Dubai’s Real Estate Regulatory Agency (RERA) has launched a four-tiered classification system that will reduce the number of estate agents operating in the emirate.
Under the colour coded classification system, tier one brokers will be issued a blue licence by the Department of Economic Development (DED), which allows them to carry out all types of broker activities and to operate throughout the emirate.
The next step down will be the yellow licensees. These will be licensed by free zone authorities to carry out a full range of brokerage activities in that particular area.
If a free zone authority does not own freehold real estate it will not be able to issue licences.
Tier three registered brokers, or green license holders, will be authorized by the DED and registered by RERA to sell only the properties of specific companies or developers.
Tier four licensed brokers are those issued with a red licence, registered by RERA and authorized only to promote, sell or rent time share units.
The new licensing system is linked to RERA's online resource and the forms available on the website for licensing.
Based on their tier, brokers will only have access to properties within their sphere of operation only. The system will not allow them access to property they are not qualified to sell.
"The big change is that broker licences will now be linked to specific areas. We will no longer face a situation where someone licensed by a free zone which owns no property can be registered to sell real estate in other parts of Dubai,” said Mubarak Al Jafla, RERA's head of broker registration.
"The overall effect will be to limit the number of licensed brokers selling property in Dubai to those who are able to offer a professional, expert and dedicated service."
Estate agents can apply directly to RERA for their new licence immediately or wait until their current licence has expired, the agency said.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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