Executive Council Resolution No. (37) of 2015
Regulating the Real Property Valuation Profession in
the Emirate of Dubai[1]
ـــــــــــــــــــــــــــــــــــــــــــــــ
We, Hamdan bin Mohammed bin Rashid Al Maktoum,
Crown Prince of Dubai, Chairman of the Executive Council,
After perusal of: Law No. (9) of 2004 Concerning
the Dubai International Financial Centre and its amendments;
Law No. (7) of 2006 Concerning Real Property
Registration in the Emirate of Dubai;
Law No. (16) of 2007 Establishing the Real Estate
Regulatory Agency;
Law No. (14) of 2009 Concerning the Pricing of
Government Services in the Emirate of Dubai and its amendments;
Law No. (35) of 2009 Concerning Management of the
Public Funds of the Government of Dubai and its amendments;
Law No. (7) of 2013 Concerning the Land
Department;
Decree No. (22) of 2009 Concerning Special
Development Zones in the Emirate of Dubai;
Executive Council Resolution No. (25) of 2009
Approving the Fees and Fines of the Real Estate Regulatory Agency;
Executive Council Resolution No. (30) of 2013
Approving the Fees of the Land Department; and
The legislation establishing and regulating free
zones in the Emirate of Dubai,
Do hereby issue this Resolution.
The following words and
expressions, wherever mentioned in this Resolution, will have the meaning
indicated opposite each of them unless the context implies otherwise:
|
UAE: |
|
The United Arab
Emirates. |
|
Emirate: |
|
The Emirate of Dubai. |
|
DLD: |
|
The Land Department. |
|
RERA: |
|
The Real Estate Regulatory
Agency. |
|
Director General: |
|
The director general of
the DLD. |
|
Real Property Valuation: |
|
Estimation of the market value of specific
Real Property on a specific date and for a specific purpose, based on its
location, characteristics, specifications, and
other factors that may affect its value. |
|
Profession: |
|
The Real Property
Valuation profession. |
|
Firm: |
|
A company or sole proprietorship
authorised to practise the Profession in the Emirate. |
|
Valuer: |
|
A natural person registered
on the Roll to practise the Profession in the
Emirate through a Firm or through a licensed bank or financial institution. |
|
Trainee Valuer: |
|
A natural person registered
on the Roll and authorised to
receive training to practise the Profession. |
|
Authorisation: |
|
A document issued by the RERA that authorises a Firm to practise the
Profession in the Emirate upon the fulfilment of the conditions and
requirements stipulated herein. |
|
Roll: |
|
A paper or electronic
record maintained by the
RERA on
which Valuers and Trainee Valuers, who meet the conditions and requirements stipulated herein, are
registered. |
|
Real Property Valuation Book: |
|
The book issued by the DLD
that contains the standards of Real Property Valuation. |
The provisions of this
Resolution will apply to any person who practises the Profession in the
Emirate, including Special Development Zones and free zones such as the Dubai
International Financial Centre. This Resolution will not apply to Government
entities and the practitioners
of the
Profession employed by these
entities.
For the purposes of
this Resolution, the RERA will have the
duties and powers to:
1.
determine
applications for registration, renewal of registration, and reinstatement of Valuers;
for registration of Trainee Valuers on the Roll; and for variation of their details
in the Roll, in accordance with the relevant adopted conditions and
requirements;
2.
determine
applications for Authorisations and renewal of Authorisations of companies and sole
proprietorships wishing to practise
the Profession;
3.
consider
and investigate complaints filed against persons practising the Profession and Trainee
Valuers, and take the necessary action in respect thereof;
4.
issue
identification cards to Valuers;
5.
conduct
studies on the practice of the
Profession in the Emirate with a view to developing it;
6.
supervise,
audit, and inspect the activities of persons practising the Profession to
ensure their compliance with this Resolution and with the terms of their
registration or Authorisation;
7.
supervise
the training and qualification of Valuers and Trainee Valuers;
8.
establish
principles, ethics, and traditions of the Profession;
9.
prepare
the forms required for the implementation of the provisions of this Resolution;
10. create the Roll and determine its form and the data
and information that must be entered therein; and
11. perform any other duties required for the
regulation of the Profession in the Emirate.
a.
No natural person may practise
the Profession in the Emirate without being registered on the Roll.
b.
No private legal person may practise
the Profession in the Emirate without being so authorised by the RERA.
c.
No Firm, bank, or financial
institution in the Emirate may employ or hire a person who is not registered on
the Roll as a Valuer.
d.
A Valuer working for a bank or a
financial institution is prohibited from providing Real Property Valuation
services to any party other than the bank or financial institution for which he
works.
To be registered on the Roll as a Valuer, an applicant must:
1.
be a UAE national;
2.
be of full capacity;
3.
be of good conduct and repute and not have been
sentenced for a felony or other
crime
affecting honour or trustworthiness, unless he has been rehabilitated or pardoned by the competent
authorities;
4.
be a holder of the academic qualifications and
training certificates determined by a resolution of the Director General;
5.
have work experience of no less than two (2) years in
the field of Real Property Valuation, or have completed the training period prescribed under this
Resolution;
6.
pay the fees prescribed under this Resolution; and
7.
meet any other requirements determined by the
relevant resolutions issued by the DLD.
a.
Natural persons practising the Profession in the
Emirate prior to the effective date of this Resolution will be exempted from compliance
with the provisions of paragraphs (4) and (5) of Article (5) of this Resolution.
b.
Notwithstanding the provisions of paragraph (1) of
Article (5) of this Resolution, the
RERA
may register on the Roll a non-UAE national as a
Valuer, provided that he has, in addition to meeting other registration requirements, work experience for at least five (5) consecutive years.
Registration on the Roll will
be in accordance with the following procedures:
1.
an application for registration on the Roll will be submitted to the RERA on the form prescribed for this purpose, supported
by the documents required by the
RERA;
2.
the
RERA
will consider the application and verify that the applicant meets all the requirements stipulated in this
Resolution and the resolutions issued in pursuance hereof;
3.
the
RERA
will determine the application in accordance with the conditions and
requirements stipulated herein. The
RERA must
notify the applicant of its decision within ten (10) working days from the date
of submitting the application that meets all conditions and requirements, and such
decision must be reasoned where the application is rejected; and
4.
the
RERA
will issue identification cards to persons registered on the
Roll. The form of these cards and the information that must be included therein
will be determined by a resolution of the Chief Executive Officer of the RERA.
Registration of Valuers will be valid
for a period of one (1) year, renewable for the same period. A renewal application
must be submitted within thirty (30) days prior to the date of expiry of the registration.
a. An
application for registration as a Trainee Valuer will be
submitted to the RERA on the form prescribed for this purpose,
supported by all required documents, including a training undertaking
issued by a Firm confirming its approval to train the applicant.
b.
The Firm that provides training to practise the Profession must have
a Valuer who has work experience of no less than five (5) years in the Emirate.
c.
Firms will be liable towards
third parties for the actions of their Trainee Valuers throughout their
training period.
d.
The
RERA
may require a Firm to simultaneously train a maximum of three (3) Trainee Valuers.
This Firm must provide the RERA with a biannual report on the punctuality and commitment of Trainee Valuers,
and their compliance with the training requirements, and must provide the RERA with a detailed report on each Trainee Valuer at
the end of the training period.
The training
period of a Trainee Valuer is one (1) year commencing from the date of
registration on the Roll. The training Firm must notify the RERA where a Trainee Valuer is absent for more than thirty (30)
consecutive days or forty (40) non-consecutive days during the training year in
order for the RERA to verify the reasons of absence. Where the absence is proved to be
for no valid reason, the RERA will strike the
Training Valuer off the Roll.
A person
applying for an Authorisation must:
1. be
a UAE national;
2.
be a Valuer, or employ a Valuer to manage the company or sole proprietorship to be
granted the Authorisation;
3.
pay the fees prescribed under this Resolution; and
4.
meet any other requirements determined by the
relevant resolutions issued by the DLD.
An Authorisation
will be valid for a period of one (1) year, renewable for the same period. A
renewal application must be submitted within thirty (30) days from the date of
expiry of the Authorisation validity.
An Authorisation will be issued in
accordance with the following procedures:
1.
applicants wishing to practise the Profession will submit an application
for a trade licence to the competent commercial licensing authority in the
Emirate, in accordance with the relevant legislation and procedures adopted by
it;
2.
the commercial licensing authority will refer the application to the RERA for technical
consideration and for verification that it meets the conditions and
requirements adopted for issuing the Authorisation;
3.
the
RERA will determine applications that meet all conditions
and requirements within ten (10) working days from the date of referral of an
application, and such decision must be reasoned where the application is rejected;
4.
following the issuance of an Authorisation, the competent commercial
licensing authority will complete the procedures for issuing the trade licence;
and
5.
following the issuance of an Authorisation, the RERA will enter all the
basic details of a Firm, including its address, owner, manager, and the Valuers
employed therein, on a database created for this purpose.
Upon the request of a Firm, the RERA may approve
the opening of branches within the Emirate by the applicant Firm. Application
for opening a branch will be determined subject to the requirements prescribed
by a resolution of the Director General.
A Valuer must prepare a report on all
Real Property Valuations he performs and such report must contain:
1.
the name of the entity requesting the Real Property Valuation;
2.
the purpose of the Real Property Valuation;
3.
the description of the Real Property subject of the Real Property
Valuation supported by a map of the land on which it is constructed;
4.
the basis for valuation, namely the market value of the Real
Property calculated in accordance with the standards stipulated in the Real Property
Valuation Book;
5.
the date of the Real Property Valuation;
6.
the relationship between the Valuer and the entity requesting the Real
Property Valuation;
7.
the assumptions, if any, that the Valuer relied on or adopted for
completing his work in accordance with the standards stipulated in the Real Property
Valuation Book;
8.
a reference that the report was prepared in accordance with the Real
Property Valuation Book;
9.
the value of the Real Property subject of the Real Property
Valuation in figures and in words;
10. the name and signature of the Valuer
and his registration number;
11. the maps and documents based on which
the Real Property Valuation report is prepared, such as the site map issued by
competent entities in the Emirate, Real Property photos, completion
certificate, and lease contracts; and
12. any other information determined by
the relevant resolutions issued by the DLD.
A person
practising the Profession must:
1. comply with the
principles of honesty and integrity, and the code of ethics of the Profession approved
by the RERA for this purpose;
2.
observe accuracy and the principles and traditions of the
Profession while performing his duties;
3.
maintain the confidentiality of the information to which he may
have access in the course of conducting Real Property Valuation;
4.
comply
with the requirement that a Valuer includes his name
and registration number on the Roll on all correspondence, certificates, and
reports he issues;
5.
prepare work reports for all Real Property Valuation assignment performed and send a
summary of such reports to the RERA through the relevant means approved by the RERA;
6.
observe the ethics of the Profession on dealing with colleagues, and refrain
from unfairly competing with them or criticising their work in public;
7.
keep paper or electronic record of every Real Property Valuation assignment, in which copies of the
written reports, correspondence, and memoranda related to such assignment are included;
8.
maintain the records, reports, and files of all valuated Real
Property for at least five (5) years after completion of the valuation assignment or from the date
of delivery of the final report. The Director General
will determine the types of these records and the information that must be entered therein;
9.
comply with the form
and other basic requirements of the Real
Property Valuation report; include the mandatory information of the Real Property and the rights attached to it in that report; and deliver the same to
the party requesting the Real Property Valuation;
10. comply with the Real Property
Valuation standards and methods stipulated in the Real Property Valuation Book;
11. not engage any person who is not registered
on the Roll to perform Real Property Valuations;
12. comply with the requirement that no Firm
owner owns more
than one Firm in the Emirate;
13. practise the Profession through a Firm,
a bank, or a financial institution;
14. comply with the requirement that no Valuer works for more than one Firm in the Emirate; and
15. meet any other obligations determined
by the relevant resolutions issued by the DLD.
a.
A Firm must conclude a Real Property Valuation agreement with the
entity requesting the Real Property Valuation. This agreement must provide for
the rights and obligations of the parties and must, in particular,
determine:
1.
the Real Property to be valuated;
2.
the purpose of the Real Property Valuation;
3.
the period required to complete the Real Property Valuation; and
4.
the financial consideration for providing the Real Property
Valuation service.
b.
If a dispute arises between a Firm and an entity that requests Real
Property Valuation in relation to the Real Property Valuation agreement, the
RERA will have the authority to consider such dispute through a committee to be formed pursuant
to a resolution issued by the Director General
in this respect.
In the event
that Real Property Valuation requires that a Valuer access the Real Property subject of Real Property Valuation, the Valuer
must notify the occupant of the Real Property or
his agent in advance, and must agree with him
on an appropriate time to access and inspect the Real Property. The Valuer must
also determine the data and information that must be provided to him in
order to complete the Real Property Valuation.
An Authorisation issued to a Firm pursuant to this Resolution does not exempt such
Firm from obtaining any other licences required by the competent Government
entities in the Emirate.
In return for issuing Authorisations,
registration on the Roll, and other services rendered pursuant to this
Resolution, the RERA will collect the fees
prescribed in Schedule (1) attached hereto.
a. Without prejudice to any
stricter penalty stipulated in any other resolution, a person who commits any
of the acts stipulated in Schedule (2) attached hereto will be punished by the
fine indicated opposite that act.
b.
Upon
repetition of the same violation within one (1) year from the date of the
previous violation, the amount of the fine referred to in paragraph (a) of this
Article will be doubled. A fine must not exceed two hundred thousand Dirhams
(AED 200,000.00).
c.
In
addition to the penalty of a fine referred to in paragraph (a) of this Article,
the RERA may take one or more of the following measures against a violator:
1.
suspend the violator from practising the Profession for a period
not exceeding six (6) months;
2.
require the violator to attend training or qualification courses subject to the
periods and conditions determined by the RERA
in this regard;
3.
strike the violator off the Roll; and/ or
4.
revoke the violator’s Authorisation.
RERA employees nominated
pursuant to a resolution of the Director General will have the capacity of law
enforcement officers to record the acts committed in breach of the provisions
of this Resolution and the
resolutions issued in pursuance hereof. In this capacity, they may issue the
necessary violation reports, and, where necessary, seek assistance from police
personnel.
Any affected party may
submit a written grievance to the Director General against any decision or
measure taken against him under this Resolution within thirty (30) days from
the date of being notified of the contested decision or measure. The grievance
will be determined, within thirty (30) days from the date of its submission, by
a committee formed by the Director General for this purpose, and the decision
issued in respect of the grievance will be final.
The Director General may
reinstate any person who is struck off the Roll, provided that such person
meets the requirements for registration and that two (2) years from the date of
striking him off the Roll have elapsed.
Fees and fines collected pursuant to this
Resolution will be paid to the Public Treasury of the Government of Dubai.
Compliance
Article
(26)
Any person who practises
the Profession in the Emirate, including those employed by sole proprietorships,
companies, and financial and banking institutions, by the effective date of
this Resolution must comply with its provisions within one (1) year from that effective
date. The Director General may extend this grace period once for the same period.
Repeals
Article
(27)
Any provision in any
other resolution will be repealed to the extent that it contradicts the
provisions of this Resolution.
Issuing Implementing
Resolutions
Article (28)
The Director General
will issue the resolutions required for the implementation of the provisions of
this Resolution.
Publication and
Commencement
Article (29)
This Resolution will be
published in the Official Gazette and will come into force on the day on which
it is published.
Hamdan bin
Mohammed bin Rashid Al Maktoum
Crown
Prince of Dubai
Chairman of the Executive Council
Issued in Dubai on 17 August 2015
Corresponding to 2 Thu al-Qidah 1436 A.H.
Schedule (1)
Fees
|
SN |
Description |
Fee (in Dirhams) |
|
1 |
Issuing a new Authorisation
or renewal of an Authorisation |
10.,000.00 |
|
2 |
Issuing an approval to open a branch of a
Firm in the Emirate |
10,000.00 |
|
3 |
Registration, renewal of
registration, or reinstatement of a Valuer on the Roll |
5,000.00 |
|
4 |
Registration of a
Trainee Valuer on the Roll |
500.00 |
|
5 |
Variation of the details
of registration on the Roll |
200.00 |
|
6 |
Variation of the details
of an Authorisation |
500.00 |
|
7 |
Issuing a replacement for
a lost or damaged identification card of a Valuer or a lost or damaged
Authorisation |
100.00 |
Schedule (2)
Violations and Fines
|
SN |
Description |
Fine (in Dirhams) |
|
1 |
Practising the
Profession in the Emirate by a natural person who is not registered on the
Roll |
20,000.00 |
|
2 |
Practising the
Profession in the Emirate by a private legal person without an Authorisation |
30,000.00 |
|
3 |
Engaging by a Firm of any person
who is not registered on the Roll to practise the Profession |
10,000.00 |
|
4 |
Submitting false
documents or information for registration on the Roll or for obtaining an
Authorisation |
10,000.00 |
|
5 |
Practising the
Profession after expiry of the Authorisation without a reason acceptable to the RERA |
AED 5,000.00 per month
of delay, up to AED 50,000.00.
A part of a month will be rounded up to a full month. |
|
6 |
Practising the
Profession after expiry of validity of registration on the Roll without a
reason acceptable to the
RERA |
AED 500.00 per month of
delay, up to AED 5,000.00.
A part of a month will be rounded up to a full month. |
|
7 |
Failure to comply with
the obligations stipulated in Article (16) of this Resolution |
5,000.00 |
|
8 |
Obstructing the work of
RERA employees |
5,000.00 |
|
9 |
Refusal by a Firm to
train a Trainee Valuer without a valid reason, failure to provide a Trainee Valuer with proper training, or failure to send reports on the
Trainee Valuer to the RERA |
5,000.00 |
|
10 |
Committing any other act
that constitutes a violation of the provisions of this Resolution other than
the acts stated above |
2,000.00 |
©2017
The Supreme Legislation Committee in the Emirate of Dubai
[1]Every effort has been made to produce an accurate
and complete English version of this legislation. However, for the purpose of
its interpretation and application, reference must be made to the original
Arabic text. In case of conflict the Arabic text will prevail.