Dubai has taken the first basic steps towards standardizing several key documents used in real estate transactions.
Real estate specialists will be asked to give their feedback on newly drawn up standard forms which cover:
o Seller agreements
o Contracts of sale
o Agent to agent agreements
o Notification of sale/transfer completion.
When changes are made, standardized forms will be used in a four-week market test and could eventually become mandatory for all aspects of property transactions, including rental agreements.
The implication for the property sector is that the forms are only accessible for brokers who have been officially registered with the Land Department. Their aim is to provide formal standard practices across the whole country and real estate work and industry so that everyone will start to abide the same essential rules for such operations. They want to give all investors and clients the great faith and confidence to be encouraged to invest in Dubai due to these standard forms that will make them safe and secure. This way the wrong work will be shown and people will become friendlier to such operations in Dubai real estate sector.
The opinion of the officials of the Real Estate Regulatory Authority (Rera) is that the diverse nature of Dubai’s real estate sector encouraged the organization to standardize the documents in the industry due to the wide variety of nationalities.
They believe that the variety of nationalities, languages, education levels, religions, social life and real estate experience of brokers working in the property brokerage industry means many different contracts and ways of conducting transactions are used that may create a conflict between sellers and buyers…
Some unqualified independent brokers have also been operating in Dubai, forcing the Land Department to introduce a brokers’ registration law to reduce such conflicting deals to retain for Dubai its good image of honesty and accuracy in work.
