Dubai: The Dubai Real Estate Regulatory Agency (Rera) will revise the licensing rules and regulations of the real estate management and leasing companies in the wake of the recent real estate scam cases in Dubai, top Rera’s official told Gulf News.
The proposal will be applicable to existing real estate companies across the emirate at the time of licence renewal. The new rules which has been in the works for some time is expected to be issued soon by the agency. It is aimed at protecting tenants, owners and investors from fraud.
Yousuf Al Hashemi, Senior Director of the Rera’s Real Estate Licencing Department, said: “Following the recent real estate scam cases in the Dubai market, the department is proposing to getting stricter with its licensing measures.”
“We are going to revise the old rules and regulation of the licensing law for 2003. By modifying the article No.2,, the security deposit for companies granted property management and leasing licence will be increased from Dh5 million to Dh10 million, or they should own property worth Dh10 million, in addition to Dh1 million security deposit.”
Rera is working to create a professional real estate environment governed by clear laws and regulations, according to Al Hashemi, “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.”
There are more than 6,000 real estate companies in Dubai with over 20 different activities and 200 were licensed for property management and leasing, he remarked.
“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.”
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 Dh50.000 and could reach Dh150.000 if the company is running the business without licence, Al Hashimi clarified.
In the first six month of 2012, the agency warned and imposed fines worth Dh900,000 on 22 real estate companies and brokerage firms across Dubai for not adhering to its terms and regulations.
These companies were found violating the licensing terms issued by Rera.
Al Hashemi remarked that they have inspection team designated to conduct a daily media or online follow-up in addition to the regular inspection campaign and customers’ complaints.
However, he added: “Ignorance is not an excuse.”
“Tenant and landlord should be fully aware of their rights and duties. This in turn will enhance the contractual relationship between them and avoid any disputes.”
Tips to follow
Al Hashemi also confirmed that Rera has taken a number of steps that should be followed by tenants to safeguard the rights of all parties and specifically tenants as per the requirements of Law No. 26 of 2007, regulating relationship between landlords and tenants in the emirate of Dubai
Concerned parties should check the real estate company’s licence and the type of activity by visiting the official website of Dubai’s Land Department, www.dubailand.gov.ae.
Check if the concerned company is an active one by verifying the company’s registration numbers and the broker’s ID card issued by RERA, The cheques must be written on behalf of the property management company rather that on behalf of individuals and also obtain a copy of the bank guarantee.
In case of leasing directly from the individual owner, tenants are advised to verify the ownership of the property by the landlord or to check the management contract in the case of property management companies. Tenants need to obtain a lease contract registered in Ejari system to ensure their rights and to make the contract acceptable in government transactions.
In the past three months, Rerahad registered 60,000 properties in Ejari system. This system organises the contractual relation between landlords and tenants.
