Dubai RERA Property Registration & Ownership question: owner's liability under Law

Dubai RERAProperty Registration & Ownership

The owner of a Jumeirah Park villa signs an undertaking to transfer it to a buyer, then refuses to attend the DLD transfer. The undertaking says nothing about compensation. What is the owner's liability under Law No. 7 of 2006?

A He must pay a fine of double the DLD fee on the agreed price
B He can be ordered by the court to complete the transfer at the DLD
C He is liable only to pay the buyer an indemnity for the breach
D He owes the buyer nothing, as the undertaking sets no compensation

Show the answer and explanation

Answer: C. He is liable only to pay the buyer an indemnity for the breach

Article 10 of Law No. 7 of 2006 (in force 12 Oct 2026) limits the liability of an obligor who breaches an undertaking to transfer a real property right to paying an indemnity, whether or not the undertaking provides for one. The buyer therefore has a damages claim, not a right to have the transfer forced through. The silence of the undertaking on compensation does not remove the indemnity, and the double-fee fine belongs to fee evasion under ECR No. 30 of 2013, not to a refusal to transfer. Source: Law No. (7) of 2006, Art. 10 (in force 12 Oct 2026).

Common mistake

Assuming the buyer can compel the transfer, when Article 10 confines the remedy to an indemnity.

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Study note: Property Registration & Ownership (Law 7 of 2006)Dubai RERApractice questions & mock exams

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Original study material mapped to the public exam domains; not a real test question.Independent. Not affiliated with DLD, RERA or DREI. Verify figures and rules against current guidance before relying on them.