Brokers to register properties by end of August-Dubai's Rera launches Simsari.ae

Dubai’s Real Estate Regulatory Agency (Rera) has ordered approved property brokerage firms to register all their available properties on Simsari.ae – the region’s only authenticated and trusted multiple listing service – by August-end, face penalties, Emirates 24|7 can reveal.

In a notice sent to brokerage firms on July 19, the regulatory agency said: “We urge you to register on Simsari. Kindly note that the deadline for registration is August 31, 2012, and will be mandatory to use starting from September 1. Consequently, all Rera approved- brokers who fail to register on Simsari before the aforementioned deadlines will be penalised.”

The notice further said: “We believe that top performing companies such as yours along with Simsari, will shape and regulate the industry, establish transparency in the real estate market and align the relationship between owner and real estate broker.”

Real estate experts believe the move will reduce the number of “ghost” listings, common in the UAE, and, more possibly, the agency being able to limit listing of one property with not more than three agencies.
As per a Rera regulation, a seller can list his property with only three brokerage firms.

Unfortunately, sellers here try to list their property with numerous brokerage firms and at varying prices.

This website had reported in May 2011 that the Dubai Land Department was planning to launch Simsari.

At the time, Khalifa Al Suwaidi, Chief Executive Officer, Emirates Real Estate Solutions, had said: “The website is ready. Only listed brokers will be allowed to register properties, be it off-plan, or completed units for leasing or selling.”

He had said the listing on the website would initially be free of charge and renewable every 30 days.

Simsari was an online real estate portal, which was founded in 2006 by two Dubai-based companies - Tamweel and Tejari. The brand has subsequently been acquired by the Land Department.

In order to bring transparency in the market and control broker activities, Rera recently unveiled plans to fine brokers instead of their brokerage firms if the former was found to have misled investors, co-operated with unlicensed brokers or made phone calls to their clients to promote/advertise a project.

Earlier this month, Rera imposed fines totaling Dh900,000 on 22 real estate companies and brokerage firms during the first half of 201 for violations such as hiding information from investor; co-operation with unlicensed brokers; failure to maintain privacy of firm and client; using telephone calls for promotions and advertisement purposes without obtaining official approval and arranging deals without the knowledge of their accredited office.

In addition, Article (34) of the draft law on Dubai real estate investor protection, states an intending investor shall be entitled to terminate a contract for sale if it is proven that the seller or the lessor or a broker acting on his behalf has deliberately concealed any essential information that is likely to cause harm or loss to the intending investor.

Under Article 37 of the draft the intending investor will be entitled to recover compensation from whoever of the developer, investor or even broker has caused the loss.

UAE Central Bank issues New loan rules

The Central Bank has finally issued unified forms for all types of bank loans, ending years of controversy over such contracts and persistent complaints by borrowers, a Dubai-based newspaper said on Wednesday.

The three key forms cover personal loans, car financing and overdraft and they are all binding to all the 51 banks and other financing firms operating in the second largest Arab economy, the Arabic language daily Emirat Alyoum said.

Banks can claim immediate payment on loans if:

1. The debtor is terminated for any reason from his/her work.
2. Transfer of the monthly salary of the borrower or any part of it to another party without the written consent of the bank.
3. Breach of commitments or obligations which have been included in the contract of the loan.
4. Failing to pay three consecutive installments or six non-consecutive 
5. in addition to the invalidity of customer data.
6. Borrower leaves country permanently.
7. Death of borrower.

Bank has the right to obtain an insurance policy on the life of the debtor in case of disability and should be paid by the borrower himself. Bank can use revenue of policy to pay out the loan, to keep the interest or any other amounts due on the shoulders of the borrower or his heirs.

Interests and Commissions

Banks will have the right to calculate interests and commissions on average daily balance of amounts withdrawn and outstanding on the loan from the date of withdrawal based on the number of actual days elapsed and on the basis that a year is 365 days.

These interests are added to the loan balance so that it should be paid with the monthly instalments.

Commissions and fees and expenses incurred on the loan, according to UAE Central Bank regulations, may be amended from time to time.

Car loans

Bank should be informed of specifications of the vehicle and the value of payment in addition to the interest rate.

Insurance company must be approved by the bank.

In case of failure of the borrower to renew insurance policy, renewal fees will be added to the loan.

The forms, which will be enforced shortly, have been prepared following many rounds of negotiations and consultations between the Central Bank and the Emirates Banks Association, which groups all banks in the UAE.

The new contracts authorise banks to ask borrowers to ensure all borrowings are covered by a life insurance or a disability insurance policy, in some cases to guarantee the loans would be paid back as the lender could use its value to regain the rest of its funds.

The paper said the forms must include all details about the size of the loan, maturity, and interest rates while borrowers must submit a letter from the employer committing him to have his salary and end of service benefits transferred to that bank during the loan term.

It said the Central Bank defined seven cases in which the loan period should suspended and payment must be made immediately, including termination of services of the borrower, transfer of the salary to another bank without prior approval of the bank, violation of any loan terms by the borrower, defaulting on payment of three successive installments or six non-successive installments, presenting false data by the borrower, death of the borrower and the client’s departure from the UAE permanently.

As for overdraft, the new contract allows banks to cancel or reduce such facilities any time they deem necessary and to ask borrowers to pay back at a date determined by the lender provided the borrower is given 30-day notice.

According to the paper, the three loan forms clearly define the relationship between borrowers and lenders. One term stresses that the bank must not open an account and agree to give a loan before the borrower submits all the documents requested by the bank. Another term authorizes banks to close the account of borrowers in case they give cheques that bounce.

The forms also permit banks to provide all necessary information about the borrowers and their accounts to courts or other competent departments.

Women on relatives’ sponsorship exit country for job visa in Dubai

Image Credit: Ahmed Ramzan/Gulf News

Dubai: Women on relatives’ sponsorship have to leave the country before they can transfer their visa to employment, according to officials from the residency department.

Officials said that any woman sponsored by her relatives and wishing to transfer her sponsorship to employment visa must leave the country in order to be able to be issued the employment visa.

The officials said that if a woman is on her husband, father, brother or any relative’s sponsorship and she want to transfer her it to her employer, the relative must obtain an air ticket in her name and bring it to the residency department in order to cancel her visa.

The officials explained that the woman will be given seven days in order to leave the country.

“When the employment visa from the ministry of labour is ready then the woman can enter the country again,” the officials said.

Previously, the move was only applicable to expatriates who entered the country on visit visas and wished to change it to employment. Adjusting the legal status for everyone used to cost Dh500, without the need to leave the country.

The official said that this facility does not exist anymore and all who are on their relatives’ sponsorship must leave the country to obtain employment visa.

People questioned the move and said that this will make their life difficult.

In 2004, the UAE government took decision to allow expatriates to amend their visa statu following a Kish Airline Fokker-50 crash as it was approaching Sharjah Airport on February 10. The plane was carrying people who had flown from the UAE to Kish Island so that they could change their visa status. Forty-eight people were killed in the crash, with just three survivors. After the crash, the UAE amended its visa rules, so that people in the country could change a visit visa to an employment visa by paying a Dh500 fee.

Reduced working hours for all during Ramadan: Ministry of Labour

The Ministry of Labour on Wednesday announced that working hours will be reduced by two hours during the holy month of Ramadan.

The ministry said in a statement that official working hours have been reduced to six hours per day or 36 hours a week. This rule applies to all residents of UAE irrespective of their religion.

However,  labourers will continue to avail noon break and those violating the rule will heavily be penalised, the ministry said.

The Ministry of Labour also said that the those employees doing overtime will be paid 25 per cent of their basic salary for t day time work and 50 per cent for  night time duty.

A circular issued last year by the ministry had said that work at Federal ministries and departments will be from 9am to 2pm during Ramadan.

Earlier this month, the Islamic Crescent Observation Project (ICOP) announced that most Islamic countries may begin the Holy Month of Ramadan on Saturday, July 21st after moon sighting.

Mohammad Showkat Awda, chairman of the project said most Islamic countries have started the month of Sha'ban on the same day in a rare phenomena, therefore these nations would start monitoring the Ramadan Crescent on Thursday, July 19 which is Sha'ban 29 however the moon day would not be possible in all northern and some middle regions of the world.

He noted that the new moon of Ramadan in the rest of the Arab world will not be possible on Thursday due to the reason that moon will set along with sun or after a few minutes which doesn't not allow to see the moon even with the powerful astronomical telescopes, and so these regions should complete the month of Sha'aban with 30 days and the beginning of Ramadan would be on Saturday July 21st.

Awda said that Ramadan could be on Friday 20 of July in both Saudi Arabia and Egypt, because they are adopting the sighting of the moon on Thursday.

Abu Dhabi eases rent contract

Abu Dhabi appears to have relaxed rules stipulating expatriates seeking to bring in their families must submit a tenancy contract in their name.

Some expatriates who applied this week for residence and visit visas for their families presented tenancy contracts in other names but they were accompanied by the original tenant for verification.

A Syrian man who applied for a residence visa for his wife and two children was first asked to submit a tenancy contract in his name. But he told immigration officials that he has just rented an apartment temporarily for three months and that the contract was not in his name.

They then asked him to bring that contract and the tenant who rented his flat out to verify that the applicant would be staying in that apartment during that period.

“The tenant came with me and told the immigration employee that I have rented his apartment for three months…he showed them the contract in his name and signed a paper…the application then went through,” Maher Rushdi said.

Abu Dhabi began last week enforcing new rules requiring foreigners to present a tenancy contract or utility bills in order to be able to get residence or visit visa for their families. A legislation covering bachelors was suspended temporarily early this month to allow for smooth implementation, including the need to attest the rent contract at the Municipality to prevent cheating or manipulation.

Immigration officials said the suspension has triggered a rush by hundreds of expatriates seeking to skip that rule before it is enforced again.

“I went to the immigration department yesterday and applied for a visit visa for my wife and her father…I was turned away and asked to bring a rent contract,” said Imad Zaatari, an Abu Dhabi-based mobile phone salesman.

“I went back and gave them a contract in the name of my friend, who I am sharing his accommodation…my friend went with me and confirmed that I live with him…one employee rejected the application but I went to the officer in charge and it was accepted…but I was told that next time I have to submit a tenancy contract in my name.”

India does not start levying proposed service tax on remittance fee

Money exchange centres and Indian banks in UAE have not received any official note

The Government of India has not started levying the proposed 12.36 per cent service tax on the fee paid by Non-Resident Indians (NRIs) for sending money back home, which was supposed to come into force yesterday (Sunday, July 1).

Money exchange centres and prominent Indian banks operating in the UAE told Gulf News yesterday that they had not received any official communication about the proposed tax. Some of them also hinted that the Government of India might have put the move on hold due to widespread protests from politicians and NRI organizations across the globe.

Vayalar Ravi, the minister of Indian Overseas Affairs, told Gulf News on Thursday that he was concerned about the proposed tax as it would affect millions of low-income Indian expatriates. He has approached the Prime Minister of India, who is in charge of the Ministry of Finance, to get clarification about the proposed tax.

An official at the Foreign Exchange and Remittance Group - UAE, a common platform of money exchange centres in the country, told Gulf News yesterday that its members had not received any official communication from Indian banks about the proposed tax.

“Since the money exchange centres working in the UAE do not come under the jurisdiction of the Indian tax regulations, we don’t expect any official communication from the Government of India but from the corresponding banks,” said the official who did not want to be named as he was not authorised to speak to the media.

K.V. Rama Murthy, the CEO of GCC operations of Bank of Baroda, the only Indian bank having retail operations in the UAE, told Gulf News yesterday his bank did not have any official communication about the proposed tax. The executives of other prominent Indian banks operating in the UAE also said the same.

India’s Ministry of Finance which is responsible for taxes did not make any official announcement about the proposed tax. But a prominent Indian financial consultant based in Mumbai who is closely following government’s financial rules and regulations had told Gulf News that government introduced the service tax on remittance fee indirectly in a budgetary proposal and the parliament passed it in May. But it is not clear how the government is going to collect the tax — whether from abroad or through banks in India, said Sachin Menon, partner and the National Head of Indirect Taxes at KPMG, a prominent financial advisory in India. “But many technical issues are involved in it and we have to wait and watch,” he said.