RERA forms are forms issued by the Real Estate Regulatory Agency in Dubai.
RERA, Dubai was established to regulate and supervise the real estate market, ensure transparency, protect the rights of buyers and investors, and enhance the overall health of the real estate industry in the emirate.
Key functions and responsibilities of RERA Dubai include:
- Licensing
- Project Approvals
- Regulations and Guidelines
- Consumer Protection
- Regulating Escrow Accounts
- Dispute Resolution
- Market Monitoring
Dubai has emerged to be one of the best cities in the world. People from all over the world have moved here in search of better work opportunities. A lot of people these days are also investing in various properties in Dubai considering it is such a booming market.
But did you know that buying property in Dubai can be slightly cumbersome? If you don’t know all the rules and procedures?
To make things easier for you, we have come up with this informative blog to expound on what RERA is, and the different kinds of RERA forms you should fill.
Let us first know the purpose of RERA…
What is RERA?
Real Estate Regulatory Agency, or RERA, is the regulatory arm of the Dubai Land Department, which regulates and authorizes the real estate sector in Dubai.
RERA is in place to ensure that all the property related transactions are fair and transparent. If you want to buy or sell property in Dubai, especially for the first time, you need to have all RERA forms in place.
There are different kinds of forms, so read on to know about each of them and their significance.
Form A – Agency contract agreement/ listing form
If you want to sell a property, then Form A is one of the most important forms you need to have. Once a seller has found the agent who wants to advertise their property, the seller and listing agent must sign RERA Form A. Clauses in RERA form A include:
- An outline of the agreement between the seller and the listing agent.
- Property details like financial information, service charges, mortgage status and payment schedules.
- Details regarding how the property will be marketed. The seller is not authorised to advertise the property on any portal without a written agreement.
After Form A has been signed, it will be approved by the DLD’s Trakheesi system, which will assign the property advertisement a permit number.
Keep in mind that the broker needs to get the seller’s details if you want to list the property for sale.
If two or more people jointly own the property, then each of them has to sign on the RERA Form A.
According to RERA, a property owner can only complete three Form A at a time and deal with a maximum of three brokers (one form for each broker).
Form B – Buyer’s Agent Agreement
If you want to buy property in Dubai, you need to have RERA Form B.
If you’re searching for offices for sale in Dubai, then RERA form B is also for you.
RERA Form B needs to be signed when the buyer appoints an agent to put the property on sale. Make sure you always deal with RERA certified property dealers as they’ll have all the valid information and will make buying and selling property in Dubai a lot easier and hassle free.
The information in Form B includes –
- The property type the buyer is interested in
- The property’s location
- The buyer’s budget
- Requirements of the buyer
It should also include contract termination terms and conditions and agency commission.
As per RERA law, the buyer is obligated to terminate this agreement unilaterally for a specific reason.
If such a situation arises, the buyer needs to fill out Form U with a detailed description of the reason for terminating further cooperation with the agent.
Form I – Agency Agreement
Form I is as an agreement between two agents, each from the side of the buyer and the seller. The form protects the agent’s rights, listings and clients. Form I also ensures a professional relationship between two or more agents. The need of Form I usually arises when there are several agents involved in a single transaction regarding the lease or sale of a property.
The representative of the buyer will not be able to attend auctions, to view the property, or to interact with representatives of the other party’s interests without a Form I.
Form F – Contract of Sale
RERA Form F is popularly known as the Memorandum of Understanding. It is one of the most important real estate forms in Dubai if you want to purchase a property. It is basically a purchase agreement between the seller and the buyer. The form is signed once the buyer has chosen the property and a price has been decided between the two parties.
Keep in mind that Form F by RERA is only a valid contract after it has been signed by the seller and the buyer. It must also be witnessed and dated by the agent.
Form U – Notice of cancellation of agreement
RERA Form U in Dubai is both parties’ official agreement cancellation notice. The buyer or seller can unilaterally terminate the contract with the broker by signing a copy of Form U. It is the only legally accepted way to end the agreement.
As per the regulations in Form U, the real estate agent must be notified about the agreement termination in written form and the reason of termination also needs to be mentioned.