Dh50,000 fine for property firms not publishing permit number in announcement

The Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department (DLD), has issued an official circular addressed to all companies and organisations that operate in the Dubai real estate industry, notifying them of the new e-service launch for real estate permits within the Trakheesi System.

The circular outlines new Rera requirements for all real estate companies and institutions who wish to publish any real estate announcement from inside or outside the country, which primarily relate to obtaining a permit through the Trakheesi System on the official DLD website.

Furthermore, the circular stressed that any real estate announcements not bearing a real estate permit number will now be dismissed as of the beginning of October 2016.

Furthermore, it was made clear that in the event of non-adherence, all necessary legal procedures shall be taken against the violating companies and a fine of Dh50,000 will be paid by offenders.

Commenting on the announcement, Ali Abdulla Al Ali, Director of the Real Estate Licensing Department said: “This announcement reflects Rera’s commitment to protect investors and regulate the market by preventing the emergence of any irregularities. However, the investor should act carefully to protect himself by checking all documents and by requesting information from the broker about the property offered. Customers can now easily check licensed brokers as well as the validity of ownership data through the ‘Dubai Brokers’ smart application.”

Following the circular, no company may advertise Dubai properties from either within or outside of the Emirate without obtaining official permission. There are several conditions that must be met by the concerned parties, and DLD is currently under the process of activating escrow accounts for real estate brokers marketing properties from outside the UAE. Furthermore, the Inspection and Control section works to control real estate advertisements and to ensure that advertisers obtain all required permits.

When obtaining a permit for marketing real estate properties from outside of the UAE, companies are requested to submit a copy of the real estate property title deed, a letter from the country in question describing the method of foreign ownership of properties, a marketing agreement between the real estate property owner and real estate brokerage firm and a letter from the real estate brokers indicating the type of real property (for example apartment, villa, building, completed or off-plan building).

Additionally a letter must be produced by the real estate brokers outlining that they will not receive any money on the owner’s behalf, which must also be combined with an additional letter stating that the broker holds the full legal liability for the authenticity of information provided. Furthermore, any documents issued outside of the UAE must be attested by a UAE embassy and the Ministry of Foreign Affairs, and translated into Arabic by a legal translator. For real estate brokerage firms, it is essential that the registration number of the firm and broker is mentioned, and a permit approval fee of AED 1010 paid.

Al Ali concluded: “Rera advises investors when any payment is due for the property, and this must be paid directly to the property’s owner. Following the signing of the contract between the parties inclusive of all the property’s details, the real estate office will be entitled to receive their fees.”