One of the best-regulated real estate markets in the world is found in the United Arab Emirates. Particularly in Dubai and Abu Dhabi, there are rules and regulations in place to safeguard both landlords and tenants. As part of the government’s Vision 2030, a system called Tawtheeq was required in Abu Dhabi in 2011 to control rental agreements as effectively as the Ejari system in Dubai.
Let’s examine Tawtheeq in more detail, how to sign up for it, and the fees associated with using it.
TAWTHEEQ ABU DHABI: WHAT IS IT?
The Tawtheeq system is how Abu Dhabi’s government controls the tenancy agreements for rental properties. In order to prevent future problems, it aids in the formalization of tenancy agreements in Abu Dhabi and ensures openness between landlords and tenants.
Every time a new rental contract is signed in Abu Dhabi, a Tawtheeq contract must be issued once all relevant steps have been taken. Typically, either the Abu Dhabi property manager or the owner of the property will complete this registration procedure. As opposed to Ejari in Dubai, which is often maintained by the tenants.
WHAT WAS THE PURPOSE OF THE TAWTHEEQ CONTRACT?
To make all rental transactions in Abu Dhabi more efficient, the Tawtheeq tenancy contract was developed. It will serve as a cutting-edge digital system and multilingual (English and Arabic) database for all the details on villas and flats available for rent in Abu Dhabi. The leasing process will be made simpler by Abu Dhabi’s new tenancy contract system, which will also assure data quality and correctness to prevent pointless disputes.
HOW CAN I APPLY TO TAWTHEEQ?
Landlords and property managers can start the procedure by visiting the Tawtheeq online portal or any other authorized Tawtheeq centers run by the Abu Dhabi Municipality, such the Customer Service Center at the Municipality of Abu Dhabi City (Head Office).
If you decide to proceed with the online registration procedure, you must create an account on the website of the Abu Dhabi Municipality and provide the necessary information.
To make things easier, Tawtheeq contracts have a standard structure that must be filled out with information on the rented property. The formal supporting documentation for all real estate transactions, including the installation of water and electricity, is then created by entering these facts into a computerized archive.
You will be given an account number, username, and password to administer your online account after completing the steps and opening the account.
The Municipality will get in touch with you to request the necessary information and documents and resubmit the account opening form if the information stated in the form does not match that in the database of the Municipality or if there are any discrepancies in the supporting paperwork.
You can register in person by going to the Municipality of Abu Dhabi City’s Customer Service Center. Moreover, the Municipality has a number of customer service locations that provide lease contract registration services.
DOCUMENTS NEEDED FOR REGISTRATION OF TAWTHEEQ CONTRACT
For individuals registering online, some papers must be presented, as is the case with the majority of legal processes. This list changes depending on whether a homeowner or property management Companies is seeking to register their accounts with the system.
The following is a list of the Tawtheeq documents needed by Abu Dhabi homeowners:
- Opening Account Form
- A copy of the owner’s valid passport and the passport of the designated signer or representative
- A genuine copy of the representative’s and the signatory’s Emirates ID
- A copy of the owner’s family book if the owner is an Emirati national
- A copy of the power of attorney for the legal representative of the property owner
- If you are a business, a copy of your business license
- aA copy of the notarized signature of the property owner (in cases where the property owner has opted for that option).
- A copy of one’s chamber of commerce and industry membership (for companies only)
- For businesses: A notarized power of attorney for signature authorization, the company’s bylaws, or a letter of authorization with your signature
- A hard copy that has been signed by the designated signatory and a soft copy of the landlord’s own tenancy agreement and any additional terms and conditions.
The following set of paperwork is needed by property management companies:
- Account registration form.
- A copy of the business license
- A copy of one’s chamber of commerce and industry membership
- A copy of the company’s articles of association, the notarized power of attorney for signature authorization, or a letter authorizing signatures
- aA copy of the authorized signatory’s current passport (the legal representative of the company)
- A certified copy of the authorized signatory’s (the legal representative of the corporation) residency permit
- A copy of the authorized signatory’s (the legal representative of the corporation) national identification card
- A printed hard copy that has been signed by the designated signatory and a soft copy of the company’s own tenancy contract and specific terms and conditions are both required.
When the account has been opened, other paperwork must be given, such as the leasing agreement, the tenant’s information, copies of a valid Emirates ID, etc.
Tawtheeq contracts must always have the most recent information and be updated for all renewals, cancellations, and revisions.
CONTRACT FEES FOR TAWTHEEQ
The fees fluctuate a little bit, unlike the Ejari in Dubai, which has a one-time charge for tenants. There are no expenses associated with creating a new account or registering an existing tenancy agreement. Nonetheless, there are various fees associated with the new registration of a leaseable property contract.
Below is a list of Tawtheeq’s prices for various services:
- A leasable property’s initial data registration costs are AED 1,000 + AED 5 for each leasable unit.
- AED 100 is required to issue a new tenancy agreement in Abu Dhabi.
- AED 100 is required to extend the lease agreement in Abu Dhabi.
- AED 50 is required for contract updates, modifications, cancellations, and terminations in Abu Dhabi.
Similar to DEWA in Dubai, the Tawtheeq contract is necessary to connect your water and energy to the Abu Dhabi Distribution Company (ADDC). Once the registration is complete, this often occurs automatically. You may find a number of authorized typing services on the Abu Dhabi Municipality website to finish the Tawtheeq contract.
WHAT IS THE PROCESS FOR RENEWING A TAWTHEEQ CONTRACT?
To prevent any interruptions in the supply of water and power, Tawtheeq renewal is crucial. Tenants will get a notice from the municipality about the renewal two months prior to the tenancy contract’s expiration date.
All you have to do to renew your lease is log into your Tawtheeq account through the online portal and change the status of your tenancy agreement from there. Moving through with the renewal procedure will incur a fee of AED 100.
Property owners must notify the Abu Dhabi Municipality before the contract expires if they do not plan to extend their agreement with the current property management provider. After then, property owners have two options: either they may establish a Tawtheeq account and become the owner and manager of the property, or they can ask for a new contract with one more property management company.
SUBSTANTIAL QUESTIONS
IN ABU DHABI, HOW CAN I CANCEL A LEASE CONTRACT?
WHO IS RESPONSIBLE FOR REGISTRATION OF TAWTHEEQ?
Landlords or management companies are in charge of registering the tenancy agreement with Tawtheeq. Upon registration, the monthly water and energy payment will be increased by 5% of the yearly rent amount, distributed equally over 12 months.
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