Question: I’ve been living in a Dubai apartment for the last three years. When I first moved in, the real estate company charged me a fee, but now they’re charging me a Dh1,000 ‘service fee’ and a Dh200 Rera fee each time I renew my tenancy contract. I just received the renewal notice last week, and those charges are listed again. Is this even allowed? Is this legal?
Answer: In Dubai, a tenancy contract defines the respective rights and obligations of a landlord and a tenant with respect to a rented premise.
Furthermore, the contract also determines how different payments, like those for government fees and taxes, are agreed and specified between the landlord and tenant based on the terms of the contract.
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Usually, tenants are responsible for these payments unless the lease contract specifically says otherwise. This is outlined in Article 22 of Law No (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai which reads as follows: “Unless the Lease Contract states otherwise, the tenant must pay all fees and taxes owed to government entities and departments in relation to the use of the real Property, and must pay the fees or taxes prescribed for any sublease of the real property.”
The Rera registration fees are mandatory government charges that you have to pay as a tenant. Therefore, according to the Tenancy Law, you are obliged to pay the charges unless your tenancy contract states otherwise. The landlord may rightly claim the service charges if you had agreed to such charges in your tenancy contract.
In case there is no amicable settlement related to the said matter between you and your landlord, you may approach the Rental Dispute Centre of Dubai to settle the matter amicably.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.