Understanding Real Estate Contracts in Dubai: What Every Agent Needs to Know

The real estate market in Dubai has seen significant growth in the last two decades and has offered endless opportunities for buyers, sellers, and real estate agents. However, navigating the market requires a clear understanding of the rules and regulations regulated by government bodies, RERA and DLD, that create, regulate, and authorise real estate in Dubai. If you don’t have any idea about the legal procedures, duties, and required documents, the property transaction process can become difficult. That is why RERA has different real estate contracts or forms for buyers, sellers, and agents to make property transactions hassle-free. So, let’s take a detailed look at the different types of RERA forms used for property transactions in Dubai.
 

RERA Form A - Seller to Agent Contract

Form A is one of the most important contracts when selling a property in Dubai. After finding the listing agent for the property advertisement, the seller and the agent must sign Form A, which includes the following clauses.

• Property details include financial information, service charges, mortgage status, and payment schedules.
• Details about how the property will be advertised. The seller cannot market the property on online portals without a written agreement.
• An overview of the agreement between the listing agent and the seller.

After the signing, the contract must be approved by the Trakheesi System of DLD, which will assign a permit number to the property advertisement. The agent must get all the required details from the seller before listing the property. If the property has two or more owners, all of them must sign the Form A. According to RERA, the seller can only sign three brokers at a time, which means a maximum of three Form A’s (one form for each broker). 
 

RERA Form B - Buyer to Agent Contract

If you want to buy a home or office for sale in Dubai, you must sign the RERA Form B. This RERA form is signed when you hire a real estate agent to find a property for sale. That is why you must appoint an agent with RERA certification who will show you the property according to your requirements and budget. The information required in RERA Form B is given below.

• Buyer’s requirements
• Location of the property
• Buyer’s Budget
• The type of property the buyer is looking for

RERA Form B also includes agency commission, compensation percentage, and contract termination terms. According to RERA law, the buyer has the right to terminate the contract for a specific reason. If that happens, the buyer must fill out RERA Form U, which mentions the termination details. 
 

RERA Form I - Agent to Agent Contract

RERA Form I is a contract between the agents of the seller and the buyer, is used to protect the rights of agents, clients, and listings. This form also ensures the professional relationship between the agents. RERA Form I is required when two or more agents are involved in one joint transaction of the sale or lease of the property. 
 

RERA Form F - Contract of Property Sale/MOU

RERA Form F, also known as an MOU (Memorandum of Understanding), is the most important real estate contract in Dubai. This form is a purchasing contract between the buyer and seller. Form B has to be signed by both parties when the buyer has chosen the property, and the price has been decided. If you want to buy a property in Dubai, you must have this form to complete the property purchase.

Form F includes the financial and property details as well as the commission paid to the buyers’ and sellers’ agents. It is important to note that this form only becomes valid after it has been signed by both parties in front of witnesses and dated by the agent. That’s why it is one of the mandatory forms required by RERA in Dubai to complete the property transaction. Normally, Form F comes with a schedule, an attachment, or incorporation from both parties entering into a SPA (separate sale and purchase agreement) or a MOU (memorandum of understanding).
 

RERA Form U - Notice of Contract Cancellation

Form U by RERA is an official and legal document for the notice of contract cancellation for buyers and sellers with the agents. The buyer or seller has the right to terminate the contract with the agent by signing a copy of Form U, the only legal document required to end the contract with the broker. According to Form U, the agent must be notified of the contract cancellation in written form, which includes the contract termination date and reason for cancellation.
 

Ejari Tenancy Contract 

The most important contract for rental properties in Dubai is the Ejari Tenancy Contract. RERA has made it mandatory to standardise all rental contracts in Dubai. This document acts as proof that you have signed the tenancy agreement with the landlord and are eligible for many services, such as internet, phone, and DEWA connection. The Ejari contract protects the rights of tenants with the agreed rental prices on the contract so that the landlord cannot illegally hike up the rent later.

Working as an agent in the real estate market of Dubai requires all kinds of knowledge and expertise you can get. With the information regarding the real estate contracts in Dubai, you will be able to match your skills with the market’s unique dynamics and regulatory framework. So, if you want to polish and groom your skills, Join Us!