RERA is Revising Licensing Rules for Real Estate Property Management Firms

Tuesday, October 16, 2012

RERA is revising licensing rule of property management - Better Homes llc blog

 

RERA the Real Estate Regulatory Authority is the regulatory arm of Dubai Land Department that has been working to provide legal frame work for buyers, sellers, tenants, property brokers and property management firms working in Dubai. All participants of real estate industry of Dubai will have to fulfill certain requirements to work as state authorized property seller, broker or property management firm. Due to increased cases of property scams, Real Estate Regulatory Authority is planning to revise its licensing rules for property management firms.

 

One of the senior directors of Real Estate Licensing Department of this organization, , Yousuf Al Hashemi told Gulf News that RERA is aiming to make over all licensing process more reliable by making certain alterations in existing rules and regulation. Important thing is that upcoming rules and regulations will be applicable on new property management firms applying first time for registration as well licensed property management companies. They will have to complete newer requirements at the time of renewal of license. Regulatory organization is implementing more strict rules and regulations in order to improve transparency of the whole process of real estate property deals. It also improves relation between different parties (client, property firms) collaborating which each other during a real estate property deal. Such initiatives also help them to protect client’s right in case of any violation.

 

RERA is currently focusing to change licensing rules and regulations established in 2003. Officials told that article No.2 will undergo modification and property management firms dealing property leasing will have to deposit Dh 10 million instead of Dh 5million as security deposit. Or they may also need to submit additional 1 million as security deposit against possessing property worth Dh 10 million. The senior official also indicated to Gulf News that only 200 property management companies are registered with RERA out of 6000 property management companies working in Dubai. He also declared that all real estate property firms working without license will have to pay fine ranging between Dh50.000-150.000 in case of violating customer’s rights. RERA has already penalized over 22 property companies of total amount of Dh900, 000. Moreover, the regulatory authority has also formulated an inspection team to take proper follow-up of customer’s complaints. Moreover, it is also necessary to educate tenants and landlords about their rights and duties to enhance contractual relationship as well as to avoid disputes.

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