In the UAE, the real estate sector has a strict regulation: the legislation clearly follows the rules and regulates the obligations and rights of each party. When buying an apartment or villa in UAE, you are more likely to seek help from specialists. And what are the subtleties associated with this, you will learn in our new material.
The realtor must be official
As reported by Emirates.Estate, one cannot just be an assistant in the real estate selection in the UAE. This is always a licensed specialist. For example, in Dubai it is obligatory to work as part of an agency, while in Abu Dhabi or Ras al-Khaimah it is allowed to operate in private practice, however the license must be obtained for freelancers as well.
A professional agent is certified annually and receives a corresponding decision: renewal of the brokerage card and an examination certificate.
And how is in real practice: whether or not an agent is necessary?
In theory, the deal can be made without the help of an agency. However, this will present a number of difficulties for a foreign citizen due to the lack of knowledge of the Arabic language and the legal niceties. Practice shows that most transactions are concluded precisely when a real estate agency is involved: the realtor takes responsibility for the final stage of the transaction, when the documents must be taken to the Land Department. The documents are registered, the compliance of the data is checked, a check for debts is carried out in this institution, and so on.
Agency Commission fee: Who Should Pay?
It’s the standard way of things in the UAE that any taxes and commissions upon the purchase are paid by the party interested in purchase. However, situations are different in practice, so that payment by mutual agreement can be made by the other party.
How should the commission fee be paid?
Of course, payment in advance is out of the question. The remuneration to the realtor is transferred only at the time of transfer of documents for housing and registration of the transaction at the branch of the Land Department. This is done openly with the department official and representatives of other parties.
What is the amount of commission fee to a realtor?
The rate accepted, but not fixed by legislation is equal to 2 percent. In addition to this, each of the parties pays VAT as well. This figure is adopted in Dubai, but each emirate has its own laws and foundations, so in other parts of the UAE it may turn out that you will pay only 1 percent of the amount for the commission.
Quick selection of real estate in the UAE!
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