Professional Ethics Charter

Module 6: Professional Ethics Charter

Module Objectives

The module aims to increase awareness amongst real estate brokers regarding Professional Ethics Charter established by RERA and updated by Real Estate Licensing Department in June 2020.

It focuses on ethical responsibilities (The Dos and Don’ts for real estate brokers) and understanding the consequences of misconduct and breaching the Code (Violation and disciplinary action).

Code of Ethics

Professional Ethics Charter is a living, dynamic statement that has moved with times, to guide Brokers in their daily professional lives.

Professional Ethics Charter regulates your relationship with customers, other agents and with the public.

Are Ethics the same as the law? No

Ethics are principles by which one treats colleagues, clients, and the public in a fair, just and trustful manner. Adherence to such standards is considered one of the requisites for recognition as a profession; that is, to be called a “profession”, a vocation must (among other requirements) have an established code of behavior that practitioners are required to uphold.

All Registered Brokers / Agent /Practitioners Are Expected To ….

 Strive for “excellence” in practices
 Perform high quality service standards & ‘best practice’
 Follow RERA rules, regulations & procedures within the framework of the law

What are “ETHICS” ?
 Ethics are a way of thinking
 A belief system
 A moral code system
 The difference between ‘right’ and ‘wrong’.

“ETHICS” are influenced …
 By our attitude,
 By our values,
 By our culture and upbringing,
 By our past experiences.

“ETHICS” in real estate apply to
 The people we deal with
 The properties we promote and sell
 Our employer / Our organization
 Our industry, our government

Charter for Practicing the

Real Estate Brokerage Profession in Dubai

According to the Brokers Regulations No. 85 of 2006 regulating the profession of real estate brokerage in Dubai and the Executive Council Resolution No. 95 of 2009 related to fees and fines, no person is entitled to practice the profession of real estate brokerage without obtaining a license and registering in the Real Estate Broker Register at the Real Estate Regulatory Agency (RERA).

Ethics and Duties of the Profession

The real estate broker must adhere to the following professional ethics:

The broker must commit to the confidentiality of information of the parties, and not favor one party’s interest over another’s.
The broker shall not be a party to the sales transaction and shall not mislead any party in order to gain unentitled commission.
The broker must be honest, transparent and impartial in all his dealings with the parties.
The broker must preserve all documents pertaining to the transaction and keep a record of all their concluded transactions. In the event of off-plan or model sales, the map or model must be kept until the process is complete.
The broker shall submit original copies to the contracting party that requests them.
The broker must safeguard the customers’ rights by ensuring the accuracy of the information related to the procedures.
The broker should not give incorrect data regarding real estate prices.
The broker should conduct a comparative market analysis to advise the customer of the property’s fair market value.
The broker must deal with customers in a professional and respectful manner that highlights his critical role in facilitating the transaction without any distinction between the parties.
The broker must provide all information, data, and statistics related to the brokerage activity requested by DLD.
The broker may not broker a deal that violates the laws or regulations enforced in the Emirate.
The broker must disclose all circumstances of the transaction that he is aware of to all the parties, regardless of whom he represents. The broker shall be responsible for every act of fraud or error caused by him.
The broker shall not be party to the transaction unless legally authorized by his customer, in which case he is not entitled to a commission.
The broker shall act as guardian of any sums, securities, bonds, or material that is entrusted to him by either party. The broker shall do as instructed by the said party. The rules of trust shall apply to the broker in relation to these matters.
The broker is responsible for any loss or damage incurred by any party due to the broker’s fraud, deception or failure to follow the laws and regulations and this Charter.
The broker’s right to commission or to claim reimbursement of expenses incurred shall be lost if they worked for the benefit of the other party in contravention to their obligations towards whom they represent, or if they accept a promise to obtain a benefit from the other party in circumstances where the rules of good faith and this Charter prevent the acceptance of such a promise.
If several brokers are assigned by the parties, they are jointly responsible for the work assigned to

them, unless they are authorized to work separately.

If several parties authorize one broker in a transaction, they are jointly responsible for the implementation of this authorization, unless otherwise agreed.
The brokerage contract shall be in writing, and shall detail the names of the contracting parties, the property specifications, and the terms of the brokerage as indicated. The contract shall be registered in the property’s registry.
The broker is entitled to commission or compensation for any expenses incurred only if his efforts lead to the conclusion of the contract between the two parties unless the brokerage contract stipulates otherwise. The contract is considered to have been concluded when the parties have agreed to all the conditions stipulated in the brokerage contract.
The broker is entitled to the commission only after concluding the sales contract and registering it in DLD, unless the brokerage contract stipulates otherwise.
If the sales contract is subject to the fulfillment of certain terms and conditions agreed to in the brokerage contract, the broker is not entitled to a commission unless such conditions are met.
If more than one broker participates in the brokerage contract and this leads to the completion of the agreement, they all participate in the commission as if they were one broker, and the commission is divided among them according to the terms of the contract concluded between them.
If a party contracts with several brokers independently on one transaction, and if one of the brokers succeeds in completing the transaction, then such broker is exclusively entitled to the commission.
The broker shall be entitled to the commission from the party who has contracted him. If he was contracted by both parties, each party shall pay the commission to the broker as stated in their respective contract, even if the parties agreed that only one of them shall bear the broker’s full fee.

Foundations of this Charter are ……….

Honesty,
• Trust,
•        Integrity,
•        Respect
•        Transparency
•        Equity
•        And similar principles derived from the heritage and ethics of the UAE Society. pic (many pics+blue pics)

The Do’s and Don’ts for Real Estate Brokers

Do’s

Do get licensed before working with clients on any sort of property showing or deals.
Do use the “Dubai Brokers” accessible through “Dubai-REST APP”, to validate the owner’s ownership certificate before initiating any contract.
Do use the “Dubai-Brokers” through “Dubai-REST APP” to access contracts A, B and F.
Do get all agency agreements with clients in writing (Contracts A and B) in order to formulate Contract F between Buyer and Seller.
Do include “QR Code (Madmoun)” to all listings ( sales and rentals) print and audiovisual ads and marketing material. This applies to all advertising platforms including social media.
Do always identify yourself as a licensed Broker, exposing your RERA Smart Card available on the Dubai-REST App and DLD website.
DO use RERA’s “Unified Tenancy Contract”.
Do work ONLY with licensed and registered Brokers.
Do report unregistered Brokers and illegal activities by Brokers to RERA through the real estate violation system RVS.
Do renew your Broker ID annually (at least 30 days prior to expiration).
Do educate yourself on regular basis on any law updates, Professional Ethics Charter, Circulars

issued by RERA (and DLD).

Do deal only with RERA-approved Developers and Projects.
• Do ensure that all monies from off-plan properties go into the designated Escrow Account.
Do treat all parties fairly and without discrimination.
Do provide documents to contracting parties requesting them.
Do act in good faith to all contracting parties, regardless of who you represent.
Do act as a guardian of your client’s money and do as instructed by client.
Do take reasonable steps to avoid committing a mistake that could cause client to suffer a financial loss (conduct

due diligence).

Do have the commission split between you and other brokers in writing.
Do give full disclosure to all parties about the number of registered Brokers working with you on the deal.
Do read all agreements very carefully and advise your client to do the same.
Do educate your client on their rights and obligations.
Do furnish your client with details of negotiation and issues related to deal.
As a registered broker do maintain a “Special Transaction Register”. This must be maintained by your company daily, and produced if requested by RERA.
You are Dubai’s ambassadors – Do represent the country and the laws of its land accordingly.

Don’t

Do not promise potential clients anything you cannot deliver for the sake of winning a listing.
Do not spam/mass email or cold call potential clients.
Do not advertise properties which are not for sale, or use old or outdated listing prices.
Do not accept money/funds into your bank account from your clients.
Do not accept cash from undisclosed sources on behalf of your clients.
Do not engage in any activity that may incur loss to any party of the deal.
Do not represent yourself as a party to the transaction, and as a broker at the same time (if you do, you are not entitled to Commission).
Do not accept a Power of Attorney from any party (including your client).
Do not represent more than one party to the deal without full, written disclosure and consent from both parties.
Do not give misleading information to a buyer or a seller on the current market value of the price of a property.
Do not promise your clients future profits!
Do not work in activities that are not permitted under your company’s trade license.
Do not withhold relevant information, deliberately or unintentionally, from a buyer or a seller out of fear of losing the listing/deal.
Do not market, advertise, list or promote a property too high or too low in price. DO a CMA.
Do not post 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.

Do not breach the privacy of the client by revealing the reason for the sale, or other private knowledge without permission.
Do not reveal the details of personal or private information related to the client.
Do not pressure clients 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.
Do not make direct contact with another broker’s client whilst written agreements are in place.
Do not dictate the terms and conditions of the agreement between the buyer and the seller; suggest that they seek legal advice.
Do not delay presenting an “offer to buy” to a seller, or make an unauthorized decision regarding the sale without prior consent of the owner of the property.
Do not tell outright lies!

The law in Dubai is strict, and if it can be proven that any real estate broker has breached the Code of Ethics, the injured party has a legal cause of action and can sue such a broker in court, or bring claims before the competent authorities.

What is a disciplinary action?

It is a punishment resulting from the RERA investigating a complaint against a licensee.
Such an action could have serious consequences for the licensee, such as points, revocation or suspension of the license and a fine.

Violations and penalties mentioned in the real estate broker resolution No. 85 of 2006:

Notification
2. Warning
3.      Suspension from work for a period not exceeding six months
4.      Blacklisting broker’s name
5.      The broker’s registration shall be cancelled if they breach this Charter, or commit a fundamental violation of the laws, regulations, and instructions enforced in the Emirate, or collects three points on the black list. The cancellation is decided by the Director based on a recommendation from the Committee, stating the reasons for the cancellation. The broker may appeal the cancellation decision to the Committee’s President within 15 days from the notification date, and the President’s decision in this regard shall be final.

The broker’s registration in DLD shall be cancelled in the following cases:

The broker quits the brokerage profession permanently and notifies DLD accordingly.
The broker has left the brokerage business for more than twelve consecutive months without a legitimate excuse accepted by the committee.
Loss of any of the conditions that must be met by the provisions of these regulations, or any decisions or

instructions issued pursuant thereto.

If it becomes evident that the broker’s registration was the result of false statements submitted to DLD.
A decision issued by the director to cancel the registration in accordance with the provisions of these regulations.

Violations and penalties mentioned in the Executive Council Resolution No. 25 of 2009:

Practicing the brokerage activity without a permit.
The broker’s lack of commitment to provide DLD/RERA with the required information and data.
Performing brokerage activities for a real estate project not registered with DLD/RERA.
Carrying out real estate marketing without obtaining a permit.
Non-compliance with the use of standard contracts for real estate marketing.
Failure to comply with the circulars and directives issued by RERA.
Violation of the license terms.

You can lodge a complaint on the Dubai Land Department website – real estate violation system (RVS System) if there are violations by any of these service providers:

Property Management.
Real Estate Brokerage.
Real Estate Development.
Jointly Owned Property Management.
Real Estate Valuation Services.