Whether you just moved to Dubai or have been a resident for a long time, there are certain procedures that need to be followed when registering a property for lease in Dubai.
This can be complicated and confusing, so it’s advisable to hire an expert who can help you with this process. Here are some tips you may find helpful for the process.
Administrative Resolution No. 134 of 2013 in Dubai
Administrative Resolution No. 134 of 2013 in Dubai was created for the purpose of regulating and controlling the leasehold markets and protecting the rights of landlords and tenants.
The key provisions of the Resolution provide
- that no fees will be collected from tenants by real estate brokers;
- that landlords may only claim a maximum commission of 5% from real estate brokers;
- the regulation does not apply to tenants that are onshore companies or are government entities;
- landlords must pay an annual fee for maintaining their property as well as a registration fee when leasing their property, and any new tenancy contract should be registered with Real Estate Regulatory Agency (RERA).
Long-Term Lease Regulations
In accordance with Dubai Law No. 7 of 2006, a lease entered into by a foreign national shall be considered a long-term lease if it is for a term exceeding 10 years. The new laws state that the lease period can be up to 99 years, provided that the parties agree to this in writing.
According to article 4 of Dubai Law No. 7 of 2006, a foreign citizen may enter into a long-term lease of specified properties in the emirate for a period not exceeding 99 years.
The registration fee for registering long-term leases is 4% of the total rent value payable over the entire duration of the lease, including any premium paid upfront.
Short-Term Lease Regulations
If you are planning on leasing your property for less than 10 years, you must register the lease with RERA.
In accordance with Dubai Law No. 26 of 2007 (as said in Law No. 33 of 2008), leases for less than ten years must be registered with the Real Estate Regulatory Authority (RERA). Leasing agents can help guide you through this process.
The property owner will need to submit a copy of the lease contract along with a letter from the applicant confirming that they have received a copy of their signed contract.
They should expect to receive registration approval from RERA within 60 days.
The contract must specify that all rental payments up to AED 2 million must be made by cheque and that any payments above this amount may also be made by bank transfer or other “secure” methods.
Registration of Property Using the Ejari System
EJARI is a web-based application that handles tenancy agreements for residents of the Emirate of Dubai, under Law No. 26 of 2007, as adjusted by Law No. 33 of 2008, as adjusted by Law No. 33 of 2008.
The system name EJARI means “My Rent” in Arabic, and it’s used to register rental contracts, issue certificates, and manage information related to rentals from both sides. The registration number provided by Ejari can be used as a reference when dealing with government authorities such as DEWA or DU.
EJARI is the first step in regulating the leasing and management of the real estate market in Dubai, which will enable landlords and tenants to enjoy greater protection and security through their dealings with each other.
Where to Register a Property for Lease
The lease must be registered with the Dubai Land Department according to Administrative Resolution No. 134 of 2013 if it’s a period not less than ten years and not exceeding 99 years
The landlord and tenant must sign a deed at the Notary Public Office before registering it with the Real Property Register. This deed must include all details of the property being leased out and the owner’s ownership documents (title deed) as well as other information required by law.
However, if the lease runs for a term of fewer than ten years, you must register the lease on the Ejari system of the Dubai Land Department.
The landlord and tenant need to visit a typing center to register their tenancy contract there. Once this is done, they will receive an Ejari number along with two copies of their tenancy agreement that are duly stamped by Ejari officials confirming its registration with them.
When leasing a home or apartment in Dubai, adequate property management must be observed. This is why it’s often advised to seek the help of a professional to help you, especially when you aren’t familiar with the leasing process.
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