Rogue brokers will be banned under tough new regulations - Emirates24|7

Rogue brokers will be banned under tough new regulations

(SUPPLIED)   

 
 
Real estate watchdogs have warned that they are to start imposing penalties ranging from cautions to blacklisting on unlicensed brokers.

Marwan bin Ghalaita, Chief Executive of Dubai’s Real Estate Regulatory Authority (Rera), said action would be taken within the next two months and warned all rogue brokers to stop working illegally.

He called on them to register with the authority to protect their rights and those of their customers.

“We must rid the Dubai real estate market of illegal and unethical practices by unlicensed brokers who harm the reputation of the emirate’s real estate sector,” he said.

Bin Ghalaita said a large proportion of complaints received by Rera were about unlicensed brokers.

A recently issued bylaw on the regulation of brokers includes a chapter on penalties to be imposed on those who commit violations. The penalties start with cautions which are followed by warnings, suspension for a period not exceeding six months and, finally, blacklisting.

The bylaw reads: “The broker’s registration shall be cancelled if he breaches the Code of Ethical Conduct or if he commits a substantial violation of the applicable laws, regulations and instructions in the emirate.

“The cancellation shall be based on a decision issued by the director according to a recommendation from the committee, stating the reasons for cancellation.

“The broker may file a grievance against the decision of cancellation with the chairman within 15 days of being informed of it. The decision of the chairman shall be final.”

The bylaw adds that a broker’s registration with the authority will be cancelled in the following cases: The broker leaves the brokerage business permanently and informs the department; The broker leaves the brokerage business for a period exceeding 12 consecutive months without giving a reason acceptable to the committe; He breaks any of the conditions that should be met under the provisions of the bylaw or any regulations or instructions issued later; It becomes clear that his resignation was based on false information submitted to authority; The chairman issues a decision cancelling the registration.

The bylaw adds: “The department shall notify the competent authorities of the decision issued to discontinue the broker’s activities or cancel his registration.”

Meanwhile, Rera and the Dubai Real Estate Institute will next month start holding a series of training courses for brokers.

Rera training officer Tamaah Al Marri said the aim was to raise awareness among the 2,406 brokers registered with the authority of property registration procedures and the ethics of brokerage.
 
 
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