About Real Estate Activity Report (REAR)
The Real Estate Activity Report (REAR) is a recently introduced reporting requirement mandated by the Ministry of Economy. In accordance with Circular No. 05/2022 dated 24th June 2022, real estate brokers and law firms are now obligated to submit this report. The primary objective of the REAR, as outlined by the Ministry of Economy, is to combat illicit investments in the real estate sector within the UAE and enhance efforts to detect and prevent money laundering associated with high-risk real estate transactions.
In simpler terms, the REAR serves as a mechanism to monitor and regulate real estate activities by ensuring that brokers and law firms report specific transactions related to real estate. By implementing this reporting requirement, the Ministry of Economy aims to enhance transparency in the real estate sector, identify potential instances of money laundering, and mitigate associated risks.
Who are required to file the REAR?
According to the information you provided, the circular issued by the Ministry of Economy instructs Real Estate Agents/Brokers and law firms to submit the Real Estate Activity Report (REAR). Therefore, based on the details provided, it is correct to state that real estate brokers and law firms are the entities required to file the REAR.
When is REAR required to filed?
The Real Estate Activity Report (REAR) needs to be filed when you buy or sell Freehold real estate, as defined by the laws of each emirate and payment is made by any of the following methods whether for portion or entire property:
- Using physical cash, either in a single transaction or multiple transactions totaling AED 55,000 or more.
- Virtual Assets (such as cryptocurrency). Funds used is converted from Virtual Assets.
- Funds used is converted from Virtual Assets.
Obligations with regards to REAR
The Real Estate Agent/Broker or Law firm have to obtain:
- Identification document of Buyer and Seller
- Records, Receipt, Invoices, Contracts and Purchase and Sales Agreement
- And the Real Estate Agent/Broker or Law firm has to submit Real Estate Transaction Report’ (“REAR”) via the Financial Intelligence Unit’s (“FIU”) goAML platform.
Identification Documents when Buyer or Seller are Legal Person
Identification documents must include following:
- Trade License;
- Articles of Association;
- Register of Beneficial Owners;
- Emirates ID or passport copy for all Beneficial Owners;
- Emirates ID or passport copy for all shareholders/partners.
