United Arab Emirates · property

Can a Real Estate Agent Charge a Renewal Fee in Dubai?

Under Dubai tenancy law, real estate brokers have no automatic legal right to demand an annual renewal fee or administrative charge from a tenant. Unless you expressly contracted and agreed to pay for specific administrative services, agents cannot condition your lease renewal on paying arbitrary fees. You have legal avenues to bypass uncooperative brokers and renew your lease directly through official channels.

What Dubai Law and RERA Say About Renewal Fees

In the United Arab Emirates, tenancy relationships in the Emirate of Dubai are governed by Law No. (26) of 2007 (as amended by Law No. (33) of 2008) and broker activities are regulated under Dubai Bylaw No. (85) of 2006. Neither Dubai tenancy law nor the Real Estate Regulatory Agency (RERA) mandates that a tenant must pay an agent an annual contract renewal fee.

Under Bylaw No. (85) of 2006, real estate brokers are entitled to remuneration only if they conclude a transaction and an agreement exists defining their commission. A standard leasing commission applies to the initial procurement of a tenancy. When a tenant simply renews an existing lease under Article 6 of Law No. (26) of 2007, the contract automatically continues on the same terms unless both parties agree to changes at least 90 days prior to expiry.

The Dubai Rental Disputes Center (RDC), the judicial arm of the Dubai Land Department (DLD), has repeatedly clarified that landlords and leasing agencies cannot arbitrarily impose administrative or renewal surcharges as a condition of signing the renewed lease. Government registration charges—such as official Ejari fees (typically AED 177.75 online or AED 220 at a trustee centre)—are statutory, but private broker renewal fees of AED 500 to AED 2,000 are not backed by statute.

When a Broker Inserts Renewal Clauses into Contracts

Many property management agencies insert boilerplate clauses into tenancy addenda stating that the tenant must pay an administrative fee or percentage upon every subsequent renewal. However, the RDC regularly invalidates arbitrary renewal charges that do not reflect actual, requested services, establishing that statutory tenancy protections cannot be undermined by unilateral broker penalties.

An agent can only collect a fee if you explicitly hired them to perform a separate, tangible service—such as handling power of attorney tasks or complex re-negotiations—and agreed to compensate them in writing. If the agent merely reprints the standard unified tenancy contract or forwards rent cheques to the owner, they cannot legally compel you to pay for work you never commissioned.

Resolving the Dispute and Enforcing Your Renewal Rights

Brokers often threaten that they will withhold the landlord's signature, refuse to collect cheques, or block your Ejari registration if you do not pay their fee. This is an unlawful pressure tactic. If negotiations break down, Dubai law provides a dedicated mechanism through the RDC called an 'Offer and Deposit' application.

Through Offer and Deposit, you lodge your signed renewal terms and rental cheques directly with the RDC clerk. The judge officially notifies the landlord to collect the payments. Once deposited, the agent loses all leverage, and the RDC protects your tenancy against eviction. Before escalating, you can use Caunsel to research your legal rights, organise and store your lease records in an active case file, or connect directly with an independent UAE-licensed lawyer to evaluate your contract wording.

Steps

• Review your existing unified tenancy contract and addendum to verify whether you ever signed an explicit agreement authorizing annual agent administrative fees.
• Issue a written response via email or registered message to the agent stating that you refuse the renewal fee under RERA guidelines and are prepared to renew directly with the landlord on the statutory terms.
• Contact the property owner directly to clarify whether they authorized the agent to charge you or whether the agent is attempting to collect an unauthorized surcharge.
• If the broker or landlord refuses to exchange contracts or accept your cheques without the fee, file an 'Offer and Deposit' petition with the Dubai Rental Disputes Center (RDC) via the Dubai REST app or an authorized typing trustee centre.

Common mistakes

• Paying the fee via cash or personal transfer without an official VAT receipt and detailed service invoice, which makes it harder to recover the funds later.
• Assuming an agent's verbal threat to evict you or withhold Ejari has legal force; an agent has no unilateral legal authority to evict a tenant in Dubai.
• Waiting until the last day of the lease to contest the fee, leaving you insufficient time to initiate an Offer and Deposit filing before the contract lapses.
• Confusing mandatory government Ejari fees (approx. AED 177.75 to AED 220) with discretionary agency administrative renewal charges.

Questions people ask

Is a tenancy renewal fee mandatory under Dubai law?

No. There is no provision under Law No. (26) of 2007, Law No. (33) of 2008, or RERA regulations that makes agent renewal fees mandatory. Tenants are only required to pay statutory Ejari registration fees.

What happens if the agent refuses to give me the renewed contract until I pay?

If the agent or landlord withholds the contract or refuses your rent cheques over an unpaid renewal fee, you can submit an 'Offer and Deposit' filing with the Rental Disputes Center (RDC), placing the cheques under judicial custody to safeguard your legal possession of the property.

Can I bypass the agent and renew directly with the landlord in Dubai?

Yes. If the agent does not hold an official registered Power of Attorney or an active, exclusive property management contract, you can liaise directly with the property owner and process your Ejari renewal online using the Dubai REST application.

General information only, last updated 2026-10-14. Caunsel is not a law firm and does not practise law. AI answers and this guide are not legal advice. Verify filings, deadlines, and statutes with a licensed lawyer in United Arab Emirates.