May 31--The Land Department of Dubai is drafting new regulations to ban freelance property agents. According to Marwan Ahmed bin Ghalita, Technical Administration Director of Dubai Land Department, the new law seeks to streamline the real estate brokerage sector to ward off problems arising from freelance brokers who operate without licence.

To be issued in June, the new law will permit only certified agents with identification documentation from the Land Department to function in the lucrative real estate sector, where the brokerage fee charged from buyers, and in some case from sellers as well, varies from 0.5 percent to 5 percent.

"Once the law comes into force, the department will not allow any transaction that is routed through a non-registered brokerage firm.

Speaking to delegates at the International Real Estate Forum in Dubai in May, Marwan said the law, seeking to streamline relationship between the agent and the clients, will also stipulate the parameters for grading the brokerage firms after taking into consideration the academic qualification and track record of the agents. The law will also seek to penalize violators. The department will also make it mandatory that all agents need to undergo training courses conducted by the department to qualify as a certified broker.

Source: Khaleej Times