UAE Property: ‘Do I need a real estate agent when buying off-plan?’

Question: I’ve been considering buying an off-plan unit for some time but have been put off by some pushy real estate agents. Do I need an estate agent when buying off-plan? VK, Sharjah

Answer: The straight answer is no, you do not require the services of an estate agent when buying off-plan. However, I would urge you to consider all the factors listed below before doing so.

Going directly to a developer may seem like the best option when buying an off-plan unit, by thinking they may reduce the quoted price as there is no commission to be paid to a real estate broker. This is often not the case as many developers have their own sales teams and they still pay their teams commission, so it is very unlikely you will get a better deal than if you went through an agent.

Another point of note is that developers need brokers and they have built up years of business relationships nurturing these contacts. Often going through a reputable broker gets you a better deal or some sweeteners perhaps.

Getting hold of a preferred unit at the launch is also very challenging. Going through an agency can help you secure your unit of choice due to the sheer number of units a broker sells for the developer, therefore potential favours may be factored in.

The broker thrive on building relationships with their clients, so going through an agent to buy an off-plan unit will ensure your best interests are managed and exceeded, as any company would want your repeated business, too.

You can go directly to a developer to buy an off-plan unit but going through an estate agent to do so could get you a better deal and help to support your purchase in the long run.

Q: I have rented a property since last year and wish to renew my lease for another year when my contract ends in October.

However, the landlord hasn’t said anything directly to me about what he wants to do but is skirting around the edges of wanting to evict me citing “personal reasons”.

Are there specific notice periods that landlords must give tenants in Dubai before eviction for reasons other than non-payment of rent? PS, Dubai

A: The first thing to note is that a tenancy contract automatically renews under the same terms and conditions as before (unless otherwise agreed). If a landlord wishes to get a tenant out, he can do so for only four reasons.

One would be if he needs to sell the property. Another would be for reasons of moving in himself, or his next of kin of first-degree. The third reason would be for major refurbishment that would otherwise prevent a tenant from having quiet enjoyment of the property due to the work being carried out and lastly, for a reason of demolition.

For these last two reasons, the landlord would need written approval from the concerned authorities. For the reason of moving in, the landlord would not be able to re-let the property for a period of two years after eviction. You could get compensation if the landlord violates this last part.

For these four reasons, the landlord must inform you about eviction through notary public or registered mail and give you at least 12 months’ notice to vacate.

This is the only way you would be asked to leave. There are no other shortcuts for the landlord. Remember that these are not related to non-payment of rent. In this case, there are different notice periods that must be adhered to.

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@novviproperties.com