Buying and selling property in Dubai can be a little complicated if you aren’t aware of the procedures, legal obligations and documents required. Due to the tremendous number of real estate transactions in Dubai, RERA (Real Estate Regulatory Agency) has several definitive forms that must be used in common scenarios. Here’s a detailed look at the various RERA forms in Dubai for property-related transactions.
WHAT IS RERA?
RERA is the regulatory arm of the Dubai Land Department, which regulates and authorises the real estate sector in Dubai. These unified RERA forms in Dubai standardise the process and ensure that all real estate transactions are transparent and fair. If you are planning on buying or selling property in Dubai for the first time, here are some of the real estate firms in Dubai you should know about.
IMPORTANT RERA FORMS IN DUBAI YOU NEED TO KNOW ABOUT
Take a look below at some of the most common Dubai Land Department forms that buyers, sellers and agents use in real estate transactions in Dubai.
FORM A – Agency Contract Agreement/Listing Form
This is one of the very important RERA forms required for selling a property. Once a seller has found the agent who would like to advertise their property, the seller and listing agent must sign RERA Form A. Clauses in RERA form A include:
- An outline of the agreement between the seller and the listing agent.
- Details of the property include financial information, service charges, mortgage status and payment schedules.
- Details regarding how the property will be marketed. The seller is not authorised to advertise the property on any portal without a written agreement.
After Form A has been signed, it will be approved by the DLD’s Trakheesi system, which will assign the property advertisement a permit number.
It’s important to note that the broker must get the seller’s details when the property is being listed for sale.
If two or more people jointly own the property, they must sign Form A by RERA.
Another essential aspect of RERA Form A is that a property owner can only complete three Form A at a time and deal with a maximum of three brokers (with one for each broker), according to RERA.
FORM B – Buyer’s Agent Agreement
On the other hand, if you are buying property in Dubai, then the RERA Form B is needed. This is also necessary if you purchase offices for sale in Dubai.
This is one of the RERA forms that must be signed when the buyer appoints an agent to find a property for sale. It’s essential to appoint a RERA certified real estate agent who can show you the properties based on your requirements and budget.
The information in RERA Form B must include all the necessary data such as property type the buyer is interested in, the location of the property for sale, the buyer’s budget and requirements of the buyer.
It should also include the terms of contract termination, compensation percentage and agency commission.
As per RERA law, the buyer holds the right to terminate this agreement unilaterally for a specific reason. If such a situation arises, the buyer needs to fill out a Form U with a detailed description of the reason for terminating further cooperation with the agent.
You can find a list of professional real estate agents in Dubai on the Bayut property portal.
FORM I – Agency agreement
Form I is an agreement between two agents who act on behalf of the buyer and the seller. The form protects the rights and lists of the agent and the agent’s clients. Form I also ensures a professional relationship between two or more agents.
Form I is mainly applicable when several agents are involved in one joint transaction concerning the sale or lease of a property.
FORM F – Contract of Sale
The RERA Form F, otherwise known as the Memorandum of Understanding, is one of Dubai’s most important real estate firms. Form F by RERA Dubai is the purchase agreement between the seller and the buyer. The form is signed once the buyer has chosen the property and a price has been decided on between the two parties.
If you plan to buy one of the apartments or villas for sale in Dubai, you will need to have this form to complete the transaction.
The Dubai Land Department Form F will outline everything from property and financial details and the commission to be paid to seller’s and buyer’s agents.
However, it’s important to note that Form F by RERA is only a valid contract after it has been signed by the seller and the buyer and witnessed and dated by the agent.
This is one of the mandatory RERA forms in Dubai for any real estate transaction to be carried out.
FORM U – Notice of Cancellation of the Agreement
RERA Form U in Dubai is the official agreement cancellation notice for both parties. The buyer or seller can unilaterally terminate the contract with the broker by signing a copy of Form U. In such a case, it is the only legally accepted way of termination of the contract.
Under the regulations in Form U, the real estate agent must be notified of the agreement termination in written form. The reason for termination and the date of the contract termination is also required.
FREQUENTLY ASKED QUESTIONS
WHAT ABOUT RERA CONTRACTS FOR RENTAL PROPERTIES?
For rental properties, the most important contract to be aware of is the Ejari tenancy contract in Dubai, which was mandated by RERA to standardise all rental contracts in Dubai.
Ejari is a legally-binding document that acts as proof of the validity of your tenancy contract and is required to get DEWA, internet and phone connection in your new home.
Since the Ejari rental contract in Dubai will also state the rental price agreed upon, it protects the tenant’s rights as landlords will not be able to illegally hike up the rent later on. More information is available Ejari tenancy contract.
WHY ARE RERA FORMS IMPORTANT?
RERA Forms are essential because without completing these forms real estate transactions will not be fulfilled. This could lead to consequences for all parties involved.
That concludes our guide to the important RERA forms in Dubai that buyers, sellers and tenants should know about. Planning on buying a home in Dubai? Find out all the costs of buying property in Dubai that you may not know about, such as fees for the transfer of the property, no-objection certificate and more.
If you’re renting an apartment or villa in Dubai, you can use the RERA rental increase calculator to check possible rent increases or average rents in your area right now. Tenants should also be aware of the RERA tenancy laws in Dubai if they face any hindrances in attaining a rental property.
There are several Arabic real estate terms that are commonly used in the property market. These refer to common real estate procedures and systems in the UAE that everyone should be aware of.
