If you are planning to buy or sell a property in Dubai, there will be a bit of paperwork involved. Filling out forms is never the most exciting of activities, but in Dubai’s real estate market having the right forms is essential to ensure that properties are being marketed legally and to protect the interest of buyers and sellers. Below is a quick guide to the different types of forms that you need to be aware of.
Form A – Agent/Seller Agreement
This is perhaps the most common type of form, which serves as a contract between the agent and the seller of the property. This form legally mandates the agent to act on the seller’s behalf by marketing the property and managing interested buyers.
The form should have complete details of the property owner, all relevant information about the property and commission terms that have been agreed on with the agent. If the property is jointly owned by multiple owners, all of them would need to sign the form.
A maximum of three Form A’s can be issued for the same property, entitling the seller to work with no more than three agents at a time. Any agent without a Form A for the property will not legally be able to market it.
Form B – Agent/Buyer Agreement
As a buyer, you will want to work with a trusted and qualified agent to help find you the right property for your needs. This form legally appoints the agent to act exclusively on the buyer’s behalf. The agent can attend property inspections and auctions and also work with other agents on the basis of a signed Form I (outlined further below).
Form F – Purchase Agreement
This is your purchase agreement or Memorandum of Understanding (MoU) and will need to be signed in order to officially confirm the transaction. Once both the buyer and seller have signed the document, it becomes a legally binding contract. Both signatures will need to be witnessed and dated by the agents for both parties.
The Form F will contain all of the important details of the transaction, including property details, payments terms, financing (if applicable), terms and conditions set by the seller and even the commission terms for the agent.
Form I – Agent/Agent Agreement
When two RERA certified agents agree to work together on a transaction – typically buyers’ agents working with sellers’ agents – they need to sign a Form I in order to proceed. This helps to ensure that all dealings are above board, protecting the interests of each agent and the interests of their individual clients and also clearly outlining the division of commissions. It is also essential that both agents have valid RERA certification.
Form U – Notice of Termination
In the event that a buyer or seller wishes to end their association with an agent, they will need to provide a 7-day notice to agent with a reason for termination. The process will be completed with a Form U, which will formally end their contract with each other.
Tenancy Contract & Ejari
For rentals, having a valid tenancy contract signed by the landlord and tenant is a must. The contract must then be registered on the Ejari system in order to be valid and to protect both parties in case of any future dispute.
Should you have any further questions regarding the paperwork and processes involved in buying or selling Dubai properties, please get in touch with our advisory team. We would be glad to assist.