The Dubai Land Department recognized the need for a suitable regulatory framework to control the entire asset leasing, purchasing, and selling process. The Dubai Land Department was the only agency managing all real estate sales and purchases. However, because of the Dubai real estate market’s explosive growth, the government needs a more defined legal framework to safeguard all parties involved in buying and selling real estate. DL supported the establishment of the Real Estate Regulatory Authority in July 2007 to carry out the regulatory requirements of the Dubai real estate industry. His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice-President and Prime Minister of the United Arab Emirates and Ruler of Dubai, gave the RERA his blessing.
The Real Estate Regulatory Agency (RERA) is a government body established in 2007 to regulate the property sector of Dubai. It sets policies and makes plans for Dubai’s property sector to boost foreign investments and settle disputes between tenants and landlords. RERA has administrative independence, enjoys its own financial system and has the full legal authority to regulate Dubai’s real estate sector.
The primary responsibilities of RERA include:
- Licensing real estate agencies in Dubai
- Regulating trust accounts of real estate developers
- Registering and regulating lease agreements
- Supervising the associations of owners managing various buildings in the emirate
- Publishing studies for the property sector
- Supervising property advertisements in the mass media
- Licensing real estate exhibitions to foster national participation in the emirate’s realty sector.
- Informing people of regulatory acts pertaining to buying or renting real estate.
RERA Forms
To ensure the transparency of real estate transactions, RERA has introduced the following forms:
- FORM A: Agreement between the listing agent and seller
- FORM B: Agreement between a property buyer and agent
- RERA FORM F: Agreement between a property buyer and seller
How does RERA manage the real estate market in Dubai?
RERA successfully established a clear-cut and highly effective regulatory framework that can foresee the rights of landlords, sellers, buyers, tenants, and property management firms operating in Dubai. RERA controls the Dubai real estate market by approving landlords, real estate agents, property management firms, and developers. Everyone who wants to sell or rent their properties lawfully must register with RERA, regardless of whether they are a landlord planning to rent out their property, a property developer, or a real estate agency. Real estate investors and buyers should confirm that the developer they are working with is RERA registered and has a registration number.
Make sure any real estate brokers you deal with are RERA certified and carry an Identity Card issued by the RERA. Additionally, investors warrant that any payments they intend to make to a real estate development or property management company must be paid through escrow accounts at banks or other financial institutions that have been granted RERA approval.
Dubai meticulously crafted the Real Estate Regulatory Authority statutes and regulations to offer a simple legislative system to manage the Dubai real estate industry. Along with making safer real estate transactions, the company also wants to build a platform that may increase profits and slow down the city’s real estate market’s present decline. The State government’s initiative to enhance Dubai’s asset market transactions is quite favorable. By registering everyone involved in the process, the system can obtain investors and preserve openness throughout the entire process.
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