Practising as real estate brokers without a valid licence will invite stringent penalties, including jail term and hefty fines. According to a statement from the office of Public Prosecution Department, offenders will have to pay a fine of RO 3,000, face a jail term of six months or both of these penalties. “The practice is illegal and will be treated as a criminal act if any individual is found to be doing real estate brokerage business without necessary licence,” said the statement.
While reminding both citizens and expatriates of real estate regulations in Article 19, the statement said, “Under the legal framework, a property broker may be a natural or juridical person licensed by the concerned authorities.”
Real estate brokerage business in Oman — residential, commercial, or industrial property — is regulated by the Ministry of Housing and Ministry of Commerce and Industry.
Individuals may be entitled to a brokerage business licence only if they complete a training course in the specialised field. It is also mandatory for a licensed broker to register with the Ministry of Housing.
According to Article 19 issued by Royal Decree, “Any person who works in the real estate brokerage business for payment without a valid licence is subject to no more than RO 3,000 in fines, six months of imprisonment, or both of these penalties.”
For a company, at least 80 per cent of its workforce to brokerage business must be Omani nationals with the minimum educational qualification of diploma or its equivalent in any discipline. “Brokers are entitled to commission in respect of a transaction only if the transaction is actually effected. Furthermore, if a transaction is subject to a condition, brokerage will be payable only if such condition is satisfied,” the law stipulates.
A broker will be liable for any misrepresentation, mistake or negligence in relation to the property, adds the law.
Commenting on the strictures, Nasser al Wahaibi, owner of a real estate company in Ruwi, said: “This will regulate the market to a great with the nipping of unlicensed brokers and their unethical practices.”
Brokers are obliged to provide true and accurate information that has come to their knowledge about the underlying property to both parties even if they are engaged by only one party. “In some cases, unlicensed brokers resort to manipulations. The new regulations will control the market and help in developing a better atmosphere for companies and permitted brokers,” he said.
In August last year, the Ministry of Housing decided to collect fee from brokers while providing the necessary permits. The decision also categorised the fees into two sections, one for companies in Muscat with RO 500 and RO 300 for those outside the capital.
The renewal fees for permits were set at RO 200 for brokerages in Muscat, while for others it was set at RO 100.
SAMUEL KUTTY
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