Dubai: Can owners rent properties without a real estate broker?

KT reader wants to know if it is mandatory to reach out to a broker in order to rent his apartment

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by

Ashish Mehta

Published: Sun 27 Oct 2024, 7:50 AM

Last updated: Sun 27 Oct 2024, 8:37 PM

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.

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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.

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

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Ashish Mehta

Published: Sun 27 Oct 2024, 7:50 AM

Last updated: Sun 27 Oct 2024, 8:37 PM

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