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Sun 18 Dec 2011 06:07 PM

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Dubai's RERA warns 23 brokerage firms over ad violations

Real estate regulator says companies face fines of AED50,000 for breaking rules

Dubai's RERA warns 23 brokerage firms over ad violations
Dubais real estate regulator has issued warnings to 23 brokerage firms

Dubai's real estate regulator said on Sunday that it has issued warnings to 23 brokerage firms for breaching rules.

The Real Estate Regulatory Authority (RERA), the regulatory arm of Land Department in Dubai, said the warnings were issued after RERA's Permits Section found violations in company advertisements in the media.

The organisation said companies faced fines of AED50,000 for the violations.

The companies did not indicate their registration numbers issued by RERA in the advertisements published in newspapers, magazines and websites or distributed via e-mails, RERA said in a statement.

Yousif Al Hashimi, director of Real Estate Licensing Department in RERA, said RERA has issued a circular to all the real estate brokerage firms concerned telling them they must publish their office registration number and the broker registration number in all ads.

Sultan Al Suwaidi, section manager at the Real Estate Permits and Inspection Section of RERA,  said: "In case these firms do not adhere to the circular and warning, they will be considered a violation of the licensing terms issued by RERA.

"RERA will impose an administrative fine of AED50,000 against firms that commit violations and will take the required legal action against these entities if they do not follow the conditions and laws."

Al Suwaidi called on investors who wish to purchase housing units to be cautious when dealing with commercial advertisements that promote property sale by checking the broker registration number and the office registration number issued by RERA.

RERA said it is working to create a "professional real estate environment governed by clear laws and regulations for all relevant parties in the Emirate of Dubai".

abdul hafeez sheikh 8 years ago

Misleading advertisement by the Brokerage companies lead to serious crises of the projects . I appreciate the move by the RERA and further propose that RERA should issue the counter advertisement in the same news papers and media alarming about the misleading information generated by any real estate companies and the condition imposed in the advertisement for the advances should be audited and monitored by RERA because the excessive collection of advances obtained by such companies may end up in a loss to the investors or buyers in case of default or delay of the project

Glen 8 years ago

If RERA really wants to regulate the market, then they should not be wasting their time on the companies that did not indicate their registration numbers issued by RERA in advertisements.

RERA should instead act against the companies who have violated the purchase agreements with purchasers of property.

We Are The People 8 years ago

RERA said it is working to create a "professional real estate environment governed by clear laws and regulations for all relevant parties in the Emirate of Dubai".

Interesting, would that include standing up for the investor against the developer and enforcing rules that already on the books by having the developers refund payments made by investors to them for cancelled or delayed projects?

ian moone 8 years ago

I appreciate the move forward by RERA to fine companies and assert rules and regulations..... but I think RERA would be more credible, more of a regulator that it wants the public to perceive it and trust it, if and only if it stood by the investors who had lost majorly in developments that had not been handed over on time, nor have a escrow account etc etc. We have so many cases in Dubai and it always seems that the law stands by the developer and the investor.

s shaikh 8 years ago

RERA should take immediate action against developers who have duped investors and not refunded funds for projects supposed to be completed and handed over but are long overdue with no progress in sight.However there is no solutions for investors so RERA should step up its work and at least scrap those projects and return the invetors hardearned money.The detailed site inspection is completed and by now the picture is clear about each and every project.Where it is obvious that there is too much delay RERA should also initiate strict action.

shaheda a s shaikh 8 years ago

At last RERA is becoming active..In the same way it should initiate immediate action against the developers whose projects are delayed and are not started till date nor is there any hope of any progress. Such projects where the investors' money is lying in the ESCROW account with RERA should be returned to them..RERA is very well aware of such projects as they have surveyed all the registered projects so RERA should get involved and take quick and fair efforts to help investors to get back their dues.

Natasha Varma 8 years ago

50,000 thats it. Seriously, one cannot compare this warning with what investors get. RERA threaten investors with support of developers to eat their investment which is more than half a million to million. 50,000 is just a tip.