Muscat, Sept 19 - The Ministry of Housing (MoH) has announced that the real estate transactions will be registered only through the brokerage offices licensed by the ministry from October 1. As per guidelines, only the licensed real estate brokerage offices will be allowed to do transactions. It said the role of real estate brokerage offices will be limited to registering the initial sales contract while the final processes will be completed at the ministry’s one-stop-shop counter. The brokerage offices in Muscat will register the initial sales contract electronically, which includes providing the data of the property to be transacted and details about the parties involved in transactions.
The transactions listed by the ministry will include residential, commercial, industrial, tourist, residential plots, mortgaging, apartments, villas and shops, both buying and selling transactions by GCC nationals and all sales and purchase transactions of expatriates and foreign nationals in the integrated tourist complexes. The real estate brokerage offices are not allowed to receive or keep the original title deeds or official documents while the fees will be collected only at the ministry’s one-stop-shop counter.
The ministry said the new system aims to regulate the real estate transactions in accordance with the Royal Decree No 78/1986 concerning the real estate brokerage firms and in the process create more jobs for Omanis through the private sector participation.
It will also help clients complete their initial real estate transactions after non-working hours.
From the start of 2017, the Ministry of Housing started issuing real estate brokerages through its website, as part of the efforts to control the use of illegal brokerage firms.
The Ministry has been releasing the names of licensed firms following a warning by the Public Prosecution to brokers practising for a fee without approvals from the competent authority.
The authority said the illegal activity is a crime punishable by up to six months in prison and a fine of RO 3,000 and added that this is a criminal act in accordance with Article 19 of the law regulating the brokering real estate areas, addressing both the citizens and residents.
Two sets of fees were prescribed — one for companies based in Muscat and the other for those operating outside of the capital governorate. In a decision issued by the Minister of Housing, brokers are liable to pay fees for new and renewed permits to serve as real estate brokers.
The fee is set at RO 500 for those operating within Muscat Governorate, and RO 300 outside of the capital governorate.
Fees for permit renewals are RO 200 per year in Muscat and RO 100 per year in other governorates.
Replacements in lieu of lost permits will cost RO 100 in Muscat and RO 50 outside the capital.
Vinod Nair
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