12 April 2019
The regulatory arm of the Dubai Land Department, Real Estate Regulatory Agency (RERA) is a government agency that forms, regulates and authorizes the real estate sector in Dubai. If you are newcomer or first time homebuyer in Dubai, these are the RERA forms you should know about:
Form A – Broker’s Contract Agreement / Listing Form
Listing a property for sale is basically an agreement between the listing seller and agent, who is appointed to find a buyer and negotiate an agreement on behalf of the seller.
The agent must obtain all the seller’s details when listing a property for sale. If the property is in two or more names, then all owners must sign the listing agreement.
If the seller decided to terminate the listing agreement with the agent, he/she can do so before a written offer is presented to the seller by the listing agent. In this case, the seller must hand in 7 days written notice to the agent stating the reasons. Form U, which is the Notice of Termination of Agreement, must be executed for a proper termination.
As per Dubai’s RERA law, a seller can have a maximum of 3 agents working at the same time to advertise their property. So, a seller can have three 3 active Form A’s at one time.
Form B – Buyer’s Agent Agreement
It is highly advisable and essential to hire a qualified agent as he/she will be able to find you the right property based on your needs and financial status. You can find qualified RERA real estate agents in Dubai on their official website. The professional agent will only work for the buyer. In this case, a buyer’s agent fills out Form B and the buyer(s) sign the agreement.
It’s worthy to point out that the buyer can decide to terminate the agreement with the agent for whatever reason. However, they must give at least 7 days written notice to the agent stating the reason of termination has been decided. For a proper termination, Form U must be executed.
A Buyer’s agent is able to attend inspections and auctions as well as interact with a listing agent, only if it is on the appropriate Form I – Agent to Agent Agreement - mentioned in the next point.
Form I – Agent to Agent Agreement
When two agents decide to work together, both the RERA certified agents must fill out Form I. The form’s purpose is to protect the agent listings, agent clients and to ensure a professional relationship between the two agents.
Form F – Purchase Agreement Contract
Form F is the purchase agreement in which it details the property, price, and terms and conditions of the property intended to be purchased.
When the form is signed by the buyer and the seller and is witnessed and dated by the agent, then it becomes a valid contract.
Form U – Notice of Termination of Agreement
By using Form U, terminating an agreement (Form A/Form B) with a real estate agent is the proper way.