The city of gold, Dubai, is brimming high above its weight. Well-known attractions, towering structures, and incredible seashores are just the beginning. Upon digging a bit deeper, you’ll find a lucrative world of property dealings in which investors from worldwide participate.
Even if you’re heading to this beautiful city for a relaxing family getaway, we bet you fancy owning a fancy property in Dubai. While it’s only viable with adequate finances, you’ll at least aim to invest here.
However, if that happens, you need to get familiar with RERA (Real Estate Regulatory Agency). It’s a legal system to streamline the buying and selling of properties in Dubai. To make it even better, RERA forms in Dubai have been introduced to ensure a secure and smooth property transaction between two parties.
Let’s determine more about it below.
What is RERA, and How Does it Work?
We must acknowledge that Dubai conquers the world by keeping the highest security and records system levels. Having that in mind, the city initiated RERA as the right hand of the Dubai Land Department for regulating the real estate sector smoothly.
RERA Forms in Dubai
As for now, the upgrade to RERA forms in Dubai strives to prevail in fair play and transparent transactions. So, if you’ve decided to reserve your finances in this profitable state, here’s what you should know about types of RERA forms.
Form A- Agency Contract/Listing Form
Form A is the first and foremost RERA form required for selling a property in Dubai. Once a seller connects to a real estate agent to sell their property, both parties must sign the RERA form A.
It’s a written contract in which the seller clarifies that the estate agent can run marketing campaigns regarding the property. If the property is mutually-owned, all the owners must provide the details and sign form A.
Let’s delve deeper into the insights below:
- It must provide an overview of the RERA agreement between the seller and the real estate agent.
- It must incorporate the property’s details, including mortgage status, service charges, financial criteria and payment plan.
- The agent can only advertise the property on any portal with written content by the seller.
The process still needs to be done, but after signing Form A, the DLD’s Trakheesi system must approve it. Later, a permit code will be assigned to the property advertisement. RERA implies that a seller can only hire three agents to advertise the property. Therefore, you can only complete three Form A’s in a single entry.
Form B- Buyer Agent Contract
Form B gets signed when a buyer hires a property agent to get on the house hunt on his behalf. As for the information, Form B must incorporate the following details.
- It must mention the property type that the buyer needs.
- It must include the buyer’s financial details and budget.
- It must prioritise the requirements of the buyer.
- It should also include the terms of agreement termination, compensation percentage, and agent’s commission.
- It must allow the agent to attend property inspections and communication with a listing agent on the buyer’s behalf.
According to RERA, the buyer has the right to end the agreement with the agent at any time during the course. However, they must provide a week’s notice before the termination.
Form I – Agent to Agent Contract
Form I is a contract between two property agents who decide to work together in place of the buyer and the seller. It’s primarily applicable when two or more agents are co-working on the same property.
Form I has proven to be the most secured RERA form in Dubai, among others. But how? It safeguards the rights of the agent’s listing and the clients. Also, it ensures a professional relationship between both property agents.
Form F- Contract of Sale
Form F, known as the Memorandum of Understanding (MOU), is signed when a buyer has selected the property, and a price has been settled. It usually outlines everything from the property type to the financial structure and the commission amount to the seller and buyer’s agent. However, it’s imperative to remember that Form F by RERA will only be valid after getting signed by the seller and witnessed by the agent. It’s one of the required RERA forms in Dubai for every real estate transaction happening in the city.
Form U- Notice of Cancellation of a Contract
A buyer and seller can mutually terminate the agreement with the agent by signing a copy of Form U. This form is the official contract for cancelling notice for both parties. Under the regulations of this memorandum, the real estate agent must be informed about the termination seven days before. In addition, there’s also an obligation for the date and reason for breaking off the contract.
Importance of RERA Forms in Dubai
Jumping on the property dealing bandwagon in Dubai without adhering to the rules and regulations can prove to be quite risky. This is why sticking to this guide about RERA forms in Dubai is of pivotal importance. Regardless if you’re a buyer or seller, there are some risks associated with the property market. However, these RERA forms ensure the entire transaction is completed in a smooth manner.