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

  • Becoming an Agent
  • 08 May, 2024
Understanding Real Estate Contracts in Dubai: What Every Agent Needs to Know

The real estate market in Dubai has experienced significant growth over the last two decades, offering 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 Forms in Dubai Property Transactions

RERA forms standardise property transactions by streamlining each stage of the process, from advertising listings to finalising sales agreements. These legally mandated documents clarify the obligations of buyers, sellers, and agents, reducing ambiguity and promoting compliance with Dubai’s real estate regulations.

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, sellers can only sign with three brokers at a time, which means a maximum of three Form A documents (one for each broker). 

RERA Form B - Buyer to Agent Contract

If you want to buy a home or office for sale in Dubai, you will need to sign Form B, as required by the Real Estate Regulatory Agency (RERA). This RERA form is signed when you hire a real estate agent to find a property for sale. That's why you should appoint an agent with RERA certification who can show you properties that match 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 terms for contract termination. According to RERA law, buyers have the right to terminate the contract for specific reasons. If that happens, the buyer must complete RERA Form U, which outlines the details of the termination. 

RERA Form I - Agent to Agent Contract

RERA Form I is a contract between the agents of the seller and the buyer, which 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 a single joint transaction for the sale or lease of a 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. Both parties must sign Form B once the buyer has selected the property and the price has been agreed upon. If you want to buy a property in Dubai, you will need to complete this form to finalise the 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 becomes valid only after it has been signed by both parties in the presence 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 an MOU (memorandum of understanding).

RERA Form U - Notice of Contract Cancellation

Form U by RERA is an official and legal document used to notify buyers and sellers of contract cancellations through their 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 writing, which includes the date of contract termination and the reason for cancellation.

Ejari Tenancy Contract

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 serves as proof that you have signed the tenancy agreement with the landlord and are eligible for various services, including internet, phone, and DEWA connection. The Ejari contract protects the rights of tenants by agreeing on rental prices, so that the landlord cannot illegally increase the rent later.

Conclusion

Dubai’s real estate contracts hinge on RERA’s core forms – Form A (seller agreements), Form F (purchase terms), and Ejari (rental compliance) – which standardise obligations and reduce disputes. Certified agents navigate these frameworks, ensuring legal clarity for buyers and sellers. By prioritising RERA’s structured contracts and verified documentation, stakeholders secure transparent, legally sound transactions. In a market built on trust, adherence to these protocols transforms complexity into confidence.

To excel as a Dubai real estate agent, understanding local contracts and regulations is key. 

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You may also like: Understanding the Legal Steps for Purchasing Real Estate in Dubai

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Frequently Asked Questions

What role do RERA and DLD play in Dubai's real estate market?

The Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD) oversee and authorise real estate activities in Dubai. They ensure regulatory compliance and streamline property transactions.

When is RERA Form U used?

RERA Form U is used for contract cancellation between buyers, sellers, and their agents. It requires written notification to the agent, stating the termination date and the reasons for cancellation, to ensure compliance with the law.

What is the Ejari Tenancy Contract?

The Ejari Tenancy Contract is a standardised agreement for rental properties, mandated by RERA. It documents rental terms, safeguards tenants’ rights, and prevents landlords from arbitrarily increasing rents.

What is the purpose of Form B in Dubai real estate?

RERA Form B is a contract signed by buyers when engaging a real estate agent. It outlines the buyer’s preferences, budget, and terms of engagement with the agent, including agency commission and contract termination clauses.