This article highlights new rules that must be followed by the overseas property developer before they market or sell their development to a buyer in Dubai. The new rule is implemented due to numerous deception faced by the buyers.
Overseas developers trying to market their potential development to prospective buyers must follow strict rules to avoid lump sum fines. The Real Estate Regulatory Agency (Rera) has made it compulsory for all overseas projects marketed here in Dubai to strictly follow the rules and also get a prior clearance before marketing the property. An escrow scheme will be set up for overseas off-plan properties sold here. No Real Estate companies will be allowed to market overseas projects without official permission. After the real estate firm or overseas developer gets authorized to market the project then they will be required to follow strict conditions. The new rule has been developed to safeguard the buyer interests also to protect the buyers from falling into fraudulent real estate schemes. As per Rera regulations all payment regarding the property should be made directly from buyer to the developer, the practice of broker collecting the payment on behalf of project owner is violation of law, the real estate office is only entitled to receive their fees. According to Rera official “Verify all documents and (do) not hesitate to ask any questions about the data or information from the broker or the property,” “Now, customers can verify all the information through the Dubai Brokers smart application.
Dubai Land Department (DLD) has been receiving a lot of complaints lately and due to lax practices from brokers and unregistered brokerage firms. The fines against such firms have reached Aed 50,000. DLD will now have a new classification set up for brokers which will be classified based on specific criteria’s and also will include a star rating for brokers, an ongoing inspection will be conducted to evaluate irregularities, conditions and procedures followed by the broker and real estate firms violating the rules will be reported to DLD. According to the Rera official this new classification is done “to censor the real estate firm to eliminate the poor business practices of some brokers.”
The overseas developer should carefully evaluate and comprehend if the following criteria’s are met before marketing any oversees project in Dubai.
Tick these boxes before selling overseas property in Dubai
- Copy of the property’s title deed.
- The letter from the country in question describing the method of foreign ownership of properties.
- A marketing agreement between the property owner and brokerage firm.
- A letter from the broker indicating the type of property.
- Undertaking from the brokers that they will not receive any money on the owner’s behalf.
- Undertaking from the brokers that they hold the full legal liability for the authenticity of information provided.
- Documents issued outside of the UAE must be attested by a UAE embassy and the Ministry of Foreign Affairs, and translated into Arabic by a legal translator.
- Permit approval fee of Dh1,010.
- For brokerage firms, the registration number of the firm and broker must be mentioned.
- In a case of a corporate advertisement which relates to the company’s brand or services, rather than a specific development, documentation relating to projects and properties is not required.
- The Dubai Economic Department should be visited for final approval on the permit.
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