Dubai has been a prime destination for entities across the globe for either settling down as or as an investment opportunity. The real estate in Dubai is itself a multi-million dollar market and a very lucrative prospect for investments. For anyone who wants get into real estate business in Dubai, it is very important to understand the local laws for land and property. One word which you will surely come across in the real estate world here is ‘Trakheesi’. It sounds quite unique but is of utmost importance. Here is all you need to know about:
What is Trakheesi?
Trakheesi is an online portal which deals with issuance, renewal and update of real estate licenses. It provides these services to real estate companies. It also provides e-card services to brokers. The Trakheesi system also maintains data related to real estate for the Dubai Economic Development. With recent official notifications, it has been made mandatory for online property advertisements go through the system for eliminating misrepresentations and frauds.
When and why was it introduced?
The Trakheesi system of real estate licensing was introduced in the year 2016, by the Dubai Land Department. Timely updates have been made in the system increase its usability and responsibilities. The motto behind introducing the Trakheesi system was to streamline the licensing procedure and bring more transparency to it, along with enabling automated procedures for licenses and permits. Also, one of the most important motives in the implementation of Trakheesi was to add much-needed credibility to the real estate markets. With this system, the government aims to curb misrepresentations and fraudulent advertisements by brokers and real estate companies.
What is the procedure?
All for ithe ssuance of new licenses, you first need to visit the DED/FZ department and submit your request. After you receive the approval, login to the official website www.trakheesi.gov.ae and fill the registration form. After you fill all the required information, you will have to upload the relevant documents and print the approval form. Once completed, carry the form to DED/FZ office and complete the remaining procedure in the department. Once you receive the trade license number, log in to the website and upload it as well.
For renewal, you just need to visit the website and log in the renewal section, fill relevant information and make the payment. After payment is done, your application status will show pending. Then click on the ‘License’ option, download NOC from RERA and submit it to the licensing department. Once the trade license is renewed, upload it on the online portal.
What type of companies are granted lthe icense by the Trakheesi system and what are the documents required?
Entities engaged in the following real estate activities are eligible for procuring licenses:
- Brokers of Renting Residential Units on Time-Sharing Bases
- Buying & Selling of Real Estate
- Leasing & Management of other People’s Property
- Owner Association Management Services
- Property Observer
- Real Estate Buying & Selling Brokerage
- Real Estate Consultancy
- Real Estate Development
- Real Estate Exhibition Organizing
- Real Estate Leasing Brokerage
- Real Estate Management Supervision Services
- Real Estate Mortgage Broker
- Real Estate Mortgage Consultancy
- Real Estate Public Auction Organizing
- Real Estate Registration Agent
- Real Estate Representative Office
- Real Estate Survey Services
- Real Estate Services Trustee
- Renting of Residential Units on Time-Sharing Bases
- Self-Owned Property Leasing & Management Services
There are various documents required for different factions of the real estate market. It is highly recommended that you download the document list available here http://trakheesi.gov.ae/SystemGuide/Document_List.xlsx. Make sure that you procure all the relevant documents before proceeding with licensing applications, as it might longer time than expected at times.
Some of the most common documents that are required are as follows:
- Identity proof issued by the Government
- Banking Guarantee
- NOC from RERA
- RERA Property management certificate
- Certificate of Good Conduct
- Title deeds
- Company Registration proof and other details
- Approval from the Ministry of Economics to open branch
- Educational qualification documents like the degree certificate
- Previous real estate experience proofs.
Apart from the documents mentioned above, there a number of other documents as well which are required. Also, different activities require a different set of documents. Therefore, please go through the documents list thoroughly. If you have any confusion, please visit the department and consult with the officials before taking any step.
Achievements of the Trakheesi System
Since inception, the Trakheesi sytem has been very much successful in achieving the desired results. Till September 2018, more than half a million real estate permits were issued. This clearly shows that the procedures have been simplified and streamlined through the Trakheesi.
One of the services offered by the Trakheesi is issuing permits for classified ads and billboards. Due to this many malpractices that were prevailing in the real estate sector like fraudulent broking firms, misrepresented advertisements, illegal selling of property, has all been curb to a great extent. This has brought much-needed credibility to the Dubai real estate. Also, the online verification and registration process has eliminated fake brokers from the system.
Introduction of the Trakheesi has made a large amount of data available for the Dubai Economic Development committee to analyse the real estate market and design policies for the sector.