In the United Arab Emirates, the regulation of all processes related to real estate is carried out using RERA forms, which protects participants at the legislative level.
Agreement Types
There are several types of documents governing real estate transactions in Dubai:
- A (Agency Agreement) – The Agency Agreement is concluded upon the sale of real estate between the agency and the owner. It specifies the major financial aspects, terms and conditions. Once signed, it must be approved by the Trakheesi DLD system, which assigns a unique number to the advertisement for the sale of a residential or commercial property. According to the legislation, the owner is only entitled to conclude three agreements of this type.
- B (Buyer’s Agent Agreement) – The Buyer’s Agent Agreement is the contract between the buyer and the real estate agent who will subsequently offer the client several properties to choose from and purchase. To terminate such agreement, a person is to complete the RERA U form.
- I (Agent-to-Agent Agreement) – The Agent-to-Agent Agreement is signed between two real estate agencies representing a seller and a buyer. This agreement is necessary to protect the rights of both parties.
- F (Purchase and Sale Agreement) – The Purchase and Sale Agreement in Dubai is signed only after the person has made up his/her mind about the real estate object and is willing to purchase it. The agreement is to set forth the cost, terms and conditions of the residential or business premises purchase. The agreement is deemed legal and only has legal force upon both parties signing it.
- U (Termination of the Contract) – It is only the seller or the prospective buyer of the property in the UAE who can terminate the contract. Moreover, this contract is to indicate the reason for termination and reimburse the previously agreed compensation to the company employee/employees.
Any of the above agreements is to set forth all the terms and conditions of such agreement, remuneration, terms of services, compensation, type of the agreement, etc. down to the smallest detail.
Rental Property
RERA in Dubai is the major real estate regulator. However, in the UAE, it is not only for the sale or purchase that agreements are entered into, there are lots of individuals and businesses that rent residential and commercial premises. When drawing up a contract, the tenant is to register it through the Ejari system. Documents registered with Edjari legalize the relationship between the landlord and the tenant, act as a ‘regulatory element’ in disputable situations.