Decision No. 1 of 2018 ‘Concerning Licenses of Real Estate Developers, Brokers and Sales Agents’ (Decision No. 1) was issued on the 1 March 2018. It provides the necessary detail to allow developers, brokers and sales agents to obtain the appropriate licenses required under Law No. 27 of 2017 Concerning the Promulgation of the Real Estate Sector Regulation Law (the RERA Law).
The RERA Law imposes obligations on not only Real Estate Developers to obtain a license to practice real estate activities, but also for Brokers and Sales Agents to obtain separate licenses.
There are certain conditions that a Real Estate Developer, Broker or Sales Agent must meet in order to apply for a license. For example, there is a strict ban on people or corporate entitles applying for a license where they have previously been convicted of a ‘dishonoring or distrusting felony or misdemeanor’.
When applying for all three licenses, certain general information must be provided to the Real Estate Regulatory Authority (RERA), including, but not limited to, the appropriate identification and company structure documentation.
In addition to the ‘general information’, Decision No. 1 lists the specific information which is required to be provided to RERA for each license, such as, for a developer license, one of the requirements is to supply the last three years financial auditing reports for the accounts of the developer or the owner, as the case may be.
In accordance with Decision No.1, Brokers and Sales Agents must successfully complete and pass an examination and training course which will be organised by RERA. This will aid RERA to regulate Brokers and Sales Agents and ensure that they conform to the standards set by RERA. The details of the examinations and training courses have yet to be issued by RERA.
RERA is continuing with its overarching theme of transparency by stating that the licensee must place the license in a visible area of the business, this will ensure that the consumer is aware that the licensee is appropriately licensed in accordance with the RERA Law.
Real Estate Developers, Brokers and Sales Agents will have six (6) months from the 1 March 2018 to comply with Decision No. 1, which means that if an individual/corporate entity’s business activities require a license then it is imperative that the relevant personnel begin the process of obtaining the relevant license.
Our next article will feature the new Decision No. 2 of 2018 Concerning Licenses of Real Estate Development Projects.