A media by-law, which will govern how real estate developers market and advertise their developments, will be issued in about two weeks, the CEO of the Real Estate Regulatory Agency (RERA), Marwan Bin Ghalita said yesterday. He was speaking at the launch of RERA's new logo.
"It is a short and straightforward by-law," Bin Ghalita said, and will guarantee that buyers purchase property from reputable developers. Under the by-law a developer advertising a property must display its RERA registration number, which shows it is an approved developer, as well as the bank at which it holds an approved escrow account and the name of the registered real estate broker.
The introduction of the by-law follows the enactment of Law No 8 of 2007 in July concerning guarantee (or escrow) accounts. The law means that all developers must open an escrow account with a certified financial institution.
So far 13 banks have been certified by RERA to manage a guarantee account. Property developers, of which Bin Ghalita estimates there are about 600 in Dubai, who have started selling off-plan developments must have a guarantee account in place by December 28. But before selling can commence on any new development, a developer must already have a guarantee account, he explained. It is also likely that guarantee accounts for brokers who hold customer deposits will become mandatory in the near future.
To date there are 135 developers, 661 real estate agents or brokers and 1,220 licensed (individual) agents registered with RERA, he said, adding that only developers complying with the law will have the logo on their (Cityscape) stand. "About 60 to 70 per cent of developers will have the logo. The others didn't act quickly enough," said Bin Ghalita.
To be eligible to use the logo the developer must be registered with RERA, have a letter stating that it can open a guarantee account with one of the 13 banks, and that a registered broker is marketing the development.
The logo, designed by Moosa Al Halyan, emphasises the importance of Dubai Creek in the context of real estate development, explained Bin Ghalita. The shape of the blue line captures the letter "D" in Arabic and English for Dubai and the three blocks signify property owners, investors and brokers, as well as developments themselves, he said. Source
"It is a short and straightforward by-law," Bin Ghalita said, and will guarantee that buyers purchase property from reputable developers. Under the by-law a developer advertising a property must display its RERA registration number, which shows it is an approved developer, as well as the bank at which it holds an approved escrow account and the name of the registered real estate broker.
The introduction of the by-law follows the enactment of Law No 8 of 2007 in July concerning guarantee (or escrow) accounts. The law means that all developers must open an escrow account with a certified financial institution.
So far 13 banks have been certified by RERA to manage a guarantee account. Property developers, of which Bin Ghalita estimates there are about 600 in Dubai, who have started selling off-plan developments must have a guarantee account in place by December 28. But before selling can commence on any new development, a developer must already have a guarantee account, he explained. It is also likely that guarantee accounts for brokers who hold customer deposits will become mandatory in the near future.
To date there are 135 developers, 661 real estate agents or brokers and 1,220 licensed (individual) agents registered with RERA, he said, adding that only developers complying with the law will have the logo on their (Cityscape) stand. "About 60 to 70 per cent of developers will have the logo. The others didn't act quickly enough," said Bin Ghalita.
To be eligible to use the logo the developer must be registered with RERA, have a letter stating that it can open a guarantee account with one of the 13 banks, and that a registered broker is marketing the development.
The logo, designed by Moosa Al Halyan, emphasises the importance of Dubai Creek in the context of real estate development, explained Bin Ghalita. The shape of the blue line captures the letter "D" in Arabic and English for Dubai and the three blocks signify property owners, investors and brokers, as well as developments themselves, he said. Source
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