Apply for an Advertising License
Advertising and Consumer Protection
Buying a property in an off-plan development project can be challenging for prospective buyers as the property is not yet physically available to view. The developer is selling a “concept” and the buyer is trusting the developer to deliver on the promise of it. For this reason, advertising has the potential to build “false hope”. Buyers need to know the facts and be given the time to make an informed decision before investing.
Full advertising licenses will only be granted to developers who abide by the new sales process for off plan developments mandated by RERA.
To help drive consumer protection, Law 27 of 2017 requires developers to allocate a seven-day period to prospective buyers to make a final decision on a unit purchase in an off-plan development. Developers must provide detailed disclosure information to prospective buyers. On selecting a unit, a prospective buyer can “reserve” the unit by signing a reservation agreement, review the information provided and take seven days before entering into a “binding” agreement with the developer. This allows buyers times to know the facts and make an informed decision.
- A 1% deposit is required to make a Reservation Agreement. If the buyer does not proceed, the deposit is returned minus a nominal processing fee (200BD).
- Buyers who proceed and enter into a “binding” agreement will require a 10% deposit.
- A developer is required to provide disclosure information to prospective buyers on:
- Management and implementation of the project
- A two-year forecast of buyer payments for maintenance and service charges
- A copy of the Joint Property Bylaws
Types of Advertising Licenses
There are two types of advertising licenses available through RERA:
- Market Research Advertising License
- Full Advertising License
RERA does not issue a separate Advertising license. A Full Advertising license is incorporated into the development license process.
The development license authorises the developer to advertise and sell units off plan.
Apply for Market Research Advertising License
This is a 9-month license that allows a licensed property developer to research, advertise and test the market prior to committing to a development project license. A Market Research Advertising License is a temporary license and is available for a limited period of time for specific purposes only.
This Market Research License permits the developer to:
- Enter into a Letter of Interest with an interested buyer.
- Accept payment of a letter of interest fee of BD 1000 which is fully refundable.
- Assess market viability and to design the project and proceed with the approval process.
- Withdraw from the Letter of Interest for any reason and at any time and return any deposits paid.
This application cannot be processed online at the moment. Relevant form can be downloaded, but developers should contact RERA for further instructions in submitting the form. The application process takes approximately five days.
Apply for a Full Advertising License
When a developer receives an Off Plan Sales Project license, a Full Advertising License is issued automatically.
With a Full Advertising License, a developer (or representative broker) can:
Enter into a Reservation Agreement with a buyer and provide the disclosure information.
After 7 days complete a “binding” sales agreement with the prospective buyer.
This application cannot be processed online at the moment. Relevant form can be downloaded, but developers should contact RERA for further instructions in submitting the form.
The application process takes approximately five days.Unfortunatelly incomplete applications cannot be processed.