Bylaw No. (85) of 2006
Regulating the Real Estate Brokers
Register in the Emirate of Dubai (1)

The Chairman of the Land Department,
After perusal of:
Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai;
Based on Article 6.6 and Article 28 of the above mentioned Law; and
Upon the presentation made by the Director General of the Department,

Does hereby issue this Bylaw.

Chapter One
Definitions and General Provisions
1. Definitions
Article (1)

This Bylaw will be cited as “Bylaw No. (85) of 2006 Regulating the Real Estate Brokers
Register in the Emirate of Dubai”.

Article (2)

The following words and expressions, wherever mentioned in this Bylaw, will have the
meaning indicated opposite each of them unless the context implies otherwise:
Emirate: The Emirate of Dubai.
Department: The Land Department.
Chairman: The chairman of the Department.
Director General: The director general of the Department.
Committee: The Permanent Real Estate Brokerage Committee.
Council: The body authorised to settle real estate brokerage disputes.
Division: The Real Estate Brokerage Regulatory Division at the Department.
Competent Entities: Governmental or semi-governmental entities responsible for licensing
Real Property: Anything which is fixed and cannot be moved without damage or alteration of its sturcture.
Register: The electronic or paper record of Real Estate Brokers.
Roll: The roll containing the names of certified category A Real Estate Brokers prepared by the Committee.
Real Estate Broker: Any person who undertakes the real estate brokerage business in
accordance with this Bylaw.
Brokerage Agreement: An agreement whereby a Real Estate Broker undertakes to a client
to find another party with whom to conclude a contract, and to
represent the client in relevant negotiations for renumeration.
Person: Any natural or legal person.

2. General Provisions
Article (3)

No Person may engage in Real Estate Brokerage activities in the Emirate unless he is
licensed by the Competent Entities and entered in the Register.

Article (4)

A Register will be maintained by the Department in which the names of licensed Real
Estate Brokers in the Emirate are entered and in which any variation of or amendment to
relevant information are also entered.

Article (5)

Real Estate Brokers will be of the following two (2) categories:
Category A: Persons who have experience, are registered on the Roll, and who are
certified by the Chairman, but are not licensed by the Competent Entities. Persons from
this category are exempted from registration requirements; and
Category B: Persons who engage in Real Estate Brokerage activities pursuant to a
licence issued by the Competent Entities.

Chapter Two
Requirements for Registration in the
Real Estate Brokers Register
Article (6)

Subject to the provisions of Article (5) regarding Category A above, Persons of Category
B who wish to engage in Real Estate Brokerage activities in the Emirate must submit
to the Division an application using the prescribed form for entry in the Register. The
application must include:
1. a valid trade licence issued by the Competent Entities;
2. a certificate of membership in the Dubai Chamber of Commerce and Industry;
3. a passport copy of the applicant(s) for sole establishments or companies;
4. a true copy of the title deed of the Real Estate Brokerage office or a tenancy contract;
5. a certificate of good conduct and repute for the owner of the establishment and the
managing director(s) of the company;
6. none of the directors or the Persons authorised to manage the company have been
declared bankrupt or convicted of a crime affecting honour or trustworthiness;
7. certificates of completion of real estate training courses as part of programmes for
certification of Real Estate Brokerage accredited by the Department; and
8. a certificate evidencing that the applicant passed the Real Estate Brokerage test
prepared by the Department.

Article (7)

The Division will review the application and may, within seven (7) days from the date of
submission thereof, request the applicant, in writing, to provide any required additional
documents or information.

Article (8)

The Division may take all required actions to ensure that applications for registration,
updating, or cancellation meet the requirements stipulated in this Bylaw and any
resolutions issued hereunder.

Article (9)

The Division will refer the registration application to the Committee within seven (7) working
days from the date of submission of the application or of furnishing all the documentation
and information, as the case may be, requested by the Division.

Article (10)

The Committee will have the right to approve or reject the application for registration, and
the relevant decision will be communicated to the applicant. Any decision to reject an
application for registration must be reasoned.

Article (11)

If the Committee rejects the registration application, the applicant may re-apply upon
fulfilling all requirements within fourteen (14) days from the date on which he is notified
of the rejection decision.

Article (12)

The Division will issue a Real Estate Broker card to applicant bearing his name,
address, and registration number in the Register. The name and registration number
entered in the Register must appear in all correspondence and reports issued by the
Real Estate Broker.

Article (13)

Each Real Estate Broker who is entered in the Register must apply to the Division for
registration renewal on a yearly basis. The renewal application must be submitted to the
Division on the relevant form at least thirty (30) days prior to expiry of the registration
certificate. The Division must renew the registration of the Real Estate Broker in the
Register after verifying compliance with the renewal requirements.

Chapter Three
Obligations of Real Estate Brokers
Article (14)

All registered Real Estate Brokers must observe the code of conduct stipulated in the
code professional ethics prepared by the Committee in consultation with qualified and
expert Real Estate Brokers.

Article (15)

A Real Estate Broker must record in his private register all the transactions that he
has conducted, keep all the relevant documentation, and deliver a true copy of such
documentation to the contracting parties upon their request.
In case of an off-plan sale or a sale according to a model, the Real Estate Broker must
keep such plan or model until the transaction is concluded.

Article (16)

A Real Estate Broker must provide all information, data, and statistics relating to the Real
Estate Brokerage activity as requested by the Department.

Article (17)

A Real Estate Broker must disclose to his client all negotiation details, the stages of the
brokerage process, and any other required information that will enable his client to make
the right decision in respect of concluding a contract with the other party. The Real Estate
Broker must also disclose to the other contracting party all substantial matters relating to
the subject matter of the agreement, which are deemed necessary to avoid uncertainty.

Article (18)

A Real Estate Broker may not facilitate any transaction that violates the laws or regulations
in force in the Emirate.

Article (19)

Despite the fact that a Real Estate Broker represents only one of the parties to the
transaction, he must faithfully disclose the transaction details and conditions he is
aware of. The Real Estate Broker will be held responsible for any fraud or mistake he
may commit.

Article (20)

A Real Estate Broker may not hold himself out as second party in the contract he facilitates
unless he is so authorised by one of the contracting parties, in which case the Real Estate
Broker will not be entitled to any remuneration.

Article (21)

A Real Estate Broker will be deemed the trustee of any amounts, securities, bonds, or any
other items delivered to him by any of the parties for safekeeping or for delivery to the
other party. The Real Estate Broker must deliver such items as agreed and will be bound
by the relevant trusteeship rules.

Article (22)

A Real Estate Broker will be held liable for any loss or damage suffered by the contracting
parties as a result of his fraudulent act or deceit or as a result of failure to observe any
relevant rules stipulated in this Bylaw or the code of professional ethics.

Article (23)

A Real Estate Broker will forfeit his right to remuneration or to claim refund of expenses if
he breaches his obligations to his client by acting in the interest of the other party or by
accepting a promise of a benefit from the other party, where such actions are inconsistent
with good faith or the code of professional ethics.

Article (24)

If a number of Real Estate Brokers are engaged to carry out one contract, they will be
jointly liable unless they are authorised to work severally.

Article (25)

If a number of Persons engage a single Real Estate Broker for the same transaction,
they will be held jointly responsible for implementing the engagement unless
otherwise agreed.

Chapter Four
Real Estate Broker Remuneration
Article (26)

A Brokerage Agreement must be in writing and must state the names of the contracting
parties, the specifications of the Real Property, and the brokerage terms. The Brokerage
Agreement wil be entered in the record of the Real Property Register .

Article (27)

The Real Estate Broker’s remuneration will be determined by agreement, and in absence
of agreement, remuneration will be determined according to prevailing practice.

Article (28)

1. A Real Estate Broker will be entitled to remuneration for his brokerage services only if
a contract is concluded between both parties. A contract will be deemed concluded
if all parties agree on all the conditions provided for in the Brokerage Agreement.

2. A Real Estate Broker will be entitled to remuneration upon signing the sale
contract and registering it with the Department unless the Brokerage Agreement
stipulates otherwise.

3. If the sale contract is conditional upon fulfilment of a term which is agreed in the
Brokerage Agreement, the Real Estate Broker will be entitled to his remuneration
only once that term is fulfilled.

Article (29)

If the Brokerage Agreement is terminated, the Real Estate Broker will be entitled to claim
his remuneration as agreed in the Brokerage Agreement, except where he is proven to
have committed fraud or gross negligence.

Article (30)

If a Real Estate Broker’s instructions or negotiations fail to lead to the conclusion of a
contract between the parties, the Real Estate Broker will not be entitled to claim any
compensation or refund of expenses and costs he incurred unless the Brokerage
Agreement stipulates otherwise.

Article (31)

If more than one Real Estate Broker participates in the brokerage or negotiation process
on behalf of one party for the purpose of concluding an contract and such contract is in
fact concluded, the fee will be partitioned amongst them as if they were one Real Estate
Broker in accordance with the terms of the contract they concluded.

Article (32)

Subject to Article (30) above, if one party enters into an agreement with a number of Real
Estate Brokers severally in respect of a single brokerage or negotiation matter, and only
one Real Estate Broker succeeded in concluding the transaction, then that Real Estate
Broker will be exclusively entitled to the whole remuneration.

Article (33)

A Real Estate Broker will be entitled to remuneration paid by the party that appoints him
to conclude the transaction, and if the Real Estate Broker is appointed by both parties,
each party will be severally liable to pay his own share of the remuneration even if they
agree that one of them will incur the Real Estate Broker’s remuneration in full.

Chapter Five
Settlement of Disputes
Article (34)

A Council comprising four (4) Persons and the Legal Advisor of the Department will be
established at the Department. Members of the Council will be appointed pursuant to
a resolution of the Director General. The Council will have jurisdiction to settle disputes
relating to Brokerage Agreements.

Article (35)

The Council will not consider real estate brokerage disputes unless the Brokerage
Agreement provides for the amicable settlement of disputes by the Department, or unless
the disputants agree at a later stage to refer their disputes to the Department. Agreement
on the amicable settlement of disputes must be in writing and the subject matter of the
dispute must be determined in the amicable settlement agreement document.

Article (36)

The Council will perform its duties in accordance with simple procedures whereby
disputes are settled quickly, ensuring justice for disputants and following the general
principles of law.
The Council’s decisions must be issued in accordance with the rules of law unless
the Council is authorised to conduct conciliation, in which case the Council will not be
restricted by such rules except those relating to public order.

Article (37)

The Council will have a secretariat that receives requests, opens files, drafts minutes
and correspondence, sends notices to disputants, keeps files, and generally performs
all administrative support tasks. Thesecretariat will be appointed pursuant to a resolution
of the Director General.

Article (38)

1. An amicable settlement application must be submitted to the Committee on the
relevant form, to be accompanied with the supporting documents in a number of
copies equal to the number of disputants.
2. Upon payment of the prescribed fee, the chairman of the Committee will authorise
the registration of the application. The secretariat will notify the respondent of
the application.
3. The respondent must respond in writing to the statement of applicant and to all facts
and claims included therein, and must submit such response and any supporting
documents with thesecretariat within one week of the notification.
4. The Council must settle the dispute within a maximum of thirty (30) days of the date
of referral of the file, and this period may not be extended without valid reasons.

Chapter Six
Penalties and Loss of a Real Estate Broker’s Status
Article (39)

Without prejudice to any penalty prescribed by applicable laws, the Committee may
impose any of the following penalties on any Real Estate Broker who violates this Bylaw
or the resolutions or instructions issued hereunder:
1. notice;
2. warning;
3. suspension of activities for up to six (6) months; or
4. blacklisting

Article (40)

Registration of a Real Estate Broker in the Register will be cancelled if he breaches
the code of professional ethics, commits a gross violation of the laws, regulations, and
instructions in force in the Emirate, or accumulates three (3) black points. Cancellation
will be effected by a resolution of the Director General upon the recommendation of
the Committee in which the reasons of cancellation are determined. The Real Estate
Broker may, within fifteen (15) days of notification of the cancellation decision, file with the
Chairman a grievance against the cancellation decision. The decision of the Chairman
in this respect will be final.

Article (41)

The Real Estate Broker will lose his status as a broker and his registration with the
Department will be cancelled in the following cases:
1.The Real Estate Broker permanently ceases his brokerage business and notifies the
Department of such cessation;
2.The Real Estate Broker suspends his brokerage business for more than twelve (12)
successive months without a reason acceptable to the Committee;
3.The Real Estate Broker fails to fulfil any of the requirements stipulated in this Bylaw
or in any resolutions or instructions issued hereunder;
4.The Real Estate Broker’s registration is proven to have been granted based on false
information he supplied to the Division; or
5.The Chairman issues a resolution cancelling the registration in accordance with
Article (40) of this Bylaw.

Article (42)

The Division must notify the Competent Entities of the decision to suspend the Real
Estate Broker’s activities and to cancel his registration.

Chapter Seven
Final Provisions
Article (43)

Real Estate Brokers who are practising at the time this Bylaw is issued must, within
six (6) months of the day on which it is issued, comply with the provisions hereof. The
Chairman may extend this period by up to three (3) months if there are reasons that justify
such extension.

Article (44)

The Committee may, in consultation with Competent Entities, classify Real Estate Brokers
according to their specialty and determine the required number of Real Estate Brokers.

Article (45)

The Department will charge fees for the services provided pursuant to this Bylaw and
these fees will be determined pursuant to a resolution of the Chairman.

Article (46)

The Chairman will issue the orders, resolutions, and instructions required for the
implementation of this Bylaw.

Article (47)

This Bylaw comes into force on the day on which it is signed and will be published in the Official Gazette.

Mohammed bin Khalifa Al Maktoum
Chairman of the Land Departmen

Issued in Dubai on 30 May 2006
Corresponding to 3 Jumada al-Ula 1427 A.H.