Dubai has introduced legal changes to its Real Estate Regulatory Agency (RERA).
The new law, instructed by Sheikh Mohammed bin Rashid Al Maktoum, Dubai Ruler, Vice President and Prime Minister of the UAE, includes restructuring the legal provisions of the agency, which was established in 2007.
According to the new law, the objectives of RERA include contributing to the development of Dubai’s real estate sector within an integrated system of regulatory and monetary procedures and enhancing the sector’s contribution to Dubai’s economy.
Furthermore, RERA will work to provide a secure environment for real estate projects in order to protect the rights of developers and investors, implement new projects and programmes that enable them to explore new real estate opportunities and promote professional and ethical standards in the industry.
In accordance with the law, RERA is responsible for regulating and overseeing real estate development escrow accounts; accrediting financial institutions that are qualified to manage real estate development escrow accounts; and approving regulations that govern development, brokerage and management of real estate including joint property.
RERA also monitors real estate advertisements published in media outlets in the emirate; develops and launches awareness programmes in collaboration with the Dubai Real Estate Institute to educate the public about their rights and responsibilities; and prepares and updates policies designed to balance supply and demand.
Under the law, the chairman of the Executive Council of Dubai will appoint the CEO of RERA and will also issue the regulations and resolutions required for the implementation of the provisions of the law that substitutes Law No. 16 of 2007.
Dubai Land Department will replace RERA in registering real estate rental contracts and regulating the relationship between property owners and tenants and any other matter related to real estate rental contracts.
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