You’ve finally decided to purchase a property in Dubai. Congratulations, you just made one of the best decisions of your life! Before you start scouring for your dream home online, there are a few important things you must be familiar with. Much like your home country, Dubai (and the UAE in general) follows a stringent legal procedure before you can call a slice of the city your own. In this blog, we’ll be covering the RERA forms you’ll encounter during the buying process. Study them well to ensure a hassle-free real estate transaction!
First things first, what is RERA?
RERA stands for Real Estate Regulatory Agency – the office that oversees the emirate’s real estate sector. It’s under the jurisdiction of the Dubai Land Department. If not for the RERA forms, estate deals in Dubai wouldn’t be as smooth and easy!
Now that we’ve covered the origin of the forms, let’s get down to the main event.
Form A – Agency Agreement / Listing Form
This is the first form sellers will encounter since it signifies that the property is ready to be listed for sale. Both the seller and the listing agent must sign Form A to make it official. Its clauses include the outline of the agreement, the property details such as financial information, mortgage status, and payment schedules, and instructions on how the property will be advertised.
If the property is jointly owned, all owners need to sign the form. There’s a limit to the number of forms you can sign, though. Seller/s can only fill out three Form As at a time, since the maximum number of brokers they can work with is three.
Form B – Buyer’s Agent Agreement
Anyone who purchases a property in Dubai – whether it’s residential or for office use – will be asked to sign a Form B. This formalises the arrangement between you and your appointed RERA-certified real estate agent. You need to list down the following information in this form:
- Property type
- Property location
- Your budget and requirements
- Contract termination
- Compensation percentage
- Agency commission
Form I – Agency Agreement
If the transaction involves several agents, for instance, the property seller or lessor also has one acting on their behalf, Form I is brought out to ensure a smooth and professional relationship between both parties.
Form F – Memorandum of Understanding
Also referred to as the Memorandum of Understanding, Form F signifies that an agreement has been reached between the seller and the buyer. This is signed once the buyer shakes on the property and its price.
Since this is perhaps the most important form in the whole process, Form F is mandatory for any Dubai-based real estate transaction. It should include not just the financial details of the sale, but also the agreed upon commission of the agents. The seller, the buyer, and the agents all need to be present when signing the form.
Form U – Notice of Cancellation of the Agreement
If you decide to cancel the agreement midway through the transaction, you can do so by filling out a Form U. According to RERA law, the buyer can terminate Form B by signing a copy of this form. You’d have to provide a reason for the termination as well as the date of effectivity, and you need to notify your agent in written form as well.
Now that you’re aware of the different RERA forms necessary when buying a property in Dubai, what are you waiting for? Get started with us now!