Real Estate Regulatory Agency (RERA)
Real Estate Regularity Authority is a regulatory agency created by State Government of Dubai with the aim to regulate real estate organizations and agents working in Dubai. It was established on 31st July 2007 by vice president, Sheikh Mohammed Bin Rashed Al Maktoum and prime minister of Dubai. The Dubai Land Department of State Government strongly supported establishment of this regulatory authority. It is a principal organization in the emirate, which authorize and regulates real estate organizations and professionals practicing in Dubai. RERA plays executive role to regulate real estate in Dubai. Although it is a newly established organization, but due to keen interest of state government and highly qualified national staff, the agency has successfully managed to register all real estate development organizations and agents working in the emirate.
Primary Goals of Establishing RERA
RERA was established to provide strong legal frame work to buyers, sellers and renters and enable them to make all kind of asset deals in effective manner. Its major aim is to make the whole process extremely transparent with an attempt to eliminate any type of property frauds. Observing deep interest of international investors to make investment in real estate market of Dubai, RERA is trying to set policies for real estate sector that successfully drag potential investors in property market of Dubai. The agency is totally independent with its own financial and administrative infrastructure to regulate real estate sector of Dubai. RERA has build up an online society that makes it possible to coordinate developers, investors and buyers with each other as well as with other supporting sectors like banks, insurance companies and law firms. RERA acts like an arm of Dubai Land Development Department. It helps this industry to develop strategies and regulating activities for property management organizations, property consultants, brokers and owner associations that are taking part in selling, renting and purchasing of residential assets in Dubai. Real estate regulatory authority is the legal organization that also issues rules and regulation to set standards for brokerage activities, registration of lease contract and certifications. Moreover, it also issues license for real estate development professionals.
Functions of RERA
As we know RERA is the regulatory authority of Dubai Government that serves as main regulatory authority to certify real estate agencies, agents and developers. It is also eligible to recommend new property laws to Government. Moreover, it also regulates and registers rental agreements, real estate advertisements in Mass media and licensing of real estate exhibitions. Besides this, it also formulates processes, documentation and standard procedures related to property and provide statistical data about emirate’s property market to government and public.
Role of RERA in Dubai Property Market
RERA closely inspect Dubai property market in order to carryout whole process of property sale, purchase and renting according to rules and regulations implemented by RERA. Property buyers and sellers have to consider few important things when going to make any asset deal in the city. Buyers must check that the real estate developer is certified by RERA and must possess a registration number. Moreover, they also consider making payments via escrow accounts in RERA certified banks. Last but not the least, property dealer you are working with holding RERA certification and display his/her Identity card to its clients.
Real Estate Regulatory Authority is carefully implementing laws and regulations to provide safe property deals in a way to cope up slowdown of current property boom in Dubai.
EJARI is an Arabic word which means “My Rent”. But in the emirate of Dubai this represents a new legislative initiative issued by Real Estate regulatory Authority (RERA). According to this law all landlords, property management companies and land lord representatives have to obtain EJARI certification in order to become authorized landlord to rent or lease their assets. This is a revolutionary system that aims to regulate rental market of the real estate sector. It is a new brand system that design new sections of law number 26 of 2007 that was made to regulate relationship between land lord and tenants. All individuals and real estate companies working as landlords have to register tenancy agreements using EJARI.
What is EJARI?
According to RERA with the effect of EJARI from 14th March 2010, every tenant and landlord will have to get their rental and lease contracts registered through EJARI. It is an electronic web registration portal, which is exclusively designed to execute the legal requirements as well as vision and mission of establishing a strong regulatory system to control rental market in the emirate. This regulatory system is established to protect rights of everyone involved in rental deals.
Main Objectives of EJARI
It is a modern online registration system that ensures full protection of rights of all parties via tenancy agreement. The regulatory system also guarantees that all government agencies are enforced to recognize and support the rights. The system is aim to create transparency between landlord and tenants. With implementation of this regulatory system Real Estate Regulatory Authority is trying to convert rental contracts in a proper legal framework. Besides this, it enables both the parties to revise rental contracts without any difficulty in case of arguments. This regulatory system displays complete portfolio of any landlords and his asset. Such portfolio is very helpful for new tenants showing them important data like renewals, transfers, cancellations and terminations of previous contracts. Such facts are very important for a tenant to know before signing rental contracts.
• Anyone can access to the official updated information of emirate’s rental properties.
• This system successfully manages to legalize the process of tenancy by issuing standard rent receipts.
• It also protects the rights of landlords and tenants by a proper tenancy contract detail.
• Both the parties can review the whole contract in case arguments.
Important Features and Benefits of EJARI System
The system is designed to equally serve both the parties of rental contract and provide protection to landlords, tenants and property management companies. This system also aims to setup a clear payment system to protect both parties at the time of advance rental payments. A rent receipt is provided upon completion of registration process. Registering your rental contract with this web based regulatory portal standardize the rental contract making it easy and time saving. It saves you to spend time making documents. This system plays key role to build and maintain trusted, regulatory community environment in real estate industry in Dubai. Major benefits, this system offer to real estate industry are as follows:
EJARI is an internet based application designed to facilitate legal process of property leasing and its documentation. Its major aim is to support tenants, landlords and management companies. It works with RERA to provide total solutions of property leasing issues of rental market of Dubai. It benefits tenants by providing them a central and authorized platform, where they can get their tenancy contracts regulated.
Simsari was a joint venture of two Dubai’s leading trendsetting organizations Tamwell and Tejari. It was first launched in year 2006 by Emirates Real Estate Solutions (ERES, an authorized technological solution provider of Dubai Land department) in year 2006. It is a unique online portal, which brings in expertise, experience, strength and reputation of these two organizations to develop cost effective and reliable online marketplace not only for real estate property developers and brokers as well as private individuals to buy and sell residential and commercial property.
Why Dubai Land Department launched Simsari?
Due to the high growth rate of property development projects during the past few years UAE has become one of the most important country in the Middle East region with numerous business opportunities in this sector. Before the launch of this system, the whole process was very complicated, time consuming and somewhat costly for both buyers and sellers. The system is an effort of Dubai Land Department to streamline the process of selling and buying property in Dubai. The system successfully removed such barriers and offers a modern platform for making real estate transaction with fewer complications.
What Simsari.ae offers for Buyers and Sellers?
Simsari.ae works to provide complete peace of mind to real estate buyers and sellers via reliable web based system verified by all known developers and partners. It also allows buyers to spot an ideal property of their choice by using a simple process. Users will also get useful information about to arrange finance and whole process of transaction. Whereas, for sellers it provides a very affordable and less complicated way to market their properties and also help them to capture new markets.
How Simsari.ae develop its Reputation among users?
Simsari.ae has totally revolutionized the traditional process of real estate transactions by maintaining full transparency between brokers. To accomplish such high level of precession the system fully integrates sale contracts into a legal framework. Legal authorities are allowed to reopen contracts made via this system to revise in case of any disputes. Moreover, the process takes multiple steps to rationalize the process in order to ensure the reliability of the data listed in the system.
Why Real Estate Regulatory Authority (RERA) takes over Simsari.ae?
Despite of this fact that Simsari.ae is the largest and smartest online marketplace for real estate developers, buyers and sellers, RERA has taken a step to enhance the reliability of the this system. Real Estate Regulatory Authority has recently re-launched this system on 19 July 2012. Major aim of taking over Simsari.ae is to reduce the number of ghost property listings in Dubai. After getting their properties registered with the system, all real estate agencies and individual agents are only allowed to list their properties in not more than three property management firms.
Registration with Simsari.ae has become mandatory and RERA has issued a deadline date 31 August 2012 for all real estate agents and organizations to get their properties registered with this system. Those who fail to obtain Simsari.ae approval for their properties will face penalties after 1st September 2012. RERA has re-launched this business model to make it more secure and simple by providing simple property upload feature which is linked with Dubai Government e-payment gateway. Such additional features improve the entire process and make it more reliable.