Real Estate Broker’s Obligations in UAE Law

Real Estate Broker’s Obligations in UAE Law

The UAE legislator issued Regulation No. (85) of 2006, which concerns the regulation of the real estate brokers’ registry in Dubai. It established a special registry for real estate brokers, allowing them to conduct brokerage activities within the emirate. The regulation made it mandatory for anyone intending to engage in real estate brokerage to obtain a license and register in the brokers’ registry. Without this procedure, no brokerage activity can be carried out, in addition to complying with the professional ethics set forth by the committee.
Categorization of Brokers:
Article 5 of the aforementioned regulation stipulated the necessity of evaluating the work and experience of brokers as determined by the registry authorities, and brokers were classified into two categories:
Category (A): This category includes registered experts who are not licensed. They are exempted from registration requirements and approved by the president.
Category (B): This category comprises licensed brokers authorized by competent authorities.

Registration Requirements for Real Estate Brokers’ Registry:
According to Article 6 of the Regulation for the Real Estate Brokers’ Registry in Dubai, individuals from Category (B) who wish to practice brokerage in Dubai must submit an application to the department using the prescribed form to be registered in the registry. The department will examine the applications and respond within seven days of submission, provided that the application is accompanied by the following documents:
• Valid commercial license
• Membership in the Dubai Chamber of Commerce and Industry
• Copy of passport if the broker is an individual establishment or company
• Certificate of ownership of the brokerage office or lease agreement (original copy)
• Certificate of good conduct for the establishment owner or responsible managers
• The company or its management must not have declared bankruptcy or been convicted of any dishonorable or dishonest crime.
• Certificates of completion of specialized courses in the real estate field from accredited entities of the department
• Passing the real estate brokerage profession exam

Legal and Ethical Duties and Responsibilities of Brokers:
The Regulation for the Real Estate Brokers’ Registry in Dubai outlined several duties that brokers must adhere to. These duties involve ethical aspects and legal responsibilities, including the following:
• The broker must inform the represented parties about the stages and details of negotiations and agreements and all essential agreement terms to eliminate ignorance.
• Brokers are not allowed to mediate in agreements that violate the laws and regulations of the emirate.
• The broker should be honest in presenting all information known to them to both parties and be responsible for any deception or error on their part.
• The broker should handle any amounts or documents received from the parties for safekeeping or delivery to one of the parties, and they must be delivered according to the agreed conditions.
• The broker is responsible for any losses or damages incurred by the contracting parties due to their deceit, fraud, or disregard for the principles or code of honor.
• If multiple brokers participate in one contract, they will share the responsibility for the assigned task unless they are permitted to work individually.
• The broker must maintain a personal record book containing all conducted transactions and keep the transaction documents and papers. If requested by the department, they should provide all relevant information, data, and statistics related to the brokerage activity. For off-plan sales, the broker should retain the map or model until the transaction is completed.

Disciplinary Penalties and Termination of Broker Status:
The committee has the right to impose the following penalties on brokers who violate the provisions of this regulation or its decisions:
• Warning the real estate broker about their violations
• Giving an official notice to the real estate broker after issuing a warning
• Suspending the real estate broker from work for a period not exceeding six months
• Including the name of the violating broker in the blacklist
Furthermore, the manager can remove the broker from the registry by a decision if they violate the code of honor, commit a substantial violation of laws or regulations, or accumulate three points on the blacklist based on the committee’s recommendation, indicating the reasons for the removal. The broker can appeal the decision of removal to the president within fifteen days of being notified of it, and the president’s decision shall be final.


Written by:

Mr. Mohammad Salah

CEO / Dubai – UAE


Do you still need more clarification? Please, go ahead.

    Related Posts