RERA Professional Ethics and Client Relations — Questions and Answers
Question 1: What code of ethics does RERA establish for licensed real estate brokers?
- No code of ethics exists
- Honesty and transparency, avoiding conflicts of interest, fair dealing, client confidentiality, accurate property representation, and professional competence (Correct answer)
- Only honesty is required
- Ethics are optional for experienced brokers
Correct answer: Honesty and transparency, avoiding conflicts of interest, fair dealing, client confidentiality, accurate property representation, and professional competence
RERA's code of ethics requires brokers to maintain honesty and transparency, avoid conflicts of interest, deal fairly with all parties, maintain client confidentiality, accurately represent properties, and maintain professional competence.
Question 2: What are the RERA regulations on dual agency (representing both buyer and seller)?
- Dual agency is always acceptable
- Dual agency must be disclosed to both parties with their informed consent, ensuring fair representation and avoiding conflicts of interest (Correct answer)
- Dual agency is prohibited in Dubai
- Only senior brokers can practice dual agency
Correct answer: Dual agency must be disclosed to both parties with their informed consent, ensuring fair representation and avoiding conflicts of interest
While not outright prohibited, dual agency requires full disclosure to both parties, informed consent from each, and the broker must ensure fair representation without favoring either party, avoiding any conflict of interest.
Question 3: What client fund handling requirements does RERA establish for brokers?
- Brokers can hold client funds in personal accounts
- Client funds (deposits, security deposits) must be held in designated escrow or trust accounts separate from the broker's business or personal accounts (Correct answer)
- No requirements for handling client money
- Client funds are paid directly to the seller
Correct answer: Client funds (deposits, security deposits) must be held in designated escrow or trust accounts separate from the broker's business or personal accounts
RERA requires that all client funds including deposits and security deposits be held in separate designated accounts (escrow or trust), completely segregated from the broker's business or personal accounts for client protection.
Question 4: What disclosure obligations do RERA brokers have to clients?
- Brokers have no disclosure obligations
- Disclose all material facts about a property, any conflicts of interest, commission arrangements, and any information that could affect the client's decision (Correct answer)
- Only disclose what the client asks about
- Only disclose positive aspects of the property
Correct answer: Disclose all material facts about a property, any conflicts of interest, commission arrangements, and any information that could affect the client's decision
RERA requires brokers to disclose all material facts that could influence a client's decision, including property defects, encumbrances, conflicts of interest, commission arrangements, and any adverse information.
Question 5: What continuing professional development does RERA require for licensed brokers?
- No CPD is required after initial licensing
- Ongoing training and education to maintain market knowledge, regulatory awareness, and professional competence for license renewal (Correct answer)
- Only attend one workshop per year
- CPD is voluntary for experienced brokers
Correct answer: Ongoing training and education to maintain market knowledge, regulatory awareness, and professional competence for license renewal
RERA requires licensed brokers to participate in continuing professional development to maintain current market knowledge, stay updated on regulatory changes, and demonstrate ongoing professional competence for license renewal.
Question 6: How should RERA brokers handle confidential client information?
- Client information can be shared freely
- Maintain strict confidentiality of client financial information, negotiating positions, and personal details, only sharing with authorized parties with client consent (Correct answer)
- Confidentiality only applies during the transaction
- Only financial information is confidential
Correct answer: Maintain strict confidentiality of client financial information, negotiating positions, and personal details, only sharing with authorized parties with client consent
RERA requires brokers to maintain strict confidentiality of all client information including financial details, negotiating positions, personal circumstances, and transaction details, sharing only with explicit client authorization.
RERA Professional Ethics and Client Relations
What code of ethics does RERA establish for licensed real estate brokers?