Dubai, 26 UAE, June, 2012: The Real Estate Regulatory Agency (RERA), the regulatory arm of Dubai Land Department (LD) imposed AED 900,000 fines on twenty two real estate companies and brokerage firms during the first half of the year.
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About Dubai Land Department (LD):Dubai Land Department was established in January 1960 to provide a systematic method for registration of land and property and protect the rights of clients and ensure all legal aspects relating to the sale and purchase of land, which enabled the Department to organize the registration process, which aims primarily to protect all relevant parties. In order to organize and develop the real estate sector in the emirate Real Estate Regulatory Agency (RERA) was officially established as a subsidiary of the Dubai Land Department in 2007 under Law No. (16).
Yousef Al Hashmi, director of RERA's Real Estate Licensing Department said that the agency observed the repeated violations by these entities but initially issued circulars to the violating brokerage firms regarding the importance of abiding by and complying with regulations. Then RERA issued notices and warning to these firms before imposing fines on them. Such procedure came as last step after exhausting all means to ensure compliance and safeguarding the rights of concerned parties.
RERA works to create a professional real estate environment governed by clear laws and regulations, according to Al Hashmi. 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 that can be committed by real estate brokers.
Ten types of violations were observed by RERA during the first six months. Twelve companies failed to register the real estate broker, while seven companies violated the type of licensed activity by performing other activity. Other irregularities include failure to mention the company's registration number, failure to register the license in the brokerage registry and failure to renew the broker ID card.
RERA continuously performs inspection, follow-up activities of real estate brokerages that are not registered with the Agency. This comes in line with a strategy to regulate the real estate professions in Dubai and to facilitate the real estate activities for individuals and companies. RERA aims to ensure compliance to the solid legal structure that enhances good dealings, transparency and guarantees sector's maturity.
About Dubai Land Department (LD):Dubai Land Department was established in January 1960 to provide a systematic method for registration of land and property and protect the rights of clients and ensure all legal aspects relating to the sale and purchase of land, which enabled the Department to organize the registration process, which aims primarily to protect all relevant parties. In order to organize and develop the real estate sector in the emirate Real Estate Regulatory Agency (RERA) was officially established as a subsidiary of the Dubai Land Department in 2007 under Law No. (16).
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