an application to the Registrar according to the form adopted by the Department for redeeming the mortgage, along with the following documents:
   a. A notification of no objection to the redemption of the real estate mortgage by the mortgagee creditor, according to the form adopted by the Department.
   b. Proof of payment of the debt secured by the real estate mortgage.
   c. Proof of payment of the prescribed fees.
   d. Any other document or information requested by the Department.

1. The application for redemption of the real estate mortgage, that is drafted according to the adopted form and that is mentioned in Clause (1) of the present Article, shall be deemed a legal instrument for the redemption of the mortgage.

1. A copy of the deed of redemption bond shall be delivered to each of the mortgager and the mortgagee after being signed and sealed by the Registrar.

Article (8)

Write off from the Real Estate Register and the Title Deed

Upon registering the redemption of the real estate mortgage, the Department shall remove the mortgage lien from the Initial Real Estate Register or the Real Estate Register as the case may be. The mortgage lien shall be written off form the title deed of the mortgaged property or a part thereof that relates to the mortgage.

Article (9)

Mortgages Related to Musataha/Usufruct/Long - term lease

1. Subject to Articles (49,50 and 52) of the Law, the holder of the usufruct right or musataha right for a period exceeding 10 years or the right of long-term lease, or the purchaser of the property right, may deposit his right as real estate mortgage according to the conditions and terms prescribed by law.

1. Subject to Article (51) of the Law and upon the extinguishment of the secured debt or the termination of the agreement on the right of musataha, usufruct, or long-term lease on which a real estate mortgage is registered, the Registrar shall remove the records of the mortgage lien from the Initial Real Estate Register or the Real Estate Register, as the case may be. The mortgage lien shall be written off from the title deed of the mortgaged property.

1. The terms and conditions prescribed in Article (7) of the Regulation shall be applicable during the examination of the application for write off of the real estate mortgage lien in case of extinguishment of the mortgage or of the rights related thereto.

 

Article (10-13)

 

Article (10)

Before the commencement of the procedures of execution on the mortgaged property and before the submission of an application to the magistrate of summary justice for the seizure of the mortgaged property and its sale at auction, the mortgagee shall send a written warning to the mortgager and the surety (if any) according to the form adopted by the Department by registered mail with acknowledgement of receipt whereby he notifies him of the default and requires him to pay the debt and other dues within a period of no less than 30 days from the warning's date.

Article (11)

Right of the Real Estate Registration Department to Request Documents and Information

1. Should the Real Estate Registration Department at the Municipality find that any attachments to the application for registration of any document under the provisions of the present Regulation, including any documents or information to be attached to the application, are incomplete, it may ask the applicant to complete them.

1. The Real Estate Registration Department at the Municipality may set a time limit for the correction and completion of the attachments to the application mentioned in Clause (1) of the present Article. Should the applicant fail to comply with the Department's request within the time limit set, it may reject the application for the registration of the Document.

1. Should the Real Estate Registration Department at the Municipality issue a correction order with respect to the application for registration of any document under the provisions of the present Regulation, it shall collect the prescribed fees.

Article (12)

The Department shall issue the required decisions, instructions, directives and forms required for the application of provisions of the present Regulation.

Article (13)

The present Decision shall be published in the Official Gazette and shall come into force as of the effective date of the provisions hereof.

 

Article (1-5)

 

Article (1)

Definitions

In application of the provisions of the present Regulation, the following terms and expressions shall have the meanings assigned thereto unless the context requires otherwise:

Emirate: Emirate of Abu Dhabi.

Department: Department of Municipal Affairs.

Municipality: Municipality of Abu Dhabi City, Al Ain City Municipality, Western Area Municipality and any Municipality that would be established in the Emirate in the future.

Law: Abu Dhabi Law No. 3/2015 concerning the regulation of the Real Estate Sector in the Emirate of Abu Dhabi.

Competent Authority: Government authority having competence, according to the provisions of the Law, to approve the establishment and development of real estate development projects.

Real Estate Development Project: Project of construction of multi-story buildings or compounds for residential or commercial purposes or for both purposes and their outbuildings or the construction of infrastructures and service facilities in case of sale of vacant lands.

Licensees: Persons who work in the real estate sector and who are licensed by the Department. Those persons are: the developer, the broker, the broker's employee, the auctioneer, the owners' association manager, the appraiser and the surveyor.

Developer: Main Developer or sub-developer.

Main Developer: Person licensed to practice the activities of development, sale, management and lease of real estates as main developer of the real estate development project^[1 p.10].

Sub-Developer: Person licensed to practice the activities of development, sale, management and lease of real estates in a part of a main compound by virtue of an agreement between him and the main developer or another sub-developer.

Escrow Account of the Project: Bank account of the real estate development project, wherein shall be deposited the amounts paid by the purchasers for the real estate units sold off plan or the payments of loan instalments paid by the financers for the purpose of financing the real estate development project.

Custodian: Bank or financial institution accredited by the Department to manage the escrow account of the project according to the provisions of the Law.

Real Estate Register: Real estate register established according to the provisions of the aforementioned Abu Dhabi Law No. 3 /2005.

Initial Real Estate Register: Paper or electronic register designated for the registration of all the acts and provisions related to the real estate units sold off plan.

Broker: Person who, by virtue of a brokerage contract, seeks finding a second party to conclude a certain contract though brokerage in contracting negotiations in return for a commission.

Article (2)

Chapter 1 - Escrow Account of the Project
Accreditation of the Custodian at the Department

1. The Custodian should be a bank or a financial institution that is duly licensed by the Central Bank of the United Arab Emirates.

1. The custodian who wishes to be accredited by the Department shall submit an application according to the form adopted by the Department, along with the following documents:
   a. Certificate proving that he is licensed and registered at the Central Bank of the United Arab Emirates to perform real estate financing activities in the State.
   b. An undertaking by the person empowered to sign for the custodian to abide by the provisions of the agreements of the project's escrow accounts that are signed thereby pursuant to Article (18) of the Law.
   c. A certificate proving the payment of the prescribed fees.
   d. Any other documents or information requested by the Department.

After verifying the validity and adequacy of the information and documents submitted with the application, the Department shall issue a certificate of accreditation of the custodian.

Article (3)

Opening an Escrow Account for the Project

Without prejudice to the provisions and procedures prescribed by virtue of Article (18) of the Law, the following shall be taken into account:

1. The developer who wishes to open an escrow account for the project shall submit an application to the Department according to the adopted form, along with the following documents:
   a. Certificate of registration of the real estate development project at the Department.
   b. Certificate of registration and licensing of the developer, issued by the Department.
   c. Certificate of ownership, by the developer, of the real estate subject of the real estate development project.
   d. Certificate proving the submission of the specifications of the units and the real estate in the real estate development project at the Department and registration thereof in the Initial Real Estate Register.
   e. Certificate of accreditation of the custodian at the Department.
   f. Copies of all the approvals required to be obtained from the competent authority for the real estate development project.
   g. Three copies of the project's escrow account agreement concluded between the developer and the custodian according to the form adopted by the Department.
   h. Certificate proving the payment of the prescribed fees.
   i. Any other documents or information requested by the Department.

1. After verifying the validity and adequacy of the information and documents submitted with the application, the Department shall issue a certificate of approval of opening of the project's escrow account, proving that the developer is authorised, after the opening of the account, to sell units or real estates in the real estate development project.

1. The custodian may not open the project's escrow account before receiving the approval certificate issued by the Department according to Clause (2) of the present Article.

1. No real estate unit may be sold off plan unless the project's escrow account is opened.

1. Without prejudice to the above provisions and according to the mechanisms and terms specified by the Department, the conditions of the present Article shall not cover the real estate development projects preceding the date of enforcement of the Law and the present Regulation, provided that all the approvals required for the commencement of the project are obtained according to the following:
   a. In case the real estate units were sold off plan before the issuance of the Law and the present Regulation, the Developer shall submit statements to the Department showing all the amounts received from the purchasers and the financers as well as all the amounts spent on the project and the ratio of actual achievement of the project.
   b. The Department shall examine the documents submitted and inspect the project for the purpose of specifying the ratio of actual achievement of the preceding real estate development projects preceding according to Article (4) of the present Regulation.
   c. Every existing real estate development project shall be exempt from the requirement of opening an escrow account in case the ratio of achievement of the real estate project exceeds (70%) of the actual achievement according to the mechanisms and provisions determined by the Department in the decision of exemption from opening an escrow account for the project.

Article (4)

Estimation of the achievement ratio

1- Before commencing the real estate development project, the Developer shall undertake to present the data specified in the below Table “minimum”, after being approved by the project consultant and the Department may adopt the Table for the purpose of estimating the achievement ratios of the real estate development project or have recourse to any person it deems appropriate to verify the accuracy of the ratios compared with the nature of the project, and it may modify them for that purpose.

Clause	Standard Ratio	Given Ratio	Completed Ratio
Construction Site Preparation	%	100%	%
Preliminary Works	%	100%	%
Foundations	%	100%	%
Understructure	%	100%	%
Superstructure	%	100%	%
Internal works	%	100%	%
External layer	%	100%	%
Building's service	%	100%	%
Internal finishing works	%	100%	%
External works	%	100%	%

2- The achieved ratio of the construction works of the real estate development project shall be estimated by a consultant appointed by the Department at the expenses of the Developer taking into account the ratio consisting of the expenses borne compared with the total construction expenses appropriated in the budget of the concerned project. The Department may require the Developer to present a statement of said expenses after being audited by a certified accountant to verify the validity of the expenses borne.

3- For the purposes of Clause (2) above, the expenses borne for the construction works of the real estate development project do not include the value of the land to be developed in addition to the project's marketing expenses.

Article (5)

Management of the Project’s Escrow Account

1. The developer shall deposit all the amounts related to the purchase of the real estate units sold off plan in the project's escrow account.

1. The custodian shall give a reference number for each payment in the project's escrow account, and the real estate unit number as well as the project number shall be mentioned according to the details mentioned in the sale and purchase agreement concluded between the developer and the purchaser.

1. The custodian may receive the payments in cash or through cheque, electronic transfer or credit cards or any method accepted by the banks and according to the applicable instructions of the Central Bank.

1. The custodian shall abide by the terms of the project's escrow account agreement and no amounts may be paid from the account before verifying that the developer as achieved 20% at least of the construction works of the concerned real estate development project, provided that the remaining payments are made by virtue of the project's escrow account agreement.

1. The developer may withdraw the profits related to the project from the project's escrow account in three stages including the following:
   a. Upon the completion of achievement of 60% of the real estate development project.
   b. Upon completion of achievement of 100% of the real estate development project.
   c. In case of obtainment of approval of the Department.

1. The developer shall have the right to withdraw all the profits related to the project from the project's escrow account based on the Department's approval.

1. The Developer may not pay the value of the land that is subject to development and the project's marketing expenses from the project's escrow account.

1. The Developer shall provide the custodian with all the details related to the real estate units that are sold off plan, the prices of the units and the amounts received.

 

Article (6-10)

 

Article (6)

Project’s Escrow Account Agreement

1. The Developer and the custodian shall conclude an agreement to create the project's escrow account in the name of the concerned real estate development project according to the form adopted by the Department.

1. The project's escrow account agreement shall at least include the below conditions and standards:
   a. Condition requiring the developer to directly deposit the amounts paid by the purchaser of the real estate units off plan and the payments offered by the financers of the real estate development project at the project's escrow account.
   b. Standards to be met before the payment of any amounts to the developer from the project's escrow account, including the amounts due according to the provisions of the law.
   c. The method of distribution of the account's balance in case of cancelation of the real estate in accordance with the provisions of the Law.
   d. The conditions of management of the project's escrow account by the custodian as well as his authorities and powers to pay to the Developer from the account.
   e. Setting a condition requiring the association of the purchasers' payments to the ratios of actual achievement of the construction works that are counted according to the provisions of Articles (4 and 5) of the present Regulation.
   f. The conditions, procedures and implementing mechanisms regarding the project's escrow account agreement that would be set by the Department as it deems appropriate.

Article (7)

Obligations of the Custodian

1. Every three months, the custodian shall provide the Department with periodic statements of the revenues and payments of the project's escrow account. Moreover, he should provide the Department with an annual report audited by a certified accountant on the account, the paid amounts and the extent of their consistency with the provisions of the Law and the present Regulation and the project's escrow account agreement.

1. The Department may require the custodian to provide it with the statements of revenues and payments or any information or data it deems necessary to be checked.

1. The Department may order the custodian to stop the payment of any amounts from the project's escrow account in case the Department finds that the Developer has violated the law and its implementing regulation or the Department's instructions. Moreover, the custodian shall abide by the Department's instructions.

1. If the custodian committed any violation of the provisions of the Law, the present Regulation or the terms and conditions of the projects' escrow account agreement, the Department shall notify him of the violation and grant him a delay to rectify it. The custodian shall abide by the notification's conditions and implement them within the period specified therein.

1. The custodian shall not close the project's escrow account agreement before obtaining the approval of the Department.

1. Subject to the provisions of Article (21) of the Law, the Department shall set, as it deems appropriate, the implementing conditions, procedures and mechanisms to the implementation of the custodian's obligations in the project's escrow account.

Article (8)

Checking the Particulars of the Project’s Escrow Account

1. Every person having deposited any funds in the project's escrow account according to the provisions of the Law may check the account's particulars that belong to him and that are kept with the custodian and may obtain copies of said particulars.

1. The Custodian shall undertake to give the persons who have purchased from the Developer details and statements of account concerning the account's particulars that belong to them and the amounts paid thereby.

1. The custodian shall undertake to provide the developer with all the statements, data and information related to the real estate project.

Article (9)

Auditors of the Project’s Escrow Account

1. The auditor of the project's escrow account shall be a certified accountant accredited and licensed in the Emirate of Abu Dhabi and by the UAE Accountants and Auditors Association (AAA).

1. The accredited auditors shall show their reports according to the International Standards on Auditing (ISA) and the International Financial Reporting Standards (IFRS).

Article (10)

Marketing of Real Estate Development Projects

1. Subject to Article (14) of the Law, the Developer may submit an application for the obtainment of an authorisation to declare the off plan sale and marketing of real estate units, real estates and real estate development projects after the issuance of a certificate, from the Department, approving the opening of the project's escrow account according to Clause (2) of Article (3) of the present Regulation.

1. The application for authorisation to declare the marketing of real estate development projects shall be submitted according to the form adopted by the Department.

1. After verifying the validity and adequacy of the information mentioned in the application and the documents submitted along therewith, the Department shall issue the authorisation to declare the marketing of the real estate development projects.

1. Subject to the provisions of Clause (3) of Article (14) of the Law, the Department shall set in the authorisation mentioned in Clause (3) of the present Article the implementing conditions, procedures and mechanisms as it may deem appropriate with respect to the regulation of the conditions of declaration of marketing of the real estate development projects in the local and foreign media and in those participating in local and foreign expos.

 

Article (11-15)

 

Article (11)

Delay of Commencement or Delivery of the Real Estate Development Project

Subject to the provisions of Article (25) of the Law, if the Developer fails to commence the construction works of the real estate development project after the lapse of 6 months from the date on which he is granted the approval to sell off plan without any acceptable excuse, the purchasers who own no less than (5%) of the sold real estates may file a complaint to the Department to investigate the matter according to the following:

1. The complaint shall be filed according to the form adopted by the Department along with the following documents:
   a. A copy of the sale and purchase agreement concluded between the developer and the purchaser.
   b. A written abstract of the most important facts that prove the developer's failure to commence the project.
   c. Copies of the correspondences sent between the purchaser and the developer regarding the progress of construction and any matters that affect the timing of commencement or achievement of the project.
   d. Any other document that support the complaint.
   e. Any other information or documents requested by the Department.

1. Upon the receipt of the complaint by the Department, it may carry out the following:
   a. Reject the complaint should it appear to it that the complaint is invalid based on the investigation and examination of what is presented by the purchaser.
   b. Send a copy of the Complaint to the Developer to reply within 21 days.

1. Should it appear to the Department that the developer has delayed the commencement of the project with no acceptable excuse in violation to the provision of the Law, the present Regulation or his contractual obligations, the Department may cancel the project. In such case, the developer shall refund all the funds received thereby from the purchasers in return for the real estate development project according to the provision of Article (25) of the Law and the Department shall notify the developer of its decision.

1. The developer or the purchaser may file a grievance before the Chairman of the Department against the decision issued according to the above clause within 15 days from the date of notification thereof of the decision.

1. In case of objection against the decision of the Chairman of the Department concerning the grievance filed according to the abovementioned clause, the developer or the purchaser may challenge said decision before the competent court within 60 days from the date notification thereof of the decision.

1. The Department may impose on the developer a delay penalty to be paid in favour of the purchaser of the real estate units in case the developer has delayed the delivery of the real estate development project for a period exceeding 6 months from the expected date of delivery of the project according to the time schedule to which the developer has committed towards the Department. The delay penalty shall be calculated according to the standards and practices applied with respect to the delay of achievement of real estate development projects.

Article (12)

Failure to Achieve the Real Estate Development Project

1. Subject to the provisions and procedures prescribed in Article (26) of the Law and in case the developer fails to complete the real estate development project, the custodian shall propose, after consulting the Department, the conditions, procedures and measures he deems appropriate for protecting the rights of the depositors in a manner to guarantee the completion of the real estate development project.

1. If after conducting the investigation mentioned in Article (11) of the present Regulation, the Department finds that there are circumstances that are preventing the developer from completing the real estate development project, it may take into account any depositions related to the real estate development project made by the purchaser, the financer, the investor, the developer and the custodian and may contact the interested parties when needed.

1. After exhaustion of the measures referred to in Clauses (1, 2) of the present Article and if it was impossible to find a solution to complete the project within a period of 6 months from the date of consultation with the Department, the custodian shall refund the remaining amounts deposited in the project's escrow account according to the order specified in Article (26) of the Law and under the supervision of the Department.

Article (13)

Claiming the Funds Deposited in the Project’s Escrow Account

Subject to the provisions of Articles (17 and 26) of the Law and the cancellation of the real estate development project is decided, the purchaser of the real estate unit off plan may request getting back his share of funds he has in the project's escrow account according to the following conditions:

1. The off-plan purchaser of the real estate unit may submit an application to the Department according to the adopted form, along with the following documents:
   a. A copy of the off-plan sale agreement.
   b. A copy of the correspondences exchanged between the off-pan purchaser and the developer concerning the development agreement.
   c. Details of the funds paid by the off-plan purchaser to the developer.
   d. A certificate from the custodian confirming the amount paid in the project's escrow account for the off-plan sale agreement.
   e. Certificate proving the payment of the prescribed fees.

1. The Department shall, after verifying the validity and adequacy of the information mentioned in the application and the documents submitted along therewith according to Clause (1) of the present Article, the Department shall sent a letter to the custodian wherein it shall specify the amount to be refunded to the off-plan purchaser from the project's escrow account without prejudice to the purchaser's right to recover the difference if the amount to be refunded is lesser that the one deposited by the purchaser at the project's escrow account, taking into consideration the following:
   a. The amount released from the project's escrow account to the developer.
   b. The other amounts over-deducted from the project's escrow account.
   c. The amount deposited in the project's escrow account by the financer of the real estate development project.
   d. The guarantee kept by the financer of the real estate development project.

Article (14)

Correction Request

1. If it appears to the Department that any application submitted by virtue of the provisions of the present Regulation, inter alia any documents or information to be submitted along with the application, is incomplete, it may require the applicant to complete it.

1. The Department may specify a time limit for the required correction to be done. If the applicant fails to comply with the Department's request within the specified time limit, it may reject the request.

1. The Department may collect the fees prescribed for the correction request issued according to the provisions of the Implementing Regulation with respect to the fees.

Article (15)

Chapter 2 - Funds received by the Broker
Deposition of Funds in the Project’s Escrow Account

1. The broker who receives funds from the parties with who he contracts shall deposit them in the project's escrow account.

1. The broker shall undertake to conclude a written brokerage contract according to the form adopted by the Department before performing any brokerage activity and he shall submit said contract to the Department to register it in the Real Estate Development Register within 15 days at most from the date of signature thereof. By virtue of a decision issued by the Chairman of the Department, the Department shall specify the maximum remuneration or commission that the broker may receive from the contractor.

1. The broker shall deposit all the amounts received thereby during the performance of his works according to the provisions of the Law and the Implementing Regulation in the project's escrow account separately from his own funds such as his remunerations and commissions.

1. The broker may not get any personal benefit from the amounts deposited in the project's escrow account and he may not withdraw any amounts from said account unless in the cases approved by the Department.

 

Article (16-22)

 

Article (16)

Records of the Project’s Escrow Account and Auditing of said Records

1. All the records and regular accounts required to be kept by virtue of the present Regulation or any instructions issued by the Department shall be kept by the broker in his principle headquarters according to the forms, drafted in Arabic or in English, adopted by the Department provided that the Arabic version prevails.

1. In case the computer system is used for the purpose of registering, storing or processing any data related to the project's escrow account, the following shall be taken into account:
   a. The data shall be professionally and securely stored in a place other than the principal headquarters of the broker, provided that they may be checked in said headquarters.
   b. The broker shall keep the computer records required under the provisions of the present Regulation.

1. The Department shall issue instructions and recommendations to the broker concerning the project's escrow account, and the broker shall undertake to implement them mainly the following:
   a. Sending receipts of the received funds and depositing them in the project's escrow account.
   b. In case of payment of any funds from the project's escrow account, said payment shall be made through cheques or electronic transfer and the powers related to such payments shall apply.
   c. Depositing the funds in the project's escrow account as well as the records to be kept for such deposition.
   d. Registering the transactions of the project's escrow account in a cash book and settling the balances listed in the cash book at the bank's registers.
   e. Keeping the general ledger and entering records therein.
   f. Registering the transfers between the accounts of the general ledger in the journal.
   g. Preparing monthly approximate balances of the general ledger's accounts.

Article (17)

Controlling Computer Systems

1. The provisions of the present Article shall apply to the computer system used by the broker for the storage of the transactions related to the project's escrow account.

1. The broker shall take into account to keep all the records and books that are kept according to a chronological order with all changes (whether created, modified or omitted) that are made to any of the following data in addition to a statement of the data before and after the change (name of the client, address of the client, reference number of the client's code if any, number of the project's escrow account).

1. The Broker shall verify the following for each journal:
   a. That the records match before entering them to the general ledger.
   b. That any reference numbers in the journal are kept in a chronological order subject to the control of the program.

1. The broker shall verify the following with respect to any general ledger:
   a. That the program does not allow the omission of an account unless the account's balance is zero and the account shall be kept upon its omission (as it was directly before omission) in a readable form that may be accessed upon request.
   b. The program cannot accept a record of a transaction resulting from a debit account unless a simultaneous record is issued for the transaction in a manner allowing the issuance of a separate report based on a chronological order for all said transaction in a readable form that may be accessed upon request.

1. The broker shall verify the following:
   a. That any record entered in the register that is kept in a readable form to be accessed upon request appears in a chronical order.
   b. That the report or each page or record in the report is numbered based on a chronological order under the control program in a manner that allows the completion of the records to be kept according to the provisions of the present Regulation, which will be verified and examined appropriately.
   c. The impossibility of making any modifications to any previously entered data of any transaction except for the following separate transaction related to the modification.
   d. That every data program requires an entry in each area in the data entry screen that is meant to receive the required data according to the provisions of the present Regulation that will be kept in the regular registers and books of accounts.
   e. Setting a backup version for all the registers and regular books of accounts referred to in the present Article on a diskette or a CD-ROM, or through any electronic means at least once per month.
   f. Keeping the most updated version of the registers and the regular books of accounts in a separate place to avoid any damages that may occur to it (such as fire, power outage, or failure of the disk).

Article (18)

Period of Keeping and Examination of the Records

1. The broker shall keep all the registers and the regular books of accounts to be kept by virtue of the provisions of the present Regulation for a period of five years at least ad of the date of the last record entered therein.

1. The broker shall deliver all the registers and regular books of accounts based on a written notification issued by the Department, including the computer reports to be kept by him or by virtue of the provisions of the present Regulation to an accredited official of the Department. The accredited official may copy any of said registers, books or reports or search for data related to them that are kept with the broker. Moreover, he shall immediately provide the data requested by the accredited official.

Article (19)

Notification of Disadvantage

The licensee and the custodian shall immediately notify the Department of any disadvantage or mistrust or any act that prejudices the project's escrow account in violation of the Law and its implementing regulations.

Article (20)

Unclaimed Funds of the Project’s Escrow Account

1. The broker who keeps funds in the project's escrow account shall submit to the Department an annual statement during the month of January of every year on the funds received by the broker for more than 2 years before the aforementioned month. The statement shall contain the following:
   a. The value of the kept funds.
   b. A document showing the identity of the persons to who the funds belong.
   c. The last address, of said persons, that is known by the broker.

1. When the Department receives the statement mentioned in Clause (1) of the present Article, it shall send a letter to each concerned person to the last address thereof and ask them to get their funds back from the broker. If the broker fails to return said funds, the Department may claim them from him and they shall be paid to the concerned party.

1. Subject to the provisions of Clause (2) of the present Article, the Department shall, as it deems appropriate, keep the unclaimed funds pending any future claim by the person entitled to claim them.

Article (21)

The Department shall issue the decisions, instructions and forms required for the implementation of the provisions of the present Decision.

Article (22)

The present Decision shall be published in the Official Gazette and shall come into force as of the date of enforcement of the provisions of the Law.

 

Article (1-5)

 

Article (1)

Definitions

In application of the provisions of the present Regulation, the following terms and expressions shall have the meanings assigned thereto unless the context requires otherwise:

Department: Department of Municipal Affairs.

Municipality: Municipality of Abu Dhabi City, Al Ain City Municipality, Western Area Municipality and any Municipality that would be established in the Emirate in the future.

Law: Abu Dhabi Law No. 3/2015 concerning the regulation of the Real Estate Sector in the Emirate of Abu Dhabi.

Licensees: Persons who work in the real estate sector and who are licensed by the Department under the provisions of the Law.

Those persons are: the developer, the broker, the broker's employee, the auctioneer, the owners' association manager, the appraiser and the surveyor.

License: Authorisation issued by the Department to permit the licensees to exercise their activities in accordance with the provisions of the Law.

Person: Natural or juridical person.

Broker: Person who, by virtue of a brokerage contract, seeks finding a second party to conclude a certain contract though brokerage in contracting negotiations in return for a commission.

Broker Employee: Natural person who works for the Broker and in his name to act as broker.

Auctioneer: Person registered at the Department and authorised to sell real estates at auction.

Surveyor: Person who, in return for remuneration, determines the dimensions and limits of any real estate to present same for registration at the Department, with the exception of any person who performs the same work for any government body.

Appraiser: Person who takes charge, in return for remuneration, of appraising and estimating the value of a real estate or any other property rights on said real estate and giving opinion thereon.

Real Estate Development Project: Project of construction of multi-story buildings or compounds for residential or commercial purposes or for both purposes and their outbuildings or the construction of infrastructures and service facilities in case of sale of vacant lands.

Developer: Main Developer or sub-developer.

Main Developer: Person licensed to practice the activities of development, sale, management and lease of real estates as main developer of the real estate development project.

Sub-Developer: Person licensed to practice the activities of development, sale, management and lease of real estates in a part of a main compound by virtue of an agreement between him and the main developer or another sub-developer.

Owners' Association: Owners' association formed by virtue of the provisions of the Law for the management and operation of the common parts including their reparation and maintenance, proper exploitation.

Owners' Association Manager: Person appointed by the developer or the owners' association to manage the daily activities of the owners' association.

Chamber: Abu Dhabi Chamber of Commerce and Industry.

Statutes of the Owners' Association: Rules and provisions regulating the Owners' Association.

Article (2)

Categories of the Licensees

1. The Department may issue a licence based on a request submitted by the concerned party according to the form adopted by the Department for the categories covered by the licensees' definition as per the Law and the present Regulation.

1. The issuance of licences to each of the main developer and the sub-developer shall be limited to the juridical persons.

1. The licences related to the broker, the auctioneer the owners' association manager and the surveyor may be issued to juridical and natural persons.

1. The licence applicant shall undertake not to submit any incorrect, misleading or incomplete data to the Department in relation to the licence application as per the Law and the present Regulation.

1. The licence applicant shall pay the fees prescribed according to the implementing regulation concerning the fees.

1. Being licensed according to the provisions of the present Regulation does not exempt the licensee from the requirement of obtaining any other licences, authorisations or approvals required by any other government body to enable him to perform his works according to the applicable legislations.

Article (3)

Developer’s licence

1. The application for obtainment of a developer's license shall be submitted to the Department along with the following documents:
   a. A commercial licence that shall be valid on the date of submission of the application or a preliminary licensing approval authorising the concerned party to work in the real estate development projects.
   b. Certificate of membership in the Chamber, which shall be valid on the date of submission of the application for the existing licence.

1. If the applicant is a developer who was a practitioner before the enforcement of the present Regulation, the application for the licence shall be submitted along with the following documents:
   a. The statements of the adopted real estate development projects, whether existing or proposed.
   b. Main plans and architectural designs for the adopted real estate development projects.
   c. Property deeds of the lands of the adopted real estate development projects.
   d. Feasibility study for the real estate development project that shall be issued by an accredited auditor.
   e. Sale and purchase agreements with real estate sub-developers as for the main developer.
   f. Any other documents or data requested by the Department.
   g. Models of sale and purchase agreements of the real estate unit purchaser, that are listed in the adopted real estate development projects as for the sub-developer or main developer in case the sale is made directly through the latter.
   h. Project marketing agreement concluded with the brokers, if any.

Article (4)

Licence of the Owners’ Association Manager/the Appraiser/the Surveyor

1. A natural person who applies for a licence to work as Owners' Association manager, appraiser or surveyor shall fulfil the following conditions:
   a. Be a resident of the State.
   b. Not have been convicted of any offence involving moral turpitude or dishonesty or declared bankrupt.
   c. Shall have successfully passed the training session and the tests set for the licence subject matter of the application according to the standards adopted by the Department.
   d. Shall have previous experience of no less than 3 years in the works related to the licence subject matter of the application, as the case may be.

1. The licence application shall be submitted along with the following documents:
   a. Copy of a valid ID.
   b. Copy of a valid residence visa.
   c. 2 copies of a personal photo having appropriate size.
   d. Any other documents or data requested by the Department.

1. A juridical person that submits an application for the obtainment of a licence to work as Owners' Association manager, appraiser or surveyor, shall be a company registered according to Federal Law no. (2) of 2015 on Commercial Companies, provided that the commercial company meets the following conditions:
   a. Be licensed and registered in the Emirate.
   b. Have a licensed branch in the Emirate should it be licensed in any other Emirate of the UAE.
   c. Have a financial capacity that meets the standards set by the Department.
   d. Neither the manager of the company nor any member of a board of managers thereof shall have been declared bankrupt or convicted for an offence involving moral turpitude or dishonesty.
   e. Shall have a professional risks insurance accepted by the Department.
   f. Copies of the following documents shall be submitted:

• Commercial licence that shall be valid on the date of submission of the application and a certificate of membership in the Chamber that shall be valid on the date of submission of the application.
• A lease agreement or property deed for buildings that are used as principle headquarters of the company.
• Any other conditions or documents required by the Department.

Article (5)

Broker’s Licence

1. A natural person who submits an application to obtain a licence to work as a broker shall fulfil the following conditions:
   a. Shall be a national of the State.
   b. Shall not have been convicted of any offence involving moral turpitude or dishonesty or declared bankrupt.
   c. Shall have successfully passed the training session and the tests set for the developer's licence subject matter of the application according to the standards adopted by the Department.
   d. Shall have previous experience of no less than 2 years in the brokerage works.
   e. Shall obtain the appropriate educational qualification as specified by the Department.

1. The licence application shall be submitted along with the following documents:
   a. Copy of a valid ID.
   b. 2 copies of a personal photo having appropriate size.
   c. Any other documents or data requested by the Department.

1. A juridical person that submits an application for the obtainment of a licence to work as broker shall be a company registered according to Federal Law no. (2) of 2015 on Commercial Companies, provided that the commercial company meets the following conditions:
   a. Be licensed and registered in the Emirate, or
   b. Have a licensed branch in the Emirate should it be licensed in any other Emirate of the UAE.
   c. Have a financial capacity that meets the standards set by the Department.
   d. Neither the manager of the company nor any member of a board of managers thereof shall have been declared bankrupt or convicted for an offence involving moral turpitude or dishonesty.
   e. Shall have a professional risks insurance accepted by the Department.
   f. Copies of the following documents shall be submitted:

• Commercial licence that shall be valid on the date of submission of the application and a certificate of membership in the Chamber that shall be valid on the date of submission of the application.
• A lease agreement or property deed for buildings that are used as principle headquarters of the company.
• Any other conditions or documents required by the Department.

1. A natural person who works as broker at the brokerage company may not practice brokerage activities on his own behalf.

 

Article (6-10)

 

Article (6)

Licence of the Broker’s Employee

A natural person who submits an application to obtain a licence of broker's employee shall fulfil the following conditions:
a. Shall be a resident of the State.
b. Shall not have been convicted of any offence involving moral turpitude or dishonesty.
c. Shall have successfully passed the training session and the tests set for the broker's employees, which are adopted by the Department.
d. The licence application shall be submitted along with the following documents:

• Copy of a valid passport and a valid ID.
• Copy of a valid residence visa.
• 2 copies of a personal photo having appropriate size.
• Any other conditions, documents or data required by the Department.

Article (7)

Auctioneer’s Licence

1. A natural person who applies for an auctioneer's licence shall fulfil the following conditions:
   a. Shall provide a copy of the commercial licence of the firm through which he practices the profession of brokerage or auction sale.
   b. Shall have successfully passed the training session and the tests set for the auctioneers, which are adopted by the Department.

1. A juridical person that applies for the obtainment of an auctioneer's licence shall hold a broker's licence or at least one of the partners shall hold an auctioneer's licence.

1. The Department may impose other conditions and requirements for the licensing of natural and juridical persons as auctioneers.

Article (8)

Powers of the Department

1. The Department shall have the right either to accept or deny the licensing application and it shall decide upon such application within a period of no more than 30 days from the date of completion of all the application procedures, provided that it notifies the applicant of the matter in writing.

1. If it appears to the Department that any of the data or documents submitted for the obtainment of the licence are incomplete, the concerned party shall be required to complete them within a period set for him under penalty of write off of the application.

1. In case the Department rejects the issuance of the licence, its decision shall be justified and the concerned party shall be notified thereof.

1. The concerned party may file a grievance to the Chairman of the Department against the decision rejecting the licensing application or requiring him to complete the data or documents as mentioned in Clause (2) of the present Article, within 14 days from the date of notification of said decision to said party.

1. The Chairman of the Department shall decide upon the grievance within 30 days from the date of registration thereof at the Department. Should he fail to decide upon the grievance within the aforementioned period, it shall be deemed rejected.

1. The concerned party may challenge the decision issued under Clause (5) of the present Article before the competent court within 60 days from the date of notification of said decision to said party.

Article (9)

Licence’s Term and Renewal Method

1. The term of all the licenses referred to in the present Regulation shall be of one Gregorian year starting from the date of issuance of the licence.

1. All licences shall be renewable on a yearly basis.

1. The Department may renew the licence based on the licensee's request within a period of four months at most from the date of expiry of the previous licence, after the payment of the prescribed additional fine.

1. The licence renewal application shall be submitted according to the form adopted by the Department, along with the documents and data required under the present Regulation.

1. The applicant for renewal of the licence under the provisions of the Law and the present Regulation shall pay the fees prescribed according to the implementing regulation regarding fees.

Article (10)

Renewal of the Developer’s Licence

The main developer or the sub-developer shall attach the following documents to the licence renewal application:

1. Commercial licence that shall be valid on the date of submission of the application.

1. Certificate of membership in the Chamber that shall be valid on the date of submission of the application.

1. Information related to the adopted real estate development projects whether existing or proposed.

1. Any other documents or data requested by the Department.

 

Article (11-15)

 

Article (11)

Renewal of the Licence by Natural Persons

The natural person shall attach the following documents to the required licence renewal application:

1. Copy of a valid passport and a valid ID.

1. Copy of a valid residence visa.

1. 2 copies of a personal photo having appropriate size.

1. Proof of completion of any training session or training program the applicant is required, by the Department, to attend as a condition for renewal of the licence.

1. Any other documents or data required by the Department.

Article (12)

Renewal of the Licence by Juridical Persons

The juridical person shall attach to the required licence renewal application the documents proving the following:

1. Submit a financial report endorsed by an accredited auditor.

1. A document proving that the firm has a general manager who has obtained the required licence as the case may be.

1. A document proving that it has a manager or a board of managers that have not been declared bankrupt or convicted of any offence involving moral turpitude or dishonesty.

1. Copies of the following documents shall be submitted:
   a. A commercial licence that shall be valid on the date of submission of the application and the certificate of membership in the Chamber, that shall be valid on the date of submission of the application.
   b. Lease agreement or property deeds of buildings that constitute the headquarters of the firm.
   c. Auditing certificate for the project's escrow account in case of renewal of the Broker's licence.
   d. Evidence proving the requirement that the employees hold the licences of licensed broker's employees in case of renewal of the broker's Iicence.
   e. Any other documents or data requested by the Department.

Article (13)

Provisions Concerning Delay of Renewal of the Licence

1. The Department may close the premises of a person whose licence has ended for a period of no more than 3 months.

1. The Department ma exempt the licensee from the licensing fees for the renewal period as long as the latter provides what proves that he has not practiced the activity throughout the suspension period.

1. All the preceding licensing-related provisions shall apply to the cases of acceptance or rejection of the licence renewal application, inter alia the grievance and challenge before the competent court as the case may be.

Article (14)

Cancellation or Suspension of the Licence

1. The Department may cancel or suspend the licence in the following cases:
   a. Upon insolvency or bankruptcy of the licensee.
   b. If the licensee is convicted of any offence involving moral turpitude or dishonesty.
   c. In case the licensee violates any code of conduct applicable at the time of commission of the violation.
   d. If the broker fails to justify the funds received for a transaction in which he has participated.
   e. If the licensee has mixed his personal funds with those of other persons for which he works in his ordinary course of activity.
   f. If the owners' association manager has breached any of his obligations that are set forth in the Law, the Statutes of the owners' association or the implementing Regulations.
   g. In case of violation of any provision of the Law, the implementing regulation and the decisions issued in implementation of said Law.

1. Before the cancellation or suspension of the licence, the Department may send the licensee a written notice containing the reasons necessitating the cancellation or the suspension. The licensee shall have the right to reply to the aforementioned notice within (21) days.

1. If the Department decides to cancel or suspend the licence, it shall take into consideration the reasons stated by the concerned party in his reply to the notice, if any.

1. The Department shall enter the data related to the violations committed by the licensees in the Real Estate Development Register.

1. The person affected by the Department's decision of cancellation or suspension of the licence shall have the right to file a grievance and challenge against the Department's decision before the competent court according to the provisions prescribed in Article (8) of the present Regulation.

Article (15)

Showing the Business Name and the Licence Number

1. The licensees shall deliver a copy of the license when requested by the responsible official of the Department, the Municipality or the police or any agent in relation with the licensee.

1. The licensees shall show the business name and the licence number as well as its registration number in the real estate development register as the case may be on each of the following:
   a. The headquarters and any branch office of the licensee.
   b. The stationary and the business cards.
   c. Any advertising or marketing materials.

1. The number of license of the broker's employee and the one of the broker employer licence shall appear on the business card of the broker employer.

 

Article (16-22)

 

Article (16)

Branch Offices

1. The licensee may open one or more branch offices in addition to the principal headquarters for the licensed activity.

1. Before opening a branch office, the licensee shall notify the Department of his desire to open a branch office according to the form adopted by the Department.

1. In case of a broker, the branch office shall remain at all times under effective supervision of the broker's employee.

Article (17)

Supervising the Employees

1. The licensee shall supervise the employees thereof on continuous basis and take all the appropriate and necessary procedures to verify that they are abiding by the Law, the regulations and the instructions issued by virtue thereof and any code of conduct related to the licensee's activity.

1. The licensee shall bear civil responsibility for any violating act or abstention from performing an act imposed by the Law or its implementing regulation or the decisions issued in implementation thereof by any of the licensee's employees when performing the duties of his job.

Article (18)

Agreement on the Licensee’s Services

1. Any licensee in any of the categories mentioned in the licensees' definition according to the Law and the implementing regulation shall conclude a written contract with the client.

1. The Department shall set a model for the contract mentioned in Clause (1).

1. In all cases, the contract shall contain all the main contracting elements including the determination of the type of work required to be performed and the duties, obligations and rights of each party.

Article (19)

Distribution of Commissions or Fees

Should the principal assign more than one broker for the same work, the contractor shall conclude a main brokerage contract with said brokers and the brokers shall conclude a written brokerage subcontract between/among them according to the form adopted by the Department, where the brokers shall distribute the commission or the fees among them according to the method specified in the subcontract.

Article (20)

Code of Conduct

1. During the ordinary course of activity, all the licensees shall abide by the provisions of any code of conduct and ethics of the profession issued by the Department under the provisions of the Law or the Implementing Regulation.

1. The Department shall set a code of conduct and ethics of the profession according to the practices adopted thereat and as it deems appropriate.

Article (21)

The Department shall issue the decisions, instructions, directives and models required for the application of the provisions hereof.

Article (22)

The present Decision shall be published in the Official Gazette and shall come into force from the date of enforcement of the provisions of the Law.

 

Article (1-3)

 

Article (1)

Definitions

Emirate: Emirate of Abu Dhabi.

Department: Department of Municipal Affairs.

Property: Various types of properties, including land, buildings, facilities and real estate by destination.

Concerned Municipality: Municipality of Abu Dhabi or Al Ain Municipality and Western Region Municipality or any municipality may arise in the future in the emirate.

Real Estate Appraisal / Valuation: The process that includes the collection and analysis of public and private data of the property, subject of appraisal, at a certain time and for a certain purpose, taking into account all the factors that may affect the property value through the use of the appraisal standards set forth in this Decision at a minimum.

Appraiser: The authorized person who possesses the necessary qualifications, skills and experience to carry out the appraisal process.

Register: The Real Estate Register established in accordance with the provisions of Abu Dhabi Law No. 3/2005 on the regulation of the Real Estate Registration in the Emirate of Abu Dhabi, and the Interim Real Estate Register, pursuant to the provisions of Abu Dhabi Law No. 3/2015 on the regulation of the Real Estate Sector in the Emirate of Abu Dhabi.

Article (2)

Objective of this Decision

The present Decision aims without limitation to achieve the following objectives:

1. Developing clear procedures and policy for the real estate appraisal.

1. Establishing a reliable real estate price database as a historical documentation to be referred to when need be in order to obtain information about a particular area.

1. Providing a legislative framework that enables the Real Estate Appraiser to evaluate the properties in an accurate and certified way.

1. Enhancing the confidence of appraisers so as to avoid indiscriminate appraisals.

1. Promoting the principle of transparency in dealing with concerned parties in the market and guaranteeing their rights.

1. Helping appraisers to provide a reliable appraisal and to complete reports comprising all necessary data and requirements, so as to help the investor make the right decision while reducing the risk to the lowest level.

1. Instructing all appraisers in the Emirate to work under a scientific basis so as to reach the highest possible degree of accuracy and transparency in the conduct of their work which leads to the enhancing of the position of the real estate market in the Emirate of Abu Dhabi.

Article (3)

Book I - Appraisal Procedures
Scope of application of the Decision

The appraiser shall apply all the appraisal rules set forth in this Decision to all the real estate in the Emirate, under an authorisation granted by the government or a person authorised by virtue of law or a contract.

 

Article (4-7)

 

Article (4)

Application for Appraisal

Unless the appraisal is based on a government action, the appraiser shall obtain the written consent of the landlord to carry out the appraisal procedures through:

1. Obtaining all the documents related to the property and the application of all criteria specified in this Decision at a minimum.

1. Reviewing the Real Estate Register in the Municipality by the appraiser in order to verify the conformity of the data provided by the applicant with the Real Estate Register.

1. Keeping relevant registers and data submitted to him and the appraisal reports prepared by him.

1. Complying with all the forms issued by the Department and the Municipality on the appraisal in the Emirate.

Article (5)

Procedures of Property Data collection

The appraiser shall, with regards to the real estate appraisal, examine the data of the property, subject of the appraisal, according to the following steps:

1. Ensure that the appraisal applicant has an authority or a power over the property, according to a certified document.

1. Obtain the register of the property subject of the appraisal.

1. Examine all the data contained in the register and compare the same with those provided by the appraisal applicant in terms of:
   a. The provision of a copy of the identity card.
   b. The Property number and address, according to the register.

1. In the event the property is owned by a juristic person, the property data shall comply with the Articles or the Memorandum of Association of the entity or the commercial register.

1. The procedures taken over the property such as the mortgage insurance and effect thereof on the property appraisal whenever required.

1. Obtain the approved urban development plans in the real estate area if any.

1. Draw up a detailed description of the property pursuant to the data and documents that have been collected.

Article (6)

Procedures of Inspection of the Property

The property inspection shall be considered as a key step in the real estate appraisal process, since it provides the appraiser with a realistic picture and the necessary information he shall use in the calculation of the value of the property to be appraised. The appraiser shall inspect the property subject of the appraisal according to the following controls:

1. He shall obtain the consent of the owner on the property inspection and physical examination, and agree with him on the appropriate date to conduct them.

1. He shall inspect the property physically, describe its condition and prepare a detailed report that shall include the following:
   a. The valuation method or methods he followed.
   b. The date of submittal of the application for the appraisal and inspection.
   c. The type of the property construction materials, i.e. iron reinforced concretes or walls, or any other materials and the percentage of each of the property's material.
   d. The additions to the property, for example, the adornment columns and decoration.
   e. The building age in terms of the foundation, as well as in every part of the property.
   f. The overall appearance of the building in terms of its deterioration compared to surrounding properties.
   g. The efficiency of the facility and plantation in the property.
   h. The geographical description of the property in terms of the flow and other descriptions.
   i. The full measurements of the property (in the absence of official data thereof).
   j. The notes taken on the finishing level of the real estate internally and externally and the type of the material used therein.
   k. The observations on the general condition of the property and a statement of any current internal and external flaws.
   l. The observations on the systems provided to the property (air conditioning, fire, security systems, etc.).
   m. The observations on the surrounding and nearby properties.
   n. The observations on the factors affecting the property whether positively or negatively.

1. He shall attach the property illustrations from all angles.

1. He shall prepare the property file that shall contain, for example, official data such as the land plan, the buildings' completion certificate, and a document indicating the property's income.

1. He shall provide the equipment necessary for the inspection and physical examination of the property and the dimensions' measurements (measuring device, a camera).

Article (7)

Book II - Methods of the Real Estate Appraisal
 The Sales Comparison Method

The appraiser shall take into account that the real estate prices vary for several reasons, and thus he shall make adjustments to the available prices in order to assess the value of the property subject of the appraisal by way of comparison, and such differences may be in the concrete specifications, the condition of the properties, the properties areas, the properties sites, the terms of the leases, and the dates comprising evidence, and in order to apply the comparison method, the appraiser shall follow a set of procedures organised as follows:

1. Collect appropriate information to compare the properties, subject of the appraisal, with similar properties recently sold or currently offered for sale in an open market; as well, request the concerned person to provide information on the lease, the terms of the contract and the specifications of the property.

1. Make sure that the information is correct and collected from transactions that reflect the market situation, so as to exclude the prices that reflect unnatural incentives to the seller and the buyer in the market, such as deals whereby the buyer pays a certain increase in the desire to acquire a certain asset, or those made through the sale transactions between parties in unusual circumstances (such as kinship or a forced sale due to a loan or debt or expropriation or other).

1. Compare the sale price of properties and analyse the same by using specific comparison items, such as the property type, the date of sale, the land area, the building area, the market conditions, the location, the region, the land price per square foot, and the cost of the square foot construction and then amend the same due to the differences between them and the property subject of appraisal.

1. Compare the sold properties to the property under sale by using the comparable elements and verify the conformity of the price of each comparable element with the property subject of the appraisal.

1. Unify the different value indicators obtained from the analysis of comparisons to obtain a single value representing the value of the property by way of comparison.

 

Article (8-11)

 

Article (8)

The Income Method

To apply the Income Method of Appraisal, the appraiser shall adopt the following procedures:

1. The income method shall depend on the anticipated profit and not on the real profit.

1. Requesting the concerned party to provide evidence on the property's revenues and expenses as recorded in the accounting registers, usually based on the account of the past three-year period in accordance with the accounting standards, to determine the income stream, and thus the real accounts can be viewed as a guide to the expenses and revenues that can be collected.

1. The appraiser shall deduct the percentage of risks of vacancy and collection loss from the total revenues in order to obtain the gross income.

1. in order to calculate the net income The estimated percentage of operating expenses shall be deducted from the gross income, such expenses include, for example: (a) the Fixed expenses: real estate fees (direct and indirect), (b) variable expenses (maintenance costs, management costs, other), (c) reserve for replacement (such as adding a new floor, or parking...).

1. The appraiser shall divide the net income by the total interest rate (on the land and building).

Article (9)

The Cost Method

To apply the cost method, the appraiser shall adopt the following procedures:

1. The cost method depends on an economic principle: the price to be paid by a certain buyer for the property subject of the appraisal shall not exceed what someone would have to pay to build an equivalent building providing the same services.

1. The cost method requires the provision of:
   a. The Construction Cost per Square Foot for similar buildings (the cost shall include, for example, the value of the land, the infrastructure costs, the design fees and the financing costs, etc.)
   b. The total area of the building.
   c. The buildings life span (estimated at 35 years), where the annual consumption percentage of the building shall be determined (approximatively 3% per annum).
   d. The construction year of the current building to determine the value of the building total depreciation (around 3% per annum).
   e. The price per square foot to know the value of the land by multiplying the land area with the square foot price.

1. The appraiser shall calculate the construction cost by multiplying the total built-area with the construction cost per square foot or square meter.

1. The appraiser shall calculate the value of the building after depreciation thereof and multiply it with the construction cost per square foot or square meter.

1. The appraiser shall calculate the building value after depreciation.

1. To obtain the value of the property by the cost method, the value of the land shall be added to the value of the building.

Article (10)

The Discounted Cash Flow Method

To apply the discounted cash flow method, the appraiser shall adopt the following procedures:

1. A number of data shall be determined to do some calculations (such as the annual income, the property use rate or the occupancy rate, the operating expenses, and the interest rate for a certain number of years).

1. The actual income shall be calculated by subtracting the vacancy rate (the vacancy rate shall be equivalent to the occupancy rate - 100%) of the property total annual income of and such process shall be repeated by the number of years.

1. The net operating income shall be calculated by subtracting the operating expenses from the actual income.

1. The present net value which is the final result of the Discounted Cash Flow process (DCF) shall be calculated through the following steps:
   a. Find the current value of the AED by applying the equation of the current value of the AED.
   b. (Present value PV AED) h (1 + i) 1 / where: i= the interest rate, h= the number of years, for each year separately.
   c. Multiply the net operating income with the current value of the AED per year.
   d. Find the total property values during the assumed years.
   e. The net current market value of the investment is equal to (the property's value at the end of the assumed duration + the current values during the assumed years).

Article (11)

The Residual Method

To apply the remaining method, the appraiser shall adopt the procedures organised as follows:

1. Before starting the establishment of a development project

1. Before starting the redevelopment of a certain area

1. In order to assess the value of the land space, especially large area lands.

1. Calculating the potential profit for the development in terms of the cost construction for the project and the costs resulting therefrom in terms of fees and profits.

1. The equation of the residual method is:

Residual = (total value of the development - the total cost of the development + fees + required profit).

 

Article (12-15)

 

Article (12)

The Appraisal Certificate

The appraiser shall issue a certificate called (the Property Appraisal Certificate) that includes the following data:

1. The date of issuance of the certificate.

1. The purpose of the appraisal.

1. The type of the Property subject of the appraisal.

1. The data of the Property subject of the appraisal.

1. The value of the appraisal.

1. The authentication of the Real Estate appraiser.

1. The certificate validity is of 30 days.

Article (13)

Book III - Final Provisions
Disclosure

The appraiser shall only disclose the appraisal report in whole or in part, or any reference or any estimated figures to the appraisal applicant.

Article (14)

Criteria of appraisal in the event of compensation

Subject to this Decision, the appraiser shall comply with the standards and appraisal methods stipulated in the applicable legislation in the emirate.

Article (15)

This Decision shall be published in the Official Gazette and shall come into force three months after the date of its issuance. Issued in Abu Dhabi

 

Article (1)

The Commission of the Real Estate Broker

• The commission of the Real Estate Broker shall be set at two percent (2%) of all sale and purchase contracts, up to a maximum of AED (500,000) five hundred thousand UAE Dirhams.
• The commission of the Real Estate Broker with regard to the conclusion of a lease brokerage agreement shall be agreed upon by the parties thereto. In the absence of such agreement between the two parties, the commission received by the Real Estate Broker from the party which contracted thereof may not exceed (5%) five percent of the annual rent mentioned in the property lease agreement. the Real Estate Broker shall not combine between the commission received from the lessee and that received from the property owner.
• The approved brokerage contracts forms, annexed hereto, shall be applied.

 

Article (2)

The Administrative Fees of Real Estate Developers

Developers shall be prohibited from charging any fees, whether registration fees or any other fees, expenses or charges pertaining to any dispositions taken in respect of the real estate, except for the administrative fees they receive from third parties, up to a maximum amount of AED (5,000) five thousand Dirhams.

 

Article (3)

This Resolution shall enter into force as of the date of publishing thereof in the Official Gazette.