Executive Council Resolution No. (6) of 2010
Approving the Implementing Bylaw of
Law No. (13) of 2008
Regulating the Interim Real Property Register in the Emirate of Dubai
We, Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman
of the Executive Council,
After perusal of:
Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law No. (7) of 1997 Concerning Land Registration Fees in the Emirate of Dubai and its
amendments;
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Law No. (8) of 2007 Concerning Escrow Accounts for Real Property Development in the
Emirate of Dubai;
Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai
and its amendments (the “Law”); and
Bylaw No. (85) of 2006 Regulating the Real Property Brokers Register in the Emirate of
Dubai,
Do hereby issue this Resolution.

Article (1)
The words and expressions mentioned in this Resolution shall have the same meaning
assigned to them in the Law.

Article (2)
A Master Developer or Sub-developer who applies for the registration of a legal disposition
in respect of a Real Property Unit with the DLD within the time limit stipulated by paragraph
(2) of Article (3) of the Law shall be deemed to have complied with the stipulated time
limit even if the DLD does not complete the registration procedures within that time limit.

Article (3)
Where a Master Developer or Sub-developer submits an application for registration of
a legal disposition of a Real Property Unit after expiry of the time limit stipulated by
paragraph (2) of Article (3) of the Law, the DLD must:
1. register the legal disposition in the Interim Real Property Register; and
2. impose a fine of ten thousand Dirhams (AED 10,000.00) on the Developer.

Article (4)
A Master Developer or Sub-developer may not commence the implementation of a project
or sell its units off-plan unless:
1. he takes possession of the land and has received the demarcation certificate;
2. he has actual control of the land on which the project is to be constructed; and
3. he has obtained from the Competent Entities the approvals required to commence
the implementation of the project.

Article (5)
1. The DLD must, whether on its own initiative or upon request by the concerned parties,
create an entry on the Real Property registry folio of any land on which a Real Property
project is to be constructed to denote that the project is a development project
governed by the provisions of the Law.
2. The DLD shall remove the entry referred to in the preceding paragraph upon completion
of the Real Property project and registration of its units in the names of purchasers on
the Real Property Register, or upon cancellation of the project for any of the reasons set
forth in Article (23) of this Resolution.

Article (6)
An application for registration of a Real Property Unit in the Interim Real Property Register
shall be submitted in the electronic or paper form approved by the DLD, together with the
relevant supporting documents determined by the DLD.

Article (7)
1. Upon completion of a Real Property project and obtaining its completion certificate
from the Competent Entities, the Master Developer or Sub-developer may not refuse to
hand over any Real Property Unit or register it in the name of its purchaser on the Real
Property Register, provided that the purchaser fulfils all his contractual obligations.
This applies even if the purchaser owes the Developer any financial dues other than in
connection with the sale agreement of the Real Property Unit.
2. The Master Developer or Sub-developer must register the Real Property Unit and all
facilities allocated to it, such as car parks, in the name of the purchaser.
3. If the Master Developer or Sub-developer refuses, for any reason whatsoever, to
register the Real Property Unit in the name of the purchaser despite the fact that the
purchaser has fulfilled all his contractual obligations, the DLD may, upon the request
of the purchaser or on its own initiative, register the Real Property Unit in the name of
the purchaser on the Real Property Register.

Article (8)
A Master Developer or Sub-developer may not, for any reason whatsoever, charge
purchasers any amounts, other than those approved by the DLD, in return for any legal
disposition of their Real Property Units.

Article (9)
Unless agreed otherwise, the Master Developer or Sub-developer and the purchaser of a
Real Property Unit must pay the prescribed fees for registration of any legal dispositions
of that Real Property Unit as per their respective share of fees prescribed by the applicable
legislation.

Article (10)
If the Master Developer or Sub-developer wishes to market his project through a Broker,
the Master Developer or Sub Developer must comply with the following:
1. The project to be marketed through the Broker must be registered with the DLD.
2. An agreement must be concluded with the Broker, who must be approved and
licensed in accordance with Bylaw No. (85) of 2006 Regulating the Real Property
Brokers Register in the Emirate of Dubai.
3. The project marketing agreement with the Real Property Broker must be registered
with the DLD.

Article (11)
Any legal disposition made by a Master Developer, Sub-developer, or Broker which
involves the Off-plan Sale of any Real Property or Real Property Unit prior to approval of
the commencement of the project by the Competent Entities and its registration with the
DLD shall be deemed null and void.

Article (12)
Where a Master Developer or Sub-developer engages a Real Property Broker to market
his project in full or in part, the Broker must deposit the sale price of the relevant Real
Property Unit(s) into the project Escrow Account. The Real Property Broker may not deposit
the price into his own account or deduct his commission from that price before depositing
it into the Escrow Account. Any agreement to the contrary of the provisions of this Article
shall be null and void.

Article (13)
1. As of the effective date of this Resolution, the net area of a Real Property Unit shall be
adopted for the purposes of registration on the Real Property Register. This area shall
be calculated as determined by the DLD in this regard.
2. Unless agreed otherwise, any area in excess of the net area of the sold Real Property
Unit shall not be taken into account, and the Developer may not claim any payment
for that excess area.
3. The Developer must compensate the purchaser if the actual area of the Real Property
Unit is less than its net area by more than five percent (5%).
4. Where the shortage in the net area of the Real Property Unit exceeds the percentage
set forth in paragraph (3) of this Article, the compensation payable to the purchaser
shall be calculated based on the price of the Real Property Unit agreed upon in the
agreement between the Developer and the purchaser.
5. For the purposes of applying this Article, the net area of a Real Property Unit, as set
forth in its sale agreement and plan, shall be adopted as the basis for calculation of
any excess or shortage in the area of the Real Property Unit.

Article (14)
Where any dispute arises between a Developer and a purchaser, the DLD may undertake
conciliatory efforts to preserve their contractual relationship and may propose any
solutions it deems appropriate to achieve this objective. Where the Developer and
the purchaser reach an amicable settlement, that settlement shall be documented in
a written agreement executed by the Developer and the purchaser or their respective
representatives. Upon approval of that agreement by the DLD, it shall become binding on
both parties.

Article (15)
Where a purchaser fails to fulfil any of his obligations under a Real Property Unit sale
agreement concluded between him and the Developer:
a. The Developer must serve a notice on the purchaser requesting him to fulfil his
contractual obligations. The notice may be served in person by appearing before
the DLD; or in writing through registered mail or email, in which case the Developer
must provide the DLD with a copy of the notice.
b. The DLD must give the purchaser a grace period of thirty (30) days to fulfil his
contractual obligations. This period shall commence from the date of serving the
notice on the purchaser by the Developer.
c. If the purchaser fails to fulfil his contractual obligations within the notice period set
forth in paragraph (b) of this Article, the Developer may take any of the following
actions:
1. Where the Developer has completed at least eighty percent (80%) of the project,
he may retain all the amounts paid by the purchaser. In addition, the Developer
may either request selling the Real Property Unit by public auction to settle the
remaining amounts payable to him, or terminate the sale agreement and retain
a maximum of forty percent (40%) of the price of the Real Property Unit.
2. Where the Developer has completed at least sixty percent (60%) of the project,
he may terminate the sale agreement and retain a maximum of forty percent
(40%) of the Real Property Unit price set forth in the agreement.
3. Where the Developer has completed less than sixty percent (60%) of the project,
he may terminate the sale agreement and retain a maximum of twenty-five
percent (25%) of the Real Property Unit price set forth in the agreement.
4. Where the Developer has not commenced implementation of the project for
reasons beyond his control, he may terminate the sale agreement and retain a
maximum of thirty percent (30%) of the amounts paid to him by the purchaser.
d. The Developer may resort to the competent court to seek a judgement awarding
him the respective percentage prescribed in sub-paragraph (c)(1), (c)(2), (c)(3), or (c)
(4) of this Article where the amounts retained by him are less than this percentage.

Article (16)
A Developer who has not commenced the implementation of a project may not terminate
an agreement with a purchaser and retain thirty percent (30%) of the payments made
by the purchaser unless that Developer proves that he has fulfilled all his contractual
obligations towards the purchaser and that the failure to commence the implementation
of the project is not due to negligence or omission on the part of the Developer, or is due
to reasons beyond his control.

Article (17)
For the purposes of applying Article (15) of this Resolution:
1. The completion percentage of a project shall be confirmed by a technical report
issued by a consultant approved by RERA, which includes a statement of the
completed works based on an on-site inspection of the project.
2. Completion of the levelling works and the infrastructure of the project shall be
deemed as commencement of the implementation of the project.

Article (18)
A Developer must refund to the purchaser the amounts retained by him pursuant to
Article (15) of this Resolution no later than one (1) year from the date of termination of
the agreement or within sixty (60) days from the date of sale of the Real Property Unit,
whichever occurs earlier.

Article (19)
1. Where a Real Property Unit is sold by public auction in accordance with the provisions
of Article (15) of this Resolution, the DLD may at its sole discretion deposit the price of
the Real Property Unit in a trust account and pay to the purchaser or his representative
the amounts remaining after deduction of the Developer’s dues.
2. The Developer may use the Real Property Unit or lease the same to third parties if it
is not sold by public auction, in which case the Developer must refund the remaining
amounts to the purchaser within the period stipulated in Article (18) of this Resolution.

Article (20)
A purchaser may resort to the competent court to seek termination of his contractual
relationship with a Developer:
1. if the Developer refuses without a valid reason acceptable to the DLD to deliver the
final sale agreement of the Real Property Unit to the purchaser;
2. if the Developer declines to link payments to the construction milestones proposed
by RERA;
3. if the Developer materially deviates from the specifications agreed upon in the
agreement;
4. if it is proven after the handover of the Real Property Unit that it is unfit for use due
to material construction defects; or
5. in any other circumstances that require the termination of the agreement in
accordance with the general legal rules.

Article (21)
The following shall be deemed as reasons beyond the control of the Developer:
1. the land on which the project is to be constructed is expropriated for the public
interest;
2. a government entity suspends the project for re-planning purposes;
3. structures, excavations, or utility lines are found in the project site;
4. the Master Developer makes any variation to the project site that results in changing
the boundaries and area of the project in a manner that affects the performance by
the Sub-developer of his obligations; or
5. any other reasons determined by RERA.

Article (22)
A Developer shall be deemed to have committed negligence or omission in performing his
obligations based on the following:
1. delay, without valid reason, in taking possession of the land or obtaining the
required approvals from the Competent Entities to commence the implementation
of the project;
2. Off-plan Sale by the Sub-developer without the written approval of the Master
Developer;
3. delay in obtaining the Master Developer’s written approval of the plans and
designs;
4. delay in preparing the project for construction works;
5. failure to provide RERA with the data and information required for approval of the
project;
6. failure to register the project with RERA;
7. failure to disclose the financial statements of the project to RERA; or
8. any other grounds determined by RERA.

Article (23)
RERA may, based on a reasoned technical report, decides to cancel a Real Property project:
1. if the Developer fails, without valid justification, to commence construction
works despite having already obtained all required approvals from the Concerned
Authorities;
2. if the Developer commits any of the offenses set forth in Article (16) of Law No.
(8) of 2007 Concerning Escrow Accounts for Real Property Developments in the
Emirate of Dubai;
3. if it is proven to the satisfaction of RERA that the Developer has no genuine
intention to implement the project;
4. if the land on which the project is to be constructed is withdrawn due to failure by
the Sub-developer to fulfil any of his contractual obligations towards the Master
Developer;
5. if the land is completely affected by the planning or re-planning projects
implemented by the Competent Entities in the Emirate;
6. if the Developer fails to implement the project due to gross negligence;
7. if the Developer expresses his intention not to implement the project for reasons
acceptable to RERA;
8. if the Developer is declared bankrupt; or
9. for any other reasons determined by RERA.
Article (24)
1. A Developer may submit a grievance in respect of any decision issued by RERA
cancelling his project, no later than seven (7) working days from the date on which he
is notified of that decision.
2. The grievance must be in writing and must include the grounds for objection to the
decision.
3. RERA must consider the grievance and render its decision on the same within seven (7)
working days from the date of submission of the grievance to it.
4. If RERA admits the grievance, it must prescribe the conditions and requirements that
the Developer must satisfy in order to revoke the project cancellation decision.
5. The Developer must undertake in writing to satisfy RERA’s conditions and requirements.
6. If RERA rejects the grievance, its decision in this regard shall be final and it must
proceed with the project cancellation procedures.

Article (25)
Where RERA cancels a project, it must:
1. prepare a technical report stating the reasons for cancellation;
2. notify the Developer in writing, through registered mail or email, of the cancellation
decision;
3. appoint a certified auditor at the expense of the Developer to audit the financial
position of the project and verify the amounts paid to the Developer or deposited
in the project’s Escrow Account, as well as the amounts that have been expended;
and
4. request the project’s Escrow Agent, or the Developer where any payments are not
made through the Escrow Account, to refund the amounts deposited in the Escrow
Account or paid to the Developer to the parties entitled to these amounts no later
than fourteen (14) days from the date of cancellation of the project.

Article (26)
If the funds in the Escrow Account of the project are insufficient to refund the purchasers
the amounts owed to them, the Developer must refund these amounts to them no later
than sixty (60) days from the date of the project cancellation decision, unless RERA decides
to extend this period based on valid reasons.

Article (27)
If the Developer fails to refund the amounts owed to the purchasers within the period set
forth in Article (26) of this Resolution, RERA must take all necessary actions to preserve the
rights of purchasers, including referring the matter to the competent judicial authorities.

Article (28)
This Resolution comes into force on the day on which it is issued, and shall be published
in the Official Gazette.

Hamdan bin Mohammed bin Rashid Al Maktoum
Crown Prince of Dubai
Chairman of the Executive Council
Issued in Dubai on 14 February 2010
Corresponding to 30 Safar 1431 A.H.