Regulation for the Real Estate Appraiser Profession to be Addressed with Issued Resolution

With the efforts to properly regulate the Dubai real estate industry, Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum issued a resolution to regulate the real estate appraiser profession. The resolution aims to restrict the profession to qualified real estate appraisers and those who are listed in the database of the Real Estate Regulatory Agency (RERA).

Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of Dubai Executive Council, on Wednesday approved the Resolution No. 37 of 2015 regarding the regulation of the real estate appraiser profession.

The resolution also aims to ensure the accurate and regulated appraisal of real estate assets for the purpose of attaining credit facilities from banks.

RERA will be responsible for registering and renewing the registration of trained appraisers, as well as approving and renewing permit applications of sole proprietor establishments who wish to practice the profession. The resolution stipulates that only Emiratis are permitted to be real estate appraisers, and they must have the necessary qualifications and training that are specified by the resolution issued by the Director of Dubai’s Land Department. The appraiser must have a minimum of two years work experience or has completed the training specified in the aforementioned resolution.

Single proprietor establishments that are licensed to practice the real estate appraiser profession must sign an agreement with the body, requesting its services. The agreement must contain the obligations and rights of each party and specify the property that requires appraising, the purpose for carrying out the appraisal and the date in which the process will be completed.

A list attached to this resolution specifies the violations and value of fines. The value of the fine will be doubled if the same violation is committed within a year.

The new fold in real estate appraising is a welcome development for the real estate sector—a sector that needs more security measures and regulation in order to attract more investors, an issue that has been put on the spotlight recently.