Whether you are looking to buy or sell, rent or rent out (perhaps you’ll do all four) you’ll
encounter a lot of paperwork. Whether you are a seasoned investor in the country or new to the
real estate market as a whole here is a breakdown of the major contract types you might
encounter. A lot of paperwork is involved, but triple checking and understanding the steps will
help you protect your property, financial and legal interests. And of course, it will provide
assurance and peace of mind to you. All the contracts and agreements outlined below are
managed by Dubai Land Departments’ Real Estate Regulatory Agency (RERA). These
agreements are sometimes called RERA forms.
Form A - Listing Agreement:
The most common type of RERA form. Every property listed needs an agreement between the seller of the listing and the brokerage/ agent appointed to sell the property. In this agreement, the document outlines the seller\'s details and property details including sale price, commission agreement, service charges, etc. If there is more than one owner of the property, all owners need to sign the listing agreement. According to UAE law, a seller can have a maximum of three agents working simultaneously to advertise one property. Meaning a seller can have three active Form A’s filed at one time. This contract is generated by the brokerage. If the sellers want to terminate the listing agreement with the agent, they must do this with Form U.
Form B - Buyer Agent Agreement:
Form B is the first step when a buyer begins the purchasing process. It outlines the buyer\'s personal details and search criteria. By signing this agreement, the buyer is not committing to buy a property from the agency but rather appointing the agent to act on their behalf. The agent can then attend inspections and auctions. This contract is generated by a broker. If the buyers want to terminate the buyer agent agreement, they must do this with Form U.
Form U - Termination notice:
As mentioned previously if a buyer or seller wishes to end their agreement with the agent and broker, they need to submit a seven-day notice with a reason and a Form U. This will end the Form A/B officially in the proper manner.
Form F - Purchase Agreement:
Form F is the sales agreement. The contract contains all transaction details including the sale price, payment terms, financing, security deposit, condition and details of the property, commission of the agent as well as the seller\'s and buyers\' details. Both parties will get an opportunity to review and agree to the terms outlined before proceeding. When the document is signed by the buyer and the seller, witnessed and dated by the agents of both parties, the document becomes legally binding. The seller\'s agents will register this contract.
Form I - Agent Agreement:
When two agents work together, such as when a seller\'s agent and a buyers\' agent work on one transaction: Form I helps prevent commission disputes. This contract outlines and clarifies the divide in commissions, which ensures a smooth transaction for the agents and the brokers. It helps maintain professionalism for the buyer and seller too. In order to file the form both agents need to be RERA certified.
Ejari is the UAE electronic system for registering rental contracts, All tenancy contracts must be signed by the tenant and landlord and then registered by the broker. This will protect both parties in the case of a dispute.
Now that you understand the contracts you will be asked to sign, we would love to plan your
next steps. Should you have any further inquiries about RERA forms, please get in touch with
our advisory team