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Ending in tiers in Dubai

Thursday, September 10, 2009

Catherine Deshayes

In a bid to weed out all unscrupulous estate agents in Dubai, the Real Estate Regulatory Agency (RERA) has introduced a new tiered classification system that will link agent's licences to specific areas and will reduce the number of those operating...

Depending on which of the four tiers a specific agent is included in, they will be able to only carry our certain types of broker activities.

For example, those who are deemed to be in tier one will be given a blue licence by the Department of Economic Development to carry out all types of broker activities and to operate throughout Dubai.

Yellow license, the next tier, shall be issued by the free zone authorities, permitting the brokers to undertake full range of brokerage activities limited to a particular area. However, no licenses can be issued by the free zone authority if they do not own a freehold real estate

Tier three registered brokers, or green license holders, will be authorized by the DED and registered by RERA to sell only the properties of specific companies or developers.

Those agents in tier four will be given a red licence and will be registered by RERA and authorized only to promote, sell or rent time share units.

Forms for licensing will be available on the RERA website. Agents can apply immediately to RERA for a new license or wait for their current license to expire.

Once this new system comes into play, agents must abide by their new tiers and will not be allowed access to properties in other tiers. This new system aims to ensure that agents only sell the properties which they are qualified to and which they are knowledgable of. It also aims to bring more transparency to the market and further tempt international buyers and their cash to the emirate.

Mubarak Al Jafla, RERA's Head of broker registration said, "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.

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

Picture by susush