Khaleej Times, Sun, Oct 27, 2024 | Rabi al-Thani 24, 1446
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Emirates:
Question: I own an apartment in mainland Dubai. Do I need to go through
a real estate agent to rent it out? Can you please explain the legalities of
doing this?
Answer: In Dubai, it is not mandatory for a landlord or owner of an
apartment to engage the services of a real estate broker to rent an apartment.
A real estate broker is an individual who provides real estate brokering
services in accordance with Bylaw No. (85) of 2006 Regulating the Real Estate
Brokers Register in the Emirate of Dubai.
Furthermore, real estate brokers are required to obtain a license from the Real
Estate Regulatory Authority (Rera) of Dubai under Article (3) of the Dubai Real
Estate Brokers Law, which states, “No Person may engage in Real Estate Brokerage
activities in the Emirate unless he is licensed by the Competent Entities and
entered in the Register.”
In addition, Article 14 to Article 25 of the Dubai Real Estate Brokers Law
provides for the obligations of the real estate broker.
An individual who engages a real estate broker in the emirate of Dubai
should enter into a brokerage agreement with a broker. This is under Article
26 of the Dubai Real Estate Brokers Law, which states, “A brokerage
agreement must be in writing and must state the names of the contracting
parties, the specifications of the real property and the brokerage terms. An
entity shall be created on the registry folio of the real property to denote
that it is subject to the brokerage agreement.”
In accordance with the aforementioned provisions, it is not mandatory to
engage the services of a real estate broker in case of renting your
apartment. However, if you wish to engage the services of a real estate
broker then prior to availing of his or her services, you should verify if
the real estate broker is duly registered with the Rera. You may also verify
the authorised signatory of the brokerage firm who has the authority to sign
the brokerage agreement. In conclusion, you may conduct proper due diligence
of the real estate broker and agree on key terms in the brokerage agreement,
to safeguard your interest.