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The property boom in the UAE resulted in a surge of real estate agencies and property brokerage companies that set up shop in the country.
In response, the government released rules to regulate property brokers. In Dubai, new regulations have either been approved or planned to be introduced to keep the brokerage companies at par with their global competitors.
In an attempt to streamline the brokerage sector, the Real Estate Regulatory Agency (RERA) is planning to introduce four new rules that will take effect next year.
It begins with the official exam required by brokers to practice in the city. The minimum passing percentage has been increased from 75 percent to 85 percent for a broker to renew his license.
Another new rule is that new brokerage firms will only be permitted to employ a maximum of four agents. If the company is doing well and is able to prove it as per RERA standards, then it will be permitted to employ a fifth employee.
Another regulation has been designed to ensure optimum professionalism by way of officially recorded transactions. Official records are an effective way of ensuring that only efficient and professional brokers work in the market. A warning will be issued if a broker has not officially noted a transaction after a period of six months. If one year has passed and there is no marked improvement yet, the broker will be requested to leave.
Finally, the official broker cards currently being used will be replaced with Emirates IDs. The ID will be linked to a new smart system which will use technology to keep a check on the broker’s details and will enable a stronger guarantee that only property brokers who are officially licensed can operate in the emirate.
• RERA’s new rules aim to strengthen the sector’s legal framework
• Minimum passing mark in the exams has been increased to 85%
• The official broker cards will soon be replaced with Emirates IDs
Source: Saadiya Ahmad, Special to Properties
The writer is a freelancer