Compliance and ethics in Dubai Real Estate The Real Estate Regulatory Authority (RERA) has to be extolled for its role in setting policies, creating awareness, and enforcing regulations. Every practicing Broker and their offices have to be RERA registered and licensed to provide optimal service and comply with Dubai property laws. Q-What is a Broker’s duty and fiduciary obligation? A-RERA’s Code of Ethics provides a minimum expectation of conduct for real estate activity. A real estate Broker who becomes an agent is deemed to be a fiduciary, or the person who is entrusted with the property. As a fiduciary, a Real Estate Broker is held by law to perform specific duties, such as; Loyalty, Obedience, Disclosure, Reasonable Care, Diligence, Confidentiality and Accounting. Q- How do I list a property for sale or lease? A-. By law, you can list your property with no more than three Brokers in Dubai. We recommend using one, though. A detailed listing form (Form A) has to be filled out by the Broker with property details, the Broker’s details, your details, property amenities, and fees. Both you and the Broker will sign this form. You also provide the property’s Title Deed and a copy of the passport registered with the Dubai Land Department (DLD). These steps are required to advertise your property on SIMSARI and other web portals. Q- What is a Title Deed? What are Oqood & EJARI? A- DLD issues a Title Deed to prove that the owner named in the deed is the legal owner of the property. Oqood is the pre-registration of a property, in which a Title Deed is still not issued. Also provided by the DLD, usually for properties still under construction. Registering a Tenancy Contract with RERA is known as EJARI. . A landlord or tenant can register for EJARI at any authorized typing center in Dubai. Documents required are: the Title Deed, owner and tenant passport copies, tenancy contract, and current Dubai Electricity and Water Authority (DEWA) bill. EJARI fee is AED 165 plus AED 35 for typing. Immigration and Naturalization Dept. refuses residency visa issuance without EJARI registered Tenancy Contract. Q- How important is it that I use a lawyer or conveyancing company when I transfer a property ? A-RERA prohibits Brokers conveying properties. It is not a part of Broker’s job to draft contracts, addendums and disclosures and to make sure each party performs to the transaction terms. This is done
by a lawyer or a Conveyance company for a small fee. Many things can go wrong in a seemingly easy transaction. Ill-drafted MOU or SPA, prepared by Broker firms, are not enforceable in the court of law. You need full protection - after all you are risking your life savings! For more information on Dubai Real Estate market visit our website
Iqbal Hasnani Six Sigma Consultant & Operations Manager. Provident Estate
Published on Feb 17, 2013
Published on Feb 17, 2013
The Real Estate Regulatory Authority (RERA) has to be extolled for its role in setting policies, creating awareness, and enforcing regulatio...