Real Estate Broker Regulation in Dubai – Regulation No. (85) of 2006
The UAE legislator issued Regulation No. (85) of 2006, concerning the regulation of the real estate brokers’ registry in Dubai. It established a special registry for real estate brokers, allowing them to conduct brokerage activities within the emirate. The regulation made it mandatory for anyone intending to engage in real estate brokerage to obtain a license and register in the brokers’ registry. Without this procedure, no brokerage activity can be carried out. Brokers are also required to comply with the professional ethics set forth by the committee.
Categorization of Brokers
Article 5 of the regulation stipulates the necessity of evaluating the work and experience of brokers, as determined by the registry authorities. Brokers are classified into two categories:
- Category (A): Includes registered experts who are not licensed. They are exempted from registration requirements and approved by the president.
- Category (B): Comprises licensed brokers authorized by competent authorities.
Registration Requirements for the Real Estate Brokers’ Registry
According to Article 6 of the Regulation, individuals from Category (B) who wish to practice brokerage in Dubai must submit an application to the department using the prescribed form. The department will examine the application and respond within seven days, provided it includes the following documents:
- Valid commercial license
- Membership in the Dubai Chamber of Commerce and Industry
- Copy of passport (if the broker is an individual, establishment, or company)
- Certificate of ownership of the brokerage office or lease agreement (original copy)
- Certificate of good conduct for the establishment owner or responsible managers
- Proof that the company or its management has not declared bankruptcy or been convicted of any dishonorable or dishonest crime
- Certificates of completion of specialized courses in the real estate field from department-accredited entities
- Proof of passing the real estate brokerage profession exam
Legal and Ethical Duties and Responsibilities of Brokers
The regulation outlines several ethical and legal obligations that real estate brokers must uphold, including:
- Informing all represented parties about the stages and details of negotiations, agreements, and all essential terms to eliminate ignorance.
- Avoiding mediation in agreements that violate any laws or regulations of the emirate.
- Acting with honesty when presenting all known information to both parties, and taking responsibility for any deception or error.
- Handling any amounts or documents received for safekeeping or delivery according to the agreed conditions.
- Being liable for any losses or damages suffered by the contracting parties due to the broker’s fraud, deception, or negligence.
- When multiple brokers participate in one contract, they share responsibility for the task unless otherwise permitted.
- Maintaining a personal record book of all transactions, and storing transaction-related documents. Brokers must provide data, statistics, or information to the department upon request. For off-plan sales, they should also retain the map or model until the transaction is finalized.
Disciplinary Penalties and Termination of Broker Status
The committee may impose the following disciplinary penalties on brokers who violate the provisions of this regulation or its decisions:
- Issuing a warning.
- Sending an official notice after a warning.
- Suspension from work for a period not exceeding six months.
- Inclusion on the blacklist.
The manager may also remove a broker from the registry if they:
- Violate the code of honor.
- Commit a serious legal or regulatory breach.
- Accumulate three blacklist points, based on a committee recommendation.
The decision for removal must include stated reasons. A broker may appeal the removal to the president within 15 daysof being notified. The president’s decision is final.
.jpg)
