Real estate companies need to uphold trust to maintain and enhance the confidence of different stakeholders to make sure the property sector adheres to the highest global standards, Dubai Land Department said on Monday via a circular issued through its Real Estate Regulatory Agency (Rera).
This was the first among “ten principles of business ethics” outlined by Rera for real estate companies to follow as the property sector in the UAE slows due to weak demand and oversupply.
Rera urged real estate firms to maintain client confidentiality and privacy, and not to disclose or use any confidential information without prior permission, unless required by law.
The agency cautioned firms against a conflict of interest, and reiterated the need for companies to take appropriate measures including "the disclosure and transparency before and during the performance of their duties in case of any conflict of interest". Firms are expected to work with the highest levels of honesty and fairness in treating their customers, regardless of race or religion, according to the circular issued by Rera to real estate firms.
“This ensures and supports Dubai’s real estate sector in attracting foreign direct investment to strengthen the national economy for the benefit of all economic sectors,” Rera said.
Real estate companies are also required to commit to transparency by being open and accessible, to not mislead or attempt to mislead, misinform or withhold information regarding products or terms of service.
In another important guideline, Rera said real estate firms must strive to protect customers’ rights and assets related to the duties they perform. Integrity, compliance with laws and social responsibility are the other important principles outlined in the circular.
“Firms shall strive to make sure that their community initiatives help [to improve] Dubai and their services will support the growth of real estate development of the Emirate and ensure customer satisfaction.”
The new circular comes against a backdrop of a slowdown in the property sector in Dubai due to oversupply and weak demand. In September, the Dubai government announced the formation of a higher committee for real estate to better co-ordinate supply and demand between public and private sector developers.
In a change to Dubai's real estate law announced in September, Rera was given responsibility for overseeing the development, brokerage and management of Dubai property, while the Dubai Land Department took on the responsibility of registering rental contracts and regulating the relationship between property owners and tenants.
