Selling & Buying Guideline

All real estate agencies & agents should be registered with RERA & be listed on their broker’s list. If this is not the case then the real estate agency or agent could be a fraud & is trying to get your money. Always be careful and check if your broker is listed with RERA before any money changes hands. Furthermore, real estate agents are not entitled to charge a fee to show you around properties in Dubai. Their fee is paid only once they have successfully rented the property to a tenant. That’s what the agent’s fees are for.

The role of RERA is regulatory; it also provides basic services to safeguard the rights of landlords & tenants and to regulate the leasing process by registering the tenancy contract. In case there is a violation or dispute between contract parties, the case must be referred to lease dispute committee in Dubai Municipality.

When renting a property or properties in Dubai, it is really important to be aware of the extra costs that you may pay. Firstly you pay the rent with postdated cheques. Sometimes landlords will require the entire rental amount to be paid in advance in one cheque while other landlords will allow PDC's for 2, 3, 4, 6 or 12 cheques. You also can negotiate the number of cheques you will pay, however the rental price may increase with more number of cheques.

Secondly, you will need to pay the agents fee. This is not regulated by law, but usually it would be 5% of the total lease amount or AED5000, whichever amount is higher. The agent will recover a fee from both the tenant and the landlord.

Thirdly, the tenant will have to give a maintenance deposit in advance. This is refundable which the landlord may use in order to restore the property to what it was like before he rented it out to you as a tenant. This would be 5% of the total rental amount. According to Article 20 of the law regulating the relationship between landlords & tenants (Law no. 26 of 2007);

An additional cost is setting up your DEWA account, which needs to be paid at the DEWA office, this will require a refundable deposit of AED 1,000 for an apartment and AED 2,000 for a villa.

And finally you need to register with Ejari. This authority is responsible for regulating the relationship between the landlord & the tenant and all rental contracts should be registered with Ejari. Registration costs AED160.

According to article 9 of Law no. 33 of 2008 that amends a law regulating the relationship between landlords & tenants say that, “The Committee shall specify the similar rent in accordance with the standards of specifying the rent increase percentage applied by the Agency and in accordance with the general economic circumstances in the Emirate and pursuant to the property status the similar market rent in the same area and in accordance with any valid legislation in the Emirate regarding properties’ rent and any other factors the Committee may decide.”

Dubai rental increase is regulated by the government rental increase calculator and can be increased only by the amount that the calculator stipulates. For example if you are living in an area and your rent is well below the current market value, the landlord will be able to increase your rent.

Please note that rent cannot be increased more than 20%, no matter how far below the market value you’re currently renting. Do not let your broker or real estate agency bully you into increasing the rent. The law is on your side & the rental increase calculator stipulates the exact amount that your rent can be increased by.

If the landlord wishes to increase your rent, he must let you know 3 months before the expiry date of the contract and vice versa. You can amend the contract at any time before the contract could expire, however both parties should agree to the amendment. This is in accordance to Article 14:

“If either party of the tenancy contract wishes to amend any of its conditions pursuant to Article 13 of this Law, then he/she must notify the same to the other party not less than 90 days prior to expiry date, unless both parties agreed otherwise.”

The rent indicator is for guidance & not mandatory. However it is considered mandatory when dispute between the contracting parties arise to determine the rate of increase in rental value at the contract renewal.

Nowadays, many of the landlords are issuing notice to vacate to their tenants saying that they wish to sell the property. Many renters/tenants are in the dark about this notice, which has caused much confusion in Dubai.

However The Notice to Vacate must be a twelve month notice and it must be Notarized & sent via Certified Mail on the proper form. As per articles 25 and 26 of Law no. 33 of 2008 that amends some of the provision stipulated in the law regulating the relationship between landlords & tenants stipulate the terms of eviction.

Article 25:

1. A landlord may demand eviction of tenant prior to expiry of tenancy period in the following cases:

  • If a tenant fails to pay the rent amount, or part thereof, within thirty (30) days of landlord’s notification for payment; unless both parties agreed otherwise
  • If tenant subleases the property, or part thereof, without landlord’s written approval & in such case eviction shall be applicable to the tenant and the subtenant and the subtenant’s right to refer to tenant for compensation shall be reserved.
  • If tenant uses, or allows others to use the property for illegal or immoral activities.
  • If the leased property is a commercial shop & the tenant left without occupation and without legal reason for 30 continual days or 90 non-continual days in one year; unless the parties agreed otherwise.
  • If tenant causes changes that endanger safety of the property in a way that it cannot be restored to its original condition or if he/she causes damage to the property intentionally or due to his gross negligence to take proper precautions or if he allows others to cause such damage.
  • If tenant uses the property for purposes other than the purpose it was leased for or if he/she uses the property in a way that violates the planning, building and land using regulations.
  • If the property is in danger of collapsing, provided that landlord must prove such condition by a technical report issued by Dubai Municipality or accredited by it.
  • If tenant fails to observe legal obligations or tenancy contract conditions within thirty (30) days from date of notification by landlord to abide by such obligations or conditions
  • If development requirements in the Emirate require demolition & reconstruction of the property in accordance with government authorities instructions.
And for the purpose of this clause (1) of this Article the landlord must notify the tenant through the Notary Public or by a registered mail.

2. The landlord may demand eviction of tenant upon expiry of tenancy contract limited to the following cases:

  • If owner wishes to demolish the property for reconstruction or to add new, constructions that prevent tenant from benefiting from the leased property provided that necessary licenses are obtained.
  • If the property requires renovation or comprehensive maintenance which cannot be executed while tenant is occupying the property, provided that a technical report issued by Dubai Municipality or accredited by it is to be submitted to this effect.
  • If the property owner wishes to recover the property for use by him personally or by his next of kin of first degree provided that he proves that he does not own a suitable alternative property for that purpose.
  • If the propertyowner wishes to sell the leased property
And for the purpose of clause (2) of this Article, landlord must notify the tenant with reasons for eviction at least twelve months prior to the determined date of eviction subject that such notice be sent through the Notary Public or by the registered mail.

Article 26:

If the Committee decided for landlord to recover the property for his own use, or use by his first degree next of kin pursuant to the provision of paragraph (c) of clause (2) of Article (25) of this Law, then landlord shall not rent the property to others for at least two years for residential properties and three years for non-residential properties from date of recovery of the property, unless the Committee decides less period for reasons considered by it, otherwise the tenant shall have the right to request the Committee to order proper compensation to him.

And finally Article 28 or Law no. 26 of 2007 protect the tenant from early eviction should the landlord decide to sell the property. “The transfer of title to a new landlord shall not affect tenant’s right to continue occupation of the premises in accordance with tenancy contract signed with the previous owner, provided that tenancy contract has fixed date.”

The answer is, yes, ONLY if: both parties agree to the amendment and it is notified to the party in writing 90 days prior to expiry of the contract RERA Law 33, Article (13): For the purpose of renewing tenancy contract, landlord and tenant upon expiry of the tenancy contract may amend any of the contract's terms or review the rent whether by increase or decrease. If the parties don't reach an agreement regarding this, the Committee may decide fair rent considering the standards referred to in Article No. (9) of this Law.

Article (14): If either party of tenancy contract wishes to amend any of its conditions pursuant to Article (13) of this Law, then he must notify the same to the other party not less than 90 days prior to expiry date, unless both parties agreed otherwise.

And the answer is No.

In the present judgment, the Appeal Department of the Rental Dispute Center (RDC) emphasized the importance of United Arab Emirates public policy & regarded this clause to be in breach of such policy. Article 25(2) of the Tenancy Law lays down the four limited grounds whereby a landlord can demand eviction of the tenant upon expiry of the tenancy contract and any other ground would not be acceptable to RDC.

The answer would be No.

RERA only recognizes a notice to vacate the property, if it is done as defined by the Dubai law.
A proper notice to vacate would be:
The Notice to Vacate must be 12 month notice AND
The Notice to Vacate must be Notarized and sent via Certified Mail on the proper form.

The answer would be Yes.

Notice to vacate can be sent at any time. A legal notice to vacate is:
Notice to Vacate must be a twelve month notice AND
The Notice to Vacate must be Notarized & sent via Certified Mail on the proper form
In your case, he/she sent it after you renewed your tenancy agreement therefore, once your renewal is up, he will need to give you a new tenancy agreement for the remaining months.
For e.g., you renewed your tenancy agreement for one year starting on May 1, 2014. Your landlord sent you a legal notice to vacate on July 1, 2014. Legally, you have the right to stay in the property until July 1, 2015.

As Law 33 of 2008 Article 25(2) of the Tenancy Law provides 4 grounds, the 4 grounds are as follows:

  • If the owner plans to demolish the property for reconstruction or add new constructions that prevent tenant from benefiting the leased property, provided that necessary licenses are obtained.
  • If the property requires renovation or comprehensive maintenance which cannot be executed while tenant is occupying the property, provided that a technical report issued by Dubai Municipality or accredited by it is submitted to this effect.
  • If the property owner wishes to recover the property for use by him personally or by his next of first degree relations provided that he proves that he does not own a suitable alternative property for that purpose.
  • If the owner of that property wishes to sell the leased property.

Law 26 of 2007, a Landlord may sell their property during a running tenancy agreement. In any case, the tenant has the privilege to possess the property till the tenancy contract ends.

Best practice manages that if a leased property is to be sold, the seller ought to give a duplicate of the present tenancy contract to the Sales Listing Agent and guarantee that a 'Special Condition' clause be embedded into the agreement by the Agent. This would detail the requirement for having the Landlord (the Seller) and the Tenant give a 'Property Condition Report' determining any issues and an exchange of the Tenant's security deposit from the old Landlord to the new Landlord and alarming the Tenant to the same.

Yes, foreign ownership is allowed in Dubai. As of in 2002 Dubai's crown prince issued the Freehold Decree, formal legislation that permitted foreigners to buy, sell & rent or lease property at their own discretion.

The law was intended to expand international investment & show the emirate on the global map.

Dubai's property business sector is performing exceedingly well. As indicated by many Global Forecasters. Anticipated price growth is 10-15 %, setting it in front of Asian markets, for example, Beijing and Shanghai. "The essentials of the property business sector stay solid. The economy has been developing and the conjecture is idealistic," says Bharat Kumar, Marketing Director, Propertyfinder.ae.

A resurgent property market and vibrant economy also translate into steep rental hikes and escalating costs, prompting residents to ask themselves the big question: would it be advisable for me to purchase? The answer to this is would be, "If you look purely at the financials, it does make sense to purchase a home in Dubai."

We are putting forth a far reaching real estate in Dubai. Whether you are buying or selling a property in Dubai, we are accessible here to guide you through every progression of the buying or selling procedure with a group of profoundly gifted and devoted experts focused on meeting your advanced needs.

No, Buyers are not required to have any UAE bank account to buy a property in Dubai.

No, Dubai is a tax free city! There is also benefits from business taxes, except in the banking industry.

So as to deal with buying a property in Dubai the purchaser must be more than 21 years old.

The initial step to purchase a property in Dubai is making a verbal correspondence to the dealer. At the point when this is acknowledged, a formal deals contract is drafted and conceded to both the parties; a deposit is made, the buyer arranges the finance, the dealer guarantees that the property is not hampered by anything that conflicts with the state of understanding, last payment is made or a payment game plan is solidified, and at last the deed is traded.

There are somewhat distinctive arrangements of convention relying upon whether one buys property from a developer, called an "off-plan" buy, or buys property from a private seller, called a "resale" buy.

It ought to be noticed that in many cases, a seller will require that an expat has been "pre-endorsed for home financing" before signing the sales contract.

There is transaction cost included relying upon the type of transaction. Transaction fees are, however not constrained to:
A) Title Transfer fee is 4% for Dubai Land Department while buying a property
B) Real Estate Commission fee would be 2%
C) Closing Cost - Approx. AED 4000 to AED 5000
D) Maintenance fee, which cover the upkeep of the building, gardens and shared offices. This fluctuates starting with one developer then onto the next. The above is not legal advice and as property laws may change all the time expats considering purchasing property in Dubai ought to first look for fitting lawful counsel.

It is easy and conceivable to get mortgage from banks and all provide mortgages with minimum 25% to 30% initial down payment. Everyone has distinctive rates and terms. Some just provide loan to residents. You can likewise get mortgage internationally for property in Dubai. For instance, HSBC in the UK at present loans an advantage based home loan. If it's not too much trouble accept specifically with money related organizations as home loan laws do change.

The ownership of a freehold property is the most superior form of private property ownership. A freeholder is considered as the complete or only owner of the land and buildings included in his title; he has the whole right to occupy, use and enjoy his property forever ("in perpetuity") or until he transfers the title to a new owner, and his beneficiaries are qualified to inherit his title upon his death.

Transfer fee is an administrative charges collected by the Dubai Land Department to issue a new title of property. Its payable if you transfer your property to someone else where change of title is involved.

Yes. According to new law, residency visa is relevant on buy of least one million dirham in estimation of property. Your agreement ought to express that you are qualified for one. Residence visas are liable to typical immigration regulations.

The consistent advancement of the land part in Dubai in the previous decade has definitely changed the city into a present day, urban sanctuary. This has opened up more realty options, finance/mortgage facilities and less demanding enactment methods for purchasing and selling land and property in Dubai. Huge scale real estate development projects, attempted by endorsed developers, have prompted the development of numerous iconic landmarks within the city. It is essential to know the late property laws in regards to possession, purchasing and selling of area and property and rentals. Exceptional laws and decrees are applicable for expatriates managing freehold property zones and different government housing projects and plans have been built up for UAE nationals.

The Government of Dubai has united the property laws and regulations with the point of guaranteeing that property investors are guaranteed the most elevated conceivable administration and honesty principles from real estate agencies, agents and property developers executing business in Dubai. Putting a property available for sale in Dubai has now gained ease and convenience. The laws are obviously illustrated for UAE and GCC nationals and non-GCC residents.

Law No. (9) of 2009: Amending Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.

Law No. (13) of 2008: Regulating the Interim Property Register in the Emirate of Dubai.

Law No. (27) of 2007: Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai.

Law No. (16) of 2007: Establishing the Real Estate Regulatory Agency.

Law No. (8) of 2007: Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai.

Bylaw No. (85) of 2006: Regulating the Real Estate Brokers Register in the Emirate of Dubai.

Law No. (7) of 2006: Concerning Real Property Registration in the Emirate of Dubai.

Regulation No. (3) of 2006: Determining Areas for Ownership by Non-UAE Nationals of Real Property in the Emirate of Dubai.

The Real Estate Regulatory Agency was established in 2007, by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, supported by the Dubai Land Department.

The regulatory arm of the Land Department provides support to the department through the relationship between companies managing properties and residential buildings, as well as regulating the work of real estate brokers and owners associations. The department sets legislations to regulate the relationship between all contracting parties and to organize the exchange process of properties.

The Rental laws regulating the relationship between landlords and tenants are clear and owners can seek eviction only in specific situations. For example, if you are new to Dubai or living in Dubai for the past few years, and trying to understand what is and is not allowed in the rental sector, it can get confusing. But, there are regulations placed by the Dubai Government so that what is legally expected from both landlords and tenants should be clear to both parties.

RERA Law 43 of 2013 - This law determines the Rent Increases for Real Property in Dubai.

RERA Decree 26 of 2013 - This law concerns the establishment and arrangement of the Rent Disputes Settlement Centre in the Dubai.

RERA Law 33 of 2008 - This law is amending some provisions of RERA Law No. 26 of 2007 - Regulating Relationship between Landlords & Tenants in the Emirate of Dubai.

RERA Law 26 of 2007 - This law regulates the relationship between Landlords and Tenants in Dubai.

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