Real estate brokers must now have written permission (From A) from an owner to market a property
The government of Dubai is always making efforts to improve the quality of life of its citizens and regularly updates laws and regulations to put the planned improvements into practice. The real estate sector has always been subject to a special focus by the emirate’s authorities and the attention has helped the industry steer clear of catastrophes time and again.
For example, the government introduced cooling measures in 2013 after observing the market head to inflationary heights owing to an unprecedented upward rally of prices and rents. As a result, the market began to shed much of the excessive price weight it had put on from 2012 to 2013 and the prices began moving towards rational levels. This effort not only helped genuine buyers and investors derive benefit from realistic prices, but also ushered an era of correction that has made the market much more mature and suited for long-term indulgence.
Then there was the regulation for real estate marketers that was promulgated a few months back which required all promotions to be sanctioned by relevant authorities before being put before end users. The move aimed at protecting consumers and investors in the realty sector from bogus and fraudulent schemes and the results have been more than welcomed.
Permission: Form A
Keeping up with the tradition of protecting consumers as well as professionals working in the real estate industry, Dubai Land Department (DLD) has now made it binding on real estate brokers to have written permission (From A) from an owner to market his or her property.
DLD said in a recent announcement that agents will not be allowed to market any properties unless they have a written agreement with unit owners. The regulation will not only help an owner choose an agent(s) of choice (and avoid random inquiries) but will also protect the rights of brokers if any issue, like of commissions, arises.
Form ‘A’ is a written contract between the property owner and real estate broker that permits an agent to market the property on traditional or digital marketing mediums. Although it has existed for a long time, the Form ‘A’ contractual formality was adhered to by only a few owners and brokers. DLD has made it even more convenient for both parties by facilitating the issuance of permits through Trakheesi – its e-service system.
Ali Abdullah Al Ali, director of DLD Real Estate Licensing Department, said the authority aimed “to enhance the growth of our real estate industry in order to further develop the local economy”. “We [will] regulate the process of advertisements within a specific agreement that defines the role of each party involved in any real estate sales or rent with total precision, which will guarantee the rights of all parties, including landlords, investors and brokers,” he added.
The DLD has set no bar on the number of property agents an owner can engage with for marketing the property.