{
    "entity_type": "page",
    "name": "Jointly owned property: practice questions in the style of the DLD broker exam",
    "url": "https://continentalclub.ae/dld-broker-exam-practice/jointly-owned-property/",
    "language": "en",
    "description": "Study jointly owned property for the Dubai broker exam: service charges, liens, developer warranties, Oqood and escrow rules.",
    "published_at": "2026-10-27T21:38:03+00:00",
    "updated_at": "2026-10-27T21:38:03+00:00",
    "publisher": {
        "name": "Continental Club Property LLC",
        "orn": "31933",
        "url": "https://continentalclub.ae/"
    },
    "faq": [
        {
            "question": "What law governs jointly owned property in Dubai?",
            "answer": "Law No. 6 of 2019 governs jointly owned property in Dubai. It replaced Law No. 27 of 2007 and applies from 18 November 2019."
        },
        {
            "question": "Who pays service charges when a unit is rented?",
            "answer": "The owner remains responsible for service charges, even where the unit is leased and the tenant has not paid the owner."
        },
        {
            "question": "Can a unit be sold with unpaid service charges?",
            "answer": "A lien may be placed on the unit for unpaid service charges. The unit cannot be sold or transferred until the debt is paid."
        },
        {
            "question": "How long is the developer warranty for defects in Dubai?",
            "answer": "Structural defects are covered for 10 years from the completion certificate date. Mechanical, electrical, plumbing and sewage systems are covered for 1 year from handover."
        },
        {
            "question": "How much money is retained in escrow after project completion?",
            "answer": "The escrow agent retains 5% of the total escrow account amount after the completion certificate. It is released to the developer one year after units are registered to purchasers."
        }
    ],
    "markdown": "https://continentalclub.ae/dld-broker-exam-practice/jointly-owned-property.md",
    "content_md": "This topic tests whether a broker understands the legal framework for jointly owned property, including common areas, service charges, Management Entity responsibilities, liens, developer warranties, and the related rules for off-plan registration and escrow. Questions may combine legal concepts with practical calculations, such as allocating service charges by unit area.\n\nIt matters in daily brokerage work because unpaid service charges can restrict a transfer, owners remain responsible for charges even when a unit is leased, and buyers need accurate guidance on warranties and common-area obligations. In our 30-question training simulation, this topic accounts for approximately one question based on the experience of our brokers; DLD does not publish an official topic-by-topic exam format.\n\n## Jointly owned property and Management Entity\n\nLaw No. 6 of 2019 governs jointly owned property in Dubai and replaced Law No. 27 of 2007 from 18 November 2019. It applies to buildings where units are owned by different owners.\n\n- The former Owners Association framework was replaced by the Management Entity under Article 49.\n- A Management Entity insures the building, and insurance premiums form part of the service charges.\n- Disputes under Law No. 6 of 2019 fall within the jurisdiction of the RDSC.\n- A co-owner has a pre-emption right over a share: there are 30 days to accept, followed by registration at DLD within 10 working days.\n\n## Service charges and unpaid amounts\n\nService charges fund the maintenance of common areas. Each owner pays a share based on area. The developer pays charges for unsold units and for sold units where it has accepted that obligation in the contract.\n\n- If a unit is leased, the owner remains liable for service charges even if the tenant does not reimburse the owner.\n- For exam calculations: annual service charge = area × rate. Balcony treatment depends on the question; where the balcony is charged at 25%, use balcony area × rate × 25%.\n- Example: 1,500 sq ft × AED 15 + 200 sq ft × AED 15 × 25% = AED 23,250 per year.\n- Under Article 32, non-payment may result in a lien over the unit. The unit cannot be sold or transferred until the debt is paid.\n- The payment demand allows 30 days; enforcement may then proceed through an RDSC centre judge, with a possible auction.\n\n## Developer warranties, escrow and off-plan registration\n\nDeveloper warranties under Article 40 of Law No. 6 of 2019 cannot be reduced by agreement.\n\n- Structural defects are covered for 10 years from the completion certificate date.\n- Mechanical, electrical, plumbing and sewage systems are covered for 1 year from handover of the unit. If the owner refuses handover, the period runs from the completion certificate date.\n- Buyer funds for each off-plan project must be held in a separate escrow account.\n- Under Article 14 of Law No. 8 of 2007, the escrow agent retains 5% of the total account amount after the completion certificate and releases it to the developer one year after units are registered to purchasers.\n- An off-plan sale or other disposal must be entered in the Interim Register through Oqood; without registration, it is void.\n\n## Sample questions with explanations\n\n*Questions are paraphrased in the style of the exam; they are not official DLD questions.*\n\n### 1. A 300 ft by 400 ft plot is co-owned in a 3:5 ratio. What area belongs to the first owner?\n\n1. 75,000 sq ft\n2. 45,000 sq ft\n3. 15,000 sq ft\n4. 30,000 sq ft\n\n**Show answer and explanation**\n\n**Answer: B) 45,000 sq ft**. The total area is 300 × 400 = 120,000 sq ft. The first owner’s share is 3 out of 8 total parts, so 120,000 × 3/8 = 45,000 sq ft.\n\n### 2. Following a project’s completion certificate, what proportion of the total escrow account amount must remain retained for one year after units are registered to purchasers?\n\n1. 5%\n2. 2.5%\n3. 10%\n4. 15%\n\n**Show answer and explanation**\n\n**Answer: A) 5%**. Article 14 of Law No. 8 of 2007 requires the escrow agent to retain 5% of the total account amount. It is released to the developer one year after unit registration to purchasers.\n\n### 3. Which description best matches jointly owned property?\n\n1. A building or plot divided into separately owned units with identified common areas\n2. A building wholly owned by one company and rented to tenants under annual leases\n3. Government-held land reserved for future development\n4. Several villas whose owners share one bank mortgage\n\n**Show answer and explanation**\n\n**Answer: A) A building or plot divided into separately owned units with identified common areas**. Jointly owned property concerns property in which different owners hold separate units and common areas are maintained for shared use.\n\n### 4. A unit has an internal area of 1,500 sq ft and a 200 sq ft balcony. The rate is AED 15 per sq ft, while the balcony is charged at 25% of that rate. What is the quarterly service charge?\n\n1. AED 6,375\n2. AED 23,250\n3. AED 25,500\n4. AED 5,812.50\n\n**Show answer and explanation**\n\n**Answer: D) AED 5,812.50**. Annual charges are (1,500 × 15) + (200 × 15 × 25%) = AED 23,250. Dividing by four quarters gives AED 5,812.50.\n\n### 5. Which law currently regulates jointly owned real property in Dubai, replacing Law No. 27 of 2007?\n\n1. Law No. 7 of 2006\n2. Law No. 13 of 2008\n3. Law No. 8 of 2007\n4. Law No. 6 of 2019\n\n**Show answer and explanation**\n\n**Answer: D) Law No. 6 of 2019**. Law No. 6 of 2019 replaced Law No. 27 of 2007 and governs jointly owned property from 18 November 2019.\n\n### 6. What is the required role in relation to common areas in a jointly owned building or community?\n\n1. Sell the common areas to unit owners\n2. Lease the common areas back to the developer\n3. Manage, operate and maintain the common areas\n4. Mortgage the common areas to a bank\n\n**Show answer and explanation**\n\n**Answer: C) Manage, operate and maintain the common areas**. Common areas require management, operation and maintenance. Service charges exist to fund the maintenance of these shared areas.\n\n### 7. What document must be obtained before an off-plan unit is assigned to another buyer before its transfer into the land registry?\n\n1. A ruling from the Rental Disputes Centre\n2. A fresh DLD technical inspection report\n3. Written consent from the escrow-account trustee\n4. A No Objection Certificate issued by the developer\n\n**Show answer and explanation**\n\n**Answer: D) A No Objection Certificate issued by the developer**. An off-plan resale or assignment requires the developer’s NOC. The developer is aware of the new owner because it issues that NOC.\n\n### 8. Which item would not be treated as a common area in a jointly owned building?\n\n1. Shared corridors, entrance lobbies and staircases\n2. A parking bay allocated exclusively to one unit owner\n3. Building lifts, lift shafts, roof and access driveways\n4. Resident gardens, swimming pools and gym facilities\n\n**Show answer and explanation**\n\n**Answer: B) A parking bay allocated exclusively to one unit owner**. A parking space assigned to one particular owner is not a common area. The other listed facilities are used collectively by residents or serve the building as shared infrastructure.\n\n### 9. Which facility is typically connected with a Master Community?\n\n1. Waterways and bridges\n2. Parking areas and storage rooms\n3. Lobbies, lifts and swimming pools\n\n**Show answer and explanation**\n\n**Answer: A) Waterways and bridges**. For this question, waterways and bridges are the facilities associated with a Master Community.\n\n### 10. Before a developer can seek provisional deregistration of a purchaser who missed instalments, how long must have passed since the purchaser received, or declined to receive, the warning without making payment?\n\n1. At least 14 days\n2. At least 7 days\n3. At least 90 days\n4. Not less than one month\n\n**Show answer and explanation**\n\n**Answer: D) Not less than one month**. The e-service condition is that the developer’s warning was received, or its receipt was refused, at least one month earlier and the instalment remains unpaid.\n\n### 11. Which fund should a property manager include when preparing a budget for variable property-management expenses?\n\n1. Asset interest account\n2. Cash control account\n3. Floating allocation fund\n4. Cash reserve fund\n\n**Show answer and explanation**\n\n**Answer: D) Cash reserve fund**. The relevant budget item is the cash reserve fund.\n\n### 12. After an off-plan contract is terminated because the buyer defaulted, when must the developer return the remaining amount under Article 11 as amended by Law 19/2020?\n\n1. Within two years after termination, or when the project is handed over\n2. Within 90 days after the buyer requests it\n3. Within one year after termination, or within 60 days after resale, whichever comes first\n4. Within 30 days after termination in every case\n\n**Show answer and explanation**\n\n**Answer: C) Within one year after termination, or within 60 days after resale, whichever comes first**. The remaining amount is returned within one year from termination or within 60 days after the unit is resold, whichever occurs earlier.\n\n### 13. Who bears responsibility for units in a building that remain unsold?\n\n1. The Owners Association Manager\n2. The facilities manager\n3. The buyer’s bank\n4. The developer\n\n**Show answer and explanation**\n\n**Answer: D) The developer**. The developer is responsible for unsold units. Under Law No. 6 of 2019, this includes service-charge responsibility for those units.\n\n### 14. In which type of property leasing is a percentage-based method commonly used?\n\n1. Shopping malls\n2. Villas\n3. Hospitals\n4. Government buildings\n\n**Show answer and explanation**\n\n**Answer: A) Shopping malls**. The percentage method in this question is associated with shopping malls.\n\n### 15. Under Law No. 13 of 2008, what is the legal status of an off-plan sale that has not been recorded in the Interim Register?\n\n1. It remains valid but cannot be enforced against third parties\n2. It is effective for 90 days before expiring\n3. It is void\n4. It is valid if the developer gives written consent\n\n**Show answer and explanation**\n\n**Answer: C) It is void**. Article 3(1) requires off-plan sales and other dispositions to be entered in the Interim Register. If they are not registered, they are void.\n\n## Common exam traps\n\n- Confusing the 10-year structural warranty with the 1-year warranty for mechanical, electrical, plumbing and sewage systems.\n- Using the full balcony area at the full rate when the question states that the balcony is charged at a reduced percentage.\n- Giving the annual service charge when the question asks for a quarterly amount.\n- Assuming a tenant becomes liable for service charges simply because the unit is leased; the owner remains liable under the law.\n- Assuming that a unit with unpaid service charges can still be transferred; a lien prevents sale or transfer until the debt is paid.\n- Confusing the 5% escrow retention after completion with other percentages relating to off-plan payments or project progress.\n\n[Practise “Jointly owned property” in the free exam trainer](/dld-broker-exam-practice/?topic=JOP#ex-app) · [Take a mock exam: 30 questions, 60 minutes](/dld-broker-exam-practice/)\n\n## FAQ\n\n### What law governs jointly owned property in Dubai?\n\nLaw No. 6 of 2019 governs jointly owned property in Dubai. It replaced Law No. 27 of 2007 and applies from 18 November 2019.\n\n### Who pays service charges when a unit is rented?\n\nThe owner remains responsible for service charges, even where the unit is leased and the tenant has not paid the owner.\n\n### Can a unit be sold with unpaid service charges?\n\nA lien may be placed on the unit for unpaid service charges. The unit cannot be sold or transferred until the debt is paid.\n\n### How long is the developer warranty for defects in Dubai?\n\nStructural defects are covered for 10 years from the completion certificate date. Mechanical, electrical, plumbing and sewage systems are covered for 1 year from handover.\n\n### How much money is retained in escrow after project completion?\n\nThe escrow agent retains 5% of the total escrow account amount after the completion certificate. It is released to the developer one year after units are registered to purchasers.\n\n## All DLD exam topics\n\n- [Real estate mathematics](/dld-broker-exam-practice/real-estate-math/)\n- [Real estate concepts and systems](/dld-broker-exam-practice/real-estate-concepts/)\n- [Laws and legislation](/dld-broker-exam-practice/laws-and-legislation/)\n- [Sale brokerage agreements and property sales](/dld-broker-exam-practice/sale-brokerage-agreements/)\n- [Jointly owned property](/dld-broker-exam-practice/jointly-owned-property/)\n- [Rental and rental disputes](/dld-broker-exam-practice/rental-and-disputes/)\n- [Property valuation](/dld-broker-exam-practice/property-valuation/)\n- [Code of ethics for brokers](/dld-broker-exam-practice/code-of-ethics/)\n- [Registration of transactions, taxes and fees](/dld-broker-exam-practice/registration-and-fees/)\n- [Mortgages](/dld-broker-exam-practice/mortgages/)\n\n## Continental Club Broker Academy\n\nWant to start your broker career with a Dubai brokerage that trains its own team? [Learn about the Academy](/academy/).",
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