New rules for prop­erty ads in Dubai

Gulf Business - - NEWS AND VIEWS - By Aarti Na­graj

Dubai's Land De­part­ment has in­tro­duced new reg­u­la­tion for real es­tate de­vel­op­ers and agents re­gard­ing the advertising of prop­er­ties in the emi­rate.

Un­der the new rules in­tro­duced last month, de­vel­op­ers and bro­kers must re­ceive ap­proval from Dubai’s Real Es­tate Reg­u­la­tory Author­ity ( RERA) be­fore plac­ing any prop­erty ad­ver­tise­ment in the me­dia.

The move is aimed at crack­ing down on fraud­u­lent prop­erty advertising in Dubai and to in­crease trans­parency in the mar­ket.

Ac­cord­ing to of­fi­cials, the per­mit will take a max­i­mum of two days to be pro­cessed – de­pend­ing on all the doc­u­men­ta­tion be­ing pre­sented by the de­vel­oper or bro­ker. The per­mit will be valid for three months and the per­mit num­ber will need be to high­lighted in the ad­ver­tise­ment.

RERA of­fi­cials clar­i­fied that the rule also ap­plies to in­ter­na­tional prop­er­ties be­ing mar­keted in the emi­rate if the ad­ver­tise­ment in­cludes de­tails about a lo­cal bro­ker or agent. If the ad­ver­tise­ments do not fea­ture de­tails about lo­cal rep­re­sen­ta­tion, they will be ex­empt from the rul­ing.

Prop­erty de­vel­op­ers or agents found vi­o­lat­ing the rule will face a fine of up to Dhs 50,000. How­ever, pub­lish­ers who fea­ture the ad­verts will not be pe­nalised.

An­drew Thom­son, a real es­tate part­ner at the Dubai of­fice of law firm Gowl­ing WLG, said: “De­spite a num­ber of crit­i­cisms that these rules will cre­ate un­nec­es­sary red tape, they are to be wel­comed as a nec­es­sary pro­tec­tion for both buy­ers and real es­tate agents.

“Rogue prac­tices are, un­for­tu­nately, reg­u­larly em­ployed by a small mi­nor­ity to the detri­ment of those that be­have eth­i­cally and legally as a mat­ter of course.

“Pro­vid­ing a safety net with which to fil­ter out this mi­nor­ity is there­fore key to pro­tect­ing the sta­tus of Dubai as a clear front run­ner in the global prop­erty mar­ket.”

He added: “The rules around non­com­pli­ance are un­likely to be that flex­i­ble so check­ing this now should be a core pri­or­ity for all con­cerned.”

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