Who controls the real estate market and brokers in Dubai?

Who is responsible for supervising brokers and developers in the Dubai real estate market?

Important points for potential buyers. How to choose a competent realtor? A complete guide to the process of obtaining a broker's license in the United Arab Emirates.

Regulation in the real estate market

In the Dubai real estate market, the regulation of issues related to the purchase of residential property is carried out by a specialized body - the Real Estate Regulatory Authority (RERA), which belongs to the Land Department of the Emirate. This agency was established in 2007 to increase transparency and responsibility in real estate transactions.

Tasks of RERA

• Registration of brokers and real estate developersas well as monitoring of their professional activities;
• Supervision of compliance with legislative and regulatory normsduring transactions;
• Conflict resolutionbetween participants in the real estate market.

Recently, the agency has been actively developing new initiatives aimed at monitoring and developing the real estate sector.

Protection of consumer rights

What steps have been taken to protect the rights of buyers? Firstly, since 2009, Dubai has introduced mandatory licensing for all participants in the real estate services market. Previously, there were cases when even street food vendors offered their services to sell real estate, and clients often found themselves victims of unprofessional brokers, losing money with no way to recover it. This was not always due to fraud; often the reason was the realtors' lack of qualifications in the areas of finance and law, which could result in major losses for clients, as Elena Timchenko, managing partner of Royal Home Real Estate, points out.

Today, anyone can find complete information on registered agencies and specific brokers through open government resources, which helps to make an informed choice. Secondly, strict requirements have been introduced for real estate developers. For example, all construction related transactions must be registered with RERA and developers must provide a 10-year warranty on their properties.

Rental index

Thirdly, RERA has decided to introduce a rental index, which will help regulate the level of rental rates in the market.

Checking brokers

Now let's discuss how to distinguish a blogger from a real broker and how to check if the agent has a license. A realtor's license issued by RERA is known as a broker card. “Earlier, it was a plastic card that realtors renewed every year and carried it in a prominent place. Now the licenses are in electronic format and contain a lot of important information,” shares Alana Adamko, Sales Director, Metropolitan Premium Properties. Each broker must provide a copy of their license upon the client's request.

Below is an example of a brokerage card of our specialist. Taking into account all these features and rules, clients can confidently approach the choice of their partners in the real estate market in Dubai. By choosing a reliable realtor, they can be confident in the safety of their investments and in the transparency of the market.

In addition to basic information about the license, the realtor's name, the name of their agency and the date the license was obtained, they also publish ratings of professionals that range from one to five stars. Realtors are rated based on five key aspects: number of years of real estate practice, number of completed transactions, adherence to ethical standards, the agency's branch network and involvement in community initiatives.

This information can be accessed independently by downloading the Dubai REST mobile app to your device. All the necessary data is available to users. First of all, go to the section dedicated to licensed realtors. Then, activate the search function to quickly find the right professional by entering their name. The system will instantly provide the required information.

Obtaining information about the realtor

Using this service, you can find out up-to-date and detailed data about a realtor, including his unique registration number with RERA (BRN - broker number), as well as the number of the agency where he works (ORN - office identification number) and the license of the agency itself.

List of services of realtors and agencies

In addition, the platform offers a full list of services that realtors and agencies can provide. This is extremely important, as not all brokers are authorized to engage in, for example, property management or act as tenants. If a realtor offers services that are not included in their license, this can be grounds for legal repercussions and misleads clients.

Legality of real estate agents' work

Keep in mind that in order to be licensed, a realtor must operate within a registered real estateagency. This implies that independent brokers operate in accordance with the law.

Introduction

With the above in mind, if your business is handled by an agent who is not a licensed broker, you should consider how you will be able to find one in the future if any unforeseen circumstances occur.

How to get a broker license in Dubai?

However, how does one become a licensed broker in Dubai? This requires training at the Dubai Real Estate Institute (DREI), which is officially accredited to provide these specialties. The training includes 12 academic hours, after which you need to pass a test organized by the Real Estate Regulatory Authority (RERA). The exams are currently conducted in an online format. The candidate has to answer 40 questions in 60 minutes. A minimum score of 75% is required to successfully obtain a license.

Realtor qualifications

It should also be noted that every real estate professional in Dubai is required to take annual refresher courses and retake exams to keep abreast of new legislative changes. As a rule, if an agency is going to employ a candidate without a license, it will organize initial training for him and then send him to additional courses and exams.

“The training includes a thorough study of property management legislation, market principles and ethical standards,” emphasizes fäm properties' CIS markets director Valery Tumin.

Documents for obtaining a RERA license

Regarding the documents required to obtain a RERA license in Dubai, the following will be required:

• a copy of your resident visa or Emirates ID;
• a photo similar to a passport photo;
• Proof of successful completion of the Dubai Real Estate Institute course and passing the RERA exam;
• a document from the police of no criminal record, known as a certificate of good behavior.

Procedure for applying for a license

So how does one apply for a broker license? This can be done through the TRAKHEESI electronic system. The first step is to register and create a new account if you are doing it for the first time. If you need to renew your license, you need to log in and select the appropriate option.

The second step is to fill in all the required details, attach the required documents and apply online. Your application should then be automatically approved. The third step involves paying the prescribed fee, which is currently AED 520 plus VAT. To do this, you need to log in, select a payment method and make the payment online.

The fourth step is to obtain a ready-made license, which you can download or print from the system.

Conclusion

In conclusion, it is worth noting that Dubai has an effective system of control over the activities of realtors. The rights of clients in the real estate sphere are reliably protected if they do not decide to turn to unqualified agents.

However, you should be wary when interacting with an agent. For example, if they offer to transfer money to their company account rather than the seller's account, this could mean potential risks for you.

Conclusion

In conclusion, the legal system governing the real estate market in Dubai today provides significant protection for the rights of buyers and creates a safer environment for investment. Since the introduction of the Agency for Regulating Real Estate (RERA), an important goal has been achieved, which is to increase transparency and professionalism among brokers and developers.

I made sure that everyone who is planning to invest in real estate has the opportunity to get all the necessary information about brokers and agencies through various official channels.

Realtor licensing

The licensing of realtors and mandatory screening procedures have helped to significantly reduce the risks associated with ignorance and unprofessionalism. The broker rating system available on the Dubai Rest app gives clients a reliable tool to select competent professionals, something we could not have afforded a few years ago.

Benefits of licensing:

• Increasing transparency in the real estate market.
• Reducing fraud and unprofessionalism.
• Creating a grading system for brokers.

It is this system that makes it possible to distinguish professionals from amateurs and creates healthy competition in the market, which, of course, has a favorable effect on its development.

Recommendations for buyers

I believe buyers need to be more knowledgeable and proactively utilize available resources to verify information.

• Check the realtor's license and reputation.
• Use electronic resources to find information.
• Contact professionals for advice.

It is important to remember that good preparation and knowledge of your own rights is the first thing that will help you avoid trouble and protect your investment. Therefore, I strongly recommend that every future property owner follow these processes carefully and don't hesitate to seek professional help, which will help make your real estate buying experience more positive and reassuring.