2.3 Bylaw No. 85 of 2006: The Brokers Register, Broker Duties and Remuneration

2.3 Bylaw No. 85 of 2006: The Brokers Register, Broker Duties and Remuneration

The "Broker's Regulations" topic in the legal module is Bylaw No. 85 of 2006 Regulating the Real Estate Brokers Register in the Emirate of Dubai. Many guides and even official FAQs call it "Law No. 85", but it is a bylaw issued by the Chairman of the Land Department on 30 May 2006 under Articles 6.6 and 28 of Law No. 7 of 2006. Its 47 articles answer most exam questions about what a broker must do and when a broker gets paid.

1. Structure of the Bylaw

2. Registration (Articles 3–13)

• Article 3: no person may practise brokerage unless licensed by the competent entities and entered in the Register.
• Article 6: a registration application includes a trade licence, passport copies, a title deed or tenancy contract for the office, good-conduct certificates, proof that directors are not bankrupt or convicted of crimes affecting honour, certificates of accredited real estate training and proof of passing the brokerage test prepared by the Department.
• Articles 7–11: the Division may ask for missing documents within 7 days, refers complete files to the Committee within 7 working days, and a rejected applicant may re-apply within 14 days of being notified.
• Article 12: the broker card shows the broker's name, address and registration number, which must appear on all correspondence.
• Article 13: registration is renewed yearly, with the application filed at least 30 days before expiry.

3. The broker's statutory duties (Articles 14–25)

4. Agreements and remuneration (Articles 26–33)

• Article 26: a brokerage agreement must be in writing and state the parties' names, the property's specifications and the brokerage terms. Today this is done through the standard RERA forms (Form A for sellers and landlords, Form B for buyers and tenants).
• Article 27: remuneration is determined by agreement; without agreement it follows prevailing practice. DLD's FAQ repeats this: there is no statutory commission rate.
• Article 28: the broker is entitled to remuneration only if a contract is concluded, and is entitled upon signing the sale contract and registering it with DLD, unless the brokerage agreement provides otherwise; if the sale depends on a condition, entitlement arises when it is met.
• Article 29: if the brokerage agreement is terminated, the broker may still claim the agreed remuneration unless fraud or gross negligence is proven.
• Article 30: if negotiations fail, no compensation or expenses are due unless agreed.
• Article 31: several brokers acting for one party share the fee as if they were one broker.
• Article 32: if a party engages several brokers separately and one succeeds, that broker takes the whole fee.
• Article 33: each appointing party pays its own broker; if both parties appoint the same broker, each is severally liable for its own share even if they agree that one will pay all of it.

5. Disputes and penalties (Articles 34–42)

• Dispute council (Articles 34–38): a council of four persons plus DLD's legal adviser settles brokerage-agreement disputes, but only if the agreement provides for amicable settlement by DLD or the parties later agree in writing. It must settle within 30 days of referral.
• Penalties (Article 39): the Committee may impose a notice, a warning, suspension for up to six months, or blacklisting, without prejudice to penalties under other laws.
• Cancellation (Article 40): registration is cancelled for breaching the ethics code, a gross violation of the law, or accumulating three black points; a grievance may be filed with the Chairman within 15 days and the Chairman's decision is final.
• Loss of status (Article 41): for example, ceasing business or suspending it for more than 12 months without an accepted reason.

DLD's FAQ adds the current practice: some violations draw a warning first and a fine on repetition, others a direct fine, and a black-points system applies to both offices and brokers.