Rera Exam-with 100% verified solutions-2024-2025.docx, Exams of Business Administration

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Rera Exam-with 100% verified solutions-

2024- 2025

Highest Burj Khalifa 829,8 (2722 ft) Business Bay number of buldings 240 (completed 2008) Palm Jumeirah 3 Palms 520 km by Nakheel Al Maktoum International Airport Projected anual capacity 160 Million passanger The World Island by Nakheel Dubai Land Department (DLD) The main objective of DLD is to organize and documents all real estate transaction for and behalf Dubai Goverment. established 24.01. RERA Real Estate Regulatory Agency. Rera regulates the real estate investment in the emirate of Dubai. Launched 31 of July 2007. Objectives of RERA RERA Role is:

• Licensing all real estate activities.
• Managing and organizing real estate developers' trust accounts.
• Licensing and organizing real estate agents.
• Regulating and registering Rental Agreements. -Regulating and supervising the owners associations. Regulation #3 of 2006

In 2001 Dubai Goverment agreed to allow expats to have 99-year lease of particular property. In 2002 Sheikh Mohammed bin Rashid Al Maktoum, issued a decree allowing foreigners to buy property on freehold ownership. Freehold You own property and land Forever. Leasehold You own property but not land Tarakheesi Tarakheesi is web application meant for Real Estate Offices for managing Real Estate Broker operation. -Issuing broker card -Updating broker card Cancelling broker card. Blue Broker Card Blue card issued under the DED licenses and brokers are allowed to work in Dubai. Allows brokers to sell/lease in Dubai + FZ + Sell for developers but not time share. Green Broker Card Can only sell developers project. Red Broker Card only time share properties; sell one unit to more than one person. Yellow Broker Card only FZ properties Return on investment (ROI) It measures the gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. ROI (Net profit/Cost of investment)x What's is a listing?

A listing is a contract between an owner and broker. What is the different between type of listings?

• Exclusive -Open listing What is multiple listing? MLS is an arrangement among a group of agents whereby they agree to share information and split commission. What is a qualified buyer? Seeking to buy. What is an assent? It is something of value that one owns. What is liability? It is opposite of asset ; It's a debt or obligation that one owns. What is the Law 26 of 2007 It regulates the relationship between the tenant and landlord. ORN Office Registration Number BRN Broker Registration Number STR Special Transaction Register All transaction Agreements If ad does't have BRN or ORN Number Penalty AED 50' Decree #21 of 2013

Only the government has the power to cancel projects. OQOOD Pre-Title Registration "My ownership certificate" MOLLAK My Strata Certificate Owner Association And Registration Code of Etics regulates your relationship with customers, with other agents and with public. Dubai Land Department (DLD) Established on January 24th 1960 Real Estate Regulatory Agency (RERA) Established in 2007 RERA Role is: Licensing all real estate activities.

• Managing real estate developers' trust accounts.
• Licensing and organizing real estate agents.
• Regulating and registering Rental Agreements.
• Regulating and supervising the owners associations
• Regulating real estate advertisements in the media.
• Regulating and licensing Real estate exhibitions.
• Enhancing national participation in the real estate sector.
• Increasing real estate awareness DREI Dubai Real Estate Institute (DREI)

Rental Dispute Settlement Center (RDC) The Rental Dispute Center, based at Dubai Land Department, has been moved under the umbrella of DLD through Decree No: 26 of 2013. Decree No. (21) of 2013 cancelled property projects DEVELOPER' REGISTER The Developer must be registered with RERA. The Project must be registered with RERA. The Project Escrow A/C must be registered with RERA OWNER'S ASSOCIATION Formation of the Owner's Association. Issuance of 'My Strata Certificate' Launched Freehold In May 2002 Regulation No. (3) of 2006 Specifying Areas where Non-Locals can own Property in the Emirate of Dubai Leasehold In 2001 In Leasehold you own the property, but not the land. Leasehold ownership is anywhere from over 10 years up to 99 years. Is Ethics the same as law? No What is "ETHICS"? Ethics is a way of thinking A belief system A moral code system (3) primary elements of ethics? VALUE (high / low / current market value) UNDERTAKING / PROMISE / AGREEMENT EXPECTATIONS

Renew Broker Card? Do renew your Broker ID annually (at least 30 days prior to expiration) Do renew your Broker ID annually (at least 30 days prior to expiration) Do renew your Broker ID annually (at least 30 days prior to expiration) What is a broker? A broker is a licensed person who, for a fee, acts on behalf of property owners in real estate transactions within the scope of the law. When I become licensed, What identification will I have? Certificate Registration Card (Broker ID) What is the "Trakheesi" System? Trakheesi is a web application meant for Real Estate Offices for managing Real estate Broker operations. o Issuing a broker card, o Updating broker information, o Renewing a broker card, o Replacing a broker card with the new one o Cancelling broker card. Blue cards Blue cards are issued for those brokers working in brokerage office in Dubai. Those brokers are allowed to work in Dubai, Free-zones, market registered Developers' projects, but not Timeshare. Green cards Green cards are issued under the developers' licenses, and brokers are allowed to sell the projects which are related to the developer only. Red cards Red cards are issued to brokers who are involved in selling Timeshare units only. Yellow cards Yellow cards are issued under the free zone licenses, and brokers are only allowed to work in the areas which belong to that free zone in Dubai.

Grey cards Grey cards are issued to Registration Trustees. Do brokers specialize in different property types? Yes What is a disciplinary action?

• It is a punishment resulting from the RERA investigating a complaint against a licensee.
• Such an action could have serious consequences for the licensee, such as points, revocation or suspension of the license and a fine. The classification of penalties were divided into 3 levels 1.Red 2.Yellow 3.Green (Traffic Lights) Must a contract for the sale of real estate be in writing to be enforceable? yes What is an addendum to a contract? An addendum (plural: addenda) is something that is added as an attachment. What is an amendment to a contract? It is a change, correction, or extension of an agreement that does not change the basic thrust of the agreement Is an amendment to a contract the same as an addendum? No What is meant by a valid contract? A valid contract has legally binding force; it is legally sufficient and authorized by the law A void contract? A void contract cannot be enforced Can a broker accept a Power of Attorney?

No What is flipping a real estate property? Flippers and speculators are buyers/investors who purchase real estate for the sole purpose of making quick return and realising an immediate gain. What is escrow? Escrow is an agreement between two or more parties providing that certain money, instruments or property be placed with a third party (bank) for safekeeping pending the fulfillment or performance of a specific act or condition Who controls the escrow account? DLD controls the escrow account. Money/funds are released from the escrow account based on the certified progress of the Project. What is developer's escrow account? The escrow account is required for each project under construction or off-plan to be developed by the developer after he gets the approval from RERA to construct the project. Monies received from investors/buyers are deposited into the escrow account. In whose name should the escrow account be? Escrow account is opened under the project name for each and every project. What is the meaning of the suffixes - or and - ee? Words ending in - or signify the giver of something Words ending in - ee refer to the recepient A grantor gives a deed to a grantee A vendor is the seller; the vendee is the buyer An offeror makes an offer to the offeree A lessor gives a lease; the lessee is the tenant A donor makes a donation; the donee receives it What is a down payment or a deposit cheque? A down payment or deposit is the cheque that the buyer issues in order to reserve a property. According to the "market norm", it is usually 10% of the selling price. Can it be in cash? No, it should be payable in the form of a cheque. If in cheque, in whose name? The cheque should be in the name of the Seller

When does the seller receive the down payment? The deposit (down payment) cheque is held by the brokerage company until the transfer date. At transfer, and based on the agreement between the buyer and seller, the deposit cheque is either returned to the buyer whereby the seller would expect the total amount due to him in the form of a manager's cheque or the seller would accept the deposit cheque and as such would only expect the balance to be paid in the form of a manager's cheque. What is a security cheque, in whose name is it issued? A security cheque is the cheque issued by the seller in the name of the buyer as a security for the buyer in case the seller defaults on the agreement. This is also held by the brokerage company Who gets the cheque if the deal go through, and it the deal does not materialize? If the deal goes through, the brokerage company returns the security cheque to the seller. However, if he defaults on the agreement and both parties had agreed on these terms, then the security cheque is handed over to the buyer due to the seller's default. It is crucial that defaulting clauses are drafted clearly under form F so each party knows its rights and obligations. What is a distress sale? It is a sale of real estate where the seller is under compulsion, or forced to sell. Can a broker advertise a distress sale? yes Four Ways to identify market trends Number of home sales and total sales volume this vs. last year Number of listings this vs. last year Average sale price, per area, this vs. last year % of increase or decrease in av. Sale price per year What is meant by lender preapproval? It is the practice by a lender of approving a borrower for a certain loan amount. This allows prospective homebuyers to shop with the knowledge, likely to be shared with seller and broker to demonstrate their financial capability, that the loan will be approved. What is a listing? A listing is a contract between an owner and a broker authorizing the broker to find a buyer or a tenant who is willing to buy or lease the property under the terms of the listing.

Must a listing be in writing? yes What are the different types of listings? Exclusive Open listing Sole listing Why would an owner give a broker an exclusive listing? This type of listing guarantees the broker a commission if the property is sold by anyone. It gives the broker more incentive to sell, with less risk of wasted time and money. With other form of listings, a broker may be reluctant to spend time or money to advertise or show the property because another broker may sell the property and collect the commission When do listing expire? 90 days What is a qualified buyer? who is willing or seeking to buy What is a competent party? To be competent to buy or sell real estate, a party must be: Mentally capable Of legal age What is incompetent? less then 21 years old or crazy What is an asset? It is something of value that one owns. Assets can include land, houses, cars, furniture, cash, bank deposits and securities. What is liability? It is the opposite of asset; it is a debt or obligation that one owes What is the difference between real estate (real property) and personal property?

Real estate or real property is everything more or less permanently affixed to land Personal property is everything else What is needed to prove the ownership of a real estate property?

1. Title deed for finished properties 2. Oqood for off-plan properties. Can a broker initiate a contract between seller and buyer without the existence of a proof of ownership? Absolutely NOT! A broker must exercise due diligence. What is an appraisal? It has 3 meanings: A professional opinion or estimate of the value of property The act or process of estimating value The report that describes the process and data used to provide the value When a broker should make sure that an official certified appraisal is available prior transaction? When the property is gifted, in order to determine the value of the property to calculate the transfer fees. What are the traditional appraisal approaches? Sales comparison (market) Cost (summation) Income (capitalization) TYPE OF OWNERSHIP INDIVIDUAL (UAE, GCC Nationals) INDIVIDUAL (Foreign Investors) LOCAL COMPANIES INDIVIDUAL ESTABLISHMENT FREE ZONE COMPANIES OFFSHORE COMPANIES When there is an existing mortgage/loan on the property. When there is an existing mortgage/loan on the property, the outstanding loan amount must be settled prior to transfer of Title Deed to the Buyer. FORM "A" Listing Contract between Seller and Broker