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19 March 2024

Many still have not registered Dubai rental contracts on Ejari

Published
By Parag Deulgaonkar

Although the Dubai Land Department (DLD) says that on average 500 contracts are registered on Ejari every day, 32 per cent of the respondents to an Emirates24|7 poll said their rental contracts were not registered on the official e-registration portal.

Nineteen per cent of the survey respondents said their landlord had registered their contract, while only 10 per cent said they as tenants got their contracts registered.

Rahul Kumar, whose tenancy contract has not been registered on Ejari, says: “I signed my tenancy contract in May, but it was not registered. My employment visa gets renewed in December and I can’t avoid it as it has become mandatory to a registered tenancy contract for stamping my family residency visa.”

He, however, states that his landlord has refused to pay the Ejari cost. “My landlord told me to pay since I need the registered contract,” Kumar said.

Emirates24|7 reported earlier that it was the duty of the landlord to pay the Ejari fees, but if the landlord wasn’t paying then the tenant will have to bear the charges. The cost of registration is Dh190.

“It is the responsibility of the landlord to register the tenancy contract. However, if the landlord failed to do so, there are service centres (authorized typing offices) where the tenant can visit in order to complete the registration process,” the land department said.

Moreover, landlords or their management companies can face up to Dh50,000 as penalty for non-registration of the rental contracts on Ejari.

Land Department stats reveal that on average 500 contracts are registered daily in Ejari.

As of June, 115,251 contracts had been registered in Ejari, including 41,442 commercial and 73,809 residential contracts. It has authorized 47 typing office and service points to use Ejari.

In June, the Land Department said lease contracts registered with Ejari were mandatory for renewing, amending and receiving commercial licenses issued by Dubai Economic Development Department (DED) from July.

The DLD says registration on Ejari protects rental rights for all parties in order to avoid potential lease disputes. It also has a positive impact on updating the rental index and fair lease value in the market.

[Image Courtesy: Shutterstock]