RERA Dubai Real Estate Practice & Ethics

Question 1

A broker receives a listing that another broker has also listed exclusively. How should the broker proceed?

Accepted Answer

Verify with the owner and check the Trakheesi system; if an exclusive Form A exists, you cannot list without the owner releasing the other broker

Answer

List the property immediately to avoid losing the client

Answer

Contact RERA to transfer the listing to their agency

Answer

Share the listing with the other broker and split the commission without informing the owner

Question 2

A buyer offers the asking price on a property, but the broker believes a higher offer could be obtained. What is the broker's obligation?

Accepted Answer

Present the full-price offer to the seller immediately; it is not the broker's decision to delay or suppress offers

Answer

Delay presenting the offer while seeking higher bids to maximize commission

Answer

Only present the offer if the buyer agrees to increase it first

Answer

Wait 7 days before presenting to create urgency with the seller

Question 3

What is the difference between a 'buyer's agent' and a 'seller's agent' in Dubai real estate?

Accepted Answer

Buyer's agent represents the buyer's interests; seller's agent (listing agent) represents the seller's interests — each owes a fiduciary duty to their respective client

Answer

Both agents always represent only the seller

Answer

There is no distinction; brokers represent all parties equally

Answer

Buyer's agents are only used in commercial transactions

Question 4

A potential buyer asks a broker whether there have been any deaths in a property. What is the broker's obligation?

Accepted Answer

Disclose if known, as material facts that could affect buyer decisions must be disclosed; UAE cultural sensitivities make this particularly relevant

Answer

Never disclose such information under any circumstances

Answer

Only disclose if the death was violent

Answer

This information is legally protected and cannot be shared

Question 5

What is the 'Know Your Client' (KYC) obligation for real estate brokers in the UAE?

Accepted Answer

Verify client identity, source of funds, and assess anti-money laundering risk before completing transactions, per UAE AML laws

Answer

Only verify the client's passport before signing a contract

Answer

KYC only applies to banks, not real estate brokers

Answer

Collect client contact details for marketing purposes only

Question 6

A broker discovers their client intends to use a property purchase to launder money. What must the broker do?

Accepted Answer

Terminate the transaction, not tip off the client, and file a Suspicious Activity Report (SAR) with the UAE Financial Intelligence Unit via goAML

Answer

Complete the transaction as instructed; it is the bank's responsibility to catch money laundering

Answer

Inform the client and give them a chance to explain the funds first

Answer

Take no action as real estate brokers have no AML reporting obligation