Quick Property Search
Choose:
Bedrooms:
From
To
Price:
From
To

Blog

Broker must verify Title Deed in Dubai Property

Thursday ,November 03, 2016

Of all the RERA Circulars issued in the last year, Circular 8 of 2016 is the most important one for brokers to be aware of and to address.

The recently issued Circular reminds brokers that it is their duty to protect their client’s interests in a transaction. It specifically requires brokers to verify that the Title Deed (Ownership Certificate) on a property is valid. This has been made possible via the Dubai Brokers app (this function is not yet available on the Dubai Land Department website). RERA is requesting that all brokers download the Dubai Brokers app, and confirm the validity of title, for every sale and lease transaction.

Although the term “due diligence” is not directly used in this Circular, it is clear that RERA is stating that brokers must conduct due diligence in all transactions. The Circular does not address any penalties if verification of Title Deed is not completed. However, it is safe to assume that if a broker fails to authenticate the Deed, and the deal turns out to be fraudulent, there will be penalties assessed against the brokerage. The typical penalty for companies failing to do due diligence is AED 50,000. Therefore, it is highly recommended that brokerages include verification of the Title Deed on their “To Do” list for every type of transaction.

RERA broker must verify title deed

Disclaimer: This blog is intended for informational purposes only, and should not be considered legal advice, nor does it reflect the opinions of any government agency.

NEW WEBSITE COMING SOON - STAY WITH US