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The importance, benefits and usages of Ejari and Tenancy Contracts
Words by Ankita Bhowmick in The Guides · Jan 9th, 2019
The Dubai Land Department (DLD), in 2017, had introduced a new tenancy contract format which is mandatory for all yearly-term tenancies, the only exception being Dubai International Financial Centre (DIFC). The contract is required to be signed for the lease of properties for residential, commercial and industrial use. The copy of it can be downloaded from the EJARI website.
A contract helps reduce and limit potential disputes between landlords and tenants and guarantee their rights. The contract also allows both the agreeing sides to add additional clauses that do not conflict with the Tenancy Law and other property laws of Dubai that are applicable.
According to the Tenancy Contract, a tenant has the right to receive his property in good and habitable condition from the landlord. He is entitled to use facilities and services that are related to the property. He also has the right to get back his security deposit at the end of the agreement term from the landlord and is entitled to complain to the rental dispute committee if the deposit is withheld. It is then the responsibility of the committee to make an investigation and come up with a decision.
A tenant is obliged to pay his rent on time and any delay should be informed to the landlord beforehand so as to avoid any conflict at a later date. He should also not bring any changes in the property without the permission of the landlord and make sure to return the property in the same condition as he had received it.
It is the responsibility of the landlord to take care of the maintenance works related to the property. This includes repairs of damages and defects.
It is advisable of both the parties, i.e. the landlord and the tenant to decide on the items of the property that need maintenance and which one shall be the landlord's responsibility and which ones the tenant's. They should have it mentioned in the contract so as to make things easier in case of any conflict.
Any additional clauses may be added to the tenancy contract.
The word Ejari, in Arabic, means 'My Rent'. The system is introduced by Real Estate Regulatory Authority (RERA) in order to make registration of rental and lease agreements easy and accessible to property owners and Real Estate Management Companies of various categories. This initiative has been effective from 14th March 2010 and helps regulate and facilitate Dubai's rental market. Registering an Ejari is compulsory as per law. Individuals and companies renting out their properties and acting as landlords are required to register tenancy agreements using Ejari through its online portal, which will help regulate their relationship with the tenants.
The initiative of Ejari was primarily taken in order to protect the rights of everyone involved in the rental process and to establish a robust regulatory system for the rental market. It makes sure that there is complete transparency between the landlord and the tenant and also integrates the rental contracts into the legal framework so as to revise them in case of a dispute.
Besides registering the initial lease agreement, Ejari also offers an array of other services that include renewals, cancellations, transfers and terminations.
Registering through Ejari is simple and requires basic details like details of the property, the name of the rental company, and terms of the agreement to be entered. A unique barcode is allocated upon the completion of the registration which acts as a reference throughout the validity of the contract.
The implementation of Ejari registration helps the authorities get a full and accurate picture of the rental market of Dubai. This helps them plan for the future and be able to influence factors such as the supply of property to the market and prices.
The system of Ejari makes sure that rental agreements are completely transparent and fair to the landlord as well as the tenant. Both the parties remain fully protected under this system and full importance is given to their terms and conditions.
With uniformity of approach, Ejari also helps standardise the rental contracts and makes the process easy as it saves time which used to previously get wasted for the production of documents and receipts for tenancy agreements.