Emaar Offers Commisions on Sales With Credit Notes

Emaar  has incorporated a new clause in its local agent agreement, offering a commission for any sale transacted using its credit notes, a real estate agent told Emirates Business. The ongoing saga of replacing deposits that investors have paid on canceled projects with “credit notes,” takes a new twist as people become more desperate to offload these poison pills.

A real estate agent, on conditions of anonymity, said: “The agreement that we have signed states that effective April 2009, Emaar will pay commissions on sales with credit notes. This was not mentioned in our previous contract. Also, effective May 27, 2009, the developer will pay commissions to real estate agents on consolidation of its deferred projects to a new unit.”

“What this means is that Emaar will pay us commissions if we sell any of their units using their credit note. If a client already has a credit note from Emaar and he buys a unit through us in any one of their projects, then we are entitled to get a commission from the developer,” the agent added.

According to the local agents’ policy agreement, seen by this newspaper, Emaar said: “If the value of the credit note does not exceed 50 per cent of the net property value as indicated in the sales agreement, the commission will be paid at 100 per cent of the commission eligibility.

Another clause said: “If the value of the credit note exceeds 50 per cent of the net property value as indicated in the sales agreement then commission will be paid at 50 per cent of the commission eligibility.”

The agent has already done about 15 transactions using credit notes not just for Emaar, but other developers as well. He confirmed that the company has paid commission on time.

Buyers can take advantage of getting 20 to 25 per cent or more discount when buying credit notes to purchase new property directly from Emaar properties. The discount will, however, vary depending on the current market price, the agent said.

Burj Park V, Burj Park 3, Burj Place, M Burj, The Mansion, the Mashref Heights, Warsan, Claren, 18 Boulevard and Grand Boulevard are projects where Emaar has issued credit notes, the agent said.

An Emaar spokesperson said: “We work closely with our sales team including our registered agents and has laid out clear guidelines and procedures regarding sales outcomes and payments. In accordance with these, local sales agents receive a commission on a new sale of any Emaar property.” Mohanad Alwadiya, Director, Harbor Real Estate, said his agency has witnessed a noticeable rise in the volume of consolidation transactions due to the economic crisis.

As of February, Harbor created a specialized consolidation division and concluded more than 40 such transactions including 28 for Emaar and 12 for Nakheel. Emirates Business