RERA 4-Tier Agency Rating System Announced

[1] Dubai Real Estate Regulatory Authority (RERA) has implemented a new 4-tiered classification for real estate agencies and brokerages. This new system categorizes brokers, regulating what type of properties they can market and sell, and in what locations.

Hailed in a RERA statement as the “next stage of its strategic plan to implement a robust registration and licensing system to control and safeguard property sales,” many are welcoming the move to further bring clarity and accountability to the real estate market. As a continuation of the strategy which brought about escrow accounts and broker registration, the stated goal is to enhance the rights of buyers, sellers, landlords, and tenants and improve market activity.

The classification is broken down into four tiers, marked by colors. The top tier, Tier 1, is blue and allows brokers to carry out all types of activities anywhere in the emirate. One step down from the blue Tier 1 level is the yellow Tier 2, which allows for freehold transactions only in specified areas. Tier 3 is green, and permits brokers to sell only approved properties of certain developers or companies. Tier 4 is red, and allows only the promotion, sale, and rent of time share units. RERA’s online resources will be available based on this classification, so real estate agencies have access to services and property information within their sphere of operation only.

Better Homes’ agents are ready for this classification, as they have already been informally specializing in certain areas and will be formally categorized by November 1. This current specialization will ensure a smooth transition into RERA’s new system, and will guide Better Homes’ community categorization efforts.

Brokers can apply for the new license immediately through RERA or they can wait until their current RERA license expires. Benefits of the new program will only apply once the broker has obtained its new tiered classification.

To see currently available properties visit bhomes.com