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Apartment Contract Renewal Fee

Apartment Contract Renewal Fee

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Old Sep 5th 2012, 7:58 am
  #1  
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Default Apartment Contract Renewal Fee

My contract is up for renewal and I just spoke to the estate agent who put in place the contract last year. He told me they want 2000 dibs for the job.

My response was something along the lines of "what exactly for?" to which the chap said they would create the contract and register it with various government agencies. I have no idea what the last bit means exactly as last year I had to send my PRO to the land department myself and get it registered with Ejari (Tenancy Registration Certificate)..

Does anyone know what my options are? Do I need the agent to create the contract?

I found an article in Gulf News saying max charge is AED 160, but they will obviously tell me to f' off if I bring that up...
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Old Sep 5th 2012, 8:21 am
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Default Re: Apartment Contract Renewal Fee

Max charge is 120Dhm but they are allowed to include an 'Administrative Fee' on top of that which has no ceiling. But 2000 is taking the pee. Some interesting stuff in here http://www.rpdubai.ae/English/Tashje...s/Law%2026.pdf if you don't renew your contract and stay in the place.

Have a look at this thread http://www.facebook.com/groups/jvtri...al_comments=29
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Old Sep 5th 2012, 8:41 am
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Default Re: Apartment Contract Renewal Fee

Originally Posted by mikewot
Max charge is 120Dhm but they are allowed to include an 'Administrative Fee' on top of that which has no ceiling. But 2000 is taking the pee. Some interesting stuff in here http://www.rpdubai.ae/English/Tashje...s/Law%2026.pdf if you don't renew your contract and stay in the place.

Have a look at this thread http://www.facebook.com/groups/jvtri...al_comments=29
According to Article (6) it looks like the contract is considered to be renewed after expiration as long as the landlord does not object, but I'm not sure that would help with Ejari and also I'm not sure Nakheel would be issuing me with new beach passes based on this...

Maybe I should ask for a discount and a breakdown of what exactly they will do for the money. I would pay let's say 500 without thinking twice, but 2000 is robbery..
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Old Sep 5th 2012, 12:07 pm
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Default Re: Apartment Contract Renewal Fee

Here's a silly thought! Do I actually need the estate agent at all?

What if I took it upon myself to create a new contract document (based on this years) and both myself and the landlord sign it?

Would this be accepted by RERA for registration?
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Old Sep 5th 2012, 12:12 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by norsk
My contract is up for renewal and I just spoke to the estate agent who put in place the contract last year. He told me they want 2000 dibs for the job.

My response was something along the lines of "what exactly for?" to which the chap said they would create the contract and register it with various government agencies. I have no idea what the last bit means exactly as last year I had to send my PRO to the land department myself and get it registered with Ejari (Tenancy Registration Certificate)..

Does anyone know what my options are? Do I need the agent to create the contract?

I found an article in Gulf News saying max charge is AED 160, but they will obviously tell me to f' off if I bring that up...
See last Q&A. http://www.thenational.ae/lifestyle/...geCount=0#full

AED 2,000 is unacceptable. Quote the RERA advice to them, per above.
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Old Sep 5th 2012, 12:31 pm
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Default Re: Apartment Contract Renewal Fee

Actually illegal for them to charge 2000 and you should report them to RERA http://blog.propertyfinder.ae/2011/0...-fees-illegal/

http://gulfnews.com/business/propert...dh160-1.877583
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Old Sep 5th 2012, 12:49 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by norsk
Here's a silly thought! Do I actually need the estate agent at all?

What if I took it upon myself to create a new contract document (based on this years) and both myself and the landlord sign it?

Would this be accepted by RERA for registration?
That's what I've done for the last two years, well my landlords created it, standard green issue one with separate sheet of additional clauses clipped to it.

How can you check if a contract is registered with RERA though....
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Old Sep 5th 2012, 12:59 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by the_red_sheep
That's what I've done for the last two years, well my landlords created it, standard green issue one with separate sheet of additional clauses clipped to it.

How can you check if a contract is registered with RERA though....
Cool. Thanks. I am probably going to do this..

If registered with RERA (Ejari) you get a Tenancy Registration Certificate.
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Old Sep 5th 2012, 2:12 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by Meow
See last Q&A. http://www.thenational.ae/lifestyle/...geCount=0#full

AED 2,000 is unacceptable. Quote the RERA advice to them, per above.
Thanks Meow.

They agent is supposed to call me back tomorrow morning. I'm going to ask them to send me an email with their proposal including breaking down the cost per activity they will be completing. At the same time I will make them aware of the RERA advice provided and perhaps point them to your article as well.

Depending on what happens next I may report them to RERA and do the work myself. Afterwards I will pay myself 2000 to spend on beer!
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Old Sep 5th 2012, 2:13 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by mikewot
Actually illegal for them to charge 2000 and you should report them to RERA http://blog.propertyfinder.ae/2011/0...-fees-illegal/

http://gulfnews.com/business/propert...dh160-1.877583
Yeah I know what you're saying, but if I was going to report every instance of laws being broken blatantly by companies here I would be doing nothing else...
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Old Sep 5th 2012, 2:33 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by norsk
Thanks Meow.

They agent is supposed to call me back tomorrow morning. I'm going to ask them to send me an email with their proposal including breaking down the cost per activity they will be completing. At the same time I will make them aware of the RERA advice provided and perhaps point them to your article as well.

Depending on what happens next I may report them to RERA and do the work myself. Afterwards I will pay myself 2000 to spend on beer!

I'd be interested to know what they say. Personally, I think it's fair to pay a small fee for someone to handle the renewal, but not Dhs 2,000. I'll have a beer too thanks!
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Old Sep 5th 2012, 2:36 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by Meow
I'd be interested to know what they say. Personally, I think it's fair to pay a small fee for someone to handle the renewal, but not Dhs 2,000. I'll have a beer too thanks!
I'll share with you afterwards...
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Old Sep 5th 2012, 3:46 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by norsk
I'll share with you afterwards...
Meow gets the empty glass?
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Old Sep 5th 2012, 4:33 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by norsk
If registered with RERA (Ejari) you get a Tenancy Registration Certificate.
The purpose of which is? Sorry, had a read of the RERA (Ejari) website and can't quite figure out what the benefit of registering is?

Is registration compulsory? I seem to have manage to completely bypass this whole process...
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Old Sep 5th 2012, 5:04 pm
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Default Re: Apartment Contract Renewal Fee

Originally Posted by OleJanx
Meow gets the empty glass?
Yes
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