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

An exclusive Form A grants one broker the sole right to market a property for the agreed period. A second broker cannot take the same listing without the exclusive arrangement being terminated. Checking Trakheesi reveals active listing agreements. Violating an exclusive agreement is an ethical and regulatory breach.

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

A broker has a fiduciary duty to present all offers to the seller promptly and faithfully, regardless of the amount. Suppressing, delaying, or manipulating offers is a serious ethical violation under RERA's code of conduct and can result in license revocation.

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

When a broker represents a buyer (via Form B), their duty of care, loyalty, and confidentiality runs to the buyer. The listing broker (Form A) owes these duties to the seller. When both are from the same agency, careful management of potential conflicts of interest is required.

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

Under RERA's material disclosure requirements and the general prohibition on misrepresentation, brokers must disclose facts that a reasonable buyer would consider material. In UAE culture, deaths in a property are generally considered highly material facts. Active concealment could constitute fraud.

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

UAE anti-money laundering (AML) laws and RERA regulations require real estate brokers to conduct KYC procedures: verify client identity (passport/Emirates ID), understand the source of funds (particularly for cash transactions), and report suspicious transactions to the UAE Financial Intelligence Unit (FIU/goAML).

RERA Broker Practice Test

RERA Broker Practice Test

RERA Dubai Real Estate Practice & Ethics