Thursday, December 9, 2010

Steep fine for landlords who don't register with Ejari

Tenancy Contract
New tenants are advised to stay clear of landlords or real estate agents who don't register the lease contract with the new Ejari system to avoid problems with utility connections should authorities enforce the new law in full
Registering tenancy contracts with Ejari, Dubai Land Department (DLD)'s new online portal, is a must under Law No 26 of 2007 which is aimed to regulate landlord-tenant relationships.

Under the Ejari system, made mandatory in March 2010, landlords must first secure Rera approval for their property before leasing it to an individual or turning it over to a property management company.
New tenants presenting a simple tenancy contract to Dewa still get a connection, but that could change. Landlords are obliged to pay the Dh160 Ejari registration fee at the end of the process and failure invites a fine of up to Dh50,000.
Landlords must upload the data for each leased property into the system. Once approved, the Ejari system will print out a new contract which will be the tenant's ticket to get utility connections
Online registration must for lease contracts: Rera
The Real Estate Regulatory Agency (Rera) has announced that from now on all rental/lease contracts for Dubai properties must be registered through its new Ejari online portal.
The announcement makes effective the provisions of Law No 26 of 2007 regulating the relationship between tenants and landlords in Dubai and requires all individuals and companies acting as landlords to register tenancy agreements.
Landlords and tenants who fail to comply with the new ruling will find that their tenancy agreements fall outside the protection offered by the law and government agencies and will not be able to enforce the provisions of the agreements they enter into.
The law clearly states: "Judicial bodies and governmental departments and authorities should not consider any claim, case or execution based on a tenancy contract unless the same is registered with the agency."
Announcing the new ruling and the full activation of Ejari, its state-of-the-art online registration system, Rera called on everyone involved in drawing up and entering into such contracts to ensure full compliance and avoid violation.
Registration through Ejari is a simple process requiring little technical knowledge and only the basic details of agreements are entered. These include information such as details of the property, the name of the rental company and terms of the agreement. Once the agreement is entered into the system and registered, it is allocated a unique barcode that acts as its reference throughout the life of the contract.
What is 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.
EJARI is the new initiative of RERA to regulate and facilitate the Rental Market of Dubai. This is a new system that will make provisions of Law No. 26 of 2007 effective that is regulating the relationship between Landlords and Tenants in Dubai. This will require all individuals and companies acting as landlords to register tenancy agreements using EJARI.
RERA has announced that with the effect of 14 March 2010, all rental / lease contracts for Dubai properties must be registered through its new EJARI online portal. The EJARI electronic registration web service is designed to meet the requirements of the law and RERA’s vision and mission to establish a robust regulatory system for the rental market and protect the rights of everyone involved. .
Its state-of-the-art online registration system offers full protection of their rights to all parties with tenancy agreement. It ensures these rights are recognized, upheld, and enforced by all Government agencies. It establishes full transparency between landlord and tenant, fully integrates rental contracts into the legal framework and opens up the possibility of being able to revise these contracts seamlessly in the event of disputes .
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 .
How it works?
Registration through Ejari is a simple process requiring little technical knowledge and that only the basic details of agreements are entered. These include information such as details of the property, the name of the rental company, and terms of the agreement. Once the agreement is entered into the system and registered it is allocated a unique barcode which acts as its reference throughout the life of the contract. RERA will keep its own record of the agreement and update changes to the register as these occur.