Real estate deals in Dubai are not a plain gig; the procedure is complex and consists of several legal obligations and documents. To make it smooth, the Real Estate Regulatory Agency, or RERA, has issued multiple definitive forms to be used in common situations. We have prepared this guide on RERA forms in Dubai to make you aware of the forms related to property transactions.
So What Exactly is RERA?
Do you want to become a real estate investor in Dubai? Then it is essential that you know about the Real Estate Regulatory Agency, also known RERA. RERA oversees, regulates, and authorises real estate transactions in Dubai. It works under the Dubai Land Department (DLD). The objective of RERA forms in Dubai is to ensure every real estate transaction is transparent and fair while making the procedure smooth.
And why are these RERA Forms Important?
Without RERA forms, a real estate transaction is considered incomplete. Such transactions can lead to consequences including legal actions by the state for the parties involved.
Important RERA Forms in Dubai
To avoid any mishap in a real estate deal/transaction, we have listed below some important real estate forms you should be aware of.
Form A – Agency Contract Agreement/Listing Form
This is an important form as it kickstarts the process of selling a property. When the seller is ready to advertise their property, the seller and his listing agent must sign this form to officially make an agreement. The seller should provide the necessary details to the broker at the time of listing the property for sale.
Clauses in RERA form A:
- An outline of the agreement. This includes general details and mentions the seller and the listing agent.
- Details of the property. This includes the financial information, service charges, mortgage status, and payment schedules.
- Details about the marking of the property. Without this agreement, the seller cannot advertise the property anywhere.
- If two or more persons own the property jointly, they must sign the FORM A form.
- One property owner can only complete three FORM A at one time.
Form B – Buyer’s Agent Agreement
Form A was for the sellers, but what if you are buying a property? That is where Form B comes in handy. Form B is mandatory to sign to purchase any property in Dubai.
Form B is an agreement signed between the buyer and his agent; it is a must-sign document and is produced when the buyer appoints an agent to find a property. RERA also gives certifications to real estate agents so hiring a RERA-certified agent can ensure you do not hit the wall during the process.
The information in RERA Form B includes:
- The type of property (office, studio, apartment, penthouse, etc.)
- Location of the property
- Budget and any custom specifications by the buyer
- Compensation percentage and agency commission
- Terms for contract termination
Form I – Agency Agreement
Form I is to protect the integrity and rights of the agents and agents’ clients. This helps in keeping the relationship between two or more agents intact. This form is applicable when multiple agents are involved in one joint transaction. This transaction can be for the sale or lease of the property.
Form F – Contract of Sale
The RERA Form F in Dubai is also known as the Memorandum of Understanding. This form is significant to the deal as it confirms the agreement between the seller and the buyer. The form is produced and signed when both parties have agreed to the property and price.
Form F includes details about the property including the financial details and agreed-upon commission to be paid to the agents. Please note that this form is mandatory for any real estate transaction in Dubai.
Form U – Notice of Cancellation
Form U comes into action when there is a need for the cancellation of the agreement. According to RERA law, the buyer has the right to cancel the agreement unilaterally. To do this, the buyer has to fill out Form U and include the reason for the cancellation of the agreement.
This wraps up our guide to RERA Forms in Dubai; these forms are important and it is imperative that you become aware of them before diving into any real estate deal.
If you are already searching for an abode in Dubai and hoping to get a home loan or mortgage, we have an article ready to guide you about the procedure to get a mortgage. You can also take advantage of Skyloov’s consultancy to become aware of all the costs of buying a property in Dubai, and how to land the best deal.