As with any official matter, contracts are crucial in real estate transactions in Dubai. Being a legally binding document, a contract ensures clarity for all the parties involved and tells them exactly what they are getting into. A real estate contract in Dubai clearly outlines the terms and conditions, obligations of each party, and other necessary details related to the transaction. This is exactly why the Real Estate Regulatory Agency (RERA) has specific contracts in place. Thanks to these contracts, the chances of misunderstandings and legal disputes are reduced drastically. Let’s explore the different types of contracts that one is required to enter into during real estate transactions in Dubai.
Form A
You will be required to sign Form A while selling a property in Dubai. This form will also be signed by the agent(s) tasked with selling the property for you. The purpose of this form is to lay down the terms and conditions regarding the advertising and the subsequent sale of your property. Form A lists crucial details that could be related to payments, service charges, and mortgage (if applicable). Once the form has been signed, a property advertisement permit number is assigned. One must bear in mind that Form A can only be signed by the seller with a maximum of three (3) agents.
Form B
Form B comes into the picture if you are looking to buy a property in Dubai. This applies to both residential and commercial properties in the Emirate. This form is to be signed by the buyer and the agent hired to search a property for the buyer. The details listed on this form include the type of property the buyer is looking for, the preferred location, and other requirements. Additionally, details like the commissions for the agent are also mentioned within this contract. Also, the terms and conditions for terminating the contract are included as well.
Form I
Form I is signed by agents representing the buyer and seller. This form spells out the relationship between both agents. This contract is crucial for protecting the rights and listings of the agents.
Form F
Arguably the most significant real estate contract in Dubai, Form F, or the Memorandum of Understanding (MOU) is signed between the buyer and seller. The parties enter into this contract once the property is finalized and the price has been agreed upon. The signing of this contract needs to be done in the presence of witnesses, and usually, in a registered office. The contract consists of the details of the property and the associated financial information.
You may be interested: Off-Plan Properties in Dubai
Form U
Form U is needed to cancel the contract with the agent. It can be used by buyers as well as sellers to terminate contracts for whatsoever reason. The agent must be notified in writing in advance about the termination. The date of canceling the contract along with the reason for termination must also be conveyed.
Ejari Tenancy Contract
This contract is required to be signed by the tenant of a property. The tenancy contract outlines the agreed-upon rent along with other essential details, such as the rental period. It is a crucial document that is needed if you wish to avail internet, electricity, and water services in the property that you have rented.
Check Out: Properties for Rent in Dubai
Hope this article gives you ample insights into the different types of real estate contracts in Dubai, UAE. Whether you are a UAE resident or a non-resident, acquiring professional assistance is of absolute importance for any kind of real estate transaction in Dubai. A real estate brokerage like InZone Properties will guide you on any kind of real estate transaction and the contracts involved.
