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29 March 2024

Dubai makes new unified property forms mandatory from today

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By Parag Deulgaonkar

Real estate participants – buyers, sellers and brokers - will start using the new unified contracts issued by Dubai Land Department (DLD) from today (May 1) onwards – a move aimed to minimize any misrepresentation and misunderstanding between any of the parties.

Though the buyer and the seller will fill Form F (contract between seller and buyer), real estate agents say the unified contract isn’t likely to eliminate the memorandum of understanding (MoU), which states conditions for cancellation or extension of the contract, for the time being.

“By standardising contracts all parties will be able to conduct their business in the knowledge that everyone will be using exactly the same forms so there will be no surprises,” Mario Volpi, Managing Director, Prestige Real Estate, told Emirates 24|7.

Rera, in fact, had introduced these forms back in 2008. However, the forms have now been made mandatory and can be downloaded from the eMart website (www.emart.gov.ae).

“Before standardisation, the only real difference to the mandatory forms is the form F, i.e. the MoU. This form is new as all agents would use their own representation of a MoU. The new Form F contract in its present form is too basic and does not allow for any eventualities such as if the sale falls through.

“Most agents will most probably continue with their own MOU’s as an addendum to the mandatory new form so that all situations would still be covered,” he added.

Volpi says that there is need for the government to alter the form F, but any move towards more legislation will improve the market through transparency as there will be fewer opportunities for rogue agents to manipulate situations.

Last month, DLD said unified real estate contracts aim to protect the rights of the three parties in any real estate transaction; the buyer, the seller and the broker.

The new procedure will help facilitate and accelerate the processes of buying and selling in the real estate market, especially as it allows the completion of registration procedures without the need to use an agent.

There are three models of unified contracts: a contract between seller and buyer (F), a contract between seller and broker (A) and a contract between buyer and broker (B).

The forms can be downloaded from the emart website and has to be filled with the required data for each transaction before being signed by the relevant parties. The contract becomes formal and completed after it has been recorded and documented at the department.

Real estate agents say they have been getting different versions on how to use the forms.

“Some say that the forms have to be uploaded on emart, while a few say that they have to be physically delivered to the DLD office. Only when they implement it we will know exactly how it works,” said senior director of real estate agency, who asked not be named.

(Home page image courtesy Shutterstock)