Dubai’s Real Estate Regulatory Agency (RERA) has ordered that all approved property brokerage firms need to register all their available properties on Simsari.ae, the region’s only authenticated and trusted multiple listing service, by the end of August, or face penalties.
RERA sent a notice to brokerage firms on July 19, stating: “We urge you to register on Simsari. Kindly note that the deadline for registration is August 31, 2012, and will be mandatory to use starting from September 1. Consequently, all RERA approved brokers who fail to register on Simsari before the aforementioned deadlines will be penalised.”
Further stating: “We believe that top performing companies such as yours along with Simsari, will shape and regulate the industry, establish transparency in the real estate market and align the relationship between owner and real estate broker.”
The move should reduce the number of ‘ghost’ listings, which seem to be common in the UAE, and the agency will be able to limit listing of one property with not more than three agencies. RERA regulations allow a seller to list his/her property with only three brokerage firms, whereas currently, sellers in Dubai list their property with numerous brokerage firms and at varying prices.
RERA recently unveiled plans to fine brokers instead of their brokerage firms if the former was found to have misled investors, co-operated with unlicensed brokers or made phone calls to their clients to promote/advertise a project.
Earlier this month, RERA imposed fines totaling Dh900,000 on 22 real estate companies and brokerage firms during the first half of 201 for violations such as hiding information from investor; co-operation with unlicensed brokers; failure to maintain privacy of firm and client; using telephone calls for promotions and advertisement purposes without obtaining official approval and arranging deals without the knowledge of their accredited office.
In addition, Article (34) of the draft law on Dubai real estate investor protection, states an intending investor shall be entitled to terminate a contract for sale if it is proven that the seller or the lessor or a broker acting on his behalf has deliberately concealed any essential information that is likely to cause harm or loss to the intending investor.
Under Article 37 of the draft the intending investor will be entitled to recover compensation from whoever of the developer, investor or even broker has caused the loss.