Property Listing Regulations and Contract A
The new regulation that has taken affect recently about listing your property with the authorized brokers.
Dubai Land Department has taken further initiatives to regularize the listing marketed by the brokers online which would focus towards minimizing significantly if not completely eliminating the problem of fake listings that are published online.
In a mature market like Dubai Real Estate, it was certainly important for RERA to ensure that the market practices are in compliance with the international standards and every single process in the procedure is validated to ensure there are no loop holes which would regular in significant amount of time saved of the buyers seeking properties. Although the prerequisite documents like title deed / oqood and passport copy or Emirates ID remain the same, the process of getting the form signed is transformed digitally now.
In accordance with the recent regulations, the paper based Form A that was conventionally signed by a seller to authorize the broker to market the property has been moved to paperless scenario, where only the registered broker with a valid broker account with Land Department would be able to generate Contract A directly from the mobile app or Dubai Brokers Portal, which would then be digitally accepted by the seller through an OTP and digital signature allowing the procedure to automate in itself and all initial checks are performed there and then, making it a seamless process.
In order to generate contract A, a broker would need to enter details from a valid title deed and details of the property owner, ensuring the prerequisite documents are in place. And after entering all these details, the final OTP is generated on the registered contact details of the owner who when accepts finalizes the contract.
The broker is obliged to use this contract A on the Trakheesi portal to seek advertising permit which makes the process robust and completely secure. However, there is a catch here, a seller when signing contract A, need to ensure if he is signing an exclusive contract or non-exclusive contract. If an exclusive contract is signed by the owner, then no other broker would be able to generate any more contract A on the same property. Furthermore, as per the regulations, an owner is allowed to sign up to 3 non-exclusive contract A, after which again the fourth broker would encounter an error about contract is already signed off by three brokers before.
These processes will streamline the property listing and will allow to regulate the market so that the extra costs that the agencies have been incurring to market the property, and fake listings that have been one of the biggest hurdles for buyers to search the genuine property will be all solved in one shot.