Real Estate Practitioner PDF

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Chapter One
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The real estate sector has recently developed during last few years
It is currently regulated by virtue of laws and legislation enacted specifically for the
purpose of real estate regulation.
Real estate is listed among the basic specialized professions, especially for
companies and individuals with extensive experience in real estate investment.
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Real estate regulation occurs within the context of a new global system characterized by modern
technology and communications, which strives for the completion of all commercial services in a
distinguished manner emphasizing speed, accuracy, and quality of services provided to customers.
Most investors in the real estate world have become aware of the need to keep up with these new
systems; and accordingly, harness professional expertise towards business development.
This focus on business development ensures the sustainability of business growth and success in a
highly competitive market where major challenges cannot be ignored anymore.
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The recent regulation of the real estate sector is one of the most important
factors in the success of the real estate practitioner, on the basis that the
real estate market is the largest in the world.
We will demonstrate the principles, standards, and most important steps to
be followed in practicing the real estate profession and successfully.
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Nowadays; the real estate researches and magazines are considered the most important
concerns in the economic and engineering fields
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The access into details of the real estate field and its sciences
became the most important requirements of each:
country, state, city and foundation’s
development and renaissance
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The ultimate objective is to provide the best services that will upgrade the real estate
company to the highest levels of success, thereby increasing revenues and reaching
optimal levels of sustainability and excellence.
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Libraries in the Arab region have recently expressed
interest in including real estate science and culture, with
the purpose of increasing awareness about real estate
for those interested in the sector.
The real estate sector is an integral part of national
economies, especially in GCC countries with huge
numbers of immigrants and expatriates, who rely mainly
on renting residential or commercial units.
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The correct practice of the real estate profession, and entering and competing in the
real estate market, is an absolute necessity not only for real estate practitioners,
but also for governments and legislative institutions dedicated to reorganizing
this broad market.
This reorganization represents an attempt to issue new legislation more appropriate
for the real estate profession continuous development, especially after the
increased interest of many Arab citizens in real estate investment.
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From these starting points;
we will start our courses with those who are interested in this
important field to understand the secrets of its profession and the
knowhow's details of its craft
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Through this modern academic syllabus, we will
outline the best and latest updates and
developments in real estate at the local and
international levels.
Our objective is to develop this sector and
assist those who seek to launch their carrier
in practicing this profession in an effective
manner that provides them with stable
financial returns.
We seek to assist real estate companies in
developing the correct principles and
methods for providing the best services to
their customers, especially to beat back stiff
competition.
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The first training
station in the field of
real estate and its
importance science
is the real estate
practice, or what is
known as:
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Financial Legal
Sciences Sciences
Engineering Management
Sciences Real Sciences
Estate
Science
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The economy of a country depends on many
factors, e.g.:
ETC.
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U.A.E. JUMPS
7 POSITIONS
ON THE WORLD
ECONOMIC
FORUM’S GLOBAL
COMPETITIVENESS
REPORT
2014- 2015
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These factors mainly rely on the following sectors:
1 Housing and Construction Sector
2 Utilities Sector
3 Education Sector
4 Entertainment Sector
5 Medical Sector
6 Industrial Sector
7 Trade Sector
8 Maritime and Ports Sector
9 Aviation Sector
10 Religious Sector
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Housing and construction is a key and influential sector
in the economy and is one of the most important
sectors overall. This sector includes:
Housing, including standard housing, residential
apartments, villas, mansions, and other residential
buildings.
Tourist housing including hotels, and hotel apartments

in separate buildings or inside tourist resorts.
Administrative or commercial housing intended for commercial or

administrative business and professional activities, either
separated or mixed with residential buildings.
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The utilities is a vital sector; it complements and directly affects all other sectors.
This sector includes the following:
A-Stations: B- Roads, bridges, and C- Networks:

ports D- Railways and
trains.
Water stations
Drainage networks
Seawater desalination plants
Water supply networks
Sewage treatment plants Irrigation networks
Power stations Internet networks

Electricity networks
Mobile stations
Alarm networks
Radio and
television stations Broadcast networks
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A- All kinds,
degrees, and
levels of
schooling.
B-
Universities
and institutes.
C- Learning
centers.
significance in any country.
D- Cultural
centers.
E- Research
and academic
centers.
F-
Administratio
n buildings
G- Printing
offices and
adjunct stores
H- Commercial
buildings for various
educational activities,
including libraries,
This sector includes the following:
publishing houses, and

adjunct stores.
I- Book and
CD fairs.
J- Paper and
school supply
factories, and
It is well known that the education sector has profound economic, cultural, and developmental
the like.
K- All kinds
of book
factories.
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The entertainment sector includes :
cinemas and theaters
theme parks and circuses
water sports complexes and
skiing resorts
cafes and restaurants
recreational camps
concerts, operas, and dance
shows, etc.
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Everybody is aware of the medical sector’s importance and scope.
This sector includes :
public and private hospitals
health centers
clinics
labs
health recovery centers
radiology centers
psychiatric hospitals
addiction treatment centers
day hospitals
medical educational buildings or therapeutic and so on.
recreational sites
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The industrial sector is the most important sector influencing real
estate, as it has huge real estate investments.
The industrial sector includes:
factory buildings
various warehouses internet networks
power plants fire alarm networks
fuelling stations fire station
water plants water tanks
gas stations fuel tanks
water networks  other factory
drainage networks facilities such as
 irrigation networks roads, stops, etc.
 telephone networks
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Trade is a vital sector serving the industrial, tourism, medical,
and housing sectors.
This important sector includes :
centers, public
shops, trading in
showrooms, local and
trade fairs, and imported raw
commercial materials
centers
commercial import
offices, and
commercial
agency export
offices offices
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This sector includes :
ports, platforms, and warehouses.
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The religious sector has a
special significance in our
lives.
It includes :
 mosques, churches, and other houses of worship,
 as well as universities and schools teaching religious curriculum.
 religious sites throughout the world, such as the Great Mosque of
Mecca, Prophet's Mosque, Al-Aqsa Mosque and other religious
sites and shrines,
 religious bookstores and publishing houses.
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So;
It is apparent that the backbone of economic growth is real estate
development, which leads to the advancement of other sectors. The
comprehensiveness of the real estate sector is proven;
every dirham invested in real estate gains ten dirhams in value.
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Chapter 2
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In a study of real estate outlook at Abu Dhabi National Council for Urban Planning; in the way of achieving Abu
Dhabi's vision of comprehensive development by the year 2030:
1. The study confirmed that Abu Dhabi has seen a year of strong economic growth over the years between:
2009- 2013 at a rate of 9%
2. It is imperative that a processing urban growth resulting from population shifts and demographic
challenges on time by setting a framework characterized by clarity and transparency.
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Organization for the real estate sector laws in the Emirate of Abu Dhabi
2005 2006 2011 2013 2015
Law No. 19
in the real
estate
property Law No. 20 to regulate
Law No. 3 the relationship between
in the landlord and tenant
organizatio
n of real
estate
Law No. 1 on the regulation of
registration residential units and use earmarked
citizens' property
Law No. 11 on
the
organization of
expropriation Law No. 3 in
for public regulating the
interest
real estate
sector
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The real estate professions are closely related to each other.
Therefore, the competent authorities in the Emirate of Abu Dhabi
classified these professions, identified the functions and mechanisms
for registering and licensing each profession, and enacted laws,
procedures, and standards to be followed in practicing these
professions.
Implementing Regulations of Law No.

(3) for 2015 on the organization of the
real estate sector have illustrated
these professions:
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The text of the Law No. 3 of
2015 concerning the regulation
1 •Real Estate Broker
of the real estate sector in the
emirate on real estate 2 •Real Estate Broker Employee
professionals; and explained the
3 •Real Estate Appraiser
details required for the exercise
of real estate professionals in the 4 •Real Estate Developer
emirate executive regulations
5 •Real Estate Auctioneer
issued Decree No. 251 for the
year 2015 from the President of 6 •Director of Owners Union
Municipal Affairs regarding
7 •Real Estate Surveyor
licenses:
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We will explain
and discuss each
The Executive 7-Real profession to
Regulation of Estate
identify its
Survey
6- importance,
Law No. (3) Director or 1-Real
functions, and
of Estate
for 2015 Owners Broker objectives,
Union together with
Regulating Real Estate major
professions in the correct
the Real accordance with
law No. 3 of 2015 methods for
5-Real on the
2-Real practicing each
Estate Sector Estate
organization of
the real estate Estate
Auction sector Broker profession in
states such eer Employee accordance with
professions as the principles
4-Real and standards
follows: Estate 3-Real
Estate applicable in the
Develop Appraiser
er Emirate of Abu
Dhabi:
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1- Real Estate Broker and Real Estate Broker Employee
Real estate brokerage is

important because it
vitalizes the real estate
market and contributes to
the stabilization of prices
in the event of hiring real
estate valuation, without
causing overvaluation or
real estate bubbles.
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The types of real estate brokerage are as follows:
Selling and buying

Real Estates
Leasing and renting

Real Estates
Selling, buying, leasing and

renting Land plots and
properties
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The real estate broker is the point of contact
among clients when they desire to join the real
estate market by means of ownership, rental or
investment.
In order to develop a successful plan to achieve

their real estate targets, the clients seek the
knowledge of a real estate broker well
acquainted with the availability and status of
real estate in the market.
The real estate broker should have the legal

expertise necessary to carry out real estate
transactions.
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The role and duty of the real estate broker is not only to offer
available properties in the real estate market, but also to provide
the legal aspects of the real estate transactions.
The real estate industry reflects civilization growth and

the development of many other industries such as
tourism, construction, banking and finance.
The fundamental rules of the real estate industry include

its own laws and executive regulations, which directly
affect the economic indicators of the country.
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Real Estate Brokerage Law
The real
estate broker
Real estate brokerage law regulates the relationship
The real
estate The real between all parties in the real estate sector, including
brokerage estate the relationship between the client and the real estate
companies client broker, as well as the relationship among real estate
brokers.
Real
Estate
Brokerage These laws regulate the relationship between:
Law
1. The real estate broker and the client
2. The real estate broker and the company
3. The real estate companies and brokers
Launches the word real estate brokerage law on the materials that regulate the profession of real estate
brokerage in Law No. 3 of 2015; and in Article 7 (rights and obligations of the broker);
In implementing regulations materials; such as Article (5) of the Regulations issued in respect of licenses that
describes the requirements for obtaining a real estate broker's license and a natural person and legal entity
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In light of foregoing, the real estate broker
has full responsibility towards the client
through representation agreements signed
by them.
These agreements stipulate all works to be

provided by the client and all commitments
made by the broker against material fees for
a specific time in accordance with the
applicable real estate laws and local
regulations.
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The role of the real estate broker
The role of the real estate broker is limited
to provide an opinion as consultation and
clarification based on his/her knowledge
and experience, without having any
influence on both parties to the real estate
deals (i.e. buyer and seller) in making a
decision, as the decision is made by the
parties and their respective teams.
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Text of the law No. 3 of 2015 in its sixth article regarding the rules of behavior guide. The
seventh article of this law had organized the rights and obligations of the mediator
Example:
In Article 7 paragraph 9 :
It is not allowed for the mediator to achieve
any personal interest in any transaction
carried out by the contractor for the benefit
except for taxis or commission payable
unmatched actions by customers under the
brokerage contract, Broker must be based
briefed contracted posed to all the details
negotiations carried out on his behalf
Ethical rules of the profession of real estate brokerage
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The duty of the real estate broker towards the clients is based on morals and
principles, called brokerage ethics.
Brokerage ethics are based on the following principles:
1- • The interests of the client are the top priority
• The client’s requests are implemented according to the applicable laws

2-
• Full integrity which means that the client depends on the real estate broker who does
3- not receive a commission from a third party without the client's knowledge
4- • Full fidelity and loyalty to the real estate client

• Transparency in disclosure to the client of any information the broker knows
5- regarding the deal
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disclosure of facts that could Integrity

lead to a potential conflict of
interest
professionalism
ensure that the public
respect for the profession Quality of Service
The method of service
performance advice to clients
contribute to preserving the maintain confidentiality

integrity and credibility of
the profession
maintain and protect
Resist the unlicensed customers' assets
activities to practice the
profession should be disclosed to the
customer when the mediator
behavior toward others has other profession
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Thus; the mortgage broker

professional mission is a
dedication to the real estate
customer service within the
permissible laws.
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Real Estate Broker Employee
Is the natural person who works with the mediator by his name to do mediator’s job
Emphasis was placed on the issue of dependency and legal issues arising from the real estate broker,
whether it was a company or natural person, so that it stays in charge of the branch offices, so they must
be supervisor of the office is the mediator employee. The Article (17) of the Regulations for licenses –
have organized supervision of staff in accordance with to the following:
1. The authorized person or party has to supervise the staff on an ongoing basis, and to take all
appropriate and necessary measures and actions to make sure they committed to the law,
regulations, decisions and instructions issued pursuant thereto and any behavior regards
authorized to actively guide
2. The authorized person or party bears civil liability for violation of any act or omission by law,
or executive regulations or executive orders for them by any of its employees, during the
exercise of his business and his job
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2- Real Estate Appraiser
The profession of real estate
appraisal has been practiced by
many categories mostly real estate
brokers until (1980s), when many
economic developments has
occurred causing changes in
property prices by increase,
decrease and collapse in many
states, such as(California, oil states
and north and east states).
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As a result of such changes, one of

the largest real estate financial
institutions (Savings & Loans) was
collapsed for several reasons,
including the defects in real estate
appraisal system.
Therefore, the economic community
realizes the necessity to have
certified real estate appraisers
companies.
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This era has begun
with the regulation
of financial
institutions laws
and increase of
financial accounts
security limits.
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2- Real Estate Appraiser 1- Due to the increased competition
among financial institutions, the
3- the economic and existence of a financial surplus for
political conditions many financial institutions, high
interest rate, long-term mortgage
Real estate did not encourage the
risky investors. loans granted at low-interest which is
prices collapsed, not strong enough to compete with
short-term loans with high-interest
which resulted and pursuing to win the competition,
in the collapse
of many 4- The low oil prices in this
period resulted in the collapse
of real estate prices and the
financial collapse of many financial
institutions deeply engaged in
2- a lot of financial institutions officials,
due to lack of experience or corrupt
institutions, the real estate activity.
management, fell into the trap of funding
many weak-study projects that failed to
which had been study the market status in efficient
manner.
immersed in the Some of these projects can be considered
real estate 5- Due to the change in some tax
laws, such as the abolition of the
as high-risk in the good market conditions
tax incentive on real estate, a
activity large number of investors
disappeared from the real estate
market.
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One of the most important reasons for the

collapse of some of these institutions is
the poor performance of real estate
appraisal (as a result of neglect and lack
of academic controls for appraisal or
deliberate fraud or both) in preparing
real appraisal of properties that
requires loans.
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Prior to the collapse of the US
institutions, Savings & Loans,
none of US state required to
obtain a certificate of expertise
for practicing real estate appraisal
while many loans were granted
by appraisers contracted by
financial institutions on their own
or through the valuation of real
estate brokers.
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However, after the market collapse in 1980s and the collapse of Savings
& Loans, the federal government realized the risks may be occurred
and it became necessary that the real estate appraiser is required to
undergo qualifying courses and obtain certified licenses for practicing
this important activity.
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Real estate appraisal is a specialized and independent profession in the
real estate sector and plays a significant role in funding from financial
institutions. It constitutes an important element for the companies in
charge of preparing economic studies and has deep economic effects and
depends mainly on integrity and impartiality for any party.
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The real estate appraiser relies on several explicit and implied factors, including:
1. the property’s type,

2. location and area,
3. level of region,
4. quality of engineering and internal and external finishing works,
5. supply and demand situation in the region,
6. the property’s function or desired purpose,
7. the possibility of transfer of ownership, and
8. other professional and specialized elements which can only be observed by experienced
specialists in this field.
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 The basic role of real estate appraiser is to estimate the value of real property
such as residential or commercial real estate.
 The purposes of valuation include sale, purchase, insurance, replacement of
parts, and compensation for loss of part of the property, division of property,
financing or completion of property.
 The real estate appraisal deals with many parties such as buyers, sellers,
government institutions, companies or real estate brokers.
 The real estate appraisal expert should be responsible for property appraisals
without any other intervention.
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The expert provides works in the form of "Appraisal Report".
To submit such report, the expert shall conduct a thorough study

to estimate the value of property under appraisal including the
geographical area and the economic situation.
1- be: 2- be: 3- be:

• able to read and • familiar with the • familiar with the
engineering science of building and
In order to understand construction,
perform many of the knowledge to calculation of
determine the construction costs,
duties, legal provisions,
dimensions and costs of maintenance
the expert definitions and physical properties and management of
has to: contracts of property property and estimate
the financial returns of
property.
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In summary, the real estate appraisal expert has to be acquainted with
engineering, survey, economics, accounting, financial management and
finance.
Real estate appraisal is the magic key to the success of any economy of any
country, whether this country is developed or developing as it makes a critical
balance between real estate, financing and economic matters.
This balance will be accurate and realistic as long as it met the transparency
and credibility requirements.
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Specifications of the Real Estate Appraisal
1) An appropriate education qualification (as
required by DMA).
2) A good knowledge of legislations and laws
issued by the official authorities.
3) Full knowledge of the steps necessary for
circulation and transfer of title of real estate
between the seller and the buyer.
4) Knowledge of arithmetic equations in the
real estate market.
5) Knowledge of various real estate
practitioners
6) Ethics and integrity and performing duties
without any disgraceful, immoral or illegal
conducts and having the knowledge and
experience to complete the valuation work
efficiently and faithfully.
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Real Estate Valuation
It aims to collect, organize and analyze market data to answer the questions of
clients as to the real estate properties and values, use the accounting and statistical
valuation methods in addition to the importance of understanding the legal
environment in which transactions take place in the real estate market.
The valuation process

requires many steps in
order to achieve its
objectives.
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• Valuation • Valuation • Valuation
Second:
Third:
First:
by cost by by
calculation. capitalizing comparing
income. sales prices.
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Examples of the use of real estate valuation in the courts:
 Real estate valuation of the assets of real
estate companies for liquidation
 Sorting and retainer own common money
issues as in the case of inheritance and
distribution of estates
 The expert (resident real estate) in cases of consensual work more than one project
to be presented to the parties
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3- Real Estate Developer
Although there is no a specific
definition for "real estate
development", it generally means:
"to implement real estate project and

offer it for sale for the purpose for
making a profit collected from the sales
of this project. The profit simply means
the positive difference between the cost
price and the total sales achieved"
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The real estate developers in the market divide into several categories in terms of the
nature of their dealings with real estate projects. All such categories have common
purposes, i.e. develop and market real estate project and sell it to consumers.
However, the nature of developer dealing with the project affects the project’s
type, size, method of marketing and sale. It is also has impact on the legal form
of property and risks in connection with achievement levels, financing,
delivery and compliance with the specifications.
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There are several types of real the types of developers include the following:
estate developers and vary from
one category to another,
depending on several standards Master developer
and variables related to the
development of the real estate
project itself.
Developer Alliance
However, all categories of
developers are required to
practice development activities
within the framework of
Sub-developer
development concept.
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Concept of Real Estate Development
The "real estate

development" concept
concerns for most of those
interested in real estate as:
"the real estate developer who constructs real estate

of all types, and then offers them for sale in the
market”.
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1. The real estate offered by seller, "contractors" or "real estate
dealers" includes primarily housing and offices, to some extent
the commercial markets, hotels, and hotel furnished
apartments.
2. The architectural forms of these real estate vary between villas,

high towers and low buildings, but almost all have been linked
to the concept of " construction of real estate and offer the same
for sale," whether to the final consumer, real estate speculators
in the real estate market or the real estate wholesale dealers
with the intention to resale to the final consumer.
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The modern form of real estate

development or commercial practices
made by real estate developer is land
development, which means:
 to select a plot, make the necessary drawing (Master Plan), sort into a set of plots
allocated to each building of a particular model, then the developer seeks to sell
these plot either on the basis of area of plot or durable area of building on such
plot.
 This type of development provides a great opportunity for developers to avoid
sudden rises in prices of construction materials on the ground that they are not
comply to construct what sold. Therefore, they may not be subjected to a decrease
of profit or risk due to the high prices of construction materials.
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According to the prevailing practice of what is known as "real estate developer"

which is :
to buy the old real estate at low prices
then
restored it with the intention to sell it at market prices, after the property complies with the
required building specification at the time of sale.
In this case
the developer will benefit from obtaining old or unused buildings in good locations
where the new real estate is highly demanded
The developer can take advantage of getting the best price for the plot on which the old property
is located, especially if the old property funded by official authorities or by people who are not
interested in reconstruction and restoration or they need cash .
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The concept of "development” is to be defined

by government policies in light with its ability to
connect the real estate sector with the overall
development of these governments, and the
ability of governments to direct the real estate
sector trends, without adherence to mere
architectural and construction concepts.
These countries or governments are emerged as

centers for architecture and attracting capital for
real estate speculation and gain profit only.
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Real Estate Developer Structure
Although there are global standards for

operations of corporate restructuring in
terms of sections and departments
working in these companies, the real
estate development company keeps an
unique advantage in this field.
The manager of such company should posses a very large knowledge of all
real estate development, services, and activities engaged by real estate
companies in order to avoid any miscommunication between the sections and
departments. The company structure shall simultaneously achieve functional
integrity in all of its operations.
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Real Estate Development Company
Structure
In light of the strategic thinking of real estate
development company, and the Arab and
international achievements of outstanding real
estate companies, the company organizes its
business through the following departments:
1- Engineering 2- Contracts 3- Investment

Department Department Department
4- Marketing 5- Sales 6- Financial

Department Department Department
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Engineering Department:
this department reviews all engineering
documents related to the project (with the
exception of the technical aspects), such as :
reviewing consultants proposals, reviewing
the primary designs, selecting consultants,
engineering drawings, building designs and
conditions of engineering supervision, and
engineering management of the project.
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Contracts Department:
It reviews all contracts, discusses
The same with suppliers and
supervises the implementation
of the terms of all agreements
signed between the project and
any third party.
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Investment Department:
It includes all acts of economic

feasibility studies, accounts of investors
and customers related to the project.
It provides the necessary consultations

for management of funding sources,
cash flows, accounting systems and
financial audit operations, establishes
investment funds and manages all
forms of financing operations,
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Real Estate
Developer Structure Marketing Department:
It provides consultancy in all works of
marketing and promotion for the project,
both for individuals, groups or investment
bodies, and in all the possible
geographical areas.
It also provides consultancy in design,
launch and management of promotional
and marketing campaigns and related
administrative, financial and advertising
aspects.
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Sales Department:
It includes all sales,

pricing, following-up with
buyers, book keep sale
entries and files, and in
addition to manages the
resale and collections
related thereto.
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Financial Department:
It includes all business
management and financial
transactions and activities in the
project and to ensure a positive
cash flow and cover financial
liabilities in addition to ensure the
rights of all parties in cooperation
with a financial auditor.
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With regard to the big companies, all types of real estate

development management are carried out by a group of
departments and sections within the company itself and / or
outsources third parties to provide some of the necessary
services for project development.
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4- Real Estate Auctioneer
The person registered at the

Municipal Affairs Department and
authorized to sell real estate by
auction.
Auction sale is one of the most famous and oldest methods of sale in all areas whether
this sale is intended for real estate, movable assets, antiques, equipment or confiscated
vehicles.
The auction sales in real estate encompass the sale of land, apartments, commercial,
administrative and educational units, summer resorts, chalets, villas, palaces, hotels,
resorts, residential complexes and other real estate products.
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The auction has many types, including

the most recent e-auction sale which
achieves transparency, speed, saves
time and effort and goes in line with
the twentieth century techniques.
It is clear that auctions is one of the most important and fastest

method of sale and it improve the real estate market.
Besides, it achieves our expectation including credibility, speed of
delivery, time-saving, transparency and confidence.
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The auction may be an ordinary auction in traditional
normal circumstances, such as marketing and sale
methods, or mandatory auction made under a court
judgment as a result of the default of buyers to pay
premiums or payments in a timely manner and not
respond to warnings and deadlines prescribed by law,
such as the cases in the Judicial Department in the Emirate of Abu Dhabi, or
the cases real estate finance companies or banks working in this type of
finance where the units are being sold to the defaulting party through the
real estate agent. This agent completes the sale by mandatory auction or
auctions for defaulting parties in other loans.
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The auction may be public ordinary auction limited to a group of
customers or available to the public by advertising in media such
as newspapers and the Internet.
There is another type of auction which is the
auction for the largest advance payment and
the largest value of premiums and minimum
period.
In such case, the price of units is limited and
the bid is made for the largest advance
payment only in order to maintain the real
estate market, especially in lands and prevent
the occurrence of real estate bubbles.
93
All real estates types mentioned in this

section of the chapter are held for sale
of residential investment lands or the
lands for administrative, commercial
and industrial projects.
The auction sale is made for residential,

administrative, commercial, service, or
professional units, together with the
large, medium or small industrial units.
94
The advantage of auction is to achieve transparency and prevent fluctuations in prices.

There are conditions to guarantee the success of this system because agreements may be
made from some individuals or companies who raise the price or exaggerate auctions for
virtual activation of prices with the purpose of achieving higher prices for the benefit of
the owner of units or some owners of private auction companies.
95
Therefore, we find that the Judicial Department in Abu Dhabi

entrusted Emirates Auctions for holding all auctions at the
Judicial Department and real estate units against which a court
order or ruling issued for forced sale.
96
 While some investors and buyers seek to purchase by
auction as a mean of safe purchase with secure price
and documents, we also do not overlook the role of sale
auction in mortgage and real estate finance through a
real estate agent for defaulting parties, which provides
some opportunities for investors and buyers.
 Legislatures of the drafting auctions laws, orders

and regulations shall take into account the
experiences of others in the Arab, European and
North American countries to find out means and
mechanisms that enact, formulate and
implement auctions in accordance with the
modern developments.
This has made many countries to resort to the e-auction which is the latest ways of
auctions because it achieves transparency and speed and saves time and effort. This is
a modern global trend for governments, companies and individuals.
97
Mechanism and steps for real estate auction sale:

As discussed, the real estate auction sale, either forced or ordinary auction, has certain steps and procedures to
be followed in order to ensure not to make mistakes that may lead to failure in purchase and sale transaction, as
shown below:
1. The 2. The real 3. There are 4. The person wishing
5. If the auction 6. The value
to participate in
company in estate to be conditions to auction shall submit is not awarded, paid is the
charge of sold by forced participate in the banking check at a the check shall ratio of the
certain percentage of
auction shall or ordinary auction which is the value of the be recovered at market
be licensed auction shall be to be a citizen of starting price for the the end of value of
for this type account of the
determined. the United Arab company in charge of auction. property.
of business.
Emirates. auction.
8. After ten days of 10. The Arab

7. If the the date of sale, the
9. The auction may
auction is sale shall be be attended and houses may be
awarded, the announced to the the purchase may owned by
benefit buyer the be represented by auction and the
outstanding auction is awarded. title shall be
third party under a
value shall be The company in
power of attorney issued in the
charge of auction
satisfied shall take the attested by the name of the
within nine registration Notary Public. new owner.
procedures.
days.
98
The auction may be made online in such mean
that allows a large number of persons
participating in the auction without bothering to
attend.
Online account shall be made in the company in
charge of e-auction and a portfolio shall be
made and provided with the necessary amounts
at twenty percent of the market value to the
property under auction.
The bidder shall be notified through the website and e-mail.
99
It is known that the auction period is

determined by a beginning and an end as all
bidders shall be informed. If the auction is
awarded to one of the participants, the
outstanding amount shall be paid within ten
days, i.e. the legal period. And the contract
shall be issued and registered electronically
as well.
Generally, the auctions are intended for various goods, machinery,

vehicles and auto premium numbers and mobile numbers.
100
A- Plots:
F. Large B.
Commercial
industrial units and
units shops
Types of
properties
sold by
auction
E . Medium C.
industrial Vocational
units units
D.
Administrative
units
101
A- Plots:
Plots for Plots for Plots for

Residential Investment
management commercial hotel
plots. plots.
projects. projects. projects.
Plots for Plots for Plots for Plots for Plots for
educational medical industrial agricultural religious
projects. projects. projects. projects. projects.
102
B . Commercial units and shops

It encompass shops and units of all types and functions according to the classification
of buildings and municipality requirements.
C. Vocational units:
Vocational units include light industrial activities, workshops and industrial shops in
various activities and small industries.
103
D. Administrative units:
The administrative units include professional activities such as clinics, law offices,
engineering offices and printing houses.
E . Medium industrial units

The units which are used for supplementary
industries, medium size industries and
aggregate industries.
F. Large industrial units
Rent units for large factories including ready
warehouses and buildings in accordance with
specific activities and areas.
104
In light of the foregoing, it is

apparent that the real estate
auction enhances the real estate
market and paves the way for
great local and international
investment fields and sale to
individuals, local or foreign
companies.
105
5- Director of Owners Union
Under the law, the Owners Union is established upon the registration
of floors plan or complex plan with the Department of
Municipality Affairs.
 Owners Union consists of the developer until the
latter transfers title of a real estate unit or real
estate rights or more in the floors plan or complex
plan to another person.
 Accordingly, the Owners Union composes of total
owners including the developer for unsold real
estate units.
 The membership of the real estate unit’s owner in
the Owners Union begins on the date of transfer
title with the Real Estate Registry and elapses at the
expiry of that right.
106
 The Owners Union is a non-profit organization, has a legal personality
independent from the personality of its members and has the right to litigation
and prosecution of owners of real estate units and tenants and any person
occupying real estate unit if any of them breaches any provision of the law or the
Statute of Owners Union.
107
 Without prejudice to the provisions of this Law, and the regulations thereof, the
Statute and complex or floors management regulations shall apply to Owners
Union.
 The Department of Municipal Affairs shall execute a model of the Statute of
Owners Union and may amend the same from time to time. The developer or
Owners Union may not amend or modify its terms..
108
 An Owners Union may be a member of another higher Owners Union in the same real
estate development project.
 The Owners Union shall be

managed by the Board elected by
the owners in the General
Assembly of the Owners Union.
 The executive regulation shall specify the provisions as to the method of election of its
members and procedures relating to the General Assembly, the right to vote and the
quorum to pass resolutions.
109
Role of Owners Union
Owners Union’s duty is to give opinion and advice to the director of Owners Union, as the
case may be, concerning the management, operation, maintenance and repair of common
parts, according to the main complex regulations.
In this case, the Owners Union shall do the following:
1. Study problems and difficulties related to the
management, operation, maintenance and repair of
common parts, and notified them, and notify director of
Owners Union for any defects in the structural parts of the
common property, and coordination with the director of
Owners Union in all matters relating to safety and
environment, security and other aspects relating to the
common property.
2. Discuss the annual budget proposed by the director of Owners Union to the Department for
projects managed only by them. Owners Union shall select any of its members to represent
the Owners Union before director of Owners Union.
110
Role of Owners Union
3. If director of Owners Union fails to
manage, operate, maintain or repair
the common parts, the Owners Union
shall notify the Department of the
same.
4. Owners Union shall not intervene by
any mean in matters relating to the
management, maintenance, operation
and repair of common parts,
particularly the ballot, vote or holding
meetings to discuss any of these
matters.
111
Who is the
Director of Owners Union?
The person appointed

by the developer or
Owners Union for the
management of the
daily activities of the
Owners Union.
112
Director of Owners Union’s duties and obligations
1. The relationship between the Director of Owners Union and Owners
Union appointed the same shall be like the relationship between the
agent and client based on trust and honesty. The written appointment
shall include an authorization by the Owners Union to the authorities,
powers, duties and functions. Director of Owners Union shall file the
written appointment in representing the Owners Union to the
Department in order to register the appointment in Real Estate
Development Register.
2. Prior to carry out duties as a director of any owners union, the Director of
Owners Union shall obtain a written appointment from the concerned
Owners Union in accordance with the form approved by the Department
of Municipal Affairs. When practicing his/her duty, Director of Owners
Union shall comply with the law, regulations, decisions or instructions
issued thereunder.
113
Director of Owners Union’s duties and obligations
3. Upon the termination of the director’s services, Director of Owners Union shall without any
delay deliver all books and records related to the Union and other information saved
electronically or by other means to the Owners Union or to the new director of Owners
Union.
4. Upon its registration, Owners Union shall use software management and accounting system
to save its accounts and other legal records and shall use forms or documents prescribed
under the law, the executive regulations issued thereunder, statute or any instructions and
other decisions issued by the Department of Municipal Affairs. This software management
and accounting system shall be approved by the Department of Municipal Affairs.
5. Upon its registration, Owners Union shall provide

the Department of Municipal Affairs with the data
related to its affairs in the manner and period
specified by the Department.
114
6-Real Estate Surveyor
The person that is paid for demarcating any real estate for the submission of the
registration at the Department of Municipal Affairs.
Any person undertaking the same activity at any governmental entity shall be
excluded from this definition.
Surveyor’s Role
The surveyor shall handle the work upon the agreement
concluded with the contracting party that specifies the
obligations and duties of the surveyor and the entitled fees
for handling such work. At all events, the surveyor’s role shall
include the demarcation of any real estate and carrying out
full-scale survey in accordance with the standards and criteria
determined by the competent authorities, not to exceed the
realization of the purposes of this Law.
115
 The surveyor shall be committed to conclude

a written agreement with the contract party
upon commencing any surveying activities for
him/her benefit.
 The surveyor shall provide all plans and data
to the competent authorities according to
their ad hoc form.
 The Department of Municipal Affairs has the
rights to use such plans and data provided by
the surveyor.
116
Surveyor’s License
The individual applying for a license to work as a surveyor shall meet the following requirements:
Shall pass the

Shall not be
Shall be convicted of any
required training
course and
resident crime involving
moral turpitude
examinations
prescribed for the
in the or dishonesty nor required licensing,
shall be declared as approved by the
UAE. bankrupt. Department of
Municipal Affairs.
Shall have not Shall obtain

less than three appropriate
years of educational
qualification for each
Real
experience, as
required, in the
activity included in
the license as
Estate
activity determined by the Surveyor
included in such Department of
license. Municipal Affairs.
117
Surveyor’s License
The company applying for a license to work as a surveyor shall be
a company registered in accordance with the Federal Law No. (2)
of 2015 on Commercial Companies.
The commercial company shall meet the following requirements:
2- Shall have a branch 3- Shall have the 4- Its director or any

1- Shall be 5- Shall have
licensed in the member of its board of
licensed and required financial directors shall not enter professional risk
Emirate, if the
capacity according into bankruptcy nor insurance as
registered in the company is licensed
to the standards shall be convicted of a accepted by the
Emirate of Abu in any other emirate crime involving moral
of the United Arab set by the Department of
Dhabi turpitude or Municipal Affairs.
Emirates. Department. dishonesty.
118
119
To keep pace with the rapid change in many
economic patterns, new tools should be
developed to address the economic scarcity
problems. These tools constitute a fundamental
pillar in achieving economic development and
establishing an economic system that fulfills the
individual and social requirements.
The most prominent of these problems is the increased crisis of housing and real estate
in most countries worldwide. For the purpose of overcoming this crisis, "real estate
financing" is emerged as a tool to develop an integrated strategy for monitoring the
causes of the housing problem, working to resolve it and achieving the optimal utilization
of economic resources available.
120
For instance,
It will may serve in benefiting from the
investment of deposits and pensions,
exceeding billions, since they are funds
currently frozen and unused in banks
which means there is potential

inactive productive capacities
Thus; the economic performance is

far away from for the full operation
of these capacities.
121
With growing fears of many experts around the world as to the
current losses suffered by the economies due to the increased
crisis of housing and real estate, it was necessary to have a
mechanism to effectively and clearly contribute to untie the
relationship between the landlords and tenants, so as to
enhance confidence in the real estate investment and increase
demand on owning real estate units.
Therefore, this proposal is submitted to identify the

nature of real estate financing in developed
countries, the significance of real estate financing in
these countries as well as the most important
mechanisms that can be relied upon from an
economic perspective with the development of some
controls and standards for real estate financing.
122
The real estate financing in many developed countries has dominantly
contributed in reviving the construction activity in those countries,
provides various housing units in reasonable installments paid by buyers
on such manner that this installment does not refrain seller from receiving
his/her dues. The seller receives full price as follows:
" part of the price from the advance

payment paid by the buyer and the
rest from the financing entity, which
will collect the outstanding
installments from the buyer after
adding the appropriate interest. "
123
 This system includes advantages that provide housing seekers especially those who are at the
beginning of their career with housing suitable for their life stage on the grounds that they shall
pay the price in installments according to their financial abilities at the time of contracting.
 It usually happens that the financial abilities of young people upgrade to higher level and then
seek to new housing matching with this change.
 Thanks to financing, housing seekers can find new appropriate housing with the confidence that
his/her house shall be delivered to financing entity he/she deals with in order to receive a new
unit consistent with his/her developed aspirations.
124
In other words,
the concept of real estate financing is:
 the investment financing in purchase, construction, renovation or improvement

of administrative housing and units, service facilities and commercial shops.
 it guarantees the preferential right on the property or formal mortgage or other
guarantees accepted by the financing entity in accordance with the rules and
procedures prescribed by the real estate financing regulations.
125
This system involves three main parties:
1) The original owner or
financing
seller who set up the unit
entity
2) the buyer or the
"investor", as called
the buyer under law drafting in
or the
"investor" some real estate financing
The experience, who buys the
original unit, and
owner or 3) "financing entity" who
seller finances on behalf of the
buyer or investor the full
price for the seller
126
This system works mainly to:
 divide the biggest part of the sold property’s price into
installments. It is applicable in the Civil Law of most
countries worldwide.,
 In this regard, the real estate financing avoids slow
procedures in the Civil Law and develops quick provisions
and procedures for the implementation against the
property guarantor if the investor, buyer, fails to pay
installments due by the same.
 This achievement is the real success of the new real estate
financing system. if the implementation against the
property guarantor is not so quick and the financing party
receives its dues, the benefit of project will be lost and the
real estate market cannot be developed .
127
The importance of banks and real estate
financing institutions, development of legal
regulations and facilities that provide real
estate funds and study means of financing
citizens seeking to borrow to buy real estate
are widely recognized.
It is noted that some banks has recently announced the provision of loans and
personal facilities for citizens to buy residential plot,
while the announcement emphasizes the importance of establishing a real estate

development company that takes the initiative to construct housing and sell them to
citizens through financial facilities provided by banks and real estate financing
organizations, rather than individual sale and purchase of lands.
128
In fact, Citizens needs
to be provided with
housing, not
speculation in lands.
This stage requires solidarity and collaboration between
banks and real estate financing organizations with
each other to find a coalition that achieves equation to
finance real estate and urban development companies
beginning to take part of the real estate economy.
129
 This approach will bring many benefits, Including work within corporate vision for
the important economic sector in the GCC where investment and financial returns
can be gained.
 Concurrently, This approach eliminates the random practices made in the design and
construction of housing units and structural, service and maintenance problems
suffered by housing in some GCC, e.g. Saudi Arabia.
 This approach will find and support the establishment of new companies competing
to participate in construction and development.
130
The big aim here is to support and activate the role of
banks and financing institutions that are able to provide the
required facilities,
and simultaneously develop and
activate the necessary tools for repay
loans and debts to companies and
individuals in real estate lending,
supported by the development of regulations and legislations

ensuring the rights, responsibilities and duties of all partners.
131
The banks and financing institutions are required to
play active role to provide real estate development
companies and institutions with financial liquidity
and ensure easy collection of amounts borrowed
and find some kind of institutional relationship
between the financing party, developer and
borrower.
This active role will encourage

developers to pay more attention to
the real estate product.
The upcoming stage aiming to develop constructions, set up houses, eliminates

random housing and dispersion of urban and architectural identity:
requires the developers to develop various areas for residential units

according to the society’s needs and financial capabilities.
132
Therefore;
The role of banks and financing institutions is to :
I. provide loans for these projects, grant
loans to individuals to buy housing,
II. develop mechanisms that ensure
repayment of loans.
Therefore, two fundamental goals will be achieved, i.e.

1. building housing complexes with all required facilities and
services, and
2. providing the appropriate financing for it.
133
 Today we are in an urgent need to
support banks and financing
institutions in their positive role in
this field,
 address all the regulations and
procedures hindering this role and
provide contractual guarantees fair
to the contracting parties, i.e. banks
and financing institutions,
developers and the beneficiary.
 We also need to utilize the real
investment on properties on land,
rather than the land itself.
134
The commercial banks at the moment are the most
financial brokers that provide services to the public.
For instance,
these banks own Should there a
scarcity and deficit in
and operate the Moreover, these the budgets of these
largest amount banks represent
the vital symbol of banks, a significant
of assets and increase in This role does not draws
the government's unemployment and
convert the economic policy, more surprise and
same into other especially financial an economic attention, because the
slowdown as well as banks' deposits are the
financial policies. inflation will be working capital, required
institutions. resulted. by the public, which turns
into a mean to determine
the price of goods and
services in economic.
135
Also This role
The governments deal with

banks as a key supporter of
the budget : responds to the increased
debt payable by the The significant
• where there is an urgent need to consumer to the bank. The
cover expenses that cannot be paid
long-term or short-term
mutli-tasking role of
by income taxes under the state
legislation. loans or deposit or treasury banks constitutes
• Through its accurate and specialized bonds services and credit the main income of
management and cooperation with cards provided by banks their budgets and
financial institutions and other meet the consumer’s
commercial banks, the banks form (clients) needs including other services
the comprehensive strength to deal cars, furniture, and other provided by them.
in the stock market and bond
market. household stuff.
136
Mortgage Insurance Definitions:
The mortgage is:
to retain a right that may

against be met from
funds those funds.
137
As for the mortgage insurance, the subject matter of
this study and in accordance with Article 1399 of
the UAE Civil Code and Law No. (3) of 2015
Regulating the Real Estate Sector in the Emirate of
Abu Dhabi, it is provided that:
“a mortgage is a contract under which a creditor
shall acquire real right on a real property
earmarked for settlement of his debt and such
right shall entitle to him having priority over
ordinary creditors as well as creditors
subsequent to him in the rank of priority”
138
It is a contract under which the creditor is entitled to the

mortgaged funds to settle his/her debt with in rem right or
contractual benefit having priority over ordinary creditors as well
as creditors subsequent to him in the rank of priority.
139
 The mortgage insurance is a contract entered into by and
between the debtor mortgagor and the mortgagee
creditor.
 The mortgagor is the original debtor and may be a third
party (real guarantor).
 The contract gives subsequent right in rem, i.e. mortgage,
to the creditor.
 The mortgage is imposed under the contract made by the mortgagor and
mortgagee and subsequent right in rem which entitles the creditor to have
priority over other ordinary creditors and mortgagee subsequent to him/her in
the rank and subsequent to the property mortgaged by third party.
140
o The mortgage is an in-kind insurance that
entitles the creditor with priority over ordinary
creditor in the settlement of his/her dues from
this insurance.
o The creditor with in-kind insurance does not

have only the right of priority, but it also has
the droit de suite.
o If the owner of in-kind insurance sells the the right of priority,

mortgaged property, the creditor is entitled to the droit de suite
follow and settle his/her right from the buyer.
(the right to trace)
141
Real Estate Financing Definitions:
Real estate financing is economic, social and environmental
integrated system aiming to achieve comprehensive development
of society through specific specialized roles.
Real estate financing is designed to provide cash

liquidity to the buyer to complete the following:
1. Purchase of residential or administrative units,
shops or service facilities.
2. Establishment of residential or administrative
units, shops or service facilities.
3. Repair and maintenance works.
4. improvement and development works and
decoration.
142
4-
Business
men and
investors
5-
Securitizatio
3- n companies
Insurance (conversion
companies of real estate
Real debt into
Estate bonds).
entities
are :
Real Estate 1- Main parties,

including buyers
2- Parties in seeking to achieve
Financing charge of the above, sellers
and financing
construction parties (financing
Definitions: companies and
banks).
143
Real Estate Financing :
Real Estate Financing Organization requires the following:
Relevant regulatory higher authority to be responsible for the overall
organization of the real estate financing system and to identify the
different roles of this system
Financing companies and banks
Real estate appraisers

Real estate brokers
Fund to support and warranty the real estate financing
activity and assist low-income people
Real estate agents for forced sales
144
Real Estate Financing Authority
It is a high authority which has a leading role in the real estate financing. It
is responsible for preparing general policies, supervising, monitoring and
authorizing all real estate financing such as:
1. Real estate
2. Real estate
financing
appraisers.
companies.
3. Real estate 4. Real estate

brokers. agents.
5. Financial 6. Supervision of
auditors in real the support and
estate financing warranty real estate
companies. financing fund.
145
Real Estate Financing Companies
1. the companies that finance the purchase,
construction, improvement and development of real
estate.
2. These companies report to
Real Estate Financing
Authority and shall be
managed by professionals
who have academic
qualifications and experience
necessary for practicing this
significant activity.
146
Insurance Companies
The financing party may
require the buyer to make
an insurance policy with an
insurance company by at
least 50% against the risks of
the buyer’s failure to meet
his/her financial obligations
due to the disability or
death.
147
148
Since the real estate sector follows
a modern approach, and
possesses an increasingly global
and diverse system, many terms
and expression are widely used.
Everyone interested in the real estate sector, and everyone

practicing a real estate profession, should be familiar with these
terms in order to keep up with real estate development and
progress. Several of these terms are listed herewith:
149
1- Property Speculation:
Means the real estate properties that brokers traded in favor of the owners seeking to
buy for a specific period and resell within a short time depending on the profit offered by
the new buyer. This transaction usually leads to a significant rise in real estate prices -
sometimes exceeding its actual value - and becomes a threat to the real estate market in
the region.
2- Due Interest:
Means every accumulated and unpaid interest. Some borrowers
calculate the interest on the same amount of interest; this is called
compound interest.
3- Real Estate Developer:
A modern term referring to the companies or individuals who
construct buildings and villas with the purpose of selling them to end
consumers, speculators or real estate investors in the market.
150
4- Durable Gross Area:
Gross durable areas in square meters or feet, usually measured by measuring the
area of a building’s roof, multiplied by the number of floors in this building. In
case of irregular buildings, there are different ways to calculate this area.
5- Master Plan:
Means the general plan for a specific area designed to construct buildings with
various uses on it. The Master Plan usually shows the nature of land, green
areas, water areas, and streets; distribution of buildings on the land and
general specifications for buildings such as the nature of use, height, total area
of a building, and other general construction and architecture specifications of
the described area.
6- Total Area:
This area is commonly used to measure the areas of apartments in buildings
and means the total area per floor, i.e. the total area of apartments added to
areas of services such as area of pathways, area of elevators, and area of
staircases.
151
7- Net Area:
Means the area used by an owner per apartment
in the floor, i.e. area of apartment from inside
without calculating pathways, elevators, and
staircases on the floor where the apartment is
located.
8- Coverage Percentage in Plot:

Means the percentage in the durable area
on the plot, i.e. the percentage of durable
area on the plot to the total area of land.
152
• It is a special term used by large real estate developers that buy large plots and design
a general plan indicating the nature of buildings on an area of this plot. For example,
the developer describes the building in a way indicating that the building will be
constructed on a specific area with a total durable area of one thousand feet. The 9- Off-plan Area:
developer then sells this area at the price per foot of the proposed building on this
plot.
• Laws permitting the sale of real estate property on the plot for 10- Property-on-
foreigners. Under these laws, foreigners do not own the plot, but
own the existing buildings on this plot. Plot Sale:
• An order issued by the Municipality Organization Department to remove
certain buildings because they hinder the general organizational process for
the region. The official authorities usually compensate the owner of the 11- Expropriation:
property or plot that is expropriated for the purpose of organization.
• An agreement entered into between two or more parties to sell or buy a 12- Sale
property. In all cases, the agreement shall be attested by an official
authority such as the Notary Public, Land Department, or any official entity. Agreement:
153
• Means the interest rate imposed by the lender on the borrower. This rate shall be
calculated annually based on the remaining amount of the loan, not on the entire loan 13- Diminishing
for all years. Interest Rate:
• Means the interest rate calculated on the basis of multiplying the loan value by 14- Fixed
interest rate by the loan period. Fixed interest is usually used in Islamic lending. Interest Rate:
• Means the assessment and estimation of the value of property. A real estate appraiser shall have experience and 15-Real Estate
knowledge of real estate prices, specifications, conditions, and lifespans. In many countries, no report is granted
except for the official real estate appraisal report or that which is approved by an official department. Appraisal:
• Property assessment for the purposes of tax, sale or purchase or as determined by the
tax assessor or the appraiser approved by the owner, mortgaging bank or potential 16- Expected
Value:
buyer of the property.
154
Assets:
Investment Income:
Liability Agreement:
• Any real estate or • Whole or • Agreement • The percentage of
movable property partial transfer the annual net
having value,
to bear income realized by
of one's share
such as lands, Assignment: in real estate
responsibili the property in
comparison to the
houses and other property to ty for a total cost of this
property (fixed other person debt or an property. To be
assets), as well or entity in obligation considered useful
as money, property and a good
consideration contracted investment, this
mortgage bonds,
and cheques of any amount by a third income should
signed by a third or in the form usually range
of grant or party. between 10-15% per
party (current annum.
assets). donation.
155
23- Beneficiary:
22- Bankruptcy: 24- Bond or
21- Balance Sheet: The beneficiary of a
Mortgage
Legal action taken by benefit, profit or
Statement of interest. With respect to Coverage:
financial status of the court to declare the real estate lending,
individual or the debtor's status the beneficiary is used to Bond document
company shows the being unable to pay determine the party whereby a plot
its debts. The Court towards which the and/or real estate
assets, financial trustee is committed,
liabilities, and liquidates the which is often the lender
unit is provided as
anticipated income. debtor's assets to pay or the person guarantee against
its creditors' claims. recommended for the loan.
benefit.
156
25- Good Faith: Action made in good
faith. It means the good intention of the
doer of such action without undeclared
intentions.
29- Broker-Buyer Agreement: An agreement between the 26- Broker: Means a person who mediates
buyer and broker whereby the broker undertakes to work for between the parties and assists in negotiations
the benefit of the buyer and exert his/her best efforts to find a between the contracting parties in
suitable property for the buyer in consideration of a consideration of a commission or
commission paid by the buyer upon purchasing the property. remuneration.
28- Construction Restrictions: Regulations 27- Construction Code: A set of

and regulatory laws for the region to ensure regulations providing the
that the building meets the requirements for architectural standards of the
health and safety of the population. construction in a city, town or region.
157
30- Historical 31- Freehold 32- 33-Closure
Title Title: Closure:
Records: Costs:
Property that is free Closing Pending Deeds: The costs resulting from a
A chronologically The final step in the real estate transaction,
ordered list for of any application transaction where the including the costs for
registered entries of a for mortgage or documents are signed, property inspection and
the money is insurance, attorney fees,
plot or a particular debt, which can lending service charges,
exchanged, and the title
property. blemish the title. is transferred. and entry transfer taxes.
158
• Authorization or
restriction
associated with • Promise or set of • A written
the transfer of promises considered to document
ownership to be be an agreement • The title of whereby the title
between two or more property is
determined in parties to do and refrain of property is
advance upon from doing certain things transferred from transferred from
occurrence of a or a binding agreement one person to one person to
between two or more
particular event. parties.
another. another.
Title Transfer Transfer of Deed of Title

Contract: Transfer:
Clause: Title:
159
Document including the date of credit to a person
or organization. 38-Creditor
document:
A person owing a debt or obligation to pay a claim.

39-Debtor:
A written document whereby the interest on property is

transferred from a person or entity to a third party.
40- Deed:
Warranty document used in the transfer of interest of the title beneficiary including the
trustee or borrower, and the trustee (in most cases, an organization, always a neutral
party). The deed undertakes to ensure that the trust or shall repay all of its obligations. 41-Warranty
Deed:
160
43-Deferred Payments: 44- Claim: The term is used in
42- Deed of Entries: Payments are payable the pending deed to determine
Entries regarding throughout a long the financial compensation
property use are period of time or required to implement the
deferred to a specified waiver of a right, mortgaged
written in this deed. money, interest or right in title.
date in the future.
45- Receipt of Security Deposit: A

written document including a 46- Depreciation: Depreciation
final purchase application of a in the value of property,
property, and receipt of security whether actual depreciation or
deposit from the buyer. It is also caused by taxes only
known as a purchase agreement (depreciation may be caused by
or purchase application. tax exemptions).
161
47- 48-Payment 49- 50-
Advance upon Sale
Payment: Clause: Deposit: Easement:
Part of the The clause in a Part of the property's

property's price warranty document price paid to show The right to
paid by the buyer providing for good faith and use a
upon signing the provide a warranty
automatic loan agreement. It is particular
contract under repayment upon
which the buyer sale or transfer of
usually paid prior to benefit in
contract signing and
declares its property formal conclusion of the property
intention to buy the
property.
ownership. the agreement. of someone
else.
162
• The right to increase the property's price
51-Right to Increase: in accordance with a rise in prices.
• Written agreement between the owner and agent whereby the

52-Exclusive Agency agent is authorized with the right to sell the property exclusively
Agreement: within a specified period of time.
• Written agreement between the owner and broker whereby the

53-Exclusive Right for broker is granted with the exclusive right to sell the property. If
Sale: the property is sold during the prescribed term of agreement,
the broker shall be entitled to the commission agreed upon.
• Mutual agreement granting an additional period to

54-Extension Agreement: complete the transaction. This agreement shall be
executed in writing.
163
56- 57-Sale under 58- Graduated
55-Fixed-Rate
Payment
Mortgage: Attachment: Attachment: Mortgage:
Mandatory A type of fixed-rate

A mortgage procedure whereby
Mandatory sale of mortgage in which
property that has the payment
that has a the property is sold
been mortgaged increases gradually
fixed interest under the terms and
against the loan. The from the beginning
conditions of the
rate for the lender shall execute of the mortgage
warranty deed,
such kind of sale if period until
entire term of which provides that
the borrower fails to specified limit in the
this property shall
loan be mortgaged under
make payments final years. It is
under the agreed sometimes called a
repayment. attachment if the
upon terms. "Graduated
loan is not repaid.
Payment Plan."
164
59- Grant: 61- Reserve
• An effective
60- Total Account:
word in the Income: • An account to 62- Expenses
title transfer which the and Revenues
in a Grant • Total borrower
Deed or income deposits Statement:
transfer. prior to payments for
Generally, it the annual Detailed statement
means the
any taxes and/or showing the revenues
transfer of deductio risks’ realized by the
the property's n. insurance, property in addition
usually at the to the expenses
interest under
request of the resulting from dealing
a deed. with that property.
lender.
165
63-Property 64- 65-Lending 66-
for Installment Institution: Promissory
Investment: Loan: Note Interest
Only:
A promissory note
A property A loan that is repaid A bank, insurance
to pay the interest
purchased to in regular payments company, or any
only during its term.
provided that the commercial lending
increase income principal along with company that
The principal due
through leasing shall be paid in lump
the interest shall be makes loans for real
and operating. sum basis at the end
paid in full. estate properties.
of term.
166
68- Plot: 69- Real Estate Sale
67- Bridge Loan: Contract:
A property free and clear
A short-term loan of any improvements, It is also known as a Conditional
until the borrower Sale Contract and Sale Contract
unless these whereby the title is held by the
is given a loan later. improvements are seller until the buyer fulfills certain
prescribed. conditions set forth in the Contract.
71- Borrowing: 72- Liquidate:

70- Promise to Sell Contract: An idea to take advantage of To turn properties or fixed assets,
An option giving the tenant the right to including plot, equipment or real
purchase the property if he/she desires another’s money to realize
benefits in owning a property. estate properties, into cash either
the same, provided that specific
conditions are fulfilled. This idea is widely spread in by sale or mortgage against cash.
real estate transactions.
167
73- Penalty Clause: A sum agreed upon in the contract to
satisfy or compensate against the breach of such contract.
74- Broker-Owner Contract: A written

contract between the owner and broker
75- Sorting Land: Means to
whereby the broker is authorized to sell or rent legally divide or sort a land
the owner’s property in consideration of
compensation. into plots.
76- Maintenance: Continuous 77- Markup: An amount of money
maintenance works, such as painting, added by the lender to the total amount
cleaning and renewal of property and in order to determine the ratio of
equipment to remain in renewable and adjustable mortgage in case of modifying
useful condition. the same.
168
A method used in appraisal upon which the price of house
or property is determined through comparison to a
property similar to the property sold recently. 78-Market Data Processing:
The price offered by the seller to the buyer

without pressure being exercised upon any of
them. 79- Market Price:
The date on which the debt becomes due
to the creditor. The debtor shall pay such
debt to the creditor on the said date.
80-Maturity Date:
A warranty document signed by the parties
whereby the property is mortgaged as
collateral to meet the obligations.
81- Mortgage:
A creditor or
lender who seizes
the concerned
property against
the fulfillment of 82-Mortgagee :
obligations by the
mortgagor.
169
83- Mortgagor: 84- Negotiable:
A debtor or Transferable between
borrower who the parties either by
endorsement or
mortgages the
trading for the
property as landlord within a
collateral to meet normal business
the obligations. transaction.
85- Negotiable 86- Negotiation:

Instrument: A process that
A document whereby an seeks to bring
unconditional promise or
order to pay a certain ideas together
amount of money is between two or
given to the holder or more parties in
under order to particular
person on a specified order to reach a
date or upon request. decision.
170
89- Notary Public:
A government official
authorized to make
87- Net Income: declarations, attest particular
The remaining amount documents, take affidavits,
of real estate revenue and make other special civil
transactions.
after deducting
expenses and fees.
88- Attestation:
Means to confirm the effectiveness of a document
under a certificate issued by the Notary Public or a
declaration.
171
90- Notary Public's Seal or Stamp:
An official seal made by the Notary Public or any other official authority.
91- Promissory Note:

A financial document that includes a promise to pay a sum of money on a specified future
date.
92- Notice of Default in Payment:

A registered notice stating that the trustee failed to meet his/her obligations mentioned in
the agreement.
172
93- Session of Sale 94- Official 95- Adjustable
Notice Mortgage: 96- Right of
Records:
The intention of Option:
Also called an
the creditor to sell Records in which adjustable title An option, right 97- Option
required property all transactions deed, an adjustable or opinion to Holder:
because of the relating to real mortgage is a clause take or not to
failure to pay at a estate, including whereby the A person who
public auction at borrower may apply take a specified
transfer of title, enjoys a legal
the highest price. for loans while action at any
are kept within option.
This intention shall maintaining the time, as in the
the Records same guarantees
be announced case of renting or
Department of and security
under specified buying property.
instructions. the Municipality. documents.
173
101- Property
Insurance
100- Policy:
Performance A contract providing
or the coverage of any
99- Real Estate Fulfillment: losses resulting from
Property: a defect in the
Complete insured property, or
An exclusive fulfillment of any obligations
right to the owed on that
98- Option Writer: benefit and promises and property.
A person who gives right of option to deposal of commitments.
the option holder. The option writer is
committed to the decisions of the
property.
option holder during the period on
which the right of option is exercised.
174
102- Official Power of 103- Private Mortgage 104- Promissory Note:
Attorney: Insurance:
A document whereby a person,
A document
called the attorney, is authorized Insurance by a private establishing the
to act on behalf of another company to insure the payment of a sum of
person. The power of attorney lender against any losses
shall be duly registered with the
resulting from the
money at a specified
Notary Public in order to be valid
in real estate transactions. borrower's default. time in the future.
105- Purchase Loan: 106- Purchase Order: 107- Real Estate Broker:
A written document A person who is licensed in
A loan that is granted Property Affairs and registered
providing that the end
upon purchase at the buyer's request is confirmed
with the official authorities,
total amount, or a which keep records of brokers.
and the deposit is paid. It is Such person undertakes to
portion of the total also called a purchase or comply with the ethics and
amount, of the purchase. insurance agreement. standards of this organization.
175
109- Registration
108- 110- Registration 111- Interest-free 112- Refinance:
Office:
Registration/ Data: Loan: To borrow again
Record: A government
Number of files and A type of loan in for mortgaged
office that keeps pages that keep the Islamic Sharia under
An official real estate
all real estate official registration, which a sum of
submission of a and the page number already owned,
transactions - money is given to
document to be (called registration or for the purpose
including power record number), as set
the borrower, who
recorded in the shall repay the loan of repaying the
of attorney, by the city registrar.
files of the Registration is recorded without adding any current financing
instruments, and
Registration by day and hour and is interest on the and maintenance
mortgage - in a written on the page.
Office in the city. borrowed money. of cash, if any.
special record.
176
113- Negotiable Mortgage Rate:
A mortgage whereby the interest rate is subject to negotiation
periodically, usually every three or five years.
114- Request for Mortgage Funds Recovery:

A written will from the beneficiary to the trustee requesting to
recover the mortgaged real estate in the event of loan repayment.
115- Right of Way:

A right that is given by the landlord to another person or entity to pass along his/her
land.
116- Secondary Finance:

A secondary mortgage or security in terms of priority for the first
mortgage or security. It is also called the initial commitments.
177
117-Secondary 118- Estate 119- Title 120-Transfer
Agreement: Taxes: Examination: Tax:
• A clause • Fees • Examining • A tax

whereby a estimated and imposed by
new according to
agreement is
searching in the province,
the plot titles for city or state
permitted to property's
take a higher a specific in case of
value and property for
priority and paid to the property title
replaces an the purpose
government of extracting transferal.
existing or
simultaneous
rather than a record for
agreement. service fees. this
property.
178
• An activity carried out by a competent person • Any real estate loan in which the
to assess the property's price, whether a interest rate varies with the passage
building or plot of land. The appraisal uses a
set of standards and rules on which he/she
of time under a specific form or
establishes his/her appraisal, such as location several conditions. The interest rate
of property, rental returns, age of building, 122- usually varies due to economic
potential borrowing to attain property 121- changes. It is also called an adjustable
mortgage, and other standards.
Valuation Variable rate mortgage.
Rate
/ Mortgage
Appraisal :
123- 124-
Purchase Covered
Bond/ Mortgage
Warranty: or Security:
• An undertaking or promise for lack of • A mortgage or security instrument that
certain damage or for repair of such ensures repayment of a security
damages, if any, on a property instrument at higher value or earlier
subject to sale or purchase. instrument. It is also called an entirely
comprehensive mortgage.
179
125- Region Regulations:
Instructions given by the government to control use of lands

and real estate according to certain laws and regulations
determined by the competent authorities in the region, such
as land sorting regulations, determining heights, and
identifying permitted types of real estate.
180
181
The following table includes all licensing and registration fees and forms
and fees for certificates and accreditations issued by the Department
of Municipal Affairs, on the organization of the real estate sector
issuance fees:
Schedule of fees in accordance with the Executive

document issued by the Head of the
Department of Municipal Affairs Decree No. 247
for the year 2015 according to Law No. (3) for
the year 2015 concerning the regulation of the
real estate sector in the emirate of Abu Dhabi
182
Sr. Service Charges (AED)
License / renewal of the principal developer license, including registration in the

1 50,000
Real Estate Development Register.
License / renewal of the sub-developer license, including registration in the Real
2 25,000
Estate Development Register.
Approval and registration of real estate development project (new) in the Real
Estate Development Register; including registration and deposit of plans in 150,000
3
connection with development, division, and management systems (floors/ Per project
complex / building), as applicable.
Approval and registration of real estate development project (existent) in the Real
Estate Development Register; including registration and deposit of plans in 50,000
4
connection with development, division, and management systems (floors/ Per project
complex / building), as applicable.
Registration and approval of the escrow agent with the Department and
5 75,000 one time only
registration with the Real Estate Development Register.
6 Issuance of approval certificate to open an escrow account for the project. 5,000 per account
Registration of Project Escrow Account Agreement in the Real Estate
7 1,000 per agreement
License / renewal of the broker, corporate entity; including registration in the
8 10,000
9 License / renewal of the broker, natural person; including registration in the Real 5,000
183
License / renewal of the agent, natural person; including registration in the Real Estate
10 2,500
License / renewal of the Real Estate Auctioneer, corporate entity; including registration in the
11 10,000
License / renewal of the Real Estate Auctioneer, natural person; including registration in the
12 5,000
License / renewal of the Manager of Owners Association, corporate entity; including
13 10,000
registration in the Real Estate Development Register.
License / renewal of the Manager of Owners Association, natural person; including registration
14 5,000
in the Real Estate Development Register.
License / renewal of the Real Estate Assessor, corporate entity; including registration in the Real
15 10,000
License / renewal of the Real Estate Assessor, natural person; including registration in the Real
16 5,000
License / renewal of the Real Estate Surveyor, corporate entity; including registration in the Real
17 10,000
License / renewal of the Real Estate Surveyor, natural person; including registration in the Real
18 5,000
Issuance of permit to announce the marketing of real estate development projects, through local 1,000 per marketing campaign
19
or foreign media, to promote the sale of off-plan real estate units. of one month or less.
License for the promotion and marketing of real estate development projects to promote the sale
20 1,000 per month
of off-plan real estate units.
184
Permit to participate in local real estate development exhibitions to promote the sale of off-plan
21 1,000 per exhibition
real estate units.
Permit to participate in foreign real estate development exhibitions, inside or outside the UAE, to
22 2,000 per exhibition
promote the sale of off-plan real estate units.
License to organize a real estate project inauguration ceremony to promote the sale of off-plan real
23 5,000 per ceremony
estate units.
Registration of a real estate brokerage agreement between the broker and agent in the Real Estate
24 500 per agreement
Development Register (including the main or sub-agency agreement).
Registration of a real estate brokerage agreement to market a real estate development project
25 1,000 per agreement
between the real estate developer and broker in the Real Estate Development Register.
1:1,000 of the mortgage value,

26 Registration of Mortgage Insurance in the Interim Real Estate Register or Real Estate Register. not exceeding two million
dirhams per transaction.
Registration of request for Transfer Mortgage Rights in the Interim Real Estate Register or Real
27 200
Estate Register.
Registration of deed of assignment for mortgage degree in the Interim Real Estate Register or Real
28 200
Estate Register.
Registration of deed of mortgage redemption in the Interim Real Estate Register or Real Estate
29 1,000
Register.
1:1,000 of the mortgage value,
30 Registration of deed of mortgage insurance in relation to Musataha agreement. not exceeding two million
dirhams per transaction.
185
1:1,000 of the
mortgage value,
Registration of deed of mortgage insurance in relation to
31 not exceeding two
usufruct agreement.
million dirhams
per transaction.
1:1,000 of the
mortgage value,
Registration of deed of mortgage insurance in relation to
32 not exceeding two
long-term lease agreement.
million dirhams
per transaction.
Registration of entries modification for mortgage insurance
33 or mortgage in relation to (Musataha, usufruct and long-term 200
lease).
186
- In the case of sale, 2% of the

property's value on equal basis
between seller and buyer, not
exceeding two million dirhams per
transaction.
Registration of dispositions made on real estate
- In case of grant: 2,000 dirhams if
34 off-plan units in the Interim Real Estate
the grant is made to assets,
Register.
branches, spouses, and corporate
entities fully owned by them.
Otherwise, the grant fees shall be
the same as the sale fees.
- In case of will, 2,000 dirhams
187
- In case of sale,
1,000 dirhams
Registration and transfer dispositions made on real estate off- - In case of
35 plan units from the Interim Real Estate Register to the Real grant, 200
Estate Register. dirhams
- In case of will,
100 dirhams
1,000 dirhams per
36 Registration of Owners Union in the Real Estate Register. owners
association.
Issuance of a certificate to claim the money deposited in the
37 500 per certificate
project escrow account.
Request for modification submitted in accordance with the 500 per
38 provisions of the Executive Regulation with regard to the modification
project escrow account. request
188
189

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1

Tourist housing including hotels, and hotel apartments

Administrative or commercial housing intended for commercial or

This sector includes the following:

A-Stations: B- Roads, bridges, and C- Networks:

Power stations Internet networks

publishing houses, and

2005 2006 2011 2013 2015

Implementing Regulations of Law No.

Real estate brokerage is

Selling and buying

Leasing and renting

Selling, buying, leasing and

In order to develop a successful plan to achieve

The real estate broker should have the legal

The real estate industry reflects civilization growth and

The fundamental rules of the real estate industry include

These agreements stipulate all works to be

Ethical rules of the profession of real estate brokerage

1- • The interests of the client are the top priority

• The client’s requests are implemented according to the applicable laws

4- • Full fidelity and loyalty to the real estate client

disclosure of facts that could Integrity

contribute to preserving the maintain confidentiality

Thus; the mortgage broker

As a result of such changes, one of

One of the most important reasons for the

1. the property’s type,

To submit such report, the expert shall conduct a thorough study

1- be: 2- be: 3- be:

The valuation process

• Valuation • Valuation • Valuation

Examples of the use of real estate valuation in the courts:

 Real estate valuation of the assets of real

estate companies for liquidation

 Sorting and retainer own common money

issues as in the case of inheritance and

to be presented to the parties

"to implement real estate project and

The "real estate

"the real estate developer who constructs real estate

2. The architectural forms of these real estate vary between villas,

Concept of Real Estate Development

The modern form of real estate

According to the prevailing practice of what is known as "real estate developer"

The concept of "development” is to be defined

These countries or governments are emerged as

Although there are global standards for

Real Estate Developer Structure

1- Engineering 2- Contracts 3- Investment

4- Marketing 5- Sales 6- Financial

It includes all acts of economic

It provides the necessary consultations

It includes all sales,

Real Estate Developer Structure

Real Estate Developer Structure

With regard to the big companies, all types of real estate

The person registered at the

The auction has many types, including

It is clear that auctions is one of the most important and fastest

All real estates types mentioned in this

The auction sale is made for residential,

The advantage of auction is to achieve transparency and prevent fluctuations in prices.