5 Benefits Of Property Viewing With Registered RERA Brokers

There is a right way and a wrong way to view the property. No matter where you go in the world, there is always a right and wrong way to look at prospective properties you want to buy. The rules may be different but for that country, those rules spell out the right and wrong ways for any buyer.

The right way for international investors to look at any property in Dubai is to follow the rules set out by RERA. That way you know you are getting the correct information and you are dealing with ethical brokers.

Whenever you go looking for a new home whether it is for you to live in or for an investment property, make sure to follow the rules of the country you are looking in. That way your purchase and reselling of the home will always be legitimate

Benefits Of RERA To Developers

  1. Buyers Who Fail To Make Payments On Time Get Penalized- While developers get fined for delaying projects, they get to cancel a booking if the buyer delays payments.
  2. Developers Can Delay The Registration Of A Project- If the fault of the delay is beyond their control, RERA allows developers to file for registration extensions.
  3. Developers Can Sell Their Properties Faster- RERA helps sell unsold properties faster so that the developers make their money and get rid of the homes that have been sitting around for a while.
  4. There Is More Transparency And Accountability With RERA- This makes real estate transactions easier to complete and the cash flow is sped up and managed a lot better.

RERA works for both sides to make sure that real estate transactions have fewer casualties financially speaking.

RERA Advantages And Disadvantages

Every organization has both positive and negative features about them. The key is to make sure there are more positive aspects than negative ones. With RERA it may be that way.

  1. Pros:
  • Developments Are Registered With A Regulator- Failure to register results in a penalty
  • Money To Build Is Held In A Separate Account- The amount of money to be kept in that account is 70% of the total payment
  • Housing Prices Are Stabilized- This keeps speculators from unrealistically raising the value of the home or apartment to gain more profit. Buyers get to buy homes at a reasonable rate
  • Deadlines Are Met- The promoter must keep to the promises made and make sure the project is completed when it was promised to be completed
  • Extension Of Defect Repairs- It used to be 2 years but RERA has extended that time frame to 5 years
  1. Cons:
  • Adverse Effect On The Supply And Demand Gap- Projects may not be as numerous as they once were and smaller builders may not make any money
  • Government Agencies May Not Give Approval In A Timely Manner- If they don’t then the builders will suffer financial losses
  • Regulations For Projects 5000 Square Meters Only- Any project less than that size does not have regulations to worry about
  • Past Estates Are Exempt- This will cause problems for those builders because they can lose a lot of money if they do not get their clearance quickly.

Disadvantages of RERA

There are more disadvantages that come with the Dubai version of RERA. The first one is that everything in the city is under the authority of one man. What he says goes and laws and regulations, including RERA, can change at any time.

The laws, etc., will be what one man wants and no one really has any say in the matter, especially all the international ex-pats who have bought in this city. The second major disadvantage to RERA in Dubai is the focus on religion.

Dubai is very Muslim and all citizens and ex-pats must be wary of these laws and abide by them. That means they have restrictions on what and where they can drink, and what they can wear, as well as having to be married to live together.

These are just some of the examples that international investors have to be concerned about or RERA can disallow their purchase, etc. Then RERA makes sure that there must be an intermediary present for the real estate transaction.

While this is to make sure both sides are protected by the law and the integrity of the transaction is maintained, it can get tedious at times with the transaction slowed down.

Finally, there are fees and taxes on most items involved in real estate transactions.

RERA Benefits For Home Buyers

These are the main two benefits buyers will get when dealing with RERA-sanctioned real estate transactions

  1. Buyers Will Get The Correct Information About A Property- This is one of the strengths of RERA as it seeks to cut down on fraud schemes. The buyer should have all information needed to make a purchase decision
  2. They Are Protected From Con Men- While there is a low crime rate in Dubai, there are still con men trying to fleece international buyers out of their money. By dealing with RERA-registered brokers, builders, and mortgage brokers, the buyer is relatively safe from scams

RERA Broker Commission

According to the law, there is no established commission fee rate for Dubai RERA brokers. The law states that the commission is set by agreement and often, developers pay a higher-than-normal rate to make sure their properties are given the best attention.

Some Final Words

Whether you like government oversight or not, it pays to have a third party watching over real estate transactions. When you are ready to buy in Dubai, call our agency.

We have over 10 years of real estate experience in Dubai and our agents are RERA certified. Our agents can help you navigate the Dubai real estate market and avoid those less then stellar people who are looking for a quick buck at your expense.

Our agency will help you get the maximum benefits from the RERA system and as few disadvantages as possible. Call us today.

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