RERA Imposed Fines On 22 Dubai Real Estate CompaniesWednesday, June 27, 2012
According to sources, RERA declared on Tuesday that it has imposed fines on many real estate and brokerage firms in Dubai during first six months of the year. RERA (Real Estate Regulatory Authority) is a regulatory arm of DLD (Dubai Land Department) which has imposed fines on 22 brokerage and real estate firms in Dubai. The total value of fines is around AED 900,000.
Director of Real Estate Licensing Department in RERA, Yousef Al Hashmi, made a statement declaring that fines have been imposed on those firms which had been guilty of violating regulations repeatedly and were not responding to the warnings given. He also disclosed that RERA took this measure as a last resort.
RERA highlighted that regulations have been enforced in order to protect investors’ rights against the law violations committed by Dubai real estate brokers. During the first half of the year, RERA observed 10 violations of law. Seven companies violated the law on type of licensing activity by performing other activity whereas 10 companies were unable to register real estate broker.
RERA revealed that this action would facilitate real estate activities for companies as well as individuals and would also regulate Dubai real estate. Some of the violations made by real estate and brokerage firms include failure to register the license in brokerage registry, failure to mention the registration number of the company and failure to renew ID card of broker.
RERA also declared that its aim is to promote transparency and good dealings in the sector besides guarantying its maturity. RERA also announced a figure of AED 700 m made by agents as a commission last year. On sealed deals, real estate brokers normally charge 1% of the value of the deal as commission.