UAE tightens real estate marketing rules

Dubai: In a bid to eliminate fake ads that end up duping potential investors or tenants, the Dubai Land Department (DLD) has updated its requirements for the advertising and marketing of properties.

As per the new rules, from October 1, only three permits will be issued to promote or list each property. Meaning that up to three agents can take up marketing of a property, putting an end to all possibilities of multiple listings, over-selling or mis-selling through ads that promise more than they deliver.

It also stipulates that all related advertising and promotional material be removed as soon as a property is sold, meaning older, expired ads and permits cannot be used by agents.

The DLD also made it mandatory for all property ads on portals and other mediums to carry advertising permits. Property portals in Dubai must authenticate these ads through an integrated link with Dubai Land Department.

Recently, the Ministry of Economy (MoE) and the Ministry of Justice (MoJ) developed new criteria for real estate transactions in partnership with the UAE’s Financial Intelligence Unit (FIU).

It says all real estate agents, brokers, and law firms are obliged to file reports to the FIU for purchase and sale transactions of freehold real estate properties in the UAE that include any of the below three methods of payment, whether for a portion or the entirety of the property value:

1. Single or multiple cash payment(s) equal to or above Dh55,000
2. Payments that include the use of a virtual asset
3. Payments where the fund(s) used in the transaction were derived from a virtual asset

• Prices and sizes of advertised properties will be 100% accurate when announced;
• Properties being sold in the secondary market cannot be advertised using permits issued for off-plan to developers;
• No more fake or misleading properties to save time searching for properties
• Property brokers and portals will need to fill up Form A under the DLD rules to advertise any unit, online or offline.
• At the time of signing new property sales, agents will no longer provide their own mobile numbers.
• Real estate advertisements without an official permit from the RERA are not allowed to be posted.
• The permit must be verifiable through the integration between RERA and the real estate portals.
• The content of the ads must be updated periodically through RERA’s integration.
• The real estate advertising information must reflect the information of the permits issued by RERA.
• Marketing and promotions of properties through social media can be done only after getting an official permit. The permit number
• must be displayed on the ad.

The new rules on property ads apply to the resale of existing properties, but could soon include off-plan sales as well.

Penalty:

AED50,000 for a first offence to AED1 million for multiple breaches and possible suspensions for agents involved.