# What fees can estate agents charge?



## Dubai_newbie85 (Oct 9, 2011)

Hi

I am trying to transfer my current apartment into my friends name. I am breaking the contract as I have only lived in the apartment for 4 months. 

Can someone kindly tell me what are the transfer fees if they have done this and what are the other fees i should expect to be paying?

Reason for this is that I spoke with the estate agency and they agreed to transfer it to my friend at the same rent and without any other costs.

Now they are saying the rent is 8000 aed higher , there is also 1950 agency fees, 3000 transfer fees - is this normal? 

Also are they allowed to increase the rent by 8k just like that? The apartment is in al nahda 2 (dubai side) 1 bed- the current rent i was paying was 39000 and they are now saying to my friend its 47000? :-( 

If anyone has any advice on this would be very grateful.

Thanks in advance!


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## rsinner (Feb 3, 2009)

Do you have a break clause in your contract? Your contract was probably for one year, and now that you are breaking it after 4 months, does your contract say anything about the remaining rent to be returned etc.? If it does not say anything, then the agent/landlord has no obligation to return the remaining period rent. From what I understand, this is not against the laws here. 

So if they are actually returning the rent and allowing you to "transfer" the tenancy, they have agreed to a practical (and common sensical) solution. There is no official "transfer" of tenancy contracts - in essence they are probably entering into a new contract. So they are within their rights to increase the rent and charge an agency fee. The "transfer" fee is essentially a penalty for breaking your contract after 4 months (almost equal to 1 month's rent - generally people have a penalty of 2 months of rent so you are in fact being let off easily). 

Unfortunately this is how the jurassic age market practices work here. So you woudl have to have a good old haggling on this. What you should do is to put your foot down and tell them to take a hike. Try to bluff that as per RERA regulations no increase in rent is allowed after the first year even (which is true - but not applicable in your case as it is a new contract). At the very least, tell them you would not pay the transfer fees.


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## Gavtek (Aug 23, 2009)

They've found a way to stick the knife in because you have no other option, this is how people in Dubai do business.

You should have just sub-let the apartment on the sly. Being honest is a massive disadvantage here.


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## rsinner (Feb 3, 2009)

Gavtek said:


> Being honest is a massive disadvantage here.


Found that out from experience.


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