Who Pays for Ejari Registration?

Introduction

Ejari registration is a mandatory process in Dubai that ensures tenancy agreements comply with the regulations of the Real Estate Regulatory Agency (RERA). However, a common question that arises during tenancy discussions is: Who pays for Ejari registration fees? Is it the landlord, tenant, or someone else?

In this guide, we will clarify who is liable for Ejari registration fees, the common practices in Dubai’s rental market, and what happens if no one takes responsibility.

Who Is Typically Liable for Ejari Registration Fees?

The responsibility for paying Ejari registration fees is not explicitly defined in Dubai’s laws and is often determined by mutual agreement. However, the general practice in Dubai is as follows:

1. The Tenant

In most cases, the tenant is responsible for paying the Ejari registration fees. This is widely accepted as part of the tenant’s initial costs when moving into a new rental property.

Why Tenants Pay:

• The Ejari certificate is necessary for the tenant to:

  • Activate or transfer DEWA (Dubai Electricity and Water Authority) services.

  • Renew their residency visa or sponsor dependents.

• It is considered part of the tenancy setup costs, alongside agent fees, deposits, and moving expenses.

Example Scenario:
A tenant signs a new tenancy agreement and pays the Ejari registration fee to finalize the contract and set up water and electricity services.

2. The Landlord

While tenants typically bear the cost, landlords may take responsibility for Ejari registration fees under certain circumstances, such as:

• Competitive Rental Market: To attract tenants, landlords may offer to cover the Ejari fees.

• Bundled Services: Some landlords include Ejari registration as part of their property management services.

• Explicit Agreement: If the tenancy contract specifies that the landlord will handle the cost, they become liable.

Example Scenario:
To encourage a long-term rental, the landlord agrees to pay the Ejari registration fees and manage the process.

3. Real Estate Agents or Property Managers

If a landlord appoints a real estate agent or property manager, they may handle Ejari registration on behalf of either party. While agents typically collect fees from the tenant, the actual liability depends on the agreement.

Agent’s Role Includes:

• Facilitating Ejari registration as part of their services.

• Clarifying payment terms during lease negotiations.

Note: Agents usually act as intermediaries, and the ultimate payment responsibility lies with the party specified in the tenancy contract.

Mutual Agreement Is Key

Since Ejari registration fees are not legally assigned to a specific party, landlords and tenants must agree on payment terms before signing the tenancy contract.

Best Practices to Avoid Confusion:

• Discuss payment responsibilities during lease negotiations.

• Clearly state who will pay for Ejari registration fees in the tenancy contract.

• Document any agreements in writing to prevent disputes later.

How Much Does Ejari Registration Cost?

While fees can vary slightly depending on the service provider, the average cost for Ejari registration falls between 200–250 AED.

Important Note: Fees for Ejari renewals typically follow the same principle—responsibility depends on the agreement between the landlord and tenant.

What Happens If No One Pays for Ejari Registration?

If neither party pays the Ejari registration fees, it can lead to several complications, including:

1. Utility Activation Issues

   • DEWA will not activate or transfer water and electricity services without a valid Ejari certificate.

2. Visa Processing Delays

   • Tenants may face delays in renewing residency visas or sponsoring family members.

3. Legal Penalties

   • Landlords may incur fines for failing to register tenancy contracts as required by RERA.

4. Lack of Legal Protection

   • An unregistered tenancy agreement cannot be used as legal proof in case of rental disputes.

To avoid these issues, it’s essential to ensure Ejari registration is completed promptly and the fees are settled as agreed.

Dispute Resolution: Who Pays If a Conflict Arises?

Disputes over Ejari fees can happen when:

• The tenancy contract does not specify who is responsible.

• One party refuses to pay the fees.

Steps to Resolve Disputes:

1. Refer to the Tenancy Agreement: Check if payment terms are clearly mentioned.

2. Negotiate Fairly: Discuss and agree on a fair solution (e.g., splitting the cost).

3. Involve Real Estate Agents: If an agent facilitated the lease, they can help clarify responsibilities.

4. Seek Legal Advice: If no resolution is reached, consult the Dubai Land Department (DLD) or seek legal mediation.

Conclusion

In Dubai, the tenant is generally responsible for paying Ejari registration fees, as the certificate is often needed to activate DEWA services or process visa renewals. However, landlords may agree to cover the cost under specific circumstances, such as competitive rental offerings or mutual agreements.

To avoid disputes, landlords and tenants must clarify payment responsibilities during lease negotiations and document them in the tenancy contract.

For hassle-free Ejari registration and expert guidance, visit Ejari.Support to ensure your tenancy agreement is fully compliant with Dubai’s rental laws.

Stay compliant, avoid penalties, and complete your Ejari registration smoothly!