A new law has been issued by Dubai’s Ruler and UAE Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum restructuring the Real Estate Regulatory Agency (RERA).
Under the law, the 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.
The new law also restructures the legal provisions of the agency, which was established in 2007.
The objectives of RERA now 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”, a statement said.
RERA will also work to provide a “secure environment” for real estate projects to protect the rights of developers and investors, implement new programmes that enable them to explore new opportunities, and promote professional and ethical standards in the industry.
The agency is also 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 will also monitor real estate advertisements published in media outlets; develop and launch awareness programmes in collaboration with the Dubai Real Estate Institute; and prepare and update policies designed to balance supply and demand, the statement added.
The law also stipulates that the chairman of the Executive Council of Dubai will appoint the CEO of RERA and also issue the regulations and resolutions required to implement the law.
The law will come into force on the day on which it is published in the official gazette.
The announcement comes soon after Sheikh Mohammed announced the formation of a new real estate committee to ensure balance in the emirate’s property market.
The committee will also ensure that semi-government real estate companies do not compete with private developers, Sheikh Mohammed said earlier this month.
“It will develop a comprehensive strategic plan and vision for all major real estate projects in the emirate for the next 10 years,” he added.