1 Copyright © reserved
The Real Estate Brokerage
2 Copyright © reserved
3 Copyright © reserved
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
4 Copyright © reserved
5 Copyright © reserved
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
6 Copyright © reserved
7 Copyright © reserved
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.
8 Copyright © reserved
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.
9 Copyright © reserved
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.
10 Copyright © reserved
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.
11 Copyright © reserved
Introduction
12 Copyright © reserved
13 Copyright © reserved
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.
14 Copyright © reserved
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.
15 Copyright © reserved
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
16 Copyright © reserved
17 Copyright © reserved
Chapter 1
Defining Real Estate Brokerage
and its Importance
18 Copyright © reserved
19 Copyright © reserved
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.
20 Copyright © reserved
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
21 Copyright © reserved
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
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.
22 Copyright © reserved
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.
23 Copyright © reserved
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.
24 Copyright © reserved
25 Copyright © reserved
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
26 Copyright © reserved
27 Copyright © reserved
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.
28 Copyright © reserved
Part II: The nature and provisions of a brokerage license in
accordance with the laws and regulations applicable in the
Emirate of Abu Dhabi
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.
29 Copyright © reserved
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
30 Copyright © reserved
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.
31 Copyright © reserved
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.
32 Copyright © reserved
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
33 Copyright © reserved
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.
34 Copyright © reserved
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.
35 Copyright © reserved
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.
.
36 Copyright © reserved
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.
.
37 Copyright © reserved
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.
38 Copyright © reserved
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.
39 Copyright © reserved
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.
40 Copyright © reserved
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.
41 Copyright © reserved
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.
42 Copyright © reserved
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.
43 Copyright © reserved
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.
44 Copyright © reserved
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.
45 Copyright © reserved
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.
46 Copyright © reserved
• 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.
47 Copyright © reserved
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
48 Copyright © reserved
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
49 Copyright © reserved
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.
50 Copyright © reserved
51 Copyright © reserved
Chapter 3 Modern Methods in
Management of Real Estate Brokerage
52 Copyright © reserved
53 Copyright © reserved
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
54 Copyright © reserved
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
55 Copyright © reserved
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.
56 Copyright © reserved
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.
57 Copyright © reserved
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
58 Copyright © reserved
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.
59 Copyright © reserved
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.
60 Copyright © reserved
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.
61 Copyright © reserved
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
62 Copyright © reserved
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.
63 Copyright © reserved
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.
64 Copyright © reserved
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.
65 Copyright © reserved
• 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-
66 Copyright © reserved
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
67 Copyright © reserved
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.
68 Copyright © reserved
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
69 Copyright © reserved
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.
70 Copyright © reserved
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
71 Copyright © reserved
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.
72 Copyright © reserved
73 Copyright © reserved
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.
74 Copyright © reserved
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.
75 Copyright © reserved
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.
76 Copyright © reserved
• 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).
77 Copyright © reserved
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.
78 Copyright © reserved
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.
79 Copyright © reserved
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
80 Copyright © reserved
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.
81 Copyright © reserved
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.
82 Copyright © reserved
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.
83 Copyright © reserved
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.
84 Copyright © reserved
85 Copyright © reserved
snoinxnapeD yrolxlalpxE
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
86 Copyright © reserved
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
87 Copyright © reserved
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.
1:1,000 of the mortgage value,
not exceeding two million dirhams per transaction.
88 Copyright © reserved
31 Registration of deed of mortgage insurance in relation to usufruct agreement.
1:1,000 of the mortgage value,
not exceeding two million dirhams per transaction.
32 Registration of deed of mortgage insurance in relation to long-term lease agreement.
1:1,000 of the mortgage value,
not exceeding two million dirhams per transaction.
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
89 Copyright © reserved
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
Top Related