The Real Estate BrokerageThe types of real estate brokerage are as follows: • Brokerage in sale and purchase of real estate. • Brokerage in rent of real estate. The real estate

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The Real Estate Brokerage



Practicing the

Real Estate Brokerage Profession

In Accordance with

Applicable Laws and Regulations in the

Emirate of Abu Dhabi

For Licensees to Operate in the Real Estate Sector

MREDMAPP02E

2020



Table of Contents

Subject Page

Introduction 11

Chapter 1: Defining Real Estate Brokerage and its Importance 17 Definition of real estate property in accordance with the Law No. (3) Of 2015 Regulating the Real Estate Sector in the Emirate of Abu Dhabi

21

Legal Definitions of Real Estate Property 23 Chapter 2: Real Estate Brokerage in Accordance with the Law

No. (3) of 2015 Regulating the Real Estate Sector in the Emirate of Abu Dhabi and its Regulations

25

Requirements for Obtaining a Real Estate Brokerage License

29

Provisions of Brokerage License in Accordance with the Law No. (3) of 2015 Regulating the Real Estate Sector in the Emirate of Abu Dhabi and its Regulations

36

Chapter 3: Modern Methods in Management of Real Estate Brokerage

51

Personal skills for working in real estate brokerage 54

Real Estate Concepts & Procedures 57

Schedule for Guidance 73



Learning Journey

ADVETI welcomes you to the Real Estate Training Courses. We hope that your learning journey with us will be enjoyable and rewarding. We believe that our co-operation along with the education and skills you gain from this training will assist you in achieving your employment goals in the real estate field.


Training Procedure

The Real Estate Training Programs provide the practical knowledge, education and real estate sciences that participants need to prepare them for work within the real estate field.

The training will enhance participants with the requisite knowledge and skills to practice the real estate professions professionally and ethically within Abu Dhabi.

The real estate training courses will provide full details and explanation regarding the real estate professions identified in Rule No. 3 of 2015 Concerning the Regulation of the Real Estate market in Abu Dhabi.

The real estate training courses will provide participants with the real estate sciences and knowledge enabling them to be certified to practice within the real estate field successfully and profesionally within Abu Dhabi and with the aim of participants achieving a high level in their careers.

Our mission is to provide the participants with the most up-to-date knowledge and skills in the real estate field by employing highly qualified trainers.

At the end of the training, those participants who successfully pass the Real Estate Practitioners exam, will receive a certificate of completion. These certificates must be presented to the Department of Municipility Affairs to complete the procedures for obtaining permission to practice the real estate professions in Abu Dhabi.

In case of failure, the participant has to repeat the exam.

Participants can repeat the exam three times.

If the participant fails to pass after three times, the participant must re-enroll as a new participant.


How to be successful? Full attendance and commitment to the training program schedule.

Active participation in discussion sessions and workshops.

Reading the training manuals provided during the course.

Following up with trainer instructions.

Your responsibilities toward ADVETI In case of absence, training coordinator should be informed and

the absence report must be submitted.

For any information we urge you to communicate with the training coordinator.

Obligations Positive behavior.

Proper appearance.

Follow the instructions.

Attendance Compulsory attendance.

Absence is prohibited, unless permission obtained from training manager.

Health and Safety Understand and comply with the safety and health regulations in

ADVETI.

Comply with the rules provided by ADVETI.


Other issues Daily schedule for the training program identifying the breaks for

lunch and prayer times will be provided at the beginning of the training course.


Introduction



Real Estate Brokerage is significant to the real estate market because it

continually breathes in life and vitalizes the market. If practiced

ethically and professionally, it contributes to the stabilization of prices

and strengthening of the market reputation. If not practiced ethically, it

can contribute to over-valuation or real estate bubbles.

The types of real estate brokerage are as follows:

• Brokerage in sale and purchase of real estate.

• Brokerage in rent of real estate.

The real estate broker is the initial point of contact for clients when they

are desirous of joining the real estate market by means of ownership,

rental or investment. In order to develop a successful plan to achieve

real estate targets, the client will seek the knowledge of a real estate

broker who is well acquainted with the availability and status of real

estate in the market. The real estate broker should have the legal

expertise necessary to carry out real estate transactions.

The duty of the real estate broker is not limited to offering real estate

available in the real estate market to clients. Real estate broker’s services

include the full and complete exchange of legal and clear real estate

transactions.

The real estate industry contributes to national growth and the

comprehensive development of many other industries such as tourism,

banking, finance, and construction.

A country's real estate laws and executive regulations will directly affect

the economic indicators of the country.


Real Estate Brokerage Law

Real estate brokerage law regulates the relationship between all parties

in a real estate transaction, including the relationship between the client

and real estate broker, as well as the relationship among real estate

brokers.

The law places full responsibility on the real estate broker in protecting

their client according to the representation or agency agreement. This

agreement stipulates all work to be provided by the broker and all

commitments made by the broker in consideration for a fee, for a specific

time, in accordance with the applicable real estate laws and local

regulations.

These laws regulate the relationship between:

The real estate broker and the client

The real estate broker and the company

The real estate companies and brokers

The role of the real estate broker

The real estate broker does not have any legal or financial role in the real

estate transaction. The role is limited to giving an opinion as a matter of

consultation and clarification based on knowledge and experience,

without having any influence on either party to the real estate

transaction (i.e. buyer and seller) in making a decision. The decision is

made by the parties and their respective teams.


The duty of the real estate broker towards the clients is based on a set of

morals and principles, called brokerage ethics.

Brokerage ethics are based on the following principles:

The interests of the client are the top priority

The client’s requests are implemented according to the applicable

laws

Full integrity which means that the client depends on the real

estate broker who does not receive a commission from a third

party without the client's knowledge

Full fidelity and loyalty to the real estate client

Transparency in disclosure to the client of any information the

broker knows regarding the deal



Chapter 1

Defining Real Estate Brokerage

and its Importance



Introduction:

Mediation is considered to be a work tool and economic activity, since it

saves the time and effort of parties in economic or social activities. Given

the real estate broker’s fundamental role in daily life and the consequent

impact of this role on the economic development of a country, it is

proven that the real estate sector has a significant economic and social

role in society.

In this context, mediation must be addressed through the concept of

brokerage. This chapter outlines brokerage within professional and legal

frameworks so as to form an integrated perception about the rights and

obligations associated with it.


Real Estate Concepts

The basic concepts of this section include the definition of real estate

property in accordance with legal and judicial concepts. This definition is

then related to the profession of the broker and the influential effect it

has on the economy.

Thus, the real estate property shall be identified as follows:

Section I: Definition of real estate property in accordance with Law

No. (3) of 2015 Regulating the Real Estate Sector in the

Emirate of Abu Dhabi Section II: Legal definitions of real estate property


Section I

Definition of Real Estate Property in accordance with Law No. (3) Of 2015 Regulating the Real Estate Sector in the


Real Estate: Means all kinds of real estate, including lands, buildings,

establishments, apartments, floors, and real estate units in particular.

Accordingly, property is a fixed object, which cannot be moved from one

place to another without damage.

It is apparent that this definition includes several concepts required to be

identified accurately, in order to become acquainted with the proper

definition. These concepts are as follows:

Title Deed: Means the parcel issued by the competent authority identifying the plot’s borders, according to the land zoning, the

conditions of the natural surroundings, and the owner of the plot.

There is no difference in the title deed, regardless of whether the land

was prepared for cultivation or construction. Any permanent buildings

constructed on the plot shall be considered as real estate property. The

fixed and stable objects on or inside the plot are considered to be real

estate. This is true even if the owner of such objects is not the owner of

the plot on which the objects are constructed. For example, buildings that

are built on the rented plot by the tenant under a permit from the owner

are considered to be real estate, as long as they are fixed and stable on

the plot.


Real Estate Unit: Means apartments, floors, storeys, any part of the

house (villa) connected to or separate from another house or vacant plot

located in a common property, whether existing or proposed under a

floor plan or compound plan, and allocated for commercial, residential,

or mixed purposes.

Immovable property by destination

Immovable property by destination is a personal property attached to

the building permanently and whose separation from the building

requires loosening, disassembly, and denaturation places.

The notion of immovable property by destination is a legal fiction that

allows attaching a property to a building, and linking it with its legal

system.

Example: Animals and objects that an owner of land has placed in the

service and exploitation of this land.


Section II

Legal Definitions of Real Estate Property

Usufruct:

It is a specific right to use the property owned by a third party, provided

that the property shall be maintained until delivered to its owner. The

right of usufruct shall be extinguished upon death of the beneficiary. It is

a non-consumable specific right over a property.

Usufruct may be enjoyed while the contracting parties’ beneficiary is

alive during the time of grant. It may be granted over a place of

residence.

Easement:

Easement is a specific real estate right, whereby a property burdened by

an easement, called a "servient estate’’ gives benefits to the property

holding usage of the easement, called the “dominant estate”.

The easement is provided for specific reasons under the law. The

easement varies according to the property holding usage of the

easement.

The easement has distinguished characteristics in comparison to other

rights since the easement is the perpetual and indivisible right over the

property burdened by an easement.



Chapter 2

Real Estate Brokerage in Accordance with Law No. (3) of 2015

Regulating the Real Estate Sector in the Emirate of Abu Dhabi

and its Regulations



Real estate licensing regulations apply to companies licensed by the

competent authorities to engage in any of the permitted real estate

activities. The broker is an individual or a company who holds a

professional license to practice real estate brokerage and is registered in

the Brokers Registrar.

There are two types of brokerage: brokerage in the sale of real estate and

brokerage in the rental of real estate. The broker shall be registered in the

Brokers Registrar and hold a Broker ID from the competent authorities.

In light of the foregoing, and in order to consider the aspects of broker

and real estate brokerage in accordance with the policies and procedures

applicable in the Emirate of Abu Dhabi, the following shall be discussed:

Part I: Requirements for obtaining a real estate brokerage permit

Through a review of laws and regulations applicable in the Emirate of

Abu Dhabi governing the profession of brokerage and the broker, the

policies and procedures can be divided into:

Section I: General provisions.

Section II: Requirements for obtaining a real estate brokerage

license for a natural person.

Section III: Requirements for obtaining a real estate brokerage

license for a legal person.

Section IV: Agent’s license.


Part II: The nature and provisions of a brokerage license in

accordance with the laws and regulations applicable in the


Section I: License validity and renewal

Section II: The provisions for postponement of license renewal

and revocation or suspension of a license.

Section III: License management provisions (supervision over

employees and branches) under the policies and

procedures applicable in the Emirate of Abu Dhabi.


Part I Requirements for Obtaining a Real Estate Brokerage License

Section I - General Provisions

Articles (2) - (8) of the Permit Regulation sets out the general provisions

and framework for the authority in charge of licensing the real estate

brokerage profession license. These provisions provide as follows:

1. The Department may, upon a request submitted by the concerned

party under the form approved by the Department, issue licenses

for categories included in the definition of Licensees according to

the law and this Regulation.

2. Licenses may be issued to the broker, auctioneer, owner association

manager, assessor and surveyor for both legal and natural persons.

3. The applicant shall not provide any false, misleading or incomplete

information or documents to the Department in relation to the

application pursuant to the law and provisions of this Regulation.

4. The applicant shall pay the fees mentioned under the Executive

Regulations with regard to fees.

5. Any person obtaining a license in accordance with the provisions

of this Regulation is not relieved from obtaining any licenses,

permits or other approvals required by any other government

authority to be able to carry out his/her duties in accordance with

the legislation in force.

6. The Department is entitled to accept or reject the application. The

application shall be decided within a maximum period of thirty


days as of the date of completing all application procedures. The

Department shall notify the applicant in writing of its decision.

7. If the Department finds incomplete information or documents

submitted to obtain a license, the applicant shall be advised to

complete the missing data or documents within a period to be

determined, subject to a cancellation penalty.

8. In the event the Department refuses to issue the license, such

decision shall be given with reasons and shall be advised to the

applicant.

9. The applicant is entitled to submit a challenge to the Municipality

against the decision to reject the application or to advise

completion of missing data or documents within fourteen days as

of the date of notice on the same.

10. The Municipality shall decide on the challenge within thirty days

as of the date of submission. Failure to decide on the challenge

within the prescribed period indicates that the challenge is deemed

rejected.

11. The applicant is entitled to challenge the decision before the

competent court within sixty days as of the date of notification.


Section II Requirements for Obtaining a Real Estate Brokerage License

for Individuals

The formal requirements imposed by the law are the most important

requirements in regards to implementing procedures. Without them, the

procedures cannot be completed.

These requirements constitute a procedural guarantee in preserving

rights and maintaining the accuracy and transparency of data and

information related to professions in general and brokerage in particular.

In this regard, Paragraph (1) and Paragraph (2) of Article (5) of the

Licensing Regulation stipulates the following requirements:

1. Individuals applying for a license to work as a broker shall meet

the following requirements:

A. Shall be a UAE national.

B. Shall not be convicted of any crime involving moral turpitude

or dishonesty nor shall be declared bankrupt.

C. Shall pass the required training course and examinations

prescribed for broker licensing, as approved by the

Department.

D. Shall not have less than two years of experience in brokerage.

E. Shall obtain appropriate educational qualification as

determined by the Department.


2. The license application shall be submitted with the following

documents:

A. A copy of a valid ID.

B. (2) Personal photos of the appropriate size.

C. Any other documents or data required by the Department.

In order to accurately recognize these requirements, they will be divided

as follows:

First: Formal requirements The brokerage practitioner shall be a UAE national and shall submit a

copy of a valid ID and two personal photos.

Accordingly, these requirements became clear and accurate. The other

objective requirements will be discussed below.

Second: Objective requirements Due to their constant upgrading and improving nature, these basic

requirements constitute the foundation for the development of the real

estate brokerage profession. The objective requirements are as follows:

- Shall not be convicted of any crime involving moral turpitude or

dishonesty nor shall be declared bankrupt.

This is one of the fundamental requirements that prevent a morally

incompetent person from joining the profession. Brokerage is

considered to be the primary interface of the real estate sector; real


estate construction and development are useless without the

marketing done by real estate brokerage.

- Shall pass the required training course and examinations

prescribed for licensing the broker, as approved by the

Department.

The training and development of the private sector, specifically in

regards to the real estate brokerage practitioner, is a joint effort

between the public sector and the private sector to continually

improve the real estate sector, as reflected in the national economy

outcomes.

- Shall not have less than two years of experience in brokerage;

shall obtain appropriate educational qualification as determined

by the Department, and any other documents or data required by

the Department.

These objective requirements are associated with the competent

authority’s discretionary powers in authorizing the management to

assess the real estate sector’s requirements in accordance with the

available data at hand.


Section III Requirements for Obtaining a Real Estate Brokerage License

for Companies Companies applying for a license to work as a broker shall be registered

in accordance with the Federal Law No. (2) of 2015 on Commercial

Companies. The commercial company shall meet the following

requirements:

A. Shall be licensed and registered in the Emirate or shall have a

branch licensed in the Emirate, if the company is licensed in any

other emirate of the United Arab Emirates.

B. Shall have the required financial capacity according to the

standards set by the Department.

C. Its director or any member of its board of directors shall not enter

into bankruptcy nor shall be convicted of a crime involving moral

turpitude or dishonesty.

D. Shall provide copies of the following documents:

As of the date of application, a valid commercial license, and a

valid certificate of its membership in the Chamber.

Lease contract or title deed of buildings serving as the main

office or headquarters of the business.

Any conditions or documents required by the Department.


Section IV Broker Employee License

Individuals applying for the broker employee license shall meet the

following requirements:

A. Resident of the UAE.

B. Not be convicted of any crime involving moral turpitude or

dishonesty.

C. Pass the training course and examinations prescribed for brokers,

as approved by the Department.

D. The permit application shall be submitted with the following

documents

• A copy of a valid passport or ID.

• A copy of a valid residence visa.

• (2) Personal photos of the appropriate size.

• Any other conditions, documents or data required by the

Department.

.


Part II

Provisions of Brokerage License in Accordance with the Law No. (3) of 2015 Regulating the Real Estate

Sector in the Emirate of Abu Dhabi and its Regulations

When the applicant obtains a real estate brokerage license, a series of

provisions regulating this license shall be imposed as to the terms of

validity, renewal procedures, and the provisions in the case of non-

renewal. This topic will be addressed in the following sections:

Section I: License validity and renewal.

Section II: The provisions for the postponement of a license and

cancellation or suspension of a license.

Section III: The provisions for the management of the license

(supervision on employees and branches) under the

policies and procedures applicable in the Emirate of

Abu Dhabi.

.


Section I License Validity and Renewal

Pursuant to the Executive Regulation for licenses of Law No. (3) Of 2015

Regulating the Real Estate Sector of the Emirate of Abu Dhabi, the

licensing provisions for terms of validity and renewal procedures are

identified as follows:

First: Article (9) of the Regulation provides as follows:

1. All licenses mentioned in this Regulation shall be valid for one

calendar year as of the date of license issuance.

2. All licenses shall be renewed annually.

3. The Department may renew the license at the licensee’s request

within a maximum period of three months from expiry of the

previous license and after paying the specified additional fine.

4. The application for license renewal shall be submitted in the form

approved by the Department, along with the documents and data

required under this Regulation.

5. The applicant seeking license renewal under the provisions of the

law and the Regulations shall pay the prescribed fees according to

the Executive Regulations.

Second: Article (11) regulates license renewal for individuals as

follows:

Individuals applying for license renewal shall submit the following

documents:

1. A copy of a valid passport or ID.

2. A copy of a valid residence visa.


3. (2) Personal photos of the appropriate size.

4. Certificate confirming the completion of any training course or

program required by the Department as a condition for required

license renewal.

5. Any other documents or data required by the Department.

Third: Article (12) regulates license renewal for legal persons as

follows:

Companies applying for renewal of the company’s license shall submit

documents confirming the following:

1. Financial report approved by a certified accounting auditor.

2. A general director shall obtain the license required, as applicable.

3. Its director, or any member of its board of directors, shall not enter

into bankruptcy nor shall be convicted of a crime involving moral

turpitude or dishonesty.

4. Shall provide copies of the following documents:

As of the date of application, a valid commercial license, and a

valid certificate of its membership in the Chamber.

Lease contract or title deed of buildings serving as the main

office or headquarters of its business.

Accounting auditor’s certificate with regard to the project

escrow account, in the event of license renewal for the broker.

Certificate proving that the employees hold broker licenses, in

event of permit renewal for the broker.

Any conditions or documents required by the Department.


Section II Provisions for the Postponement of License Renewal and

Cancellation or Suspension of a License

The permit for practicing real estate professions, including brokerage,

falls under the control and supervisory procedures of the Department of

Municipal Affairs which department is responsible to regulate the real

estate industry.

The postponement of license renewal, as well as revocation or

suspension of the license, are important issues falling under the function

and expertise of the competent authority. These provisions shall be

discussed as follows:

First: Article (13) regulates the provisions regarding postponement

of license renewal.

The Regulation vests in the Municipality and Department powers of the

supervisory functions, which are as follows:

1. The Department may close the office of any party holding a license

that has expired for more than three (3) months.

2. The Department may exempt the license holder from paying fees

for the non-renewal period, provided that the license holder proves

that it did not practice the activity during the suspension period.

3. The above provisions in connection to the license shall apply to all

cases of license renewal acceptance or rejection; including the

challenge and appeal to the competent court, if necessary.


Second: Article 79 of Law No. (3) Of 2015 and Article (14) of the

Executive Regulation for licenses regulates the provisions to

cancel or suspend the license as part of the procedures taken

by the competent authority (Department of Municipal

Affairs) against the licensee:

The Department may cancel or suspend the license in the following

cases:

A. If the licensee enters into insolvency or bankruptcy.

B. If the licensee is convicted of a crime involving moral turpitude or

dishonesty.

C. If the licensee violates any code of conduct valid at the time of

violation.

D. If the broker fails to justify funds received from the deal in which

he/she participated.

E. If the licensee mixes its own money with the money of the parties

whom working for their benefits in normal business.

F. If the Owners Union Manager breaches any of his obligations set

forth under the law.

G. Violation of any provision of the law, Executive Regulation, and

the decisions issued for the implementation thereof.

Before revocation or suspension of a license, the Department may serve

written notice to the licensee, including the causes for revocation or

suspension. The licensee is entitled to reply to such notice within 21

days.

If the Department decides to revoke or suspend the license, it shall take

into account the reasons stated by the concerned party in his/her reply

to the notice, if any.


The Department shall record the data regarding the violations

committed by the licensees in the Real Estate Development Register.

The person affected by the Department's decision to cancel or suspend

the license is entitled to challenge the Department's decision before the

competent court in accordance with the provisions stipulated in Article

(8) of the Regulation.


Section III License Management Provisions (Supervision over

Employees and Branches) under the laws and regulations applicable in the Emirate of Abu Dhabi.

The management of the real estate industry, with specific reference to

supervising licensees practicing the business, contributes to the

development and maintenance of an important economic sector. To this

end, Law No. (3) Of 2015 Regulating the Real Estate Sector in the Emirate

of Abu Dhabi was enacted to provide supervisory functions and powers

in practicing real estate business management, which will be

summarized as follows:

First: Article (15) regulates the presentation of the trade name and

permit number

Supervisory powers are exercised by the public authority to maintain

economic activity and the rights of investors and clients in the real estate

sector so as to avoid and reduce fraud cases. These powers also give

respect and appreciation to the practitioner in front of recipients of real

estate services, whether investors or public administration. These

supervisory powers are represented in the presentation of the trade

name and license number:

1. The licensees shall submit a copy of the license upon request from

the Department, Municipality, the police or any client having a

relationship to the Licensee.


2. The licensees shall present the trade name, license number, and the

number registered in the Real Estate Development Registrar, as

required, on each of the following:

• Business main office and any branch.

• Stationary and business cards.

• Any advertising or promotional materials.

3. The agent’s license number and the broker/employer’s license

number shall be stated on the agent’s business card.

Second: Article (16) regulates the opening and management of

branch offices

1. The licensee may open one or more branch office in addition to the

main office of the activity set forth in the license.

2. Prior to opening any branch office, the Licensee shall advise the

Department on his/her desire to open a branch office in the form

approved by the Department for opening the branch office.

3. In the case of the broker, the branch office shall be at all times

under the actual control of the agent.


The issue of dependency and legal issues arising upon the real estate

broker, whether a company or an individual person, is affirmed so the

broker employee remains responsible for branch offices in his/her

capacity as the supervisor of this office. Article (17) regulates the

supervision of staff as follows:

1. The licensee shall supervise his/her staff on an ongoing basis and

take all appropriate and necessary procedures to ensure their

compliance to the law, regulations, decisions, instructions issued

thereunder, and any code of conduct regarding the licensee’s

activity.

2. The licensee shall bear civil liability for any violation or omission

to an act imposed under the law, Executive Regulation or the

resolutions implementing the same made by any of its employees

during the exercise of his/her duties.


Real estate brokerage management procedures taken by the broker, whether an individual or company, shall be discussed

through the following questions:

What are the conditions for working in real estate brokerage?

Real estate brokerage licensing and registration in the Brokers Registrar

shall be completed in order to obtain the corporate certificate of the office

and broker ID. The relevant rules and regulations shall be followed.

What documents are required for the renewal of the real estate broker

and agent IDs and the fees imposed in this regard?

In order to renew the broker and broker employee IDs, the relevant form

shall be filled in and the following documents shall be submitted:

• Personal photo.

• Copy of a valid passport, Family Record for UAE nationals, and

residence visa for expatriates.

• Fees for license or permit renewal for individuals broker AED

5,000.

• Fees for license or permit renewal for individuals broker employee

AED 2,500.

• Fees for license or permit renewal for companies AED 10,000.

• Qualification certificate for renewal.

What documents are required for the renewal of the real estate

brokerage office and the fees imposed in this regard?

The conditions required for the renewal of the office certificate and

required fees:

• Course certificate for partners and manager.

• A copy of the license and office lease contract.


• The application for renewal to be submitted at the Department of

Economic Development and electronically approved by the

competent authority.

• All brokers shall be registered in the Brokers Registrar.

• License fees of AED 10,000 annually.

Is a real estate license required to open an additional branch of the real

estate firm?

Yes it is necessary. The application for an additional branch license shall

meet the following requirements:

• Shall have a sufficient number of real estate brokers in the main

office.

• The firm and all of its employees shall be enrolled in the

Department of Municipal Affairs.

• The firm shall be managed through the broker employee.

• License fees of AED 10,000.00 annually.

What conditions are required to add a director and partner to a real

estate firm?

• The age of the manager or partner shall be not less than 21 years.

• The manager or partner shall pass a real estate brokerage course.

• The manager or partner shall be a person of good conduct.

• The manager’s residence shall be stated in the firm’s license.

• The partner or director shall not be partner or director in any other

real estate brokerage license.

What documents are required to hire a real estate broker employee to a

real estate firm?

The broker employee shall pass a real estate brokerage course.

The broker employee shall have a valid certificate of good conduct.


Personal photo.

The broker employee’s residence shall be stated in the license of the

firm where he/she is working.

Permit fees.

A copy of the passport and a copy of residence visa.

Who are obligated to obtain a real estate broker's license?

Persons concerned are:

In general, everyone contacts the public during the brokerage process;

including the financial accountant to identify the financial provisions

relating to brokerage. The job titles include, for example:

- General Manager - Sales Manager - Salesperson – Sales Representative -

Real Estate Broker - Land and Real Estate Broker - Sales Supervisor -

Marketing Specialist - Administrator - Commercial Promoter -

Commercial Agent.

How is the broker’s remuneration determined?

The broker’s remuneration is determined by decision of the Department

of Municipal Affairs in reference to the real estate laws and procedures

applicable in the Emirate of Abu Dhabi.

Is it necessary for the non-UAE applicant for a brokerage license to

complete a certain period of residency in the UAE?

There is no specific period.

Is it possible to appoint more than one broker in the same transaction?

• If the contracting party appoints more than one broker for the same

task, the main brokerage contract shall be entered into with one of

these brokers. The brokers shall enter into a written brokerage sub-

contract with each other according to the form approved by the


Department of Municipal Affairs so that the brokers shall allocate

commission or fees in accordance with the method specified in the

sub-contract.

• The broker may not represent more than one party at the same

transaction. However, two brokers or agents in the same office or

company may independently represent more than one party in the

same transaction provided that:

- The contracting parties shall be aware of the representation of

the broker or agent for more than one party in the same

transaction and shall agree on the same.

- The contracting parties shall severally sign a written brokerage

contract with the broker.

- The broker or agent shall represent the contracting party with

honesty and independence.

Does the broker have the right to claim compensation if the deal is not

completed?

If the broker’s directives or negotiations do not lead to signing a contract

between the parties, the broker is not entitled to demand any

compensation for expenses or costs that he/she may have incurred

unless the brokerage contract provides otherwise.

How are disputes between brokers resolved?

The disputes shall be resolved by referring to the Department of

Municipal Affairs.

What are the penalties against practicing real estate brokerage without

a license?

Each and every person practicing any activity in the capacity of real

estate broker or broker employee or claim such capacity for him/herself


without being a licensee or in violation of law shall be punished by

imprisonment for a period not exceeding six months and/or a fine not

less than AED 50,000.00 and not more than AED 200,000.00.

What are the penalties against the real estate broker in default?

Revoke or suspend the license

In which cases does the broker lose the real estate brokerage license?

• The broker permanently leaves the work of real estate brokerage.

In such case, the broker shall notify the Department of Municipal

Affairs.

• The broker leaves the work of real estate brokerage for more than

twelve consecutive months without a legal excuse accepted by the

Committee.

• In the case of providing inaccurate information when applying for

the professional permit.



Chapter 3 Modern Methods in

Management of Real Estate Brokerage



The profession of real estate brokerage requires an accurate, personal

and highly skilled effort relating to the concepts of persuasion and

management. Accordingly, we will discuss this topic as follows:

Part I: Personal skills for working in real estate brokerage

Part II: Real Estate Concepts & Procedures


Part I Personal Skills for Working in Real Estate Brokerage

These skills will be discussed in the following sections: Section I: Specialized skills Section II: Personal skills


Section I Specialized skills

The broker shall be familiar with the methods of sale, purchase,

and lease in all real estate types and all real estate fields.

The broker shall have basic technical information whereby the

broker may offer real estate product, feature and components

thereof.

The broker shall have public and real estate connections in various

fields.

The broker shall have the database of areas where the brokerage

profession is practiced and shall communicate with other brokers

to know the price in these areas.

The broker shall obtain a license under various conditions and

shall have a fixed office as previously stated.

The broker shall be familiar with the latest methods and standards,

laws and contracts required to complete real estate brokerage

between the seller and purchaser in a proper manner as per the

applicable laws and regulations.

The broker shall have legal, administrative, accounting and

architectural backgrounds helping him/her to fulfill duties as

required.

The broker shall be acquainted with the laws concerning the

relationship between landlords and tenants, registration laws,

mortgage laws, real estate finance laws, fee laws and its rate,

contracts, ownership and lease systems and laws.


Section II Personal Skills

There are attractive qualities for clients of real estate offices A. Personality of manager and employees: sociable, cheerful and

humble. B. Knowledge of real estate market: The availability of theoretical and

written real estate databases makes an office more successful. C. Commitment to work. D. Long leave: The leave for weeks or months does not serve the work

since it may keep the employee away from following up with the daily and weekly market events.

E. Communication with other real estate offices: Communication with

other offices to know real estate purposes (residential, investment and other) is a successful adminstrative mean.

F. Knowledge and benefit applied by real estate marketing offices. G. Reading quarterly real estate reports issued by reliable authorities. H. Good qualities including sincerity, honesty and validation of the

news spreading in the market constitute the factors of success. I. Integrity and impartiality in dealing with people.


Part II Real Estate Concepts & Procedures

Real estate brokerage overlaps with all real estate development activities,

such as planning, implementation, and financial or administrative

practices. Thus, the broker is required to gain sufficient knowldge about

the minimum real estate concepts. We will state these concepts in the

following sections:

Section I: Important real estate definitions

Section II: Important information about real estate brokerage

Section III: Skills of real estate and sale


Section I Important Real Estate Definitions

Real estate developer

A company which develops an area or a specific site, builds a new entity,

rebuilds or redevelops an existing entity. The real estate developer seeks

the assistance of financial institutions, banks, consultation offices,

construction companies and others in order to improve the economy and

complete the development process. Real estate companies are based on

financial and economic factors and creativity in real estate development.

Real estate urban development companies

Companies which develop urban communities in certain areas or those

companies that can be considered as another real estate developer or as a

part of its duties. Such companies primarily focus on residential projects,

hotels and resorts. Along with these duties, the economic and financial

skills and financing abilities or provisions for these projects shall be

available.

Real estate construction & building companies

Companies which prepare construction drawings and designs for

projects and carry out the works. Such companies appoint architects and

contractors that are able to turn the drawings into reality. Such

companies may turn into real estate development companies upon

availability of appropriate financial sources so such companies are more

complex in administration. In regards to financial aspects, these

companies cost less and gain more.


Real estate brokerage company

Companies which mediate between the seller and purchaser and have a

number of brokers (persons) or branches. The companies hire brokers to

provide its services in consideration of a pre-agreed commission

between the parties. In the Arab region, there is confusion between

brokers as a person or as a company. Brokerage is widespread and

requires social communication skills, permanent following up with the

market, and sales and negotiation skills.

Real estate broker

It is a self-employeed person who practices his/her activity in an office,

works independently or for a brokerage company and often has a

specific geographical area. The real estate broker is wide-ranging and

dependent on communication and negotiation skills, as well as having

experience and knowledge of real estate laws.

Real estate marketing companies

Such companies conduct pre-construction marketing studies and

promotional campaigns in favor of the real estate development

companies. Such companies require a good marketing team and a high

level of understanding of the nature of the purchaser in targeted areas.

Real estate investors

There are two types of real estate investors:

First: Those companies which only participate and finance existing

projects or projects under construction with its role being limited to

financial and control affairs.


Second: Those companies which study the market and conditions of

landlords in targeted areas, purchases or finances real estate in such

areas and then benefits from monthly or annual returns.

Real estate analyst

A person who conducts statistics, feasibility and marketing studies.

Conducting marketing studies requires a high level of analytical skills

and know-how in regards to economic, financial , and data analysis. Real

estate companies, whether sale or purchase, real estate consultations or

real estate development companies, depend on a real estate analyst who

analyzes the real estate market in many aspects related to real estate

prices, the economic status of the real estate market, and the methods of

influencing the real estate market.


Section II General Information About Real Estate Brokerage

What are brokerage contract conditions? The broker shall conclude a brokerage contract in writing in the form

approved by the Department of Municipal Affairs prior to executing any

work in favor of the contracting party.

Such contract shall clearly identify the details of parties, whether the

seller or purchaser, identify the real estate property, agreed amount,

commission rate and registration date of the real estate property at the

Department of Municipal Affairs.

The broker shall submit such contract to Department of Municipal

Affairs to register it in the Real Estate Development Register before

receiving any amounts from the client and in any event, no later than

fifteen days from the date of contract.

Objectives of real estate brokerage companies

The most important objective of real estate brokerage companies is to

assemble two or more parties interested in real estate exchange, through

the services performed and offered by the real estate companies to its

customers in a particular real estate market and through professional

real estate brokers. The following variables have a significant role in

attracting customers to the real estate companies: The level of real estate

services provided by companies to their customers; professional level of

their brokers in the real estate market; presentation of real estate

information to its customers by using the technology available to them;

commission rate on sale and purchase and the connections of advisers,

assistants and supporters of the company's business. Such services are


promotional and competitive factors between companies seeking to

provide distinctive and unique service to its customers as a top priority.

Types of real estate brokerage companies

Many real estate brokerage companies, like companies in other sectors,

are sometimes measured by the number of employees. Some companies

have a small number of employees (less than 5 employees), some have

an medium number of employees (between 5 to 25 employees) and some

a large number (from 25 to 100 employees or more). Real estate

companies linked by recommendation, and large companies with

multiple branches inside and outside the country.

The most important of such companies are known as commercial real

estate agencies, which are large companies with special regulations and

innovative and distinctive methods of work, copyrighted and registered

at government and commercial departments. Small companies are able

to operate under a commercial real estate agency’s name by using its

own innovative methods in consideration of material returns or

percentage of profits agreed upon.

Whatever the company’s size or type, the client seeks the service

provided by the real estate company and how to deal with him/her to

achieve goals. The real estate sector in general and real estate brokerage

companies mainly depend on the individual broker and its professional

level and efficiency in serving customers. Regardless of whether the

broker works for a small, medium or large company, the client should

achieve his/her objectives.


Services provided by the real estate brokerage company

The most important services provided by the real estate brokerage

company to its clients: a comfortable and suitable workplace for

meetings and professional brokers to meet the needs of real estate clients

including sale, purchase, lease, management and other services. These

other services include advising the client on the real estate exchange,

providing as much information to the client as possible, and providing

clients and brokers with connections in the real estate industry to guide

the client and support the broker to professionally complete his/her

duty. The company should also provide certain techniques to save time

and effort of broker and the client's money, such as an innovative

methods for work, programs, professional and simple methods to offer

real estate properties.


Section III Skills of Real Estate Brokerage and Sale

The importance of sales and real estate brokerage

• Effective planning is a vital component to achieve success for all

sales and brokerage.

• Developing plans and marketing strategies enhancing the growth

of the corporation and the achievement of profits.

• Identifying and handling changes in market trends.

• Ensuring that infrastructure and corporate culture support the

marketing strategy.

• Supporting capabilities of marketing decision makers in facing the

future.

• Coordinating marketing and sales in order to improve

performance.

• Applying a deep understanding of purchase behavior to

customers.

• Integration between the marketing tools and techniques and

current sales with marketing plan.

• Creating new tools matching with reality in the domestic and

international environments.

Key concepts of marketing and sales:

• Marketing planning and future industry.

• New century variables and marketing opportunities and risks.

• Marketing research as an excellent marketing tool and marketing

information.

• Analysis of the competitive advantages and costs in light of the

comprehensive quality concepts.

• Analysis of strengths and weaknesses.


• Analysis of market status and competitive alternatives.

Developing marketing strategy:

• Making the right decision about appropriate strategic factors.

• Understanding profit incentives related to appropriate strategic

factors.

• Identifing the most common mistakes in developing marketing

plans.

• Selecting and targeting the most profitable customers.

• Identifying the most important reasons why customers purchase

the product.

Developing simple plans for sale

Being a professional salesman, you are required to ask yourself if you

have established a pattern leading to the desired results. Begin with the

sales plan, which is an accurate process containing arranged actions for

achieving your goals. The sales plan for the successful professional

salesman has three important parts, as follows:

• Analysis of results will assist in planning the next steps:

The analysis of results looks like what the doctor is doing after a

patient’s visit. After diagnosis, the doctor writes a prescription and

writes down the results and the proposed diagnosis. In sales, this is

the time to write down your results, criticize your abilities, and

plan for the next stage.

Successful professionals are not waiting for the wishes, they are

honest with customers and clients. They also depend on pre-


planning, and assess their performance after every sale

opportunity.

• Effective supervision on sales.

• Monitoring team performance in the brokerage office.

Strategies for managing real estate offices are based on the

following factors:

• Setting goals and reviewing timetables to complete the tasks

and the possibility of restarting the planning.

• Ensuring the data is accurate and timely.

• Following the standard methods, rather than the estimated

methods.

• Focusing on and controlling important matters.

• Evaluating the performance of the sales teams in accordance

with practical, reasonable and achievable standards.

• Avoiding crisis management by delegating team members

with adequate powers that enable them to exercise the

required control.

• Motivating the sales team to exert their best effort at work so

as to have the desire to properly control their abilities and

skills through commitment and discipline in performance of

their assigned tasks.

• Members who have power and control within the sales team

shall be selected when determining the objectives and criteria

of performance and review timetable.

• Ensuring the utilization of best work methods and approaches

that save effort and costs.

• The office manager shall always be familiar with all matters in

the sales department by reviewing information identifying the

responsibilities and duties of each employee. This information


is taken from overall performance reports of sales

representatives and reviews of the revenue and earnings of

sales, audits, etc. When completing the audits, a meeting shall

be held for the sales team to discuss all matters with them.

• Control and quality systems applied in a company reflect the

style of management and avoids over-control methods or

micro-management which could lead to counterproductive

results. It is sometimes required to review the objectives,

performance measurement standards, selection, delegation of

powers, and responsibilities identified.


Assigning brokers with duties and responsibilities

This is an administrative matter based on the director's authorization

granted to some of his/her staff to do a lot of routine tasks, which cannot

be done by the director due to insufficient time. This manner

theoretically saves the director a lot of administrative burdens and gives

him/her the freedom to deal with any problem without adherence to

particular standards.

The success of this matter primarily depends on the ability of the director

to determine the assessment criteria of all aspects of the entire sales

department activities and the ability to collect information related to the

actual performance level of the individual sales representatives.

On the other hand, the director of the brokerage office may take the right

procedures if the differences between performance and objectives have

been analyzed. The performance of the sales team is judged by assessing

the achieved sales turnover compared to the set objectives. However, the

sales figures rarely refer to existent deficiencies.

Assessment of sales team and real estate brokerage

Alot of sales directors depend on the sales, earnings, and gains that have

been achieved as an assessment criteria for the performance of the sales

team size. They believe that there is a correlation between sales

representative performance and its activity in carrying out its work and

the achieved results.

There is a problem facing these directors when they try to assess the

activity or performance. Minimum telephone calls conducted by the


sales representative daily or weekly is a measure of the activity but the

true measure of the activity of the sales team does not depend only on

such calls.

Methods of sales team activity assessment are as follows:

• Phone calls conducted throughout the day, week or month: This

method measures the activity of sales team and may reflect the

efficiency and quality of the plans implemented by a team member

but it does not always reveal its efficiency in carrying out various

tasks.

• Conversion ratios: These ratios are a good indicator of the quality

and effectiveness of the performance of sales team in carrying out

the tasks assigned. The sale generally depends on numbers.

Conversion ratios deserving focus and study as follows:

- The ratio between the purchase orders sent and phone calls.

- The ratio between effective phone calls achieving the required

goals and total phone calls.

- The ratio between purchase orders and presentations.

- The ratios between presentations and the effective phone calls.

- The ratio between the purchase order and sale.

Average values

Average values may give us a clear idea of the quality of the business.

For instance, the average value of purchase orders and the average

values production lines on which all purchase orders included.


Assigning tasks and responsibilities as a means to improve

performance of the team within a broker office

Such processes determine tasks that shall be implemented by employees,

what they can do, and what can be achieved if they succeed or fail to

fufill their tasks.

In applying such methods, the sales director shall ask the selected

members to achieve long-term results, provided that they have the full

freedom to determine the work method required to implement the task,

control resources and capabilities that will be mobilized to be available

for them, and make decisions that may be implemented by them. The

director shall also give them freedom in doing various actions, although

they may complete tasks in a manner different from the director without

any interference. They shall be subject to such supervision and

evaluation according to agreed stages in advance, through training

programs and recommendations. The sales director may provide the

necessary support to such members and correct their mistakes.

There is a big difference between the work and distribution of the tasks

to employees since it is apparent that the sales representative in the

second method is subject to careful supervision by the sales director,

who determines the method of his/her work, which must be adhered

thereto.

On the other hand, we find that there is a difference between the

delegation methods of tasks and responsibilities and assignment of

responsibilities. The first method requires that the sales director shall

always be ready to provide support and advice to his/ her team, if


required, and ensure the availability of resources and capacities agreed

thereupon. The sales director should also ensure standards of

supervision, examination and update and develop the objectives, if

required. With respect to assignment of responsibilities, this method is

suitable for sales teams that are not sufficiently trained and its members

lack the ability to communicate with their director, leaving them to deal

with intractable problems alone without any support. Furthermore, the

performance or control of these teams is often monitored too late:

• Managing sales and implementing the sales plan of the target

market assigned to the administration, satisfying the customer,

and following-up collection works and after-sales services.

• Partaking in developing sales methods, and supporting the sales

director in planning and implementing effective programs for the

development of business and increasing the company's share in the

market.



Schedule for Guidance

It is known that the real estate sector represents a significant part of any national economy, due to its multiple effects. Real estate is the common denominator in all residential, investment, administrative, commercial, industrial, hotel, tourism, medical, aviation and navigation sectors. Real estate brokerage is an important and sensitive real estate profession. It determines the appropriate price based on the distinctive real estate assessment to vitalize and empower the market. In order to regulate the real estate market, all professions shall be organized and regulated. The relevant parties shall commit to the rules, grounds, ethics and legal procedures of the profession provided that this work shall be assigned to a person with good reputation and ethics, holders of professional licenses, and qualified persons in terms of experience and competence. They shall establish a registered office in order to ensure the prevention of intruders and brokers from different countries spreading in the GCC. The market will be grown and developed once we regulate such work and profession, especially the real estate profession and the development of the mechanisms thereof. Thus, such market will attract local and international investments because the investors are reassured in regards to the experience and efficiency of the officials. A specialized broker is familiar with the local market; controls the prices; gives data, information and accurate prices with the assistance of real estate assessors; and has the legal expertise required for completing the deals.


Basic duties and responsibilities

First: Sales activities

• Implementing a specific sale plan in the prescribed time and collecting the required information about the market and clients.

• Providing presentations to show the characteristics and features of the company‘s products and services.

• Maintaining close relations with old and new clients to create new sale opportunities.

• Visiting current and new clients and finding acceptable solutions to clients' complaints and after-sale service problems.

• Preparing periodic sales reports showing sales activity and the achievement of objectives.

Second: Following up with customers

• Permanent and continuous follow-up with current customers. • Negotiating with customers in relation to discounts and payment

methods for the completion of contract. • Permanent follow-up to execute the contracts made with customers

in coordination with various departments. • Permanent and continuous supply of information on the market

and customers. This information is utilized in market research. • Carrying out collection activities to the signed contract and

following the customer's commitment to the terms of payment.

Third: Finding new customers

• Creating a customer database and other databases for new customers, along with periodically updating them.

• Achieving sales targets of new customers.


Additional duties: Performing other duties in absence of occupants

• Supporting marketing activities through conducting marketing studies and participating in marketing events and promotional activities.

• Performing special tasks assigned by line managers to stimulate sales or study specific problems related to the sale.

• Following collection works in other areas. • Participating in new projects.

Teamwork: Divisionof duties and responsibilities individually

performed to duties required for working in teams Individual duties take approximately 80% of working hours (on average), while group activities with subordinates and employees in other departments take approximately 20% of working hours.

Job Responsibilities:

• Responsibility for information confidentiality: Maintaining information and confidentiality related to transactions and customers of the company.

• Responsibility for achieving targets: Achieving sales target in quantity and value taking into account the objective of new customers.

Authorities and powers of decision-making: • The employee shall make decisions to solve customers'

problems and achieve their satisfaction.


• The employee shall make decisions related to the appropriate discount rate to be given to clients providing it is in accordance with the company‘s general policy.

Connection in workplace: Internally:

• Contact with various departments to coordinate activities and support team spirit.

• Contact with various departments to provide the necessary information for developing products and addressing customer complaints.

Externally: • Contact with current and prospective clients to discuss and

carry out sales and study customer's needs or complaints and identify ways to satisfactorily address such complaints.

• Contact with various companies in order to source opportunities and potential areas of sales, market the company‘s capabilities, and establish working relations with them.

Fourth: Prohibitions commonly made by the real estate broker

1- Failure to obtain the classified license. 2- Failure to register the certified broker registers. 3- Failure to renew the license. 4- Practicing brokerage activity in violation with an expired license. 5- Failure to renew the classified register card. 6- Practicing brokerage without license. 7- Practicing the brokerage to unregistered and non-authenticated property. 8- Failure to follow business ethics and the Civil Transactions Law (professional customs).


9- Submitting inaccurate or misleading information. 10- Delivering forged documents. 11- Breach of confidentiality. 12- Failure to document the actions made by the investors. The broker shall document all actions made by the investors and not depend on verbal words. Any violation may lead to the deletion or termination of the broker from the registers and cancellation or suspension of his/her license.


Broker in Sale and Purchase

Credibility in dealing with others is reflective of a good real estate broker who aims to achieve a good reputation. Accordingly, the broker attracts a lot of customers in sale and purchase deals. A successful commercial broker deals with his/her profession in serving others rather than in making profit so he/she can achieve successful and ongoing progress and all those who are interested in purchasing or selling real estate will trust him. Thus, the broker will gain the ability to convince any party on the right way. We will explain in detail the real estate broker and his/her important role in the real estate market and how to be a professional commercial broker.

Real estate broker It is believed that the real estate broker profession is easy and any person can work in this profession. This belief is wrong and has led to lack of confidence toward individuals and institutions working in this field for a long period. Individuals need to be qualified to work in such a field. Hence, we should recognize the true nature of the role and responsibilities of the real estate broker so as to assess his/her capabilities and whether his/her work is completed by qualified individuals or institutions.

Who is a real estate broker? A real estate broker is an individual or institution mediating between the parties involved in any transaction, whether the parties intend to purchase or sell. A real estate broker guides many of them in order to purchase the best property, home, facility or vice versa for persons who desire to sell the property. A broker receives his/her commission as per the official agreement before completing any transaction. He/she shall have legal knowledge and be familiar with contracting, registration and documentation.


Importance of the real estate broker The importance of the real estate broker, either an individual or institution, is to know all real estate or buildings in the district or the city in which he/she works to meet customers' demands, whether they are looking for suitable property at the best price or selling real estate as early as possible. One of the broker‘s tasks is to search for a suitable real estate for customers for the purpose of rent rather than ownership. The real estate broker should have knowledge based on prior studies within the district and it is their obligation to find out the client’s needs and to facilitate the process of search and save time for customers. Professional real estate broker The professional real estate broker is a person whose profession is not based on assisting customers to search for a suitable property or sell property at a good price but rather it has regard to two aspects:

Real Estate Appraisal

This is the estimation of the approximate age of real estate and the technical conditions thereof and an estimation of the real estate’s financial value in order to sell or purchase the real estate. This appraisal is made by a person with experience in this field and a high degree of education who knows prices and how to calculate them. The appraiser is required to have a registered license under the applicable law.

Real Estate Analysis

The biggest real estate companies that are interested in the real estate market, by purchasing or selling, or working in real estate consultancy, seek to appoint a real estate analyst who analyzes the market in many


ways; all of which are concerned with high or low real estate prices, the economic situation of the real estate, the reasons for this situation and impacts on the real estate market. This analyst also gives you the best solutions that may be made by you in real estate financing. The real estate broker profession is not easy and it requires professionals to perform it.


Real estate broker services Searching assistance The most important services provided by the real estate broker are to help you in searching for suitable property that meets your satisfaction and ambition. A professional real estate broker will accompany you when inspecting any property and give you the right opinion as he/she has a wide background in the area where you want to buy or rent. The real estate broker should give you statistics about the real estate market’s actual prices to help you make the right decision when purchasing. Real estate financing A real estate broker provides his/her customers with the best ways and tips to obtain appropriate real estate financing.

The disadvantages of a real estate broker Attention to commission rather than the customer's satisfaction One of the disadvantages of some real estate brokers is they seek money more than the customer's satisfaction and needs. When you deal with the broker, you will know if the broker is a professional or non-professional in this way, by noting if he/she speaks with you about commission before meeting your request. It is unadvisable to deal with this type of broker, as you will find that he/she cares about money only and may be more likely to commit fraud.


Lack of sufficient knowledge The profession of real estate brokerage is dominant because it does not require large capital but rather experience and sufficient knowledge in order to give benefit to the customer. If the customer requests information about the area, real estate property or prices and the customer later discovers this information to be inaccurate, the customer will know that the broker is unqualified to work in this field since the real estate broker is required to know everything about his/her work to gain the client’s trust. Business ethics Fair treatment: The broker shall deal with the seller, purchaser, investor and all participants in a transparent, impartial, and fair manner. Confidentiality: The most important thing in business in general and in real estate, in particular, is the privacy of confidential information, deals and transactions. The privacy is required not only in real estate brokerage, but in all professions as well. Integrity and impartiality: The real estate broker must have a good reputation, and display integrity and impartiality to their Clients to earn their trust.

Trust and honesty: Whilst working in real estate brokerage, the real estate broker shall handle important information, contracts, authorizations and powers of attorney, so he/she must be reliable towards all parties.

http://www.bezaat.com/ksa/riyadh/properties-for-sale/all/1

http://www.bezaat.com/ksa/riyadh/properties-for-sale/all/1


Compliance with laws and procedures in Abu Dhabi: Knowledge of the laws, executive regulations and procedures according to the latest amendments and additions is one of the success factors for any real estate broker and all other real estate professions. The broker shall fully adhere to such laws and regulations. Keeping documents and contracts: Organization, electronic archiving and using the latest software are the most important tools related to the broker's work. Taking into account the social responsibility: Real estate brokers have a moral obligation to protect the independence and integrity of the real estate market and not to initiate or contribute to market fluctuations. The real estate brokers must notuse their knowledge of such matters to achieve material or non-material personal gain in such a manner that harms society. Taking into account the interests of contracting parties: As previously stated, the broker use all endeavours to create balance and maintain neutrality and transparency between the seller and purchaser or between the investors and participants in order to avoid damage to any party at the expense of the other party.



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Sr. Service Charges (AED)

1 License / renewal of the principal developer license, including registration in the Real Estate Development Register.

50,000

2 License / renewal of the sub-developer license, including registration in the Real Estate Development Register. 25,000

3

Approval and registration of real estate development project (new) in the Real Estate Development Register; including registration and deposit of plans in connection with development, division, and management systems (floors/ complex / building), as applicable.

150,000 Per project

4

Approval and registration of real estate development project (existent) in the Real Estate Development Register; including registration and deposit of plans in connection with development, division, and management systems (floors/ complex / building), as applicable.

50,000 Per project

5 Registration and approval of the escrow agent with the Department and registration with the Real Estate Development Register.

75,000 one time only

6 Issuance of approval certificate to open an escrow account for the project. 5,000 per account

7 Registration of Project Escrow Account Agreement in the Real Estate Development Register.

1,000 per agreement

8 License / renewal of the broker, corporate entity; including registration in the Real Estate Development Register.

10,000

9

License / renewal of the broker, natural person; including registration in the Real Estate Development Register.

5,000

10 License / renewal of the agent, natural person; including registration in the Real Estate Development Register. 2,500


11 License / renewal of the Real Estate Auctioneer, corporate entity; including registration in the Real Estate Development Register.

10,000

12 License / renewal of the Real Estate Auctioneer, natural person; including registration in the Real Estate Development Register.

5,000

13 License / renewal of the Manager of Owners Association, corporate entity; including registration in the Real Estate Development Register.

10,000

14 License / renewal of the Manager of Owners Association, natural person; including registration in the Real Estate Development Register.

5,000

15 License / renewal of the Real Estate Assessor, corporate entity; including registration in the Real Estate Development Register.

10,000

16 License / renewal of the Real Estate Assessor, natural person; including registration in the Real Estate Development Register.

5,000

17 License / renewal of the Real Estate Surveyor, corporate entity; including registration in the Real Estate Development Register.

10,000

18 License / renewal of the Real Estate Surveyor, natural person; including registration in the Real Estate Development Register.

5,000

19 Issuance of permit to announce the marketing of real estate development projects, through local or foreign media, to promote the sale of off-plan real estate units.

1,000 per marketing

campaign of one month or less.

20 License for the promotion and marketing of real estate development projects to promote the sale of off-plan real estate units.

1,000 per month

21 Permit to participate in local real estate development exhibitions to promote the sale of off-plan real estate units.

1,000 per exhibition


22 Permit to participate in foreign real estate development exhibitions, inside or outside the UAE, to promote the sale of off-plan real estate units.

2,000 per exhibition

23 License to organize a real estate project inauguration ceremony to promote the sale of off-plan real estate units.

5,000 per ceremony

24 Registration of a real estate brokerage agreement between the broker and agent in the Real Estate Development Register (including the main or sub-agency agreement).

500 per agreement

25 Registration of a real estate brokerage agreement to market a real estate development project between the real estate developer and broker in the Real Estate Development Register.

1,000 per agreement

26 Registration of Mortgage Insurance in the Interim Real Estate Register or Real Estate Register.

1:1,000 of the mortgage value,

not exceeding two million dirhams per transaction.

27 Registration of request for Transfer Mortgage Rights in the Interim Real Estate Register or Real Estate Register. 200

28 Registration of deed of assignment for mortgage degree in the Interim Real Estate Register or Real Estate Register. 200

29 Registration of deed of mortgage redemption in the Interim Real Estate Register or Real Estate Register. 1,000

30 Registration of deed of mortgage insurance in relation to Musataha agreement.




31 Registration of deed of mortgage insurance in relation to usufruct agreement.



32 Registration of deed of mortgage insurance in relation to long-term lease agreement.



33 Registration of entries modification for mortgage insurance or mortgage in relation to (Musataha, usufruct and long-term lease).

200

34 Registration of dispositions made on real estate off-plan units in the Interim Real Estate Register.

- In the case of sale, 2% of the property's value on equal basis between seller and buyer, not

exceeding two million dirhams per transaction.

- In case of grant: 2,000 dirhams if the grant is made to assets,

branches, spouses, and corporate entities fully owned by them. Otherwise, the grant fees shall be the same as the

sale fees. - In case of will, 2,000 dirhams

35 Registration and transfer dispositions made on real estate off-plan units from the Interim Real Estate Register to the Real Estate Register.

- In case of sale, 1,000 dirhams - In case of grant, 200 dirhams - In case of will, 100 dirhams


36 Registration of Owners Union in the Real Estate Register. 1,000 dirhams

per owners association.

37 Issuance of a certificate to claim the money deposited in the project escrow account.

500 per certificate

38 Request for modification submitted in accordance with the provisions of the Executive Regulation with regard to the project escrow account.

500 per modification

request

Documents

The Real Estate BrokerageThe types of real estate brokerage are as follows: • Brokerage in sale and purchase of real estate. • Brokerage in rent of real estate. The real estate