The Municipality of the city of Abu Dhabi with the cooperation of Department of Economic Development (DED) has mandated a new regulation to restrain fraudulent leasing and protect tenant’s rights and property owners in the capital city.
Implemented last month, the directive states that only corporate entities and individuals licensed in Abu Dhabi emirate can accept property management in the capital. Companies registered or licensed in other emirates should apply for commercial permits from DED office to handle Abu Dhabi properties.
For individual investors, they will be only allowed to rent units certifying that they have business relationship with the owner of the property or its relatives.
The Municipality said that this new regulation will guarantee companies and individuals to manage properties of their own and any business without legitimate licenses and permits will be prevented from dealing in estates since illegal subleasing is discreetly practiced by unlicensed brokers.
The tenancy contract office of the municipality appeals on all businesses that are not adhering yet the new regulation, there is a grace period of 1 year to meet the requirements and comply with the new regulation and urging individual realtors who are managing company properties be authorized thru notarized legal power of attorney.