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Unqualified real estate agents to be weeded out!
- January 24, 2007, 1:31 pmAs many as half the individual property agents operating in Dubai could be weeded out by tough government regulation of real estate brokers, according to Dubai Land Department.
There are believed to be several thousand unqualified individual freelance brokers operating in the emirate’s sizzling property sector, who, according to one real estate agency, are severely tarnishing the reputation of the entire industry.
“There are almost daily complaints over cheating, illegal transactions and unprofessionalism among brokers,” said Khamis Mohammad Al Muhairi, Head of Land Valuation and Studies Centre at Dubai Land Department.
Examples of poor conduct include brokers selling properties they do not have the right to sell, those who buy properties themselves or for a relation and sell it off at a higher price, and cases where agents charge clients despite failing to provide a complete brokerage service.
As reported in Gulf News this week, the government has passed a new by-law on broker registration. The Real Estate Brokers Registration in Dubai law will demand that brokers register with the Land Department, giving officials a data-base of firms and individuals operating in Dubai.
In return they will receive a registration card and government approval to transact real estate deals.
By mid-2007, the department will begin putting brokers through a training programme and a series of profession tests to eke out those who don’t make the grade.
“There are many people out there who are working as brokers without any training or formal qualifications. It is an important profession and we want to keep it as a profession,” said Mohammad Sultan Thani, director of Development and Marketing for the Land Department.
The new law has been well-received by Dubai’s real estate agencies, many of whom say it will protect their companies from clients who fail to pay brokerage fees or those who accept a higher offer on a property despite formal negotiations with another party being well underway.
“We firmly believe that clients and the industry as a whole will benefit greatly from a more transparent and professional structure,” said Craig Johnson, general manager of Dubai-based property consultants Landmark Properties.
“The entire industry has been sadly lacking in any regulation or control and many clients have had extremely bitter experiences.”
However several real estate agencies say the government cannot prevent a registered firm from employing unscrupulous agents.
The Land Department says this will not be possible as individual brokers (even those working in a firm) must pay a Dh500 fee to receive a registration card.
Firms themselves must pay Dh5,000 to be registered and face annual re-inspections to renew their cards.
“It will cost us Dh20,000 a year just to register our agents. It’s a substantial amount but we are more than happy to pay it,” said Johnson.
If firms or individual brokers break the land department’s code of conduct, they will receive black points (which vary in number depending on the severity of the case), leading to possible suspension or cancellation of their registration.
Source - Gulf News, Robert Ditcham
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