UNITED ARAB EMIRATES – Rera reviews strict licensing rules
DUBAI’S Real Estate Regulatory Agency (RERA) will be revising the licensing rules and regulations of the real estate management and leasing companies in the wake of the recent real estate fraudulent cases in Dubai, according to Gulf News.
The proposal aims at protecting tenants, owners and investors from fraud. It will be applicable to existing real estate companies across the emirate at the time of license renewal. The old rules and regulation of licensing law for 2003 will be revised whilst the security deposit for companies granted property management and leasing license is expected to increase from AED5 million to AED10 million or they should own property worth AED10 million, in addition to AED1 million security deposit.
Real estate companies in Dubai will be fined if they are found violating the Land Department’s rules and regulations and breaching customers’ rights. Fines will range from AED50, 000 and could reach AED150, 000 if the company is running the business without licence.
In the first six month of 2012, the agency warned and imposed fines worth AED900,000 on 22 real estate companies and brokerage firms across Dubai for not adhering to its terms and regulations.
Regulating the real estate brokerage profession aims at clarifying relations between different parties, clients and firms in order to protect the rights of clients against any violations of laws and professional ethics by real estate brokers.
The rules modification will not only protect tenants’ rights but will serve to support the real estate activities of individuals and companies within a legal framework.
