External Agents Policy
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1 I. INTRODUCTION External Agents Policy External Agents Policy aims at regulating sales done by Local / International Real Estate Agencies on behalf of Emaar Properties (Emaar). It also allows eligible Real Estate agencies promote the marketing and sales process of Emaar projects outside of the UAE given that they meet the standards outlined by Emaar Management for International Real Estate agencies. II. OBJECTIVE This document provides guidelines for Local / International Real Estate Agencies to register with Emaar. It provides a complete set of policies, processes, guidelines to be followed by the agency at all times. III. SCOPE This document details the following: 1. Qualification Criteria for registration of Local / International Real Estate Agencies 2. Agency Agreement with Emaar 3. Emaar Agents Advantage Program (EAAP) 4. Commission Structure and Disbursement 5. Scenarios affecting commission disbursement 6. Documentation requirements 7. Online Registration of Customers 8. License Validity 9. Commission invoice submission 10. Restrictions 1. QUALIFICATION CRITERIA FOR REGISTRATION OF LOCAL / INTERNATIONAL REAL ESTATE AGENCIES 1.1. The Local Real Estate Agency must be a UAE registered Real Estate Company or an establishment having a valid trade license with real estate business activity Dubai Real Estate Agencies must be registered with the Dubai Land Department and should have a Dubai Land Department certificate of registration (RERA certification). The Agency s representatives, dealing with Emaar, must hold valid RERA Broker cards Local Real Estate Agencies registered in Emirates other than Dubai should have real estate activity mentioned in the trade license International Real Estate Agency must be a Company or an establishment having a trade license or equivalent registration with an activity relevant to real estate business If an International Real Estate Agency has more than one office, they shall designate a principal office and delegate a representative for liaising with Emaar Re-registration of blacklisted / terminated Real Estate Agents shall be subject to management approval. UAE/RE/CUS/SALES/POL-18 Version 1 (April 2016) Page 1 of 5
2 2. AGENCY AGREEMENT WITH EMAAR 2.1. Real Estate Agencies applying for registration under Emaar Agents Advantage Program (EAAP) shall fill in the online application form and submit all documents as specified in the Agents Portal The Real Estate Agency Application will be reviewed by Emaar Sales Operations. If the Agency s application is approved, then the Agency shall sign an Agency Agreement with Emaar The Agreement shall be for a period of one (1) year and shall be automatically renewed for similar period(s) of one (1) year each, unless any of the Parties informs the other Party of its intention not to renew the same by giving one (1) month written notice, without the need for court order or legal proceedings, and without any compensation whatsoever Agencies can be blacklisted for any of the reasons below: In case the agency does not fulfill its obligations set forth in the Agency Agreement / Letter of Understanding In case a current Emaar Group employee holds an ownership interest in the Agency Blacklisting of agencies shall be approved by Sales Management. 3. EMAAR AGENT ADVANTAGE PROGRAM (EAAP) 3.1. Real Estate Agents, who have been enrolled in the program, shall be entitled for the following benefits: - Participation in Emaar Launch Events. - Receive first-hand information about new projects. - Access to events exclusively organized for registered agents. - Access to project briefs prior to launch of a new project. - Enjoy the privileges of the Agents Reward Program 3.2. Agents Reward Program Real Estate Agents, who have been enrolled in the EAAP, shall be grouped into three (3) tiers (Platinum, Gold, Silver), based on their quarterly sales contribution, (i.e. Agencies meeting the criteria of a higher Tier, during a quarter, shall move to that tier. On the other hand, if a Platinum / Gold Tier Agency fails to meet its Tier s criteria during a quarter, it is moved to the lower Tier). Note: Tier criteria and privileges shall be communicated to the Agents on a regular basis. UAE/RE/CUS/SALES/POL-18 Version 1 (April 2016) Page 2 of 5
3 4. COMMISSION STRUCTURE & DISBURSEMENT Changes to the External Agents Commission Structure and Disbursement form (UAE/RE/CUS/SALES/POL- 18.F02) are subject to approval as per the Authority Matrix. 5. SCENARIOS AFFECTING COMMISSION 5.1. Property Upgrade / Transfer If a property is subsequently upgraded / transferred, with the involvement of agent on the initial sale, Emaar will pay commission based on the initial sale only. No commission shall be paid for the upgrade or secondary transfer 5.2. Reinstatement Reinstated properties are not eligible for any commission claims. 6. DOCUMENTATION REQUIREMENTS Any commission shall be paid only if all of the following documentation criteria are complied with: 6.1. Client Introduction Letter (CIL) CIL shall be submitted through Agents Portal prior to the purchase of the unit. - For Tempo Sales, CIL must be submitted latest by 9 am (UAE time) on the date of the Offer to Purchase. CIL s submitted after 9 am on the day of signing the Offer to Purchase shall not be accepted. - For Launch Sales and Road Shows, CIL must be submitted latest by 12 am (UAE time) on the launch day. - Agents attending/participating in International Exhibitions or International Events (not organized by Emaar) can submit the CIL any time on the portal prior to concluding the sale. This is subject to an notification expressing their intend to attend the event is send to Icommunicate@Emaar.ae latest by 12 am (UAE time) on the day of the event, the notification to include relevant information about the International Exhibition/Event (e.g. name, duration, city, etc.) - For Commercial Leasing, the CIL shall be signed by the Real Estate Agency s authorized signatory or authorized representative and sent by Agency s official address prior to leasing of unit. CIL must be sent prior to conducting a viewing as a cross check that the client is not already in direct discussion with Emaar. Note: Any CIL submitted after the above-mentioned timings shall not be accepted and consequently shall not be valid for any commission claim For Commercial Leasing, CIL shall be ed to CIL@emaar.ae in the format specified and communicated by Emaar after signing the Agency Agreement. The CIL should include the customer s name in the subject line (e.g. CIL Mr. XY ZZ). UAE/RE/CUS/SALES/POL-18 Version 1 (April 2016) Page 3 of 5
4 For Commercial Leasing, CIL shall contain the following customer details: Customer s Name as per passport (Individual, joint owners or company), Nationality, Passport Number, telephone number and address ClL shall be valid for a duration of 30 days for multiple purchases. If the customer fails to purchase / lease any property within this period, a new CIL must be submitted for any subsequent purchase A customer may be introduced and represented by one or more registered Real Estate Agencies. Commission will be paid to only that agent who successfully closes a transaction with the customer by signing all sales / lease documents Customer Information Sheet (CIS) for Commercial Leasing The CIS must be completed and signed off by the customer after confirming the unit s location, size, rent and prior to the preparation of the Lease Agreement Agent representing customer: In case an Agent is representing a customer, the agent should provide a notarized Power of Attorney and duly legalized if executed abroad, from the client authorizing the Agent to close the sale on his behalf The validity of the Power of Attorney (POA) should be current. Valid passport copies of representing Agent and customer shall be provided along with a copy of the POA. In case of International sale, if the POA is issued outside the UAE, it must be notarized by the notary public in the country of issuance and attested by the UAE embassy in the agreed territory/country as per the signed agreement and attested by the Ministry of Foreign Affairs in the UAE. Note: POA is not required in Correspondence Sales transactions On the date of sale, the agents shall accompany the customer to the sales center and witness the sales transaction by signing the Offer to Purchase. This procedure must be completed at the time of purchase, and not thereafter. No Agent can come after the sale to affix their company stamp or signature Agencies shall receive commissions even if the CIL has been submitted as described under clauses and the customer changed his mind and decided to purchase in the name of: - A next of kin, namely, mother, father, brother, sister, spouse, son, daughter. - A Company, where the customer or his next of kin is a shareholder. Note: In such case, a proof of relationship must be submitted. 7. ONLINE REGISTRATION OF CUSTOMERS For all registrations during Launches, if the choice of an agent (agency name) is not made during the registration process, the agent will not qualify for any commissions. Agents must brief their customers to safeguard their interest. UAE/RE/CUS/SALES/POL-18 Version 1 (April 2016) Page 4 of 5
5 8. LICENSES VALIDITY 8.1. The documents below must be valid on the date of sales transaction: - UAE Trade License and RERA certificate of Dubai agencies; - Trade License or equivalent of International agencies and those of other UAE emirates Note: If an agency s documents expired during the time of sale, Emaar reserves the right to hold commissions until the renewed documents are provided It is the registered agent s obligation to provide Emaar with a copy of the renewed trade license and RERA registration (for local agents) on or before it s expiry date. Renewed documents shall be updated on the Agents Portal. 9. COMMISSION INVOICE SUBMISSION 9.1. Commission invoices shall be submitted only when the commission is eligible. (Please refer to The External Agents Commission Structure and Disbursement form - UAE/RE/CUS/SALES/POL- 18.F02). Failure to submit the invoice within 90 days from the commission s eligibility date will result in rejection of the claim Commission invoices shall be submitted along with the below mentioned documents in the same sequence: - Invoice should be raised per unit on the company s letter-head and must be duly signed and stamped by authorized signatory. The invoice should bear the exact amount of eligible claims and must be current dated All eligible claims should be submitted through Agents Portal and the original invoice must be addressed to the Sales Operations Team and delivered to Emaar Sales Centre, ground at Emaar Square building No. 3, Downtown Dubai, Dubai. No claims shall be accepted otherwise. Note: - 1. International Agents shall courier their invoices to the above address. 2. Agencies will be informed about any ineligible invoices received. 3. Ineligible invoices will be discarded and the Agency will need to submit a new invoice -when eligible. 10. RESTRICTIONS Agents will not be eligible for commission for leasing to Emaar Group. UAE/RE/CUS/SALES/POL-18 Version 1 (April 2016) Page 5 of 5
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