Dubai Land Department has mandated that just three licenses will be allowed to advertise or list any property, significantly tightening the restrictions on real estate marketing in Dubai. This effectively eliminates multiple listings and several other methods that had been used by allowing up to three agents to handle the marketing of a property. For more detail click here.
According to Firas Al Msaddi, CEO of fam Properties, “no agent can have a thousand listings online any longer.” “There will be a significant reduction in the number of agencies operating in the market. It will immediately affect how many listings each property portal will feature going forward.
“The biggest and best firms, as well as the most knowledgeable and savvy estate agents, will profit. Multiple agents (at least more than three) vying for the right to their properties or trying to sell them is something that buyers and sellers won’t notice.
What the Dubai Land Department wants:
- Permits provided for off-plan to developers cannot be used to advertise properties being sold in the secondary market;
- There will be no more fraudulent or deceptive properties to save time when looking for properties.
- When properties are advertised, their prices and dimensions will be completely accurate;
What it is for real estate agencies
- Agents that rely on property portals will need to step up their game, especially if there is a decline in the number of listings in the secondary market.
- Larger brokerage firms with a track record will take a greater share of the available listings in the market.
Heavy penalties
Although off-plan transactions may soon also be covered by the new laws. They currently only apply to the resale of existing properties. Penalties for non-compliance are severe and can even result in agent suspensions. They can range from Dh50,000 for a single offense to Dh1 million for several violations. The Land Department recently mandated that all portal and other medium marketing and advertising of properties include obligatory permits.
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