How Dubai Rental Contract Guide Works: Step-by-Step
11:14 pm | 26.08.2023
Real estate rental in Dubai is a standard legal procedure, providing for legal payment and the conclusion of a formal contract. It is conducted in several stages and has a number of regional features that should be familiarized before arriving in the UAE.
Step-by-Step Instructions for Drawing up a Rental Agreement in the UAE
A lease is a binding document that is concluded between the tenant and the owner of the dwelling regardless of the amount of the transaction and the type of object. The standard procedure for signing an agreement includes:
Design of the offer after viewing the object. The proposal should indicate the desired amount of hire and the number of payment cheques. In some cases, the lessor agrees to bid when the number of cheques decreases.
Real estate reservation with return insurance deposit (about 5% of the rental amount). The money or cheque is held by the agent until the transaction is concluded, and the lessee is issued a receipt indicating the amount accepted.
Provide the agent with a passport and a copy of the resident visa (or an original letter from the sponsor/employer with surety and information that the visa is in the process of being processed).
Coordination of any faults of the object. They can be photographed in advance and filmed on video. In the future, the owner should either eliminate them or include them in the contract.
Drawing up and studying a lease agreement. The document must comply with UAE legislation. The agreement is developed by the owner’s agent but may be changed by the lessee if the parties agree.
Insurance deposit in the amount of one monthly payment (it is returned at the congress).
Real estate agency commission of 2-5% of the annual contract amount (agent must be registered with RERA).
The signing of the contract by the lessor and receipt of the confirmation of payments (that the owner received all the sent checks).
Getting access cards and keys with a special form of transfer.
The tenant can then register with Ejari, register with DEWA, or issue NOC (relevant for some developers).
What is Ejari in Dubai
Ejari is a mandatory online lease registration system developed by RERA (Real Estate Regulatory Agency) in Dubai. According to the provisions of Law 26 of 2007, which regulates the relationship between tenants and owners of dwellings in the UAE, all employment contracts must be registered on this portal within 2 weeks of conclusion. After the registration process, clients receive an Ejari certificate that can be used for:
Official confirmation of address.
Use of all emirate services.
Create an account with DEWA (Electricity and Water Authority).
What are the Restrictions on the Number of People and Rooms in the Ejari Apartment
Under UAE law, housing will be considered overcrowded if it is occupied disproportionately with space and facilities. Neighbors can always contact municipalities and report violations. The exact number of occupants is determined by the location of the facility and its area:
3 people (maximum) in the studio;
4 people in one-bedroom apartments;
Six people in two-bedroom facilities.
If more people live in the apartment, and RERA becomes aware of this, the lessor will be fined (in some cases, the penalty may reach 1,000,000 AED).
What is NOC in the UAE
Some developers or management companies of residential complexes require the provision of a certificate of no objection for the security system from the tenant’s NOC. To obtain it, you need to prepare an Ejari certificate, a form of settlement, copies of your visa, passport, and lease agreement. The need for this document is discussed in advance with the lessor.