Author : Suzanne
The Real Estate Regulatory Agency (Rera), has so far registered around 2,151 broker licences under the four-tier colour-coded classification system, agency spokesperson said.
"Registration under the new system is required once brokers reach the stage of having to renew their licence. True figures will emerge only after the system has had time to bed down and has been operational for long enough time for a significant number of licences to come up for renewal," the spokesperson told Emirates Business.
"Currently, some 2,151 broker licences have come up for renewal and have been registered according to the new colour-coded classification system. This system has recently been introduced and is at a very early stage."
Rera confirmed that a total of 1,300 brokers undertook the certified training course during the period from June until December last year.
According to Rera, as at the end of 2009 there were 5,902 brokers registered within the agency.
"Around 8,216 individuals have done the certified courses of the Dubai Real Estate Institute (DREI) indicating that not all of the attendees who undertook the coursework were professional brokers active in the market," said the spokesperson.
The institute has also employed the services of 11 trainers.
Rera's licensing requirements want that all real estate practitioners take the certificated course offered by DREI.
The agency also said the diploma course is compulsory for broker firm owners who do not have a university degree.
"A total of 87 individuals have registered for this course which covers topics such as real estate management, marketing, economics, investment and principles," the spokesperson added.
Rera is the sector regulator and licensing authority and as such sets policy and guidelines, and takes a lead strategic involvement in assembling the legislative framework.
While Rera advocates the use of professionals by real estate investors and maintains that this is the most effective means of ensuring best practice, it does not offer professional training or other training courses or appoint teachers.
DREI, an entity, which is separate and distinct from Rera, carries out some of the above courses and offers the Rera-approved real estate certified practitioner's course, attendance at which is compulsory for all practising real estate professionals, the spokesperson added.
About colour-coded classification system
Rera, in September 2009, announced the four-tier broker classification system whereby brokers were granted one of four types of licences authorising them to sell property of a particular type or in a specified area.
Under the new colour-coded classification system, tier one brokers, issued a blue licence by the Department of Economic Development (DED), will be allowed to carry out all types of brokerage activities and operate throughout the emirate, including free zones, if authorised to do so by the authority.
Tier two or yellow licences will be issued by appropriate free-zone authorities to carry out the full range of brokerage activities but will be registered to operate only within 'designated' freehold areas owned by that authority.
The tier three registered brokers, having green licences, will be authorised by the DED and registered by Rera to sell only properties of specific companies or developers.
The last tier of licenced brokers will be issued a red licence to promote, sell or rent time-share units.
Source : Emirates Business 24|7
