Renewal transactions can often get done without a broker. Tenants often ask about the agent renewal fee, which is charged upon the renewal of a tenancy contract between the tenant and landlord. We point out when it needs to be paid and when it doesn’t.
Your Legal Rights
The takeaway? Agents are qualified to get paid when a tenancy agreement is executed under UAE law and Ajman Land Department guidelines. However, no condition stipulates that agents have the right to keep getting paid that amount each time a tenant's lease is extended. However, if the renter has signed a rental agreement with a clause referencing a renewal fee, they must legally abide by that clause. To prevent this pointless fee, thoroughly read your contract.
Your Case
Agent fees typically range from 5% of your annual rent. Your agent may remind you when to renew your lease and offer to mediate the process between you and the landlord. The good news is that the renewal transaction may frequently be completed without a broker or the accompanying cost, despite your reluctance to spend an additional 5% of your annual rent.
The Result
Real estate agents are compensated for helping the landlord find a new tenant and mediating the rental agreement between the tenant and landlord. However, if the agreement is extended between the renter and the landlord, no additional fees are due because the agent is not needed to facilitate the process. Contractual agreements between parties are very apparent in the law. Therefore tenants should haggle over their specifics before signing. Tenants have the right to protest in AERA if an agent is insistent on charging a renewal charge without their consent.
Conclusion
Throughout the new lease, you can depend on your agent to offer assistance and counsel, especially if you get your landlord to respond or communicate with you because of a language barrier. If you decide not to renew your tenancy for quick and accurate information, you should have a real estate agent available.
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