How does the code ensure transparency in real estate transactions?
Housing market is one of the significant sectors in Dubai which experienced rapid changes and attractive for investment. For keeping the relation transparent and for avoiding the misdeeds of the parties in dealing, RERA, which is the part of DLD, has thus formulated a strict regulation. Here’s how the code ensures transparency in real estate transactions in Dubai:
1. Licensing and registration
RERA requires everyone involved in the real estate business such as brokers, developers, agents and others, to get proper licensing. This involves doing certified training and passing examinations which shows that the professionals are competent and also have adhered to the set ethics. Developers are also supposed to inform RERA regarding their project and all other related transactions which needs to be legal and transparent.
2. RERA has prescribed forms
In order to avoid confusion and possible litigation, RERA has incorporated forms for real estate documentations and sales. These include:
- Form A: Some of the terms may include; An agreement between the seller and the broker.
- Form B: P hood relationship between the buying party and the broking party.
- Form F: Contract of the buyer and seller.
- Form I: Subsidiary brokers’ cooperation.
These forms help in eliminating misunderstanding with regard to the roles and responsibilities among the involved parties since everything is well spelled out in writing.
3. Off-Plan Sales – Escrow Accounts
In case of off-plan properties, the escrow accounts must need to be opened by the developers. These accounts also receipts funds paid by buyers and can only be used in fulfilling the project. This minimizes cases of fraud and assists in the safeguard of buyers’ assets that are in the products.
4. Supervision and Control of advertisements
Another regulation set by RERA is that any advertisement that is to be done in relation with real estate business has to be true along with being done so by a licensed person. This includes, for instance, the requirement that advertisement should contain the QR codes through which the potential buyer can validate the information provided. This regulation is particularly useful in avoiding instances of advertisements that may give the impression of what is not real as well as making sure the buyers have an equal opportunity to get relevant information.
5. Control of Disputes and Compliance
Another way that RERA participates in the management of disputes and handling of noncompliance is through the noted means. For instance, the Rental Dispute Settlement Centre (RDSC) will address all the rental conflict where both the landlord and the tenant will be gets fair treatment. RERA also regulates dispute of matters arising on developers and construction projects with aim of protecting everybody’s interests.
6. Writing and registration of legal documents
Any property transfer requires the registration with the DLD and title deeds have to be provided for realization of transfers. This registration process is important so as to reduce or eradicate fraud in property ownership since the records are clear and reliable.
7. Non-implementation and Non-Adherence to the Anti Money-Laundering (AML) Regulations
Money laundering is an offence that has been considered and dealt with by the Government of UAE through the following practice the UAE has introduced what is known as revealing of Beneficial Ownership of Companies and other legal entities and the following is stipulated for reporting and notification of any company in the UAE. Any person who engages in a real estate transaction that is worth AED 55,000 or above shall report to UAE FIU. This helps in preventing the real estate sector from being utilized in unlawful activities hence enhancing the investment integrity of the sector.
Since the implementation of RERA and the issuance of DLD regulations, therefore, there is a multi-layered regulation that serves to maintain transparence in Dubai’s real estate market. They help to ensure that all the transactions undertaken would be conducted in an ethical manner in a way that will benefit the buyers, sellers and investors.
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Credits: 95dubai.com