Sell Smart, Stay Legal: The Laws for Real Estate Agents in Dubai

Welcome back to Lawgical with Ludmila, where we untangle the legal knots so that you do not have to. I am Ludmila Yamalova, a U.S.-qualified lawyer based in Dubai. In each episode, we break down complex law into clear, practical insights that you can actually use.

Today's topic is real estate agents in the UAE, and in Dubai in particular. This episode will cover issues relevant to agents and brokers, the buyers, sellers, and investors who deal with them, and ultimately anyone who has ever handed an agent a deposit cheque.

At a high level, here is our roadmap:

1. Why is this topic important? Why does it matter, and why now?
2. What is the legal framework: the big picture that applies to real estate brokers in the UAE, and which specific laws fall within it?
3. What are some of the typical or common issues that apply to real estate agents, or arise from their involvement in the industry?
4. What specific legal references apply to those issues and to the common disputes we see?
5. What happens when a deal is cancelled, particularly to one of the most contested issues: the deposit cheque?
6. What about disputes between agents and their own brokerage firms?
7. What rules apply to payment methods and anti-money laundering? This is a huge topic, but we will cover it to an extent because these rules very much apply to real estate agents.
8. If time permits, what can we learn from specific court cases and examples from the Dubai courts? In other words, how do the courts deal with these issues in practice?

We will conclude with the overall moral of the story: why this subject matters and what we need to keep in mind as we move forward.

Why This Topic Matters Now

Let us start with why this topic is important and why we are talking about it now.

First, after returning from the summer, I received a last-minute invitation to deliver a workshop for the real estate industry. That prompted a deeper dive into the topics and legal issues affecting the industry, particularly real estate brokers. The workshop was only 30 minutes long, so there was only so much we could cover. However, it was delivered before dozens, if not hundreds, of real estate professionals. It was an interesting experience, particularly because of the dynamic between a lawyer speaking to real estate agents and our respective goals and objectives within the industry. That is one reason for today's discussion.

The other reason is that the market is changing. We are recording this episode in the fall of 2026. It has been a fairly challenging year for the UAE and the region generally. For a while, the market tapered off during the more sensitive geopolitical months, and that shifted the dynamic. We have covered some of the resulting issues in previous podcast episodes and in my shorter videos. As is typical, every cycle raises new issues. Once again, the role of real estate agents and their respective rights and obligations keeps coming up. The workshop invitation, our return from the summer, and the changing market have come together to make this a good time to discuss the topic.

Finally, this episode is overdue. I have wanted to cover this subject for a long time, but as an active legal practitioner, there is only so much time available. I try to record regular podcasts as much as possible, but they require considerable time and resources. This particular topic is huge. I have been thinking about it and planning for it, and the workshop finally pushed me to make it happen. As I prepared, I was reminded why it had taken so long: this truly is a massive topic from a legal standpoint. We are not just talking about real estate agents. We are talking about an extensive list of laws at different levels. From a lawyer's perspective, it is an in-depth and substantial subject, as I hope to demonstrate over the next hour or so while we go through the legal framework.

Those are the reasons we are discussing it today. I will do my best to make it relatable and accessible, given the extent, depth, and complexity of the legal references and resources that apply to real estate agents. As a lawyer presenting this podcast, I need to provide you with the legal tools and specific references. I want to go through them, but I will also contextualize them as we proceed so that they are easier to relate to.

A Legal Perspective on Real Estate Transactions

Let me set the stage for the rest of this podcast,this monologue, if you will, and explain the lens through which I will cover the subject. I am a lawyer, and I run a law practice here. Therefore, not only the legal references I provide, but also the experience, interpretation, and sentiment behind them, come through the prism of a law practice and a lawyer's perspective.

In simple terms, most of what we deal with in the UAE involves matters that have already developed into disputes. We may therefore have a somewhat more cynical perspective. There are many success stories and great examples of smooth processes and transactions, but those do not come to us very often. Much of what we see is what happens when things go wrong. That is also a valuable perspective to examine and learn from. Many of these issues relate specifically to deposit cheques, which ultimately end up in the agent's hands. The agent, as an intermediary, plays a significant role in the dispute. This concerns both the physical cheque being held and the commission: the agent's entitlement to commission, or perhaps an ongoing entitlement to further commission. I will dive into that in more detail.

Surprisingly, we do not see many clients consulting us before they enter real estate transactions, sign the underlying documents, such as an MOU, or issue cheques. Buyers and investors seem much more eager to part with their money and sign documents, each of which is a legal document, as we will discuss, before consulting legal professionals. They rely to a large extent on real estate agents' representations. These days, access to information through the new AI tools we all have has made that even easier. It is understandable to an extent, and the arrival of AI has made it more understandable than it was before.

Nevertheless, we see very few clients walking through our door for advice before entering these transactions. When cases do come to us, they have already reached a point of contention: a dispute. In many cases, those issues could have been resolved through a half-hour or one-hour consultation beforehand. The clients who occasionally come through our doors for advice before the deal walk away much better equipped, better informed, and better off. That is where we come from as lawyers. Compared with agents, we sit somewhat at the other end of the spectrum. Our job is to assess the transaction comprehensively and advise clients about its risks, if any. Selling the benefits is not our job; somebody else will do that. That is essentially the agent's role: to sell, including selling the benefits of entering the transaction.

Clients do not come to us to have a specific real estate investment sold to them. They come to us for advice on the risks. Our perspective is to look closely at the investment as a whole and identify those risks. This creates an impression that lawyers are an inconvenience, introducing delays or sometimes blocking the deal altogether. But we are not there to give carte blanche or simply sign off by saying, "Yes, this is a great investment." We are asking, "What are the risks for you as a buyer making this fairly large life decision?" The agent's priority, on the other hand, is to close, and to close as quickly as possible. Our approach is often, "Slow down. Let us review this." In many cases, we may recommend restructuring the deal to protect the client's interests. Sometimes our conclusion is that the client would be better off walking away altogether.

The perspectives of real estate agents and lawyers are therefore often at odds, almost directly contradictory in some respects. This is also why we do not work very much with real estate agents: our contribution may be viewed as counterproductive to closing the deal. There is some tension between the professions. When clients ask us to advise before a deal or help manage the transaction along the way, agents often tell us, "You are the only ones raising these issues. You are the only ones making this an issue to begin with. We have worked in this business for decades, and you are the only troublemaker." That is often the feedback we receive as legal practitioners. From a more objective standpoint, I understand why agents react that way: our immediate interests can appear to be at odds.

The Shared Goal of Agents and Lawyers

That being said, our interests should not be at odds. The overall legal framework applying to real estate agents is, in many ways, similar to the framework applying to lawyers or anyone else doing business in the UAE.

At a high level, we are all subject to more or less the same laws, with additional laws applying to particular professions. Ultimately, the agent's goal and our goal as lawyers should be the same: to help the UAE build a reliable, robust, healthy real estate industry that is lucrative and appealing to outside investors. That requires confidence and security. Whatever representations agents make, and however they manage transactions, the end goal should be for the UAE real estate market to be viewed by the outside world as secure, reliable, commercially lucrative, and stable.

The real estate market is not just the investment itself. It includes the experience leading to the investment, its subsequent management, and its eventual disposition. It also includes payment mechanisms. When you purchase an investment, money generally comes through traditional channels, usually bank accounts, and specific regulations apply to those channels as well. We will discuss those shortly. Our goals should not conflict or be counterproductive. To an extent, they currently do, and that is why I embraced the opportunity to speak at the workshop. My purpose was not to highlight tension between the professions, but to inform real estate professionals about the framework applying to them, a framework similar in many respects to the one applying to us and many other professions in the UAE.

There may be a feeling or belief that, because a real estate agent is not a licensed lawyer or doctor, the regulations are fewer or less important. It is easier to become an agent than, for example, a doctor, so perhaps people assume that the legal framework is scant or thin. One takeaway from the workshop challenged that assumption. At the end of the half-hour session, during which I tried to focus on only two or three issues, I asked how many participants had learned something new about the legal issues discussed. Quite a few hands went up.

That suggests many agents still do not understand how robust the legal framework is, the parameters within which they operate, or how important it is to know the laws. These laws protect not only investors, but also brokerage firms and the agents themselves.

Understanding the Legal Framework

Let us focus on what I call the legal framework, or the legal parameters: the universe of laws and their contours as they apply to the industry and real estate professionals in particular.

I think of it as a pyramid, for better or worse. At the top are the most important laws, which supersede the others and act as a filter for interpreting the laws below. The pyramid shape reflects the fact that the volume or number of instruments is smaller at the top and increases as you move down. Here is the overall structure before we examine the specifics:

1. The UAE Constitution. Believe it or not, this is where we start. It sits at the top of the pyramid.
2. Federal laws. These sit beneath the Constitution and govern the federation.
3. Individual emirate laws. For this discussion, we will focus on Dubai laws, decrees, and Executive Council resolutions.
4. DLD and RERA instruments. These include bylaws, circulars, guides, manuals, and protocols issued by the Dubai Land Department and the Real Estate Regulatory Agency.

Federal and Emirate Laws

As a quick recap, the UAE is a country of seven emirates, which together form a federation. As a country, it is governed by federal law. Federal laws apply equally across all emirates, irrespective of where you are. We will discuss the particular federal laws applying to real estate agents.

Beneath federal law sit the laws of the individual emirates. Each emirate has its own real estate laws. The Constitution and federal law provide for certain areas to be legislated by individual emirates, including real estate. Each emirate's real estate market is therefore subject to its own legislation. We will focus on Dubai because it offers perhaps the most vibrant, dynamic, and interesting example, both of real estate regulation and of the market itself. Beneath the federal laws, we therefore have Dubai laws, decrees, and Executive Council resolutions.

I am emphasizing the words "laws" and "resolutions" because beneath those sit instruments with lesser legal authority, such as circulars, guides, manuals, and bylaws. In Dubai, these are issued by the authorities governing the industry: the Dubai Land Department, or DLD, and the Real Estate Regulatory Agency, or RERA. DLD and RERA have authority to issue these instruments. They are part of the framework, but their authority and influence are subordinate to the laws above them.

How the Hierarchy Works

There are several important points about this hierarchy:

1. All the laws apply at the same time. It is not a matter of one law applying in certain circumstances and another applying at a different time. An agent cannot choose whichever law works better for a particular transaction.
2. The higher level prevails. Federal law overrides conflicting local laws. Article 151 of the Constitution establishes the Constitution as the supreme law, with higher laws prevailing where there is a conflict with lower-level or individual emirate legislation.
3. There are many instruments at every level. There are too many to count easily. I have identified at least 30 instruments touching the daily work of Dubai agents. If this were a project to determine the exact number, I am sure it would exceed 30. For today's purposes, we will touch on approximately 30, to the extent possible.

Scope of This Episode

Before we move into the details, a few caveats. Today's podcast focuses primarily on Dubai because it is the most active market and has the most developed regime. Where federal laws apply, I will say so. Other emirates have their own local rules.

There are also two particular areas in the UAE with their own legal regimes: the Dubai International Financial Centre, or DIFC, in Dubai, and Abu Dhabi Global Market, or ADGM, in Abu Dhabi. They are effectively two different worlds, with their own real estate and brokerage regimes. Much of this episode will not apply to them, apart from the UAE Constitution. They are also exempt to an extent from certain federal laws. I say "certain" because the UAE Penal Code and criminal laws still apply equally across economic zones and legal jurisdictions. However, for civil and commercial matters, they have their own regimes. We will not discuss DIFC and ADGM in detail today.

The UAE Constitution

Let us turn to the specific laws. I am mindful of not becoming too legalistic, given how much I want to convey from a legal perspective. But it is important to discuss what sits at the top of the hierarchy: the UAE Constitution.

The Constitution is not often discussed in this context. In the United States, constitutional questions come up frequently. The UAE also has its own Constitution, and it is a well-drafted, solid instrument upon which the rest of the legislation has been built over the years. It is robust and developed, and the framework has evolved. I want to highlight three things: the UAE has a Constitution; it is an incredible instrument; and it applies in many ways to our day-to-day interaction with law and our lives generally.

For real estate and agents, some notable provisions include the protection of private property. The Constitution clearly states that private property is protected; the reference here is Article 121. Another relevant provision is that the emirates exercise powers not assigned to the federation. As discussed earlier, real estate markets are not assigned to be regulated at the federal level, so individual emirates have the ability to regulate them.

At the same time, the federation has exclusive legislative power over listed subjects. These include matters such as real estate ownership and expropriation; you cannot simply take away private property, as well as banks, labour relations, and the major civil, commercial, and penal codes. Those matters are addressed at the federal level. The Constitution identifies the subjects reserved for the federation. Matters not specifically reserved are left to the emirates, including specific real estate laws.

One of the Constitution's main principles is that federal law is supreme in a conflict. If a lower-level law contradicts the Constitution, including its protections for private property, or contradicts federal law, which establishes the framework for matters such as jointly owned properties, contracts, and brokerage, the federal legislation prevails.

The key point is that UAE real estate law is layered. Federal law sets the general rules, and each emirate, Dubai in particular, establishes a detailed regime for its own market.

Federal Laws Applying to Real Estate Agents

We have covered the Constitution. Now let us move to federal law. There are multiple categories: civil, commercial, financial, and criminal laws; advertising and data protection laws; laws governing professions and employment; and general procedural laws. These are different buckets within federal law. Let us start with the relevant civil laws.

Civil Transactions Law

I have recorded a separate podcast on the Civil Transactions Law, which was recently updated. The new law came into effect on June 1, 2026. It is Federal Decree-Law No. 25 of 2025. This is an extensive body of law. It replaced one of the few remaining older laws that had not been replaced until this year: the previous law dated back to 1985.

The Civil Transactions Law provides the foundation for contract formation, offer and acceptance, agency, representation, invalidity of contracts, damages, and compensation. There is much more about it in my dedicated podcast. One notable change is a new statutory duty of good faith in pre-ontractual negotiations. This is particularly relevant to agents. When investors consider a particular investment, they engage in discussions with agents, sellers, or developers. Many representations are made before the decision to invest. The new Civil Transactions Law introduces and addresses this duty of good faith. At a high level, it means that even before entering a contract, there is a duty to act in good faith. You do not necessarily have to spell it all out in the contract. The negotiations, discussions, and representations made before the parties sign on the dotted line must be undertaken in good faith. That duty is prescribed by law.

Another reason agents should know and care about this law is its relevance to MOUs, memoranda of understanding, booking forms, WhatsApp exchanges, and other communications. It addresses what constitutes a contract, which documents may be deemed contractual, and how multiple documents may together form or be interpreted as a contractual arrangement. That is one federal law applying to agents.

Commercial Transactions Law

The next is Federal Decree-Law No. 50 of 2022, the Commercial Transactions Law.

This law addresses commercial brokerage, commercial agency, cheques, their use, and other commercial paper. It matters to agents because it deals at the federal level with commission entitlement, bounced-cheque enforcement, and other commercial aspects of transactions.

Financial Laws and Regulations

Beyond civil and commercial laws, there is an entire universe of financial laws. It is not a new universe, but it is a large one. For many agents, it still seems relatively new because there are so many instruments and the area is evolving rapidly before our eyes. When we talk about layering, this is layer upon layer, continuously being updated. There are many aspects, but for agents the starting point is anti-money laundering, counter-terrorist financing, and counter-proliferation financing.

• Anti-money laundering legislation. The relevant law is Federal Decree-Law No. 10 of 2025. It came into effect less than a year ago, on October 14, 2025, replacing the previous law from 2018. That illustrates how rapidly the laws change. A new law was introduced in 2018, and approximately eight years later we are looking at an entirely replaced framework, rather than merely an amendment. Law No. 10 of 2025 concerns anti-money laundering and counter-terrorist financing and applies to a very large extent to real estate investment in the UAE. Beneath it sit numerous resolutions and circulars. For example, the anti-money laundering executive regulations specifically designate real estate brokers as regulated businesses. This returns to my earlier point: becoming an agent is not just about passing a RERA test. Brokerage is a regulated business with specific standards and conditions attached to the profession. A recent instrument that came into effect in December 2025 clearly designates agents as a regulated profession or business.
• Beneficial owner procedures. Another relevant instrument is Cabinet Resolution No. 109 of 2023 on beneficial owner procedures. It concerns identifying the real owners behind a company. When agents manage or supervise transactions involving a company buying or selling property, ultimate beneficial owners, UBOs, become important. The resolution sets out requirements relevant to agents managing those transactions.
• Real Estate Activity Reports. Ministry of Economy Circular No. 5 of 2022 established the Real Estate Activity Report, or REAR, and came into force in July 2022. It creates an obligation for agents to record relevant real estate transactions through the special platform and provide a REAR report. REAR and RERA are different acronyms. They sound similar, which can be confusing, but they refer to different things.
• Value added tax. Federal Decree-Law No. 8 of 2017 introduced VAT. It applies to agents because real estate commission is considered a taxable supply and is therefore subject to VAT.
• Corporate tax. Federal Decree-Law No. 47 of 2022 also applies. Brokerage firms' profits are taxable at 9% above the AED 375,000 threshold.

These are examples of the financial laws and regulations affecting transactions and agents. Agents need to be aware of them, or reminded of them.

Criminal Laws

Federal Decree-Law No. 31 of 2021, the Crimes and Punishments Law, covers matters such as fraud and breach of trust. These arguments arise frequently in real estate: allegations that agents breached trust, or that parties misrepresented matters or defrauded one another. Those issues are covered by federal law. Another relevant criminal law is Federal Decree-Law No. 34 of 2021, the Cybercrime Law, which regulates matters including misleading online content.

There are also criminal implications within the anti-money laundering laws themselves. Those repercussions, consequences, and penalties do not necessarily arise under the Crimes and Punishments Law; they can arise directly under the AML legislation.

Advertising and Media Laws

Advertising and media represent a perhaps newer spectrum of laws. Until approximately 2023, there was not much advertising legislation specifically regulating agents or brokerage firms. Now we have Federal Decree-Law No. 55 of 2023 on media regulation. It is still fairly new and covers agents. There is also the advertiser permit requirement introduced through Media Council Chairman's Decision No. 3 of 2025. That requirement came into force on February 1, 2026.

I will return to what these laws mean in day-to-day practice. For now, I want to list them to demonstrate how many different laws apply. There is also a separate instrument establishing penalties for breaches of media regulations: Cabinet Resolution No. 42 of 2025. That forms part of the advertising and media framework.

Data Protection Laws

The UAE has its own personal data protection law, Federal Decree-Law No. 45 of 2021.

Why does it apply to agents? Agents handle passports and passport copies, bank details, Emirates IDs, marriage certificates, company documents, and other know-your-customer, or KYC, files. All of this is regulated data. It is regulated and protected under the data protection law.

Legal Advice and Regulated Professions

We then have laws governing professions and employment. Legal advice is one area where tension or conflict can arise between agents and lawyers. We often see agents giving investors what amounts to legal advice. For example:

• "Do not worry. This is a standard document, and it applies to everybody."
• "Do not worry. This is never enforced."
• "This is not an enforceable instrument."
• "This is a perfectly legitimate document."

Statements of that kind border on legal advice.

In the UAE, legal practice and legal advice form part of a regulated profession. Federal Decree-Law No. 34 of 2022 regulates advocacy and legal consultancy. Legal advice is a licensed activity reserved for lawyers, rather than agents. There are penalties for providing legal advice without the required professional licence. That is something to keep in mind.

Employment Law

Employment law is relevant to agents' relationships with their brokerage firms, particularly commissions, salaries, and related issues. We will touch on that later.

Procedural and Dispute Resolution Laws

There are also more general laws, including the Civil Procedure Law, which establishes the framework for court cases and dispute resolution. The Arbitration Law establishes arbitration rules. This becomes relevant where the underlying sale and purchase or investment documents contain an arbitration clause. Historically, perhaps less so now, many sale and purchase agreements between buyers or investors and developers included arbitration clauses as their dispute resolution mechanism. These laws help determine where a dispute goes: arbitration, the Dubai courts, another court, mediation, the Rental Disputes Center, or specialized rental courts, and so on.

That completes our overview at the federal level. We began with the Constitution as level one, then moved to federal laws as level two and the various categories within it.

Dubai Laws Applying to Real Estate

The third level is emirate-specific legislation. Since we are discussing Dubai, these are Dubai laws.

There are so many that I struggled with how best to categorize and list them. Let us go through them chronologically, starting in 2006, approximately 20 years ago, when specific real estate laws were introduced at the Dubai level. Some have been amended and others replaced, but we will map them out in chronological order.

Law No. 7 of 2006 and Property Registration

This law established the Dubai Land Department framework and introduced title registration: ownership is registered through the issuance of a title deed. It established the system for registering real estate investments and their title deeds. Looking at Dubai alone, this is the foundation: the title mechanism, the registration system, and the authority governing it, which can then regulate the procedures further. That authority is DLD.

Law No. 8 of 2007 and Escrow Accounts

Next is Law No. 8 of 2007, the famed, or, depending on the transactions involved, perhaps infamous, Escrow Law. It governs escrow accounts for off-plan sales. At a high level, every off-plan project needs a DLD-approved escrow account. Buyers' or investors' money should go into that account. Articles 9 and 13 are the specific provisions referenced here.

The Establishment of RERA

Following the chronology, we have the law introducing the Real Estate Regulatory Agency. DLD provides the foundation, and RERA is the regulatory agency. RERA was first established in 2007 through Law No. 16 of 2007. That was subsequently replaced by Law No. 4 of 2019, the updated RERA framework.

Landlord and Tenant Laws

Law No. 26 of 2007 deals with landlords and tenants in Dubai. Many know it as the Tenancy Law. It was later amended by Law No. 33 of 2008. This is particularly relevant to agents handling leasing.

Interim Property Registration

Law No. 13 of 2008 deals with interim property registration. Off-plan properties need to be registered through this interim register. I was in the UAE when this law was introduced and when the associated grace periods were introduced for developers and sellers to become compliant. I remember that period. It was quite a revolutionary law. Today, this process is much more established and regulated, and it has become a matter of routine practice. It was not always like that within my living memory. I remember when it was just beginning.

This law introduced Oqood registration: preliminary registration of off-plan projects. At a high level, unregistered sales, sales not registered through Oqood, are deemed void. The law also includes a specific article setting out the developer's termination procedure for breaches.

Registered Marketing Agreements for Off Plan Projects

Executive Council Resolution No. 6 of 2010 implements the bylaws for Law No. 13 of 2008. It addresses brokers marketing off-plan projects and the requirement for a registered marketing agreement. In short, brokers must market off-plan projects on the basis of a registered marketing agreement.

The Rental Disputes Center

There are further laws updating the DLD framework and establishing the Rental Disputes Center, or RDC. The RDC was established by Decree No. 26 of 2013. It is relevant to agents because rental matters fall within its remit, as do matters relating to jointly owned property projects.

Rent Increases

Decree No. 43 of 2013 addresses rental increases, essentially capping rent increases in Dubai. There are many other laws, but let us complete this list of examples.

The Updated RERA Law

As mentioned, the RERA law was updated in 2019. The current framework is Law No. 4 of 2019, replacing the earlier 2007 law. This establishes the regulator that oversees real estate brokers.

Jointly Owned Properties

Law No. 6 of 2019 concerns jointly owned properties. I have recorded a dedicated podcast on that subject for anyone who would like to learn more. It addresses service charges, owners' rights, and disclosure requirements.

Cancelled Real Estate Projects

A more recent instrument, Decree No. 33 of 2020, established a special tribunal for the liquidation of cancelled real estate projects. It replaced the previous instrument from 2013 and concerns cancelled projects.

Virtual Assets and VARA

Finally, and "finally" only in the sense of today's examples, we have the VARA framework: the Virtual Assets Regulatory Authority. This concerns virtual payments, including crypto, and is very relevant to agents. Many would attest to the increased interest recently in paying for real estate investments through virtual assets, no pun intended.

Those are examples of the Dubai laws at level three. Now let us move to level four, the bottom of the pyramid.

DLD and RERA Bylaws Circulars and Guides

This level contains DLD and RERA bylaws, circulars, guides, protocols, manuals, and similar instruments.

Bylaw No. 85 of 2006

For today's discussion, the most important is Bylaw No. 85 of 2006, regulating the Real Estate Brokers Register. It is often referred to as the Brokers Law. It addresses licensing, ethics, brokers' roles as trustees, commissions, and disciplinary rules arising from brokerage practice. For this episode, it is perhaps the most important instrument, and we will keep returning to it.

The RERA Code of Ethics

There is indeed a Code of Ethics specifically applying to brokers. It was issued under Article 14 of Bylaw No. 85 of 2006. It sets out a list of ethical rules, which we will discuss shortly, as well as grounds for cancellation where those rules are breached. It gives parties the right to cancel a transaction in the event of breaches of the relevant ethical requirements.

RERA Forms

We also have forms rather than legislation: RERA Forms A, B, F, I, and U, issued through the Trakheesi system and the Dubai REST app. These are underlying transaction agreement, standard agreements issued by the regulators, and are necessary steps in processing real estate transactions through the authorities. We will discuss them.

Advertising Permits and QR Codes

Advertising permits are issued through Trakheesi, with the Madmoun QR code appearing on each advertisement. Real estate marketing and advertising are regulated and must be handled through these systems. This was introduced in 2023, so it is relatively recent.

The Real Estate Brokerage Practice Guide

Another instrument is the RERA Real Estate Brokerage Practice Guide. Pay attention to the words I am using: guides, circulars, forms. We have the Constitution, federal laws, Dubai laws, regulations, bylaws, decrees, circulars, and guides. As you move down to a guide, its legal significance and authority are lower than those of the legislation above it. Nevertheless, the Real Estate Brokerage Practice Guide exists. It is Manual No. 6, Version 2, issued in November 2024, and it sets out day-to-day compliance guidance.

From a legal standpoint, what does calling something a guide or manual mean? Can you file a case against a broker for violating a manual or a particular guide? The word "guide" carries a suggestive rather than necessarily mandatory connotation. This illustrates why understanding the hierarchy matters. A guide can be an instrument relied on against, or in favour of, an agent, but its legal authority is lower than that of higher-level legislation.

Powers of Attorney

As another example, DLD issued Circular No. 29-R-2025 regarding powers of attorney. This was issued in 2025, just last year, and establishes specific limitations, I use that word deliberately, on agents using powers of attorney in property dispositions. It provides guidelines on who may sign and who may receive money. Previously, agents commonly held general powers of attorney giving them broad discretion to do everything: advertise a property, sign documents on an owner's behalf, and receive money in their own names on behalf of owners or sellers.

That is no longer the position. This circular sets out a prohibition on that practice. In relevant terms, a notary will not issue a power of attorney allowing an agent to do everything in the context of a sale. Property dispositions must now be based on a specific power of attorney identifying the particular unit. Multiple units can be included, but they must each be specifically identified for the agent to act in relation to those dispositions. That was not always required. It was a welcome change when introduced, and the framework continues to be updated. From where I sit in the industry as a legal practitioner, it is a highly welcome and much-needed change.

To recap, the layers are the Constitution, federal laws, Dubai laws, and then RERA and DLD circulars, guides, protocols, and manuals.

The Main Issues Agents and Their Clients Encounter

Let us turn to issues agents may experience, or that people dealing with agents may encounter. This is not an exhaustive list, and it is not necessarily in a strict order, although there is some sequence to it:

• Licensing: Who can be an agent? Who has a licence, and is one required?
• The agent's role: Is the agent an adviser, lawyer, or representative? If a representative, whom do they represent: the buyer, seller, or both?
• Appointment: How is the agent appointed, and under which contracts? Are specific contracts required?
• Commissions: When are they earned, how much are they, and who pays?
• Underlying contracts: MOUs, Form F, sale and purchase agreements, side letters, WhatsApp communications, and other documents.
• Cheques and payments: Who holds them, what do they represent, who may receive them, and when must they be handed back, and to whom?
• Failed deals: What happens when a deal goes wrong, and who is responsible?

From the agent's perspective, there is a continuum:

1. The mandate or appointment of the agent, including the form required.
2. Advertising the particular property.
3. Entering the sale contract.
4. Receiving the money.
5. Transferring title.
6. Paying the commission.

These are the issues that often arise in relation to agents. Let us examine them more specifically, starting with who can be an agent.

Who Can Be a Real Estate Agent

Article 3 of Bylaw No. 85 of 2006 requires agents to be licensed. No person may engage in real estate brokerage activities in Dubai unless licensed by the competent authorities, including RERA, and registered in the relevant register.

The Licensing Process

An individual cannot apply for a real estate brokerage licence unless they work for a brokerage. First, there must be a brokerage company holding a trade licence for that activity from Dubai's Department of Economy and Tourism, or DET. The brokerage then hires an individual agent. That agent applies for their own brokerage licence and receives an individual brokerage card. This is the document used in transactions. The agent representing a deal must be licensed and registered. Those details must also appear in the underlying documents, sale and purchase agreements, or other forms being signed.

To obtain the RERA licence, the agent applies to RERA, completes accredited training or RERA training, and takes the required examination. There is the Dubai Real Estate Institute course and exam, with the card ultimately issued through a licensed brokerage firm. Remember the sequence:

1. A brokerage company is established and obtains a DET licence.
2. It hires an employee.
3. The employee completes RERA training and obtains the relevant licence.
4. The agent is registered in the RERA register.
5. The agent can then legally begin transacting.

Importantly, the licence must be renewed every year. The relevant RERA number is supposed to appear on all real estate documents, including MOUs, SPAs, and other documents being signed.

Freelance Agents and Unlicensed Brokerage

What about freelance agents? Technically, there is no such lawful category in Dubai. There is no lawful freelance real estate brokerage licence. The card is issued through, and tied to, a particular brokerage company. Side deals by unregistered individuals are not merely a grey area; they are outside the law. The law is unequivocal. Without a RERA card and an attachment to a specific brokerage company, you do not have the required licence and cannot act as a freelance agent.

The consequences are important. If someone holds themselves out as a freelance agent without a RERA card, their brokerage or commission agreements are considered void as a matter of public order. Numerous court cases reaffirm this principle. Without a RERA card, you are not considered an agent entitled to commission. There is no commission entitlement, and you cannot claim damages or even expenses, because you are acting outside the law's parameters.

The courts raise this issue on their own motion, even where defendants do not appear. For example, if a case implicating an agent is filed and the agent does not represent themselves, the court can raise the issue independently. Because it concerns public order, the court has an obligation to raise it.

We reviewed a pool of more recent court cases covering approximately the last 14 months. There were quite a few cases specifically about commissions for unlicensed brokers. We reviewed at least eight judgments, and they reached more or less the same conclusion: no card, no lawful brokerage; no lawful brokerage, no commission.

The Role of the Real Estate Agent

Is an agent an adviser, a lawyer, or a representative? And whom do they represent? This is where the confusion is greatest. At a high level, an agent is an intermediary who brings parties together. The transaction contract is between the buyer and seller. The agent is mentioned as an intermediary, rather than as a party to that agreement.

The Duty to Disclose

Under the bylaws governing brokers, an agent must disclose to the client all important elements: everything the client needs to know to make the right decision. The agent must also disclose substantial matters to the other party. For example, if the agent knows something about the property's condition, they must disclose it. They must disclose the relevant elements of the deal to the parties involved. This often does not happen. Agents can be very protective, to put it mildly, about sharing client details, even with lawyers involved in the transaction. They fear the parties will sidestep them or go behind their backs.

When we enter the equation, we often do not even know the seller's or buyer's name. Agents hold those cards close to their chests. Under the bylaws, that is contrary to their obligations. They are required to share the relevant details with the parties involved.

The Agent as Trustee

Another important role is that of trustee, particularly when dealing with money. Agents hold deposit or guarantee cheques for safekeeping. Whether these are personal cheques or manager's cheques, the agents and brokerages hold them in trust. Agents are therefore not merely intermediaries. In this context, they act as fiduciaries or trustees when holding valuable documents such as cheques.

The Agent Is Not a Lawyer

An agent is not a lawyer. We often hear clients report statements from agents such as:

• "The MOU is standard."
• "You cannot get your deposit back."
• "The developer can do this," or, "The developer cannot do that."
• "You do not need a lawyer for this."

In simple terms, these statements amount to legal advice. Whether given for a fee or free of charge, advice of this nature is unlicensed legal advice if the person does not hold the required lawyer's licence. It is not permitted. This falls under Federal Decree-Law No. 34 of 2022 regulating advocacy and legal consultancy. The practice of law is reserved for legal practitioners. In Dubai, legal consultants are also licensed and supervised by the Government of Dubai Legal Affairs Department. A brokerage licence covers none of that.

Article 17 of the brokerage bylaws creates a duty to inform, but it does not provide a licence to advise. An agent can inform a client about the deal and aspects of the property; their role is not to provide legal advice. When that advice is wrong, Article 22 makes the broker liable for the resulting loss. Arguments have been made where a broker gave a party incorrect advice, the party relied on it, and the party suffered a loss.

Under Article 22, as well as other laws, the broker can be legally responsible for losses caused by that unsolicited, unlicensed advice. It is important to emphasize that a broker is not a lawyer. Even if a broker says, "I studied law," or, "I am a lawyer in another country," that does not make them a licensed lawyer in the UAE or Dubai entitled to give legal advice.

The Agent Is Not a Party to the Transaction

A broker is not a party to the transaction itself and cannot be a counterparty in a deal they are brokering unless specifically authorized. In that case, under the bylaws, they do not earn commission.

The Agent Is Not an Attorney for the Client

A broker is also not the client's attorney. DLD practice treats a broker holding the client's power of attorney in the same deal as a conflict of interest. This relates to the relatively recent circular limiting powers of attorney. Previously, the instrument could be incredibly broad, allowing brokers to do everything for the parties they represented.

That practice is now specifically prohibited. Brokers can represent a party as a broker in a particular transaction, but cannot use a power of attorney to manage all the other aspects of that same transaction.

The Agent Is Not a Guarantor

Brokers are not guarantors. They cannot guarantee to either party that the other party will perform or that a particular event will happen. That is not their job, and they are not licensed to provide such guarantees.

Whom Does the Agent Represent

Another frequent issue is whose representative the broker is. The bylaws allow representation of one side or both sides, but treat those situations differently.

Representing One Side

Even when representing one side, the agent must faithfully disclose the deal terms to all sides. Representing one party is not a licence to mislead.

For example, if my broker represents me as the buyer and knows something about the seller or the property that might change my mind, they still have a duty to disclose it. Conversely, if my broker knows something about me that could compromise the transaction, they have an obligation to disclose that to the other side. There is an obligation of full disclosure, fairness, and good faith towards all parties, even when the broker represents only one side.

If a broker represents one side while quietly helping the other, Article 23 specifically prohibits that conduct. The broker forfeits their commission. For example, accepting a promise of benefit from the other side while representing your client can cause you to lose your commission under the law.

Representing Both Sides

Article 33 allows a broker to represent both sides. Each party is liable for its own share of the fee, and dual representation requires full disclosure to both. There must be an equal ability to represent both parties, with the same obligations of disclosure, representation, and good faith towards each. Form F records both commissions for that reason.

Broker Duties and the Code of Ethics

Let us quickly go through the duties in the bylaws, including the Code of Ethics and rules for brokers. These are addressed in Bylaw No. 85 of 2006, particularly Chapter Three. There are several articles. Agents should read them, but I will run through the main requirements:

1. Know and abide by the Code of Ethics. There is a specific code applying to agents.
2. Keep a register of every transaction and all documents. Agents must provide true copies on request. Your file is your defence, so keep the documents and create a proper paper trail.
3. Provide data to DLD on request.
4. Disclose and inform. As discussed, inform rather than advise, and do not conceal material information.
5. Never facilitate a transaction that violates the law. Saying, "The client wanted it," is not a defence.

An Example of Improper Payment Instructions

The last point often comes up with payment methods. We are currently dealing with a case in which a broker advised a seller who did not have a bank account to receive the buyer's payment into the account of someone the broker recommended. That person was unknown to the seller. All of that is contrary to the law. Those kinds of shenanigans involve a transaction that violates the law, with the relevant representations made by the broker.

Interestingly, the broker did not tell the client to pay the money to the broker personally. That would obviously be prohibited under the rules discussed earlier concerning powers of attorney, the circular, and the bylaws. Instead, the broker introduced the client to somebody else, unknown to the client, and told them to deposit money into that person's account. The client did exactly that.

It is bad practice on every account. In our case, the client went ahead with it, lo and behold, although I do not know why.

That should not be the broker's role. Brokers should not facilitate unlawful transactions. I have outlined the applicable laws, and reminding brokers of those laws is precisely the purpose of this episode. When they provide information or manage transactions, agents should be better informed and more cognizant of what they should and should not do. Practices like this do not benefit society, the economy, or the UAE and Dubai real estate markets.

Further Duties and Personal Liability

Continuing through the bylaws:

• Brokers must faithfully disclose relevant matters, even when acting for only one side, and can be liable for fraud or mistakes.
• Article 20 addresses self-dealing, a provision I particularly like. Brokers are not allowed to enter transactions involving self-dealing. I see too many deals with exactly that element, but technically it is not permitted.
• Brokers holding money, securities, or cheques act as trustees. This is a position of significant importance and trust. They must not breach that trust.
• Brokers can be personally liable for loss caused by fraud, deceit, or breaches of the bylaws or Code of Ethics.
• In addition to personal liability, brokers may forfeit commission for conflicts of interest. If a client identifies conduct contrary to their interests, the law provides an argument to deprive the broker of commission or claw it back.
• Where several brokers act on a single deal, their liability can be joint and several. Where one broker has several clients, there is also joint responsibility.

These are the specific Dubai brokerage regulations.

The Federal Duty of Good Faith

Adding the federal layer, Federal Decree-Law No. 25 of 2025 imposes good faith in pre-contractual negotiations, including a duty not to withhold material information. This reaches the agent's conduct in negotiations, rather than just what the parties say to each other. The agent's role is also covered. In addition to everything else, remember this new good-faith obligation. It can give parties a significant, strong argument to unwind a transaction, hold brokers liable, or, at the very least, claw back commission where the broker has not acted in good faith.

To conclude this particular point: inform in good faith and act in good faith, but do not give legal advice. You are an intermediary and trustee, rather than a lawyer, party, or guarantor.

Appointing a Real Estate Agent

We have discussed the agent's role. How are they appointed?

An agent is appointed through a brokerage agreement, which must be in writing. Under the law, it must include the parties' names, the specific property and its details, and the brokerage terms. It must also be entered in DLD's records. There is a specific procedure. In practice, this is where the RERA forms come into play. Agents are familiar with these forms, but at a high level there are five, issued through Trakheesi and the Dubai REST app:

1. Form A: Seller and broker.
2. Form B: Buyer and broker.
3. Form F: Seller and buyer.
4. Form I: Broker and broker, where two brokers are involved.
5. Form U: Client and broker, usually for termination of the brokerage agreement.

These five forms are important to keep in mind. Most agents already know them, and, mindful of time, I will not go through every detail of each one.

Exclusive and Nonexclusive Appointments

Exclusivity is a frequent question: is this an exclusive agent?

A seller may appoint one broker exclusively or several on a nonexclusive basis within RERA's limits. Whether you are the agent or the party dealing with one, make sure the arrangement reflects what you want. If you want exclusivity, it needs to be specifically stated. If you do not want it, read the terms and conditions of the forms you sign to ensure you have not agreed to it. Exclusivity is allowed where provided for. If you are an investor, buyer, or seller and do not want an exclusive arrangement, it is up to you to read the agreement. If you sign one containing an exclusivity provision, you will be bound by it.

Agent to Agent Commission Arrangements

Agent-to-agent commissions are another recurring topic. Article 31 addresses splitting the fee among brokers acting for the same party as though they were one broker. Form I, the broker-to-broker form, is how you document the split. Do that before an argument begins.

Advertising the Property

We now know the broker's role and have appointed them through the appropriate forms. The next step is to advertise the property properly. The appointment unlocks that next step. Without a permit, the property cannot be advertised properly.

Trakheesi Permits and Madmoun QR Codes

Every property advertisement in Dubai: on a portal, Instagram, a WhatsApp broadcast, a billboard, or elsewhere, needs a RERA advertising permit through Trakheesi. Do not rely on an advertisement lacking the proper Trakheesi registration. The permit is tied to one property and one advertisement. You cannot lump a collection of properties into a single permit. It is one property per permit, and the permit number must appear on the advertisement.

Since April 24, 2023, advertisements also carry the Madmoun QR code. If you are relying on a particular advertisement, make sure it contains the relevant registration numbers and QR code. For a resale, the owner must sign Form A to authorize the sale or mandate the representation to the agent. For an off-plan property, the developer's NOC is required. Only registered brokers can apply. Once again, everything comes back to the RERA licence. Using another listing's permit number is a separate violation.

There are many ways to go wrong. Industry fines can be AED 50,000 per unpermitted advertisement, and repeated violations can lead to licence cancellation.

Advertising Content and Monitoring

The advertisement's content is also regulated, including under the brokerage bylaws we keep discussing and Federal Decree-Law No. 34 of 2021. Since April 2025, DLD has operated an AI-driven platform monitoring the major portals. Be mindful of misrepresentations; it is very easy to get caught.

Social Media and the Advertiser Permit

The RERA permit concerns advertising a particular property. Another permit comes from the UAE Media Council and is often described as an influencer licence. This question comes up frequently because so many agents use social media, including their own personal platforms, to advertise properties.

Under the UAE Media Council framework and advertising laws, there is also a licence requirement. If you are required to hold that licence and advertise without it, penalties can be severe: from AED 10,000 for a first unlicensed offence up to approximately AED 1 million, particularly where there is a content breach. You should apply where required. The permit is free, valid for one year, and requires the relevant electronic media trade licence activity and a tax registration number. I have recorded a podcast on this subject as well. There is an exemption for personal accounts promoting their own products or services. Where an agent's listings fall can be contested.

For example, you have your own social media platform, but you are an agent working for a brokerage and holding your own RERA licence. Are you allowed to promote a particular property for which you may already have a Trakheesi registration? This can be contested territory. It depends on whether the property is also advertised through the agency under the proper licences.

It is a grey area, so be careful about what you promote on your personal social media. That may be a topic for another day. Nevertheless, an agent with a prolific social media presence who may be viewed as an influencer should be mindful that advertising someone else's product can bring them into the territory of potentially violating the UAE influencer licence requirement.

If you use social media frequently, consider applying. As mentioned, the permit is free. Listen to the dedicated podcast if you want to understand the process better. Given the potentially severe penalties, it is better to err on the side of caution and apply than not.

Commissions and Entitlement to Payment

Let us briefly discuss commissions. We have touched on when you are entitled to one.

There is no law specifically setting a minimum or maximum commission. That is a matter of agreement. Without an agreement, however, there is essentially no commission. In practice, we see 2% paid by each side as a market custom. That is custom, rather than law. The brokerage agreement must state in writing:

• What the commission is.
• Who pays it.
• When it is earned.

Generally, commission is earned only if a contract is concluded between the parties, and is payable on signing the sale contract and registering it with DLD. However, the law also includes language allowing the brokerage agreement to provide otherwise. The default is payment when the sale contract is signed and the property is registered or changes hands, unless the agreement states otherwise. There is flexibility to provide for at least part of the commission to be paid earlier.

Remember, if the transaction does not go through, it may be possible, depending on the circumstances, for the party to claw back that commission. For a conditional sale, is commission earned only once the condition is fulfilled? Again, that depends on what is provided in the agreement. If the brokerage agreement is terminated, the broker may still claim the agreed fee unless they committed fraud or gross negligence. The devil is in the detail.

Make sure the agreement clearly spells out how you want commission handled if the transaction does not proceed or is terminated after it has already been concluded. This is up to the parties, and the law allows that flexibility.

As a general reminder: no contract, no fee. The bylaws are your go-to checklist for what you can and cannot do concerning commission.

Who Claims the Commission

The commission belongs to the licensed brokerage named in the contract, rather than the individual agent. Remember, there is no freelance agent category: the agent must officially work for a brokerage company. By default, it is the brokerage that receives the commission. Commission is also a taxable supply. Make sure invoices are issued correctly, with VAT taken into account.

If a conflict of interest is later asserted against you, you can lose your fee for having acted contrary to the interests of the parties you represent.

What Counts as a Contract

We discussed the RERA forms. These are contracts or parts of the contractual arrangement. What surprises many agents, however, is that there is no safe category of "informal channel" or "informal document." Any piece of paper or acknowledgement connected to the transaction can be deemed contractual.

Generally, a contract involves an offer, acceptance, and agreement on essential terms. Under the Civil Transactions Law, the form or medium does not determine whether something is a contract. It need not be a formal agreement declaring, "I am an agreement," or containing legalistic provisions. It can even be written on the back of a paper napkin, as we often say. It can also be contained in WhatsApp messages, emails, voice notes, or Telegram messages. As long as there is an offer and acceptance and the material terms can be discerned, it can bind the parties.

We often hear, "This is not a contract; it is an MOU. It is just a memorandum of understanding." That is not correct. An MOU can be a contract. The following can all form part of the contractual instruments:

• Booking and reservation forms.
• Form F or an MOU, as the sale contract.
• The SPA, or sale and purchase agreement, including for off-plan property.
• Side letters and addenda.
• WhatsApp messages, emails, and Telegram messages.

Messages can also amend or supersede particular terms of a contract. If a dispute arises and there are multiple documents, a formal-looking SPA does not automatically supersede everything else. The other documents can be brought before the court to show that the overall terms should be derived from the full universe of documents.

There can be entitlements, and a general contract can be deemed valid, even if it is not registered with RERA. You may not necessarily be able to enforce the sale or purchase of the specific property, but you may still have a valid contract giving the aggrieved party the right to claim compensation and potential penalties for a breached transaction. That distinction is important to highlight, even where registration with RERA has not taken place.

Marketing Off Plan Properties

We have discussed powers of attorney. Another area where I want to pause is brokers marketing off-plan properties. There is a whole set of requirements. We are seeing a new wave of brokers who are a little too eager to market projects that are not yet ready to be marketed. For example, we have seen brokers promoting properties that have not been registered with DLD. Let me run through a quick checklist. Our website also includes a full checklist of elements brokers and investors should examine before marketing or investing in an off-plan property.

The Off Plan Due Diligence Checklist

1. Verify that the developer is licensed and registered with DLD. This is an obligation on the broker managing the transaction. You should know this, avoid marketing properties that do not meet the standard, and disclose the relevant information to clients.
2. Confirm that the particular project is approved and registered. The project itself must already be approved and registered before it is marketed.
3. Have a specific marketing agreement registered with DLD.
4. Confirm that advertising permits and developer NOCs are in place.
5. Verify that the project has a DLD-approved escrow account. Those should be the only payment instructions you share. Side arrangements such as, "Pay that person, and they will send us the money through another channel," are technically contrary to the law.
6. Direct booking fees, deposits, and instalments only to the escrow account.
7. Understand the approved payment plan. There is a RERA- or DLD-approved plan. Make sure it tracks construction milestones as required by the regulations.
8. Check construction status, completion dates, and extension clauses against DLD records before marketing.
9. Verify all representations against the official documents. Handover, views, layouts, specifications, amenities, and permitted use should match the documents. Do not misrepresent them, intentionally or unintentionally, or make verbal promises that the documentation cannot support.
10. Never dismiss booking or reservation forms as just paperwork.
11. Know the key commercial terms of the SPA. Refer buyers to independent legal advice about their rights.
12. Keep a complete file of communications, including WhatsApp messages. Remember that these can form part of the transaction and its contractual terms and conditions.

If something does not match the official records, that is where you need to put on your "lawyer hat," so to speak: pause, verify, and escalate to the higher authorities. Do not simply assume.

Deposit Cheques Payments and the Trustee Role

Let us turn briefly to cheques, payments, and the trustee role. We have discussed that agents act as trustees; make sure you understand the obligations that come with that role.

You cannot hand over cheques willy-nilly to whichever party you decide to support. If there is a dispute, it is ultimately for the court to decide how the cheque should be handled. You cannot legally hand the cheque or money to one side or the other unless the parties agree and authorize it, or you have a court order. Never receive transaction money into your own account or deposit the cheques into your personal account or the brokerage firm's account. That is contrary to the law. This also applies to deposit cheques.

The deposit cheques are usually for 10% and are commonly handed to agents. Keep them as cheques, rather than converting them to cash. Your liability increases manifold when you start dealing with cash.

Sale Proceeds and Powers of Attorney

For sale proceeds, remember that you cannot receive money personally as an agent. It must go directly to the parties or to someone specifically authorized by a power of attorney to receive it on their behalf. That could be a lawyer or another third party, subject to specific limitations, but it cannot be paid to you personally as the agent.

Crypto Payments and Licensed Conversion

Virtual assets and crypto payments are another huge topic within anti-money laundering. In brief, anything involving crypto should be handled through specifically licensed trading desks, rather than someone sitting in a back office in Deira or Karama. As I say that, I know many conversions happen exactly that way. But from a legal standpoint, an agent referring someone to such an office is acting outside their duties and responsibilities and, ultimately, contrary to the law.

When a Deal Goes Wrong

When a deal goes bad, who is at fault? In most cases, the dispute is between the buyer and seller.

Although the broker is involved throughout the transaction, they usually stand to one side when the parties dispute it. However, if one side believes the broker played a significant role or has a concern or complaint against the broker, the broker can also be brought into the lawsuit. That often happens, whether the issue is commission or misrepresentation.

We have seen court cases in which the brokerage was held responsible for the acts of its broker. For example, an agent directed, advised, or instructed a client to make payment into someone else's account. The account ultimately turned out to be fraudulent or hacked, and funds went missing. The court held the brokerage firm responsible because its agent, its employee, had given the client instructions outside the law.

Be very careful. These are not small matters. Being a broker does not mean you will always remain on the sidelines. Both you and your brokerage can be brought into the dispute.

Where Disputes Are Resolved

Where do these disputes go?

• Sales, deposits, and commissions: Usually the Dubai courts, unless an arbitration clause applies, for example in a developer's agreement.
• Rental disputes: The RDC, or Rental Disputes Center.
• Amicable settlement: Brokerage agreements and disputes may provide for an amicable settlement mechanism. DLD also offers a forum for this.
• Complaints against brokers: Submitted to RERA.
• Cancelled projects: The special tribunal mentioned earlier.
• Fraud, breach of trust, or misuse of client funds: The Public Prosecution, involving criminal proceedings and potentially jail sentences.

There is much more I could say about specific cases and examples, but I have discussed several throughout the episode. In the interest of time, perhaps there is one further subject to examine: commissions and salaries.

Agent Commissions and Employment Disputes

We have seen cases reaching the courts where a broker disputes an employer's failure to pay commissions.

Generally, commissions can be treated as salary or wages, and the brokerage company is responsible for paying the employee. The RERA card is important here as well. It is the company's responsibility to pay the agent, rather than a third party. There have been quite a few labour cases filed by brokers concerning nonpayment of commissions and salaries.

The Distinction Between Commission and Salary

Let me make one clarification. We have also seen cases where a brokerage company argued that the agent lacked a brokerage card and therefore should not receive certain commissions.

In the employment context, however, the courts do not necessarily treat this as a brokerage commission. They treat it as salary. If the company and agent agreed that salary would be paid by way of commission, that arrangement is governed by the employment agreement. The payment is salary, and the company must pay it even if that particular broker did not have a brokerage card. The missing card may create a liability for the brokerage firm itself, but it does not remove the agent's salary entitlement in that context.

Payment Methods and Anti Money Laundering Compliance

We have discussed payment methods, but let us finish by returning to AML.

Handle cash very carefully. The safest means of directing payments are manager's cheques and bank transfers. Cash payments above AED 55,000 must be reported. Crypto is a payment method rather than the currency of the contract, and it is always reportable. All crypto payments must be reported. Where a third party pays instead of the buyer, that is a red flag. Complete the KYC checks and due diligence. I know many people do not, but the law requires it.

This is because brokers are considered designated non-financial businesses and professions, or DNFBPs. They are supervised by the Ministry of Economy and Tourism, alongside the relevant Ministry of Finance framework. There is a whole list of laws applying specifically to brokers in the AML context.

Core Compliance Requirements

To explain what those laws require:

1. Register on goAML with the Financial Intelligence Unit. All brokerages must complete the required registration.
2. Appoint a compliance officer. Brokerage companies must have one.
3. Conduct customer due diligence on every client, buyer, and seller. Always identify the beneficial owner.
4. Screen against sanctions lists and identify politically exposed persons.
5. Keep records for at least five years.
6. File a Real Estate Activity Report where required. As mentioned, this applies to freehold sales or purchases involving AED 55,000 or more in cash, whether in one payment or several linked payments; payments in virtual assets; and funds converted from virtual assets. These must all be reported through the relevant REAR reporting framework.
7. File suspicious transaction reports whenever there are reasonable grounds. There is no minimum amount.
8. Never tip off the client.

Red Flags and Penalties

Red flags include:

• Third-party payers.
• Cash payments.
• No apparent interest in the price.
• A rush to close.
• Reluctance to disclose identity or the source of funds.
• High-risk jurisdictions.
• Layered companies.

Pay attention because the penalties can be severe. Under AML rules, penalties can range from AED 50,000 to AED 1 million per violation, and they can accumulate. The conduct can also lead to criminal offences, with additional criminal fines ranging from AED 200,000 to AED 10 million. Brokers are a regulated sector under AML legislation.

For example, the ministry has recently imposed well over AED 130 million in penalties on designated non-financial businesses and professionals, including real estate agents, since late 2022. Think about that.

Final Points on Crypto

Crypto is not legal tender. The price in the SPA should always be expressed in dirhams. Convert only through a licensed exchange, verify that the wallet belongs to the buyer, document the arrangement in writing, and always report it. That is your obligation. Otherwise, penalties can escalate from thousands of dirhams to millions. There are many court cases involving these issues, and I have addressed examples as we went through the episode.

I will finish here because the episode is becoming lengthy. As I said, this is precisely why it took me so long to record it: I knew there was so much to cover.

Conclusion and the Moral of the Story

Let us finish with the big-picture moral of the story. This is no longer the "Wild Wild East." It stopped being that a long time ago. It may once have felt that way, but those days are over.

This is a regulated market with four levels of laws, more than 30 instruments, a regulator monitoring listings with AI, and courts enforcing rules on their own motion. The market is more refined, more regulated, and more robust. Compliance benefits us all.

For agents, the courts protect those with a licence and a paper trail. Every commission case we discussed was won or lost on the documents. For buyers and sellers, there should be certainty: money goes where the law says it should go. Always direct payments to lawful destinations. Trust in real estate ultimately depends on the legal framework and on everyone abiding by it.

Remember the Dubai brand and the UAE brand. Every compliant deal builds them. Strive for compliance because it bolsters, reinforces, and enhances the Dubai and UAE real estate markets and their brands. Every rogue deal takes a toll and negatively affects and reflects on those brands. Progress depends on everyone, agents, lawyers, developers, and regulators, holding the line. We should all be mindful of the laws applying to us, understand the framework, and do our best to abide by it.

That's all for this episode of Lawgical with Ludmila. If you found this discussion helpful, you can find more legal resources on our website, lylawyers.com. You can also listen to the podcast on Apple Podcasts and Spotify, or watch the full video episodes on YouTube.

Until next time, stay informed, stay safe, and keep things Lawgical.