In an attempt to streamline Dubai's real estate brokerage sector and stem problems arising from freelance brokers who operate without licenses, new legislation will soon be put into force by the Dubai Land Department prohibiting freelance real estate agents from operating in the emirate.
Until now, freelance real estate agents have been doing brisk business in Dubai's buoyant real estate market, many of whom without proper property licensing. Under the new law proposed, which is currently in its final draft stage, only certified agents with a bona fide identification documents from the Dubai Land Department will be allowed to operate in the lucrative sector of the emirate, said Khaleej Times.
"Once the law comes into force, the department will not allow any transaction that is routed through a non-registered brokerage firm," stated Marwan Ahmed bin Ghalita, Technical Administration Director of the Dubai Land Department.
Currently, most buyers, and in some cases, sellers, are charged brokerage fees by agents which can range from 0.5 percent to five percent.
The new law, expected to be issued next month by the Department, will also stipulate parameters for grading brokerage firms after taking into consideration the academic qualification and track-record of its agents.
