Is It Legal for Your Dubai Real Estate Agent to Charge an Annual Renewal Fee?
Many tenants in Dubai often find themselves in a dispute when their real estate agent demands a fee for renewing their lease, despite no such clause appearing in their original tenancy contract. According to Dubai’s rental laws, the landlord-tenant relationship is strictly defined by the terms laid out in the tenancy agreement, which must clearly outline the rental amount, the property description, and the payment structure. Under Law No. (26) of 2007 and its subsequent amendments, there is no statutory provision that automatically mandates a tenant to pay a renewal fee to an agent unless it was explicitly agreed upon within the signed contract.
If your contract is silent on this matter, you are generally not obligated to pay any additional service fees to the agent for simply processing a renewal. Before refusing payment, however, it is prudent to double-check any separate brokerage or agency agreements you may have signed, as these documents could legally bind you to such costs. If no such agreement exists and the agent persists in demanding the fee, you have the right to escalate the issue by filing a complaint with the Dubai Land Department’s Real Estate Regulatory Agency (RERA), which oversees and regulates such disputes.