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Responsibilities and Code of Ethics for Real Estate Brokers in Dubai

By: Shahram Safai , Doneen Ennis

Dubai’s property market continues to grow at record pace, attracting buyers from around the world. With this growth comes closer scrutiny of real estate brokers, who play a key role in keeping the market transparent, trustworthy, and compliant with regulations.

 

Why Broker Regulations Matter

Dubai strictly regulates real estate brokerage to protect investors and ensure fair dealings. Only trained, licensed, and registered brokers can broker real estate transactions. Regulatory bodies the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) enforce clear rules, monitor behaviour, and penalise violations such as misleading ads or unlicensed activity.

 

What Brokers Must Do

Brokers in Dubai have legal duties that go far beyond connecting buyers and sellers. These include:

 

Holding proper licences and registrations: brokers must complete RERA training, pass exams, and carry valid broker IDs.

 

Keeping clear records: all transaction documents must be properly maintained and shared with clients when requested.

 

Being transparent: brokers must clearly disclose all relevant information, negotiation terms, and conditions.

 

Acting lawfully and in good faith: facilitation of any unlawful deal, or acts of fraud or deception, can lead to loss of commission and legal penalties.

 

Safeguarding client money: any funds or cheques entrusted to a broker must be protected and used only as agreed.

 

Earning commission properly: fees are due only when the broker successfully concludes the deal and fulfils agreed conditions.

 

Sharing liability when multiple brokers are involved: unless agreed otherwise, responsibility is joint.

 

Ethical Standards Brokers Must Follow

RERA’s Code of Ethics requires brokers to uphold professionalism at all times. Core expectations include:

 

Honesty, integrity, and respect: privacy, dignity, and transparency must guide all interactions.

 

Following all laws and regulations: no misleading advertising, false claims, or unauthorised activities.

 

Protecting documents: brokers must preserve all records linked to transactions.

 

Respecting DLD procedures: professional conduct is mandatory; personal connections may not be used to influence processes.

 

Practical Obligations in the Transaction Process

To safeguard buyers and sellers, brokers must comply with several operational rules:

 

Use RERA-standard forms: Form A (Seller), Form B (Buyer), and Form F/C (Sale).

 

Disclose commissions upfront: usually 1–5%, and always written in the contract.

 

Verify property ownership and documents: due diligence is mandatory.

 

Follow escrow (trust) account rules for off-plan projects: all payments must go into RERA-approved escrow accounts, not to brokers or to developers.

 

Advertise responsibly: Ads require RERA approval and must be accurate and non-misleading.

 

Meet AML/KYC requirements: brokers must verify client identity and report suspicious activity.

 

How Compliance Is Enforced

DLD and RERA actively monitor brokers through inspections, licence renewals, and mandatory training. Penalties for breaches are significant — including fines, warnings, and suspension of agents. Complaints from consumers can be filed directly with DLD, and unresolved matters can proceed to Dubai Courts.

 

Why This Matters to Consumers and Brokers

Dubai’s real estate success depends on transparency and trust. Licensed, ethical brokers have assisted to strengthen the market over decades; unprofessional practices damage the market overnight.

 

For brokers, professionalism is not optional. It is the foundation of credibility in a tightly regulated market. ■


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