Dubai Real estate : New classification system for brokers  

Dubai's Real Estate Regulatory Agency (Rera) yesterday launched a new four-tiered, colour-coded classification system for real estate broker licences, which will help safeguard property sales in the emirate.

According to Rera, the new classification system will see it register brokers with one of the four types of licences that will authorise them to sell a particular type of property within a specified area.

"Previously, Rera had recommended that only brokers registered with the agency should be used and had taken steps to ensure they were properly qualified to carry out their duties professionally. Today, we have moved to the next stage. Now, only brokers with appropriate licences will be able to act as agents in buying and selling specific types of property. This is a huge step in the right direction," said Yousef Al Hashemi, Director of Licensing.

According to the new colour-coded system, brokers registered with Rera will be issued a blue licence by the Department of Economic Development (DED) that will allow them to carry out all types of brokerage activities and operate throughout the emirate. They will also be allowed to operate within the free zones if they are authorised to do so by the relevant authority.

The next level of brokers will hold yellow licences and licensed by the appropriate free-zone authorities to carry out brokerage activities. They will be licensed by the free-zone authorities to carry out the full range of brokerage activities but will be registered to operate only within designated freehold areas owned by that authority.

If an authority does not own freehold real estate, it will not be entitled to issue licences and any broker with such a licence from such a free zone will not be registered by Rera.

The level three brokers holding green licences will be authorised by the DED and registered by Rera to sell only the properties of specific companies or developers.

The tier four brokers having a red licence, registered by Rera, will only be authorised to promote, sell or rent time-share units.

According to Rera, the forms for the new licensing system will be available on its website with a new set of online forms based on their levels and privileges.

Brokers will have access to online and brokerage services and access to property within their sphere of operation only. The system will not allow them access to property if they are not qualified to sell.

Further, the colour-coded classification and broker listing will be available on the Rera website allowing investors to select the appropriate broker.

"This initiative is a major landmark in the process of safeguarding the interests of property buyers, owners and investors by consolidating the rigour, accountability and transparency that is so crucial to the market," said Al Hashemi.

"Rera has been introducing regulations step by step as required and where it can be most effective. We began the process with initiatives such as escrow accounts and regulating brokerage sales by introducing registration for brokers with a strict system for qualification and training and a scale of penalties. We have seen significant progress and the main pillars of the regulatory framework are in place. These initiatives have emerged from consultation with our professional communities and from input and feedback from our stakeholders," he added.

Mubarak Al Jafla, head of broker registration, Rera, said: "The big change is that broker licences will be linked to specific areas. 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. This privilege will extend only to blue licence holders – those with a full Department of Economic Development licence and registered with Rera."

"From today, each broker's activity will cover the areas for which they have responsibility and about which they are knowledgeable. By insisting brokers should be dedicated and active in specific areas we are ensuring they can add value and serve buyers and investors better.

"The overall effect will be to limit the number of licensed brokers selling property to those who are able to offer a professional, expert and dedicated service."

Rera said brokers can apply directly for their new licences immediately or wait until their current licence expires. They will have appropriate access and privileges only after they have applied for and been granted their colour-coded licence.

 

source business

 

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