Everything you need to know about RERA
The Real Estate Regulatory Agency (RERA) in Dubai is a vital regulatory agency in the real estate market. RERA’s mandate is to regulate and oversee the real estate sector in Dubai, ensuring that it operates in a fair and transparent manner.
The agency is responsible for licensing and regulating all real estate activities in Dubai, including the registration of real estate projects, developers, and brokers. RERA’s regulations cover a wide range of real estate activities, from buying and selling to leasing and property management.
RERA’s mission is to protect the interests of investors and promote a stable and sustainable real estate sector in Dubai. The agency aims to achieve this by creating a transparent and fair environment for real estate transactions, enforcing regulations that prevent fraud and ensure compliance, and providing guidance and support to developers and brokers operating in the market.
In this blog, we will explore everything you need to know about RERA in Dubai, including its role in the real estate market, its regulations, and the changes to its regulations that will affect the market in 2023.
Top Things to Know About RERA in Dubai
RERA’s Regulatory Framework
RERA’s regulatory framework is based on several laws and regulations, including Law No. (13) of 2008 Concerning the Interim Real Estate Register in the Emirate of Dubai, Law No. (27) of 2007 Concerning Ownership of Jointly Owned Properties in the Emirate of Dubai, and Law No. (85) of 2006 Concerning the Regulation of the Real Estate Sector in the Emirate of Dubai.
Registration with RERA
Developers, brokers, and other real estate professionals must register with RERA to operate legally in Dubai’s real estate market. RERA requires developers to register their projects and obtain a license before selling any off-plan property. Only RERA-certified brokers in Dubai can operate in the emirate’s real estate market.
RERA’s Role in Dispute Resolution
RERA plays a crucial role in resolving disputes between real estate professionals and their clients. RERA has established a dispute resolution committee to adjudicate disputes between developers, brokers, and investors. The committee is empowered to issue binding decisions, and its rulings are enforceable in Dubai’s courts.
RERA’s Role in Protecting Investors
RERA is responsible for protecting investors in Dubai’s real estate market. RERA requires developers to deposit 20% of the project’s value in an escrow account before launching any off-plan project. The funds in the account can only be used for construction purposes, ensuring that the project is completed on time and to the required quality standards. RERA also requires developers to obtain a performance bond to protect investors in the event of the developer’s default.
RERA’s Impact on Real Estate Transactions
RERA has had a significant impact on real estate transactions in Dubai. The agency has introduced several measures to promote transparency and fairness in the market. For example, RERA requires developers to disclose all relevant information about their projects, including the completion date, payment plan, and specifications. RERA also requires brokers to provide full disclosure to their clients about the properties they are selling, including any defects or issues with the property.
Read also : Best area to buy property in Dubai in 2023
What are the Changes to RERA in 2023?
RERA is continuously reviewing its regulations to ensure that they remain relevant and effective. In 2023, RERA announced some changes to its regulations that will affect the real estate market in Dubai.
A New Classification System for Brokers
One of the significant changes is the introduction of a new classification system for brokers. The new system will classify RERA-certified brokers in Dubai based on their level of experience and qualifications, making it easier for both investors & first-time buyers to choose the right broker for their needs.
Crypto Currency for Transactions
Another significant change is the introduction of a new law that will regulate the use of cryptocurrency in real estate transactions. The new law will require developers and brokers to obtain a license from RERA before using cryptocurrency in any transaction. The law is aimed at promoting transparency and preventing money laundering in the real estate market.
License Requirement for the Developers
Developers are required to obtain a license before establishing a real estate development business. They must offer clear details regarding their projects. It needs to mention the property’s kind, location, size, and other details. Developers are required to maintain trust accounts for each project. Similar to an escrow account, it exists. Buyer deposits are placed in a trust account.
What are the Impacts on Dubai’s Real Estate Market?
RERA has had a significant impact on Dubai’s real estate market since its inception. The agency has introduced several measures to promote transparency and fairness in the market, which has increased investor confidence in the sector. RERA’s regulations have also helped to prevent fraud and protect investors from unscrupulous developers and brokers.
The introduction of new regulations in 2023 is expected to further enhance the regulatory framework governing the real estate market in Dubai. The new regulations will provide greater clarity and transparency in the market, making it easier for investors to make informed decisions about their investments.
As Dubai’s real estate sector continues to grow and evolve, RERA’s role in the market will remain essential, ensuring that the sector operates in a fair and transparent manner and supporting its continued success.
If you still have confusion about RERA acts, contact the best Real Estate Company in Dubai, Homesphere for more information. We help you find unique properties that include RERA policies according to your needs and expectations.