Only UAE nationals and GCC citizens will be granted licences for real estate brokerage and property management in the emirate of Ras Al Khaimah, according to a new law issued yesterday.
Law No 6/2008, passed by His Highness Sheikh Saqr bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Ras Al Khaimah, also said emiratis and GCC citizens who have been granted licences should either be involved in the day-to-day running of the business or authorise their immediate next of kin to run it.
They are forbidden to rent their licences to other people.
According to the new law, real estate offices must deposit bank guarantees ranging from Dh100,000 to Dh400,000 depending on the nature of their activities.
Firms with licences for real estate brokerage activities need to further obtain a broker card from the emirate's Economic Development Department (EDD) and people involved in the real estate brokerage profession should be UAE or GCC nationals.
Previous licence holders have been given three months to amend the situation.
The law has also fixed the commission for buying and selling real estate units at two per cent when the total transacted value is less than Dh1 million and one per cent when it is more.
In case of rental units, the broker's commission should not exceed five per cent, the law said.
It has made it mandatory for owners of licenced real estate firms to deposit either a bank guarantee of Dh300,000 in the EDD's account or a real estate mortgage of the same value or more, if the firm's activity is restricted to buying and selling of land and properties and not renting.
For renting and managing land or property, the bank guarantee or mortgage required to be deposited with the EDD is Dh100,000.
In case both renting and buying/selling is being conducted by the agent, the guarantee required by the new law is Dh400,000.
The law granted the EDD the right to withdraw all or part of the guarantee in case the firm violates any of the conditions. (Wam)
Dh400,000: maximum bank guarantee should be deposited by real estate offices