Dubai have introduced new rental contracts in order to minimise disputes as part of the already announced crackdown on unregistered real estate brokers.
All property sales and leases in Dubai must now be administered by registered brokers that are authorised by the Dubai Land Department.
Figures from the Dubai Land Department show that there are now 5,993 active property brokers in the emirate, who were responsible for carrying out 32,932 property transactions valued at AED 1.52 billion in total during 2016.
All rental leases in Dubai now must use the DLD’s standard form tenancy contract which provides safeguards for tenants and landlords.
The tenancy contract form includes standard clauses, but also has options to register additional terms or an addendum to the standard form in order to cater for more complex arrangements.
The Dubai Land Department are also planning a new rental security deposit form, to make it easier for tenants to be refunded at the end of their tenancy. The new form is expected to be available soon and should mean that landlords will be forced to make deposit refunds within a more reasonable timescale. Currently security deposits are only covered by mutual agreements with landlords.
A new draft law covering the latest rental market regulations is due to be published in June, with the specific aim of making the rental sector more transparent and accountable and subsequently reduce the number of disputes between landlords and tenants.
Deputy chief executive officer of the Real Estate Regulatory Agency (RERA), Yousif Al Hashimi, commented: ‘Dealing with registered and certified real estate brokers is central to achieving a secure and sustainable real estate environment in Dubai and to guarantee their rights, customers and investors must take great care in verifying the accuracy of ownership data for all property before entering into buying, selling and leasing activities.’
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