Dubai Real Estate Practice & Ethics Flashcards

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

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

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.

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?

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

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.

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

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

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.

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

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

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.

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

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

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).

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

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

UAE AML Law and Cabinet Decision 10/2019 require designated non-financial businesses (DNFBPs) including real estate brokers to file Suspicious Activity Reports (SARs) via the goAML platform. 'Tipping off' the client that a SAR has been filed is itself a criminal offense. The transaction must not proceed.