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New licencing system for dubai real estate agents to be introduced

The Real Estate Regulatory Agency’s new four-tiered classification system that will link licences to specific areas and reduce the number of estate agents operating in the Emirate.

Tier one brokers will be issued a blue licence by the Department of Economic Development to carry out all types of broker activities and to operate throughout Dubai. Tier two yellow licences will allow free zone authorities to carry out a full range of brokerage activities in that particular area.
 
Tier three registered brokers, or green license holders, will be authorized by the DED and registered by RERA to sell only the properties of specific companies or developers. And tier four licensed brokers with a red licence will be registered by RERA and authorized only to promote, sell or rent time share units.
 
RERA said that brokers will only have access to properties within their sphere of operation and they will be able access to property they are not qualified to sell. ‘The big change is that broker licences will now be linked to specific areas. We will no longer face a situation where someone licensed by a free zone which owns no property can be registered to sell real estate in other parts of Dubai,’ explained Mubarak Al Jafla, RERA’s head of broker registration.

‘The overall effect will be to limit the number of licensed brokers selling property in Dubai to those who are able to offer a professional, expert and dedicated service,’ he added.

A reduced number of brokers will mean better business for those who keep going. Many brokers in Dubai have already been forced to close but this has already resulted in an upturn in sales for the ones that remain, according to propertyfinder.ae.

Spokesman Marcello Sambartolo said the downturn in the property market was now having a positive impact on some of the brokers who were still trading.

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