Dubai: Rera issues fines, warnings for illegal marketing practices

The Real Estate Regulatory Agency (Rera), the regulatory arm of the Dubai Land Department, has slapped fines of Dh50,000 on three real estate firms and issued warnings to 20 others for breaching Rera regulations on direct telemarketing and other banned marketing practices. The government body said it has received repeated complaints from customers about unsolicited calls from brokers making inquiries about their property.

Rera's Real Estate Inspection Department has also sent a letter to all registered property brokers in Dubai, informing them that direct telemarketing violates Rera's rules and regulations.

''We investigated this issue through the Real Estate Inspection Department and after looking at the complaints in detail, sent a further warning letter to 20 real estate offices in Dubai,'' said Yousif Al Hashimi, Deputy CEO of Rera. ''This action was taken because the offices in question were clearly violating the instructions issued by Rera, especially in systems relating to the marketing of services and the non-renewal of brokers' cards, which are a mandatory requirement for their activities.

''Fines of Dh50,000 were also imposed against three offices after they were found to be repeating practices they had been previously warned against and which breached Rera regulations.

Such infractions included using brokers who were not registered with Rera and not supplying brokers' names and other compulsory information in real estate transactions and correspondence.''

Rera said it has observed an increase in ''cold'' calls to customers, with telemarketers trying new ways to get around the existing rules that ban the practice.

Source: Property Weekly


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