Dubai introduces new rule for property advertisements

The Dubai Land Department has introduced new regulations for real estate developers and agents with regards to advertising properties in the emirate.

Under the new rules, in place since October 1, developers and brokers will need to receive approval from Dubai’s Real Estate Regulatory Authority (RERA) before they place any property advertisement in the media.

The move is aimed at cracking down on fraudulent property advertising in Dubai and to increase transparency in the market.

According to officials, the permit will take a maximum of two days to be processed – depending on all the documentation being presented by the developer or broker (details below).

The permit will be valid for three months and the permit number will also need be to highlighted in the advertisement.

RERA officials clarified that the rule also applies to international properties being marketed in the emirate, in case the advertisement includes details about a local broker or agent. In case the advertisements do not feature details about local representation, they will be exempt from the ruling.

Property developers or agents found violating the rule will face a fine of upto Dhs50,000. However, publishers who feature the adverts will not be penalised.

Andrew Thomson, a real estate partner at the Dubai office of law firm Gowling WLG, said: “Despite a number of criticisms that these rules will create unnecessary red tape, they are to be welcomed as a necessary protection for both buyers and real estate agents.

“Rogue practices are, unfortunately, regularly employed by a small minority to the detriment of those that behave ethically and legally as a matter of course.

“Providing a safety net with which to filter out this minority is therefore key to protecting the status of Dubai as a clear front runner in the global property market.”

He added: “The rules around non-compliance are unlikely to be that flexible so checking this now should be a core priority for all concerned.”

Required documents for the permit:

1. Apply through Trakheesi System (At http://tarakheesi.gov.ae)

2. If the ad is done by a real estate brokerage office, a copy of the marketing contract from the owner is required

3. Copy of the advertisement format that should contain not less than 50 per cent in Arabic language (the final advertisement can be wholly in English)

In case of marketing off-plan properties in Dubai, the following should be complied with:

1. Mention the developer’s name and number in the ad

2. Mention the project’s name and number of registration in the ad

3. Mention the trustees account number, the expected service charge and completion date

Documents needed if marketing real estate aboard:

1. Copy of ownership certificate

2. Marketing contract between owner and brokerage office

3. Letter from real estate broker identifying the unit type (flat/villa/building) on a map

4. Undertaking from the broker not to receive any amount on behalf of the owner

5. Undertaking from the broker to assume all legal liability in terms of the accuracy of data provided

6. Documents from outside the country certified by the UAE Embassy and the Ministry of Foreign Affairs and translated in Arabic by legal translator

7. Office registration number and broker number regarding the real estate brokerage offices

8. Permission approval fees of Dhs1,020