Who Pays for Ejari?
Introduction
Ejari registration is a mandatory process in Dubai that formalizes tenancy agreements under the Real Estate Regulatory Agency (RERA). While most tenants and landlords understand the importance of Ejari, confusion often arises about who pays for Ejari registration fees.
This guide clarifies payment responsibilities, discusses common practices, and addresses situations where disputes may arise.
Who Is Responsible for Paying Ejari Fees?
The responsibility for paying Ejari registration fees is not explicitly outlined in Dubai’s rental laws, which often leaves it open to mutual agreement between the landlord and tenant. However, in most cases:
The Tenant is generally expected to pay the Ejari registration fee.
The Landlord may pay in special situations, such as to attract tenants or when it is part of the lease agreement.
Ultimately, payment responsibilities depend on what has been agreed upon and specified in the tenancy contract.
Payment Responsibilities: A Detailed Look
1. When the Tenant Pays
In most cases, tenants are responsible for paying the Ejari registration fees. This practice is widely accepted in Dubai and is considered part of the tenant’s duties when renting a property.
Why Tenants Usually Pay:
The Ejari certificate is often required for the tenant to:
Activate or transfer DEWA services (water and electricity).
Renew their residency visa or sponsor dependents.
It is part of the tenancy setup costs (similar to security deposits, agent fees, etc.).
Example Scenario:
If you sign a new tenancy agreement, you, as the tenant, will likely need to cover the cost of Ejari registration and ensure the process is completed promptly.
2. When the Landlord Pays
While it is less common, landlords may sometimes agree to pay the Ejari registration fees. This often happens in specific situations, such as:
The landlord is managing multiple properties and includes Ejari as part of the leasing package.
To attract tenants and make the property more appealing.
It is explicitly mentioned in the tenancy contract that the landlord will cover the fees.
Example Scenario:
In a competitive rental market, the landlord might offer to cover Ejari fees as an incentive for tenants to sign the contract.
3. When Real Estate Agents Handle Payment
If a real estate agent or property manager is involved, they may pay the Ejari fees on behalf of either the landlord or the tenant. However, the cost is typically reimbursed by the party responsible, as stated in the contract.
Agent’s Role:
Agents handle the paperwork, collect the required fees, and complete the Ejari registration process.
They clarify payment terms during the lease negotiation phase.
Mutual Agreement Is Key
Since there is no strict legal rule about who pays for Ejari registration, it is important for landlords and tenants to:
Discuss payment responsibilities before signing the tenancy contract.
Clearly outline the payment terms in the lease agreement to avoid disputes.
Tip: If you are unsure about the responsibilities, confirm them with your landlord or agent and have the agreement documented in writing.
How Much Are Ejari Registration Fees?
While the exact fee may vary slightly, Ejari registration typically costs around 200-250 AED, depending on where the registration is processed (typing centers or online platforms).
Who Pays for Renewal Fees?
Renewal fees follow the same principle as initial registration fees: the responsibility is usually on the tenant unless agreed otherwise.
What Happens If No One Pays for Ejari?
If neither party pays the Ejari registration fee, the tenancy contract remains unregistered, which can lead to several problems:
DEWA Activation Issues: Utilities cannot be set up without a valid Ejari certificate.
Visa Delays: Tenants cannot renew residency visas or sponsor family members.
Legal Penalties: Landlords may face fines for failing to comply with RERA regulations.
Lack of Legal Protection: Unregistered contracts are not recognized in rental disputes.
To avoid these issues, tenants and landlords must ensure the Ejari registration is completed and fees are settled promptly.
Common Disputes and Solutions
Disputes about who pays for Ejari fees are not uncommon. Here’s how to address them:
Review the Tenancy Agreement
Check if payment terms are mentioned in the lease contract.
Negotiate Fairly
If payment responsibilities are unclear, negotiate a fair solution where one party pays or both share the cost.
Involve Real Estate Agents
Agents can clarify responsibilities and mediate disputes during contract signing.
Conclusion
In Dubai, tenants are generally responsible for paying Ejari registration fees unless otherwise stated in the tenancy contract. In some cases, landlords or real estate agents may handle the payment, depending on mutual agreements or specific rental arrangements.
To avoid misunderstandings, always discuss payment responsibilities before signing the lease and ensure they are documented in the agreement.
For assistance with Ejari registration, fee payments, or tenancy-related services, visit Ejari.Support to make the process smooth and hassle-free.
Ensure your tenancy agreement is legally registered and enjoy a stress-free rental experience!