The law, which will come into force on the day on which it is published in the official gazette, states that Dubai Land Department will replace RERA for registration of real estate rental contracts and regulating the relationship between property owners and tenants and any other matter related to real estate rental contracts.
RERA, established in 2007, will now “contribute to the development of Dubai’s real estate sector within an integrated system of regulatory and monetary procedures and enhancing the sector’s contribution to Dubai’s economy,” a statement said.
It will regulate and supervise real estate development escrow accounts; accrediting financial institutions that are qualified to manage real estate development escrow accounts; and approve regulations that govern development, brokerage and management of real estate including joint property.
RERA’s other responsibilities include promotion of professional and ethical standards in the industry, observe any real estate advertisements out in the media and create, supervise, and revise policies designed to balance supply and demand.
Apart from working to provide a “secure environment” for real estate projects and protect the rights of developers and investors, the agency will also initiate new programmes that encourage the exploration of new avenues.
The law also stipulates that the chairman of the Executive Council of Dubai will appoint the CEO of RERA and also issue the regulations and resolutions required to implement the law, the statement added.
The announcement follows on the heels of an earlier one that announced the formation of a committee to balance property supply and demand as a slump in prices weighs on developers in the Middle East’s business hub.