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Dubai, UAE

How to renew my lease contract and remove the clause of annual real estate company fee?

Dear Sir/Madam,

I am in the process of renewing my lease contract and I requested the agent several times to remove the clause that says: "in the event of renewal of the contract, the tenant agrees to pay Real Estate company as admin fee of AED1000/-".

The agent hasn't removed it yet. My last contract expires today, my cheque was ready yesterday (12/03/2024), and I sent them the contract signed (10/03/2024) and made an X on that clause.

Now the agent is threatening me with legal actions saying I'm staying in the apartment illegally (today 1st day).

Can they threaten me?

Do they have any right to keep charging me their fees?

As I read online: "By UAE law, as well as Dubai Land Department regulations, agents are entitled to receive a fee when a tenancy contract is signed.

But there is no clause stating that agents hold the right to continue receiving that fee every time a tenant’s contract is renewed”.

Should I go to DLD and do the contract with their help?

Would appreciate any advice.

Laila Hamza Al Mulla Advocates and Legal Consultants
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13 Mar 2024, 08:43

Dear questioner

If the agent had agreed to remove the clause, then you are not obliged to pay this amount and you had signed the contract.

Now the contract is valid and if you have the proof that you had handed over the signed Ejari, then send a mail agent regarding your concern over the matter and their discrepancies.

If they are not providing any satisfactory response to your email, then you can raise a dispute for mediation in RDC.

If you need our assistance in your matter, please share your Whatsapp number.

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Shamsa Albedwawi Advocates & Legal Consultants
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13 Mar 2024, 09:13

According to UAE law, agents are entitled to receive a fee when a tenancy contract is signed.

However, there is no clause stating that agents have the right to continue receiving that fee every time a tenant's contract is renewed.

Therefore, you have the right to refuse to pay the admin fee for the renewal of your lease contract.

If the agent is threatening you with legal action, you can inform them that you are aware of your rights and that you will not be paying the admin fee.

If the agent continues to threaten you, you can seek assistance from the Dubai Land Department (DLD). They can help you resolve any disputes or issues related to your tenancy contract.

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