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Law soon to ban freelance property agents in Dubai

DUBAI — The era of freelance real estate agents, who have been doing brisk business in Dubai's buoyant market scenario, is set to end soon when the Land Department's new law regulating their operations comes into force.

The law, which is in the final draft stage, is expected to be issued next month. According to Marwan Ahmed bin Ghalita, Technical Administration Director of Dubai Land Department, the new law seeks to streamline the real estate brokerage sector to ward off problems arising from freelance brokers who operate without licence.

Under the new law, only certified agents with a bona fide identification document from the Land Department can operate in the lucrative sector, where the brokerage fee charged from buyers, and in some case from sellers as well, varies from 0.5 per cent to five per cent.

"Once the law comes into force, the department will not allow any transaction that is routed through a non-registered brokerage firm.

Marwan, speaking to delegates at the International Real Estate Forum in Dubai yesterday, said the law, seeking to streamline relationship between the agent and the clients, will also stipulate the parameters for grading the brokerage firms after taking into consideration the academic qualification and track-record of the agents. The law will also seek to slap blackpoints on violators. The department will also make it mandatory that all agents need to undergo training courses conducted by the department to qualify as a certified broker .

According to Fadi Hammadeh, head of legal Department at Dubai Properties, the move will help root out fake agents, who are being encouraged by some developers.

Meanwhile, the total value of land transactions in Dubai rose to Dh254.22 million yesterday with sales exceeding Dh67 million. The total value of mortgages was Dh187.01 million, according to the Land Department.

A total of 10 sale transactions were registered with the Department by the end of yesterday, the most valuable of which was a plot in Port Saeed that was sold for Dh26 million. The next two most prominent sales saw a second plot in Muhaisanah Fourth acquired for the sum of Dh13.9 million and another in Um Hurair Second for Dh12.02 million. The Al Barsha Second area was the most active in terms of the yesterday's sales, with some 1 transactions. Al Dhagaya followed it with 1 sales.

During the period, Port Saeed recorded the highest turnover by value, at Dh26 million, followed by the Muhaisanah Fourth area, Dh13.9 million, and Um Hurair Second area, Dh12.02 million.

The biggest area sold was the 26694 square feet in the Muhaisanah Fourth area, which went for Dh13.9 million