Sharjah: Sharjah Municipality has announced an increase in tenancy contract attestation fees, from two to four per cent, with effect from August 1.
Khalid Al Shamsi, director of the Rent Regulation Department at the municipality, confirmed that attestation fees for residential tenancy contracts will increase from two per cent to four per cent of the annual rent. He also pointed out that fees for attesting commercial tenancy contracts will increase from two per cent to five per cent, while attestation fees for investment contracts will increase from one per cent to three per cent of the annual rent.
“The announcement is pursuant to the Executive Council decision No 26 of 2016 concerning the modification of the fees schedule of tenancy contract attestation in Sharjah, which will come into force on August 1,” said Al Shamsi.
The previous fee to attest tenancy contracts for both residential and commercial properties was two per cent of the annual rent, while fees to attest investment contracts was one per cent of the annual fees.
Al Shamsi also announced that lease agreement documents will also cost more. Customers will have to pay Dh100 instead of Dh50 per tenancy contract document.
Sunrise Real Estate Enterprise, which confirmed the hike, has also posted notices in some residential buildings to inform residents of the changes. They also urged tenants to register their latest contract at the earliest time possible.
The fee hike in Sharjah was announced months after the Abu Dhabi Executive Council stated that expatriates living in Abu Dhabi will need to pay a minimum of Dh450 per unit per year, or at least three per cent of the annual rental fee payable over 12 months. The fee is being collected by the emirate’s utilities provider, the Abu Dhabi Water and Electricity Authority, in instalments. Emiratis renting property will be exempt from the payment.
Tenants in Dubai also pay a municipal fee of five per cent of the annual rent, and it is collected in instalments by the Dubai Water and Electricity Authority.
