RERA RERA Regulations & Broker Licensing 2 — Questions and Answers
Question 1: What is a 'Form A' in Dubai real estate transactions?
- The exclusive listing agreement between a seller/landlord and a broker (Correct answer)
- The sales and purchase agreement between buyer and seller
- The tenancy contract between landlord and tenant
- The mortgage application form
Correct answer: The exclusive listing agreement between a seller/landlord and a broker
Form A is the exclusive/non-exclusive listing agreement between the property owner (seller or landlord) and a registered real estate broker. It authorizes the broker to market and sell/rent the property and sets out commission terms. It must be registered in the Trakheesi system.
Question 2: What is 'Form B' in Dubai real estate transactions?
- The buyer/tenant representation agreement between a client and a broker (Correct answer)
- The seller listing agreement
- The tenancy contract
- The property valuation report
Correct answer: The buyer/tenant representation agreement between a client and a broker
Form B is the buyer/tenant representation agreement that authorizes a broker to search for and negotiate a property on behalf of the buyer or tenant. It specifies commission arrangements and terms. Alongside Form A, it is part of RERA's standardized transaction documentation.
Question 3: What is 'Form F' (Memorandum of Understanding) in Dubai real estate?
- The contract between buyer and seller setting out agreed terms before the formal SPA is prepared (Correct answer)
- The developer's off-plan reservation agreement
- The bank's mortgage offer letter
- The broker's commission invoice
Correct answer: The contract between buyer and seller setting out agreed terms before the formal SPA is prepared
Form F (MOU) is a RERA-standardized agreement between buyer and seller that records agreed transaction terms including price, deposit (typically 10%), and timeline, pending preparation of the formal SPA. It is legally binding and is submitted to DLD for F-registration.
Question 4: Under RERA regulations, what must a real estate company (brokerage) display at its premises?
- DLD-issued brokerage license, RERA registration certificate, and names of all licensed brokers employed (Correct answer)
- Only the company trade license
- Only broker business cards
- Photos of available properties with prices
Correct answer: DLD-issued brokerage license, RERA registration certificate, and names of all licensed brokers employed
All DLD/RERA-registered brokerage offices must display their DLD brokerage license number and maintain a current RERA registration. Brokers employed by the firm must be individually RERA-licensed. These requirements ensure accountability and allow consumers to verify legitimacy.
Question 5: What is the 'Trakheesi' system in Dubai real estate?
- RERA's online portal for registering broker listings, activity permits, and real estate transactions (Correct answer)
- A type of property ownership exclusive to UAE nationals
- The DLD property valuation system
- A specific type of Dubai property title document
Correct answer: RERA's online portal for registering broker listings, activity permits, and real estate transactions
Trakheesi (meaning 'licenses' in Arabic) is DLD/RERA's online permission management system. Brokers must register property listings through Trakheesi to obtain an advertising permit number. This prevents duplicate listings and ensures only licensed brokers advertise properties.
Question 6: What is the maximum deposit a real estate broker can accept from a client as part of a property reservation?
- There is no fixed maximum; the amount must be agreed in writing and held in a client trust account (Correct answer)
- The broker can hold any amount in their personal account
- Maximum 5% of the property value in any account
- No deposit is ever required before title transfer
Correct answer: There is no fixed maximum; the amount must be agreed in writing and held in a client trust account
RERA requires that client deposits be held in a separate client trust account (not commingled with operating funds). There is no fixed maximum, but the amount must be documented. Misappropriation of client funds is a serious offense leading to license revocation and criminal prosecution.
RERA RERA Regulations & Broker Licensing 2
What is a 'Form A' in Dubai real estate transactions?