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Blitz On Rogue Dubai Property Traders
September 9, 2009Article by Ray Withers
Buying Dubai property will become safer for investors as the government has introduced a new licensing system to clampdown on rogue traders.The controversial rules come in to force immediately and are aimed at making estate agents clean up their act to restore Dubai’s reputation as a From now on, only regulated brokers will be able to deal in property – and then they can only manage transactions in one of the four licence levels issued by the Real Estate Regulatory Agency (RERA).
The four licence levels are colour-coded –
* Blue – the Department of Economic Development allows these brokers to handle all levels of property activity throughout Dubai
* Yellow – issued by free zone authorities allowing brokers to handle all levels of property activities limited to0 a specific area, but these licences can only be issued to brokers who own freehold property in Dubai.
* Green – basically tied agents who can only sell properties belonging to specific companies or developers
* Red – these brokers are only regulated to deal with promoting, selling or renting timeshares
Licensing aims to ensure that agents only sell properties that they can demonstrate they are qualified to trade.The government hopes licensing will rid the Dubai property market of misselling by bringing more transparency to transaction that will make international buyers more willing to buy in the emirate.
Forms for licensing will be available on the RERA website. Agents can apply immediately to RERA for a new license or wait for their current license to expire.
RERA’s head of broker registration Mubarak Al Jafla said, “We will no longer face a situation where someone licensed by a free zone which owns no property can be registered to sell real estate in other parts of Dubai.
“The overall effect will be to limit the number of licensed brokers selling property in Dubai to those who are able to offer a professional, expert and dedicated service.”
Licensing will include a registration fee and adhering to a code of conduct laid down by RERA.RERA will also regulate complaints procedures, investigate allegations of malpractice and have the power to suspend or withdraw licences.