On Thursday, October 27, Dubai Real Estate Institute (DREI) held its monthly Open Day. Head of Licensing for Real Estate Regulatory Agency (RERA), Mr. Ali Abdullah, spoke about the new advertising permit requirement, upcoming developments and addressed the questions and concerns of those real estate professionals in attendance.
Attendees were walked through the process of obtaining a permit on the Trakheesi system. Although there are different requirements based on the type of advertisement (electronic, classified, billboard, vehicle, overseas, etc), at minimum the following is required to be uploaded onto the system:
1. Copy of the marketing contract (Form A for sales*) signed with Owner;
2. Copy of the ad form; at least 50% of which must be in Arabic**.
A copy of the Title Deed is required to enter the Certificate Number into the system, but the Deed does not need to be uploaded, as Dubai Land Department (DLD) will verify it through its system.
* The audience was informed that an official form for leasing transactions will be released soon.
** When some of the attendees objected to the Arabic-language requirement, because they do not have staff to translate, Ali Abdullah announced that, for the time being, RERA will not deny permit approval for ads lacking Arabic. No deadline for conforming with the Arabic-language regulation was given.
There are two permit options: monthly or yearly.
Monthly – AED 84 + AED 20 fees
Yearly – AED 1000 + AED 20 fees
With each option, brokerages can upload or remove as many listings as required within the validity period of the permit.
Ali Abdullah spoke about changes that will occur to the permit application system, in addition to other issues.
Automated approval of permits – At the moment, RERA is approving each permit application manually. Soon, the system will be automated, so that approval will be immediate.
Uploading of bulk listings – Currently, the system requires each ad to be uploaded one by one. Once there is full integration of the system in place, all the company’s advertisements can be uploaded at once.
Individual ad numbers – For now, the system issues one permit number for all advertisements. Eventually, it will issue a different ad number (serial number) for each ad included in the permit application.
Integration with property portals – Property portal companies will be integrated with the DLD system, and will be able to verify permit/ad numbers before publishing on their sites.
Requirement for property owners to obtain advertising permits – For now, only real estate-related companies are required to obtain permits. Attendees were informed that owners will eventually have to apply for permission to advertise their properties, in “Phase 2”. A timeframe for this was not specified.
System Training – At the audience’s request, a permit application system training session may be arranged, pending approval from DLD.
Official form for lease transactions – Presently, the only official broker marketing forms that exist are for sales (Form A for sellers and Form B for buyers). There will soon be a form that landlords are required to sign to list properties for rent. In the meantime, for purposes of the permit application, companies should upload their own version of the agreement.
Verification of Title Deeds – As per Circular 8- 2016, it is a broker’s duty to verify the Title Deed in each transaction. For now, this verification is only available on the Dubai Brokers app. Soon, the verification service will be available on DLD’s website.
Limit on number of brokers per listing – The question of greatest interest to brokers: Will there be a limit on the number of brokers allowed to list one property? Per Ali Abdullah, DLD/RERA are in discussions about this issue. He stated that there may be a limit (not necessarily three brokers per property) put in place, or it may be left for sellers to decide how many brokers to use.
Disclaimer: This blog is intended for informational purposes only, and should not be considered legal advice, nor does it reflect the opinions of any government agency. Majdel Musa will not be held liable for the use, non-use or misapplication of this information, any lost profits, personal or business interruptions, or any other loss.
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