Dubai: Dubai’s property brokers can no longer rush to put out ‘Just Sold’ ads on social media once a deal is done. Instead, they will need to follow due process from now on.
This would mean that a sold advertisement can be placed only after the property has been formally transferred to the new buyer, as per new requirements issued by Dubai Land Department.
“The circular (from DLD) is directly for brokerage houses and agencies for the announcements of deals that have been signed and approved,” said Lewis Allsopp, Chairman of Allsopp & Allsopp Group. “It is to ensure that announcements, including 'Just Sold' ads, should only be created after the transaction has been officially transferred.
“This regulation is important because it ensures transparency and integrity in the market amongst buyers, sellers and investors. By advertising deals only after they are transferred safeguards buyers and sellers from any potentially misleading information in the market.”
The Dubai real estate authorities have in the recent past been shutting out gaps that existed when it comes to properties being advertised for sale or rental. They have come down heavily on property brokers and agencies that had broken the rules subsequently.
Property market sources say that DLD has been emphatic about ‘full transparency’ across the whole process of buying and selling real estate in Dubai.
The new requirement on ‘Sold’ ads is ‘logically correct and gives confidence to buyers and sellers alike that the information they are looking at is 100% accurate, in that the properties advertised have changed hands,” said Allsopp.
In the past, brokers/agencies would often rush out with the ‘Just Sold’ placements, as a means of self-promotion. Now, they can still do that, but just make sure the property has actually been legally transferred and all the DLD data attest to that.
“While brokers or brokerages don’t have to seek approval to advertise sold properties, they do have to abide by the new regulation or face potential consequences,” said Allsopp. “Within this, it’s important to note, the broker/brokerage would have had to seek a permit for the initial property advertisement.”
Get pre-approval
As far as DLD is concerned, the move is part of a series of tightening up it has done when it comes to property listings and how brokers or agencies go about it.
Introduction of mandatory advertising permits
When it comes to property listings, agents have to seek permits from RERA (Real Estate Regulatory Agency).
“This makes sure that every property advert must have a permit before it’s posted,” said Allsopp. “This applies to all platforms, including social media.”
Brokers must apply for a permit through the Trakheesi system on the DLD website, which generates a unique ID for each listing. This ID confirms that the advert is legitimate and is tied to a valid property listing agreement.
Strict regulations on authenticity of listed properties
RERA also tightened the rules on what info brokers can include in any property advert.
All details within the advert must be accurate to the property itself.
“A common frustration in the market from buyers and tenants in the past, has been with misleading ads, which wasted time and caused mistrust,” said Allsopp. “With the actions of the DLD, brokers posting such adverts can face fines and penalties.”
Restrictions on number of listing agents
RERA created a rule for brokers when it comes to posting the same property multiple times or ‘creating ‘ghost’ listings to attract clients’.
Now, each property can only be listed once by an authorised broker or company. Any duplicate adverts for the same property are banned. This rule makes sure ‘there is a more straightforward search process for buyers and tenants’.
Have Dubai property listings gone down?
Now, all the strict rules on property listings have led to a drop in the numbers, say property market sources. A lot of this has to do with a ‘clean up’ in how Dubai brokers approach listings, it has also made them extra sensitive to what can be done – and equally important, what can’t.
Some in the industry say this has led to a drop in revenues for property portals as their listings see a reduction.
That's not how Allsopp sees it.
"If we look at the (Dubai) property market as a whole, it’s hard to judge because of the amount of new developments handing over," he added. "However, in individual residential communities across the city, we do now see less listings online and, moreover, (there's) a sharp increase in the quality and accuracy of listings online.
"The problem hasn’t fully disappeared, there is still work to do, but the improvements have been significant."
