The Dubai Land Department (DLD) has released a circular stating that as of the 1st of October 2022, a maximum of 3 Form A’s will be permitted for a single property. This means that a seller or a landlord will be able to list their property with a maximum of three agents.
A Form A is documentation a seller must sign in order for their property to be listed for sale.
This is another measure put in place by the DLD to offer further clarity and transparency to the real estate industry in Dubai and the news should be welcomed with open arms.
Previously, sellers could sign multiple Form A’s with multiple agents. Now, Form A’s must be signed on the Dubai Rest App digitally for them to be valid. Only when this has been signed, will a property be available on property portals in the UAE.
As well as signing a Form A to list the property for sale, any price change to the property throughout the listing process, a new Form A must be signed.
Property portals already have measures in place to ensure that listings available on their site are verified, this new policing will add further transparency and eliminate any properties that have been sold, are no longer available for sale, properties that are used as clickbait and properties priced wrongly. Thousands of properties have already been removed from property portals because they do not have Form A’s signed and therefore cannot be verified.
What this means for sellers
Property owners must now do their due diligence in the market and list their property for sale with agents and agencies that they trust.
Sellers and landlords often make the mistake of listing the property with multiple agents in the hope they will have more chances of finding a buyer quickly. However, Information on each agent listing can be different and often incorrect due to lack of consistent contact between the agents and property owner which only devalues the asset. Often on property portals, the same property is listed multiple times at different prices.
Exclusivity with one real estate broker ensures your property is marketed with one message and in one specific way. This will avoid the potential of a multitude of differing adverts of your property.
Listing with multiple agents can also lead to the agents not acting in the best interests of the seller as they are rushing to get a deal done ahead of anyone else, which can lead to more pressure on lower offers and maybe not structuring the deal properly, which can lead to issues down the line.
What this means for buyers
This is excellent news for buyers and tenants. Looking for a property available at the correct price can often be a challenge. This challenge will now be eliminated. Properties shown on property portals across the UAE will be for sale and will be marketed at the right price.
Sometimes buyers and tenants will see a property with one agent at a certain price and then see the same property on a property portal marketed at a lower price and reach out to that agent. This could potentially drive the price of the property upward as the seller thinks he is receiving interest from multiple buyers.
Working with an agent who you trust is imperative. This new policy will make searching for a home easier and less confusing with lots of differing information.