To work as a real estate agent or registered broker in Dubai, there are many regulations and rules to follow. The principal law regarding practice as a real estate agent in Dubai is given in By-Law No. (85) of 2006. Subsequent formalities regarding enrollment in the broker’s register have later been devised by RERA. An important part of the law of brokerage is the Code of Ethics, observing which is mandatory. In essence, the code of ethics for a real estate agent in Dubai is derived from social norms and values that are the heritage of Dubai society.
Liability of a Real Estate Agent in Dubai to Follow the Code of Ethics
By Law No. (85) Chapter 3 – Broker’s Obligations Article (22)mentions “A Broker shall be responsible for any losses or damages inflicted on any of the contracting parties as a result of his acts through deception, fraud or non-observance of the principles to be followed as per the provisions of this By-Law or in accordance with the requirements of the Code of Ethics.”
WE, Real Estate Brokers licensed to practice in the Emirate of Dubai, hereby undertake to adhere to the following principles and rules:
First – Fair Treatment
We undertake to treat all contracting parties equally and to achieve justice between them without prejudice or differentiation.
Second – Respectful Treatment
We undertake to respect the contracting and concerned parties and to respect the privacy of parties and we reject any conduct that would belittle them.
Third – Preservation of Privacy
We undertake to preserve the privacy of the parties and the confidentiality of their information and undertake not to reveal any information which is confidential or considered as such to any party whether such information relates to the buyer, the seller or any parties related to real estate brokerage. We further undertake to keep this information from reaching any party that would expose it for contractual or personal purposes.
Fourth – Trust and Integrity
We undertake to present the deal to both parties honestly and to inform the parties of all the facts and circumstances known to us regarding the real estate and to conduct our business with trust and integrity without harming the reputation of real estate brokerage.
Fifth – Quality Observation
We undertake to provide brokerage services of practical value to parties related to the real estate brokerage activity and to continuously seek to develop such services in terms of precision and quality.
Sixth – Observance of Regulations and Laws
We undertake to observe the regulations and laws applied in the country and to honor our contractual obligations. We further undertake not to allow individuals who are not brokers to operate through our office or to exploit the name or license of our office. We realize that forgery, intentional or negligent presentation of false information or data or any attempt to do so shall subject its perpetrators to questioning and investigation in addition to taking necessary disciplinary action against them.
Seventh – Integrity
We are diligent in dealing with all parties with integrity and trust and undertake that our efforts will be based on trustworthy and clear information. We further undertake to deal transparently with all parties concerned including transparency of systems and procedures related to our operations.
Eighth – Obligation towards the Society
We undertake to be active members of the society and to work to respect the values and principles of our society. We shall also strive so that our services will support the growth of real estate development in the Emirate.
Ninth – Observance of the Interests of Contracting Party
We undertake to protect the interests of the contracting parties and to abstain from doing anything that might harm the interest of one party.
Tenth – Obligation to Preserve Document
We undertake to preserve all documents, instruments and things related to the deal.
Eleventh – Respect of the Regulations and Procedures of the Lands and Property Department
We undertake to respect the regulations and procedures observed by the Department. We are further bound by the rules of good behavior when visiting the Department and to respect the instructions issued to us by the Department officials. We undertake not to establish special relations with the Department employees for personal gain.
A real estate agent in Dubai is expected to follow these principles in all his actions with relation to any property transaction with which he is involved.
What is Seen As a Breach of the Code of Ethics?
The Real Estate Regulatory Authority (RERA) has given some examples of what would be construed as a breach of the code of ethics by any real estate agent in Dubai. The examples include:
• Misleading a Buyer or a Seller on the current market value of the price of a property
• Deliberately or unintentionally withholding relevant information from a Buyer or a Seller
• Marketing, Advertising, Listing or promoting property too high or too low in price without written consent and agreement from the Owner
• False or misleading advertising to consumers on the price, features or benefits of a property causing loss or financial harm to investors by print or electronic media.
• Impeding or interfering in an existing contract of sale causing buyer or seller to default through action or lack of action related to the Broker / Agent’s professional duty of care
• Breach of Privacy of the Client by revealing the reason for the Sale or other private knowledge of the Client without permission
• Revealing the details of personal or private information related to the Client or Customer or revealing the reason for the Sale or other private knowledge of the Client without express permission
• Pressuring a consumer to sign a document without them reading, or understanding the document and their legal obligations as per the document, or denying them the opportunity to seek legal advice prior to signing if they so desire
• Making direct contact with another agent’s client whilst they have an agreement in place
• Delaying presenting an ‘offer to buy’ to a Seller, or making an unauthorized decision regarding the sale without the prior consent of the owner of the property
• Telling outright lies
The law in Dubai is strict, and if any real estate agent in Dubai can be proved to have breached the Code of Ethics the injured party has a legal cause of action and can sue such a real estate agent in court or bring claims before competent authorities.