Dubai RERA Property Registration & Ownership question: Arabian Ranches villa to a good-faith buyer

Dubai RERAProperty Registration & Ownership

Rashid owes a supplier AED 900,000 when he sells his Arabian Ranches villa to a good-faith buyer, and the sale is registered at the DLD. The supplier says the sale cannot bind him. Under Article 9 as amended in 2019, what is the position?

A The sale binds the supplier only if he consented to it in writing before registration
B The registered sale binds everyone, unless it was intended to harm the supplier
C The sale has no effect against the supplier until Rashid's debt is paid in full
D The sale is void, because an indebted owner may not dispose of his real property

Show the answer and explanation

Answer: B. The registered sale binds everyone, unless it was intended to harm the supplier

Article 9(b) of Law No. 7 of 2006, as substituted by Law No. 7 of 2019 (in force 12 Oct 2026), makes registered dispositions that create real property rights effective against all persons even if the disposing party owes a third party, unless the disposition is intended to be detrimental to that third party, and without prejudice to good-faith persons. Rashid's debt alone does not defeat the registered sale. Nothing requires the creditor's consent or prior payment of the debt; the only exception is a sale aimed at prejudicing the creditor. Source: Law No. (7) of 2006, Art. 9(b), as substituted by Law No. (7) of 2019 (in force 12 Oct 2026).

Common mistake

Thinking an owner's unpaid debts stop a registered sale binding his creditors, when Article 9(b) protects it unless it was meant to harm them.

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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.