DLD & RERA Roles:

Dubai Land Department (DLD):

DLD is a government organization, established on January 24th, 1960 to oversee affairs related to lands and private properties in the emirate of Dubai, in order to register these lands and properties in a systematic and effective manner and to safeguard the rights of people.

DLD's vision is to be the global leading real estate environment to attract investments. DLD's mission is to create a real estate environment that applies best practice international standards to guarantee all stakeholder's rights and contributes to the development of society by:

• Developing and applying clear and transparent real estate regulations.
• Providing distinctive and efficient real estate services that help attract investment into the sector.
• Increasing real estate knowledge.

Real Estate Regulatory Agency (RERA):

The Real Estate Regulatory Agency was established as a result of a law issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, in 2007. Supported by the Dubai Land Department, RERA plays a key and executive role in the regulation of Dubai’s real estate scene. Despite being a young entity and with the help of a qualified national staff, RERA has managed to register all real estate development s and brokerage companies in the emirate.

RERA's Role is:

• Licensing all real estate activities.
• Managing real estate developers' trust accounts.
• Licensing and organizing real estate agents.
• Regulating and registering Rental Agreements.
• Regulating and supervising the owner’s associations.
• Regulating real estate advertisements in the media.
• Regulating and licensing Real estate exhibitions.
• Enhancing national participation in the real estate sector.
• Increasing real estate awareness.

What is the “Trakheesi” System?

Trakheesi is a web application meant for Real Estate Offices for managing Real estate Broker operations. It enables the Real Estate Office Admin/Broker to perform operations/procedures such as:

• Issuing a broker card,
• Updating broker information,
• Generating permit number for the real estate ad’s,
• Renewing a broker card,
• Replacing a broker card with the new one
• Cancelling broker card.

Dubai Real Estate Institute (DREI):

DREI is the educational arm of Dubai Land Department. DREI’s vision is to become the leading international benchmark in spreading and sustaining real estate knowledge.

DREI’s objectives are:

• Provision of advanced and high-quality programs in collaboration with internationally recognized universities.
• Publishing research and provision of property-related consultations to the public and private sector.
• Enhancing communications among all stakeholders.
• Empowering society by disseminating real estate knowledge.

Rental Dispute Settlement Centre (RDC):

The Rental Dispute Centre, based at Dubai Land Department was moved under the umbrella of DLD through Decree No 26 of 2013. The Center employs mechanisms characterized by flexibility, speed and efficiency to facilitate accuracy, impartiality and transparency when dealing with settlement issues relating to rentals in Dubai real estate market.

Ejari:

EJARI means ‘My Rent’ in Arabic. But technically it means a revolutionary system that shall move Dubai real estate sector to be one of the best regulated rental market in the world.

The Ejari system provides a full portfolio of services beyond registering the initial lease agreement. Renewals, cancellations, transfers and terminations can all be logged. Ejari will ensure rental agreements are fair and transparent to the parties involved and that their terms and conditions are given full weight

Is there a fee for registering an Ejari account?

There is a fee to register your Ejari in Dubai in 2023. The exact fee depends on whether you choose to register through the application, or by going to a trustee centre.

If you register through the Dubai REST application, the fees are:

AED 155 for the registration of Ejari contracts (excluding VAT)

AED 10 Knowledge fee

AED 10 Innovation fee

Through Real Estate Services Trustees Centres, the costs are:

Total AED 219.75 (Including VAT)

AED 10 Knowledge fee

AED 10 Innovation fee

According to clause # 14 of RERA’s “Unified Tenancy Contract” landlords are responsible for registering the Tenancy Contract with Ejari immediately after the lease is signed. However, it’s a common practice in Dubai that tenants pay the related cost as it is required for visa renewals, connecting DEWA, Etisalat / Du phone, etc…).

 

Property Ownership Types:

There are two types of real estate ownership in Dubai:

• Leasehold (also known as a long-term lease): Under this type, the buyer holds the property anywhere over 10 up to 99 years after which time the property is returned to the land owner. In 2001, the Dubai government agreed to allow expats to own real estate on such basis. This was limited to particular projects in Dubai.
• Freehold: It is where the buyer becomes the owner of the property and the land forever. In May 2002, the crown prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, issued a decree allowing foreigners to buy property on freehold basis. This is limited to specific areas in Dubai, known as designated areas. Sheikh Maktoum's decree sparked a real estate boom in Dubai's property sector.

Leasehold Vs. Freehold

Important facts:

• In Freehold you own the property and land FOREVER. Foreign nationals are permitted to own freehold property in “designated areas” approved by the Ruler of Dubai from time to time. Presently, there are over 24 designated areas approved for foreign ownership. (Regulation No. 3 of 2006)
• In Leasehold you own the property, but not the land. Leasehold ownership is anywhere from over 10 years up to 99 years. Foreign nationals are only permitted to enter into a long term lease of all properties located in “designated areas” of Dubai as determined by the Ruler of Dubai. Long leases cannot exceed 99 years and must be registered in the Real Property Register in the Dubai Land Department pursuant to the requirements of Article 9 of Dubai Law No. 7 of 2006.
• It is important to note that the Tenancy Laws are not applicable over long-term leases (leasehold) and the RDC does not have jurisdiction over long-term lease disputes.
• Citizens of the GCC are not considered foreigners.
• Both ownership (freehold and leasehold) types give the flexibility to owners to live in, rent out, modify, sell, and for inheritance by heirs ( In Leasehold it will be based on the remaining life of the lease).