The Dubai real estate market is strictly regulated but is transparent for buyers and sellers. To rent, buy or sell real estate in Dubai, you need to sign several forms of agreements. If there are real estate agents involved from both sides, you will also need to sign an agreement between the agents. Read on to learn more about the agent to agent agreement form in Dubai and why you need it.
Why Do You Need an Agent to Agent Agreement?
An agreement between two real estate agents in Dubai is called Form I. It is signed when both the seller and the buyer have hired representatives. Such an agreement is also drawn up when concluding a rental contract if both the landlord and the tenant involve their agents.
The purpose of Form I is to protect the interests of the agents and their clients and to ensure a professional interaction between two qualified real estate specialists. It acts as a guarantee of the agent’s work, which they provide to the Dubai Real Estate Regulatory Authority (RERA). This is a division of the Dubai Land Department (DLD), which regulates real estate transactions and monitors their transparency. Form I also eliminates possible disputes about commissions.
It is important to complete Form I. If the agreement is not signed, the agents cannot legally interact with each other in the sale.
How to Draw Up an Agent to Agent Agreement?
You can find the forms of agreements between agents on the RERA website. You need to fill in the following:
- names and personal details of the agents;
- names of the companies they are representing;
- addresses and contact details of their offices;
- real estate details: address, developer, name of the complex;
- the agreed purchase price or the rental rate.
When signing a RERA agent to agent agreement for the purchase of real estate in Dubai, you must also indicate whether the property is currently being rented. The form also includes the amount of payments for property maintenance, which the owner must pay regularly, and notes who pays for the transfer of ownership.
What Are Other Agreements with Agents in Dubai?
To conduct real estate sales in Dubai, you will need to sign several different forms. The first of these is Form A between the seller and the agent appointed by the seller. This is part of the preparatory stage before the listing of the property for sale. According to the law, the seller can engage no more than three agents.
A buyer who hires an agent to find a property signs Form B with the agent. This agreement specifies the buyer’s budget, preliminary requirements for the property, and the agent’s commission.
When the seller and the buyer agree on a deal, they sign Form F. This is a memorandum of intent to conclude the sale, but not yet a final agreement to transfer ownership. This document specifies details about the property and conditions agreed by the parties, including the cost of the property and agent commissions. You can learn more about Form F in this article.
If the seller or the buyer wants to terminate the agreement with the agent, they have to fill out Form U and submit it to RERA. The document must specify the reason for termination. You must notify your agent about the termination at least seven working days beforehand.
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In a Nutshell
The forms for real estate transactions in Dubai have been created by the Dubai Land Department (DLD) and its division, the Real Estate Regulatory Authority (RERA), to simplify the purchase, sale, and rental processes, as well as to ensure the transparency of transactions. Real estate agents in Dubai not only help participants find property and to sell real estate, but also act as witnesses of the sale. If there are agents on both sides of the deal, they must sign a separate agreement — Form I. The agreement includes basic details about the agents and the property involved.
Cover photo: Copernico (Unsplash)
