The Dubai Land Department, through the Real Estate Regulatory Agency in Dubai, has launched a policy of conflict of interests and transactions of the parties regarding the management of jointly owned real estate, and this launch comes within the framework of regulating the real estate sector in Dubai, and the establishment of principles of transparency and accountability in all matters related to the management of joint real estate. The launch of (the policy) aims to establish special procedures and mechanisms that help in organizing the transactions of the parties related to joint real estate, and to define all roles and responsibilities.

The executive director of the Real Estate Regulatory Agency, Eng. Marwan bin Ghalita said: “Based on the policy document that we released, finally, the mere existence of relationships with the relevant parties may lead to damaging the transactions of the managers of real estate companies with joint ownership with the other parties, and here the need arises. To the need to disclose the existence of such relationships in an appropriate manner. Within the same framework, decisions related to operations and decision-making should be taken by avoiding direct influence on those parties, and transactions should be carried out according to the usual terms and conditions of the market. Bin Ghalita added, "The new policy is expected to contribute to organizing businesses, in a manner that does not conflict with personal interests between management companies and the owners' committee and service providers."

(The Policy) outlined all aspects of appointing and signing agreements with service providers, highlighting the duties of managers and employees of the jointly owned property management company, and the importance of avoiding activities that could lead to a conflict of interest or to their emergence as possible. (The policy) requires that reasonable steps be taken to determine the conditions that may create a type of conflict of interest, and the potential negative impact on policy compliance.

The policy document requires that all related party transactions be disclosed in the annual report, provided that the auditors examine the report, and fully verify any transactions with related parties with due diligence. And in the absence of adherence to this policy, this may lead to the termination of contracts, and the imposition of fines on the director of the real estate company of joint ownership, in addition to any other financial penalties.

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