Unofficial property ‘middle men’ will face prison, warns RERA boss

10 years ago | Posted in: Laws | 683 Views

The CEO Dubai’s Real Estate Regulatory Agency (RERA) told real estate agents that anyone without a broker card attempting to take a cut from a property deal faces the prospect of jail under strict regulations already in place.

The stark warning came as real estate agents complained of incidents where relatives and friends of a seller muscle in on a property deal and then seek a commission. “We’ve encountered situations whereby we’ve got an owner and all of a sudden somebody pops up and he’s the cousin or the brother and wants a fee (commission),” Mario Volpi, managing director of Prestige Real Estate said while moderating a debate on the issues and ethics of the real estate environment at the recent Cityscape Global property exhibition in Dubai.

“You guys should fight it,” RERA CEO Marwan bin Ghalita said.

“You say that, but it’s very difficult,” Volpi replied.

Ghalita urged agents in Dubai have to take a tougher stance.

“The industry has been regulated for seven years, and now it’s the time when everything should be correct. There is no grey area. I think you guys need to play the toughest part about it by driving away all of those intruders who comes as a middle man. If a cousin, or a wife or a husband comes in the middle, I would fight not to give him commission. I would report it to RERA.

“Law number 85 is very clear: anybody without a RERA broker card cannot take a commission or cannot even participate in a deal. And the punishment is going to prison,” he said… see more

source: arabianbusiness

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