11.1 The Code of Ethics: Legal Basis, Core Duties, and Dos and Don'ts
Key Takeaways
Article 14 of Bylaw No. 85 of 2006 requires every registered broker to observe the code of professional ethics prepared by the Committee with expert brokers.
Breaching the code of ethics is a ground for cancelling a broker's registration under Article 40 of Bylaw No. 85 of 2006.
A broker must not facilitate any transaction that violates the laws in force in the Emirate (Article 18 of Bylaw No. 85 of 2006).
A broker holds money, securities and items received from the parties as a trustee and must deliver them as agreed (Article 21).
Accepting a promised benefit from the other party in bad faith forfeits remuneration, and the broker is liable for loss caused by fraud or deceit (Articles 22–23).
11.1 The Code of Ethics: Legal Basis, Core Duties, and Dos and Don'ts
The ethics module asks two kinds of question: what must a broker do? and what happens if they don't? In Dubai the answers come from a chain of rules: the code of ethics required by Bylaw No. 85 of 2006, the specific duties in the Bylaw itself, and DLD's licensing and advertising rules.
1. Legal basis
| Rule | Article of Bylaw No. 85 of 2006 |
|---|---|
| Every registered broker must observe the code of professional ethics prepared by the Committee in consultation with qualified and expert brokers | 14 |
| A broker is liable for loss caused by fraud, deceit or failure to observe the Bylaw or the code of professional ethics | 22 |
| Remuneration is forfeited if the broker acts in the other party's interest or accepts a promised benefit from it, contrary to good faith or the code | 23 |
| Registration is cancelled for breaching the code of professional ethics, a gross violation of the law, or three black points | 40 |
The ethics code therefore has teeth: it is a standard against which loss, forfeiture and cancellation are measured.
2. The core duties
Training providers group the ethical duties under familiar themes (trust, honesty, confidentiality, conflicts of interest, compliance, competence, transparency and protection of clients' assets). Each theme is backed by a concrete rule:
| Theme | What it means in practice | Rule behind it |
|---|---|---|
| Compliance | Only practise when licensed and registered; advertise only with a Trakheesi permit; never facilitate an illegal transaction (for example a nominee purchase in a non-designated area or a fee-evasion side agreement) | Bylaw Arts. 3, 18; Law No. 7 of 2006 Art. 26; EC Resolution No. 30 of 2013 Art. 6 |
| Written, clear terms | Put every mandate and fee in writing (Form A, Form B, Form I) before marketing or negotiating | Bylaw Arts. 26–27 |
| Honesty and disclosure | Keep the client informed of every stage of negotiation; disclose substantial matters to the other party; never misrepresent condition, title, charges or yields | Bylaw Arts. 17, 19, 22 |
| Loyalty and conflicts | Disclose any personal interest; do not secretly take benefits from the other side; do not become the buyer or seller in your own deal | Bylaw Arts. 20, 23 |
| Confidentiality | Keep a client's bottom line, finances and personal motives private unless the client authorises disclosure; protect personal data | Ethics code; UAE Personal Data Protection Law (Federal Decree-Law No. 45 of 2021) |
| Custody of assets | Hold deposits, cheques, keys and documents as a trustee; never bank client money in personal or operating accounts; deposit off-plan payments into the project escrow account | Bylaw Art. 21; EC Resolution No. 6 of 2010 Art. 12 |
| Records | Keep a register of transactions and the documents; keep AML records for at least five years | Bylaw Art. 15; UAE AML rules |
| Competence | Verify title and encumbrances through DLD channels, check NOC and service charges, keep up with CPD | Bylaw Arts. 19, 22; annual renewal rules |
3. Dos and don'ts
| Do | Don't |
|---|---|
| Show your broker card and BRN; put your registration number on correspondence (Art. 12) | Work under another broker's card or an expired card |
| Sign Form A or Form B before advertising or showing | Advertise from a WhatsApp "OK" or without a permit |
| Present all offers to your client promptly | Hold back an offer to steer the client to a buyer who pays you more |
| Disclose known defects, arrears and tenancy status | Paint over defects or call a unit "vacant" when it is tenanted |
| Disclose family or financial interests in writing | Buy through a relative or company without telling the client |
| Keep deposit cheques on trust and give receipts | Cash a deposit cheque or hold it in a personal account |
| Report suspicious transactions through the firm's compliance officer | Warn a client that a suspicious transaction report is being filed |
| Respect telemarketing rules (calls 9:00 am–6:00 pm, Do Not Call Register) | Cold-call numbers from bought lists at night |
4. Consequences of misconduct
- Forfeiture of remuneration and expenses (Art. 23).
- Civil liability for the client's loss (Art. 22).
- Disciplinary penalties: notice, warning, suspension up to six months, blacklisting (Art. 39); cancellation for ethics breaches, gross violations or three black points (Art. 40). DLD's FAQ adds warnings and fines in current practice and black points for both broker and office.
- Other laws: advertising fines, the double-fee penalty for helping evade DLD fees, AML penalties and criminal liability for breach of trust where client money is misused.
A useful test before any action: Is it lawful? Is it in writing? Have I disclosed everything material? Would I be comfortable if DLD saw the file?
A seller confides to their listing broker that they would accept AED 10,000,000 against an asking price of AED 12,000,000 because of business debts. The broker immediately tells a buyer's agent. How should this conduct be assessed?
The broker breached the duty of loyalty and confidentiality to the client, acting in the other party's interest, which can forfeit remuneration under Article 23 of Bylaw No. 85 of 2006 and lead to disciplinary action
The broker acted properly because a fast sale helps the seller
It is acceptable because oral discussions between agents are privileged
It is a breach only if the buyer then offers less than AED 10,000,000
A broker lists a Downtown apartment for an overseas owner. The broker's brother offers the full asking price, and the broker sends Form F to the owner without mentioning the relationship. What is the problem?
A conflict of interest that must be disclosed in writing before the owner decides; failing to disclose it breaches the duties of disclosure and good faith in Bylaw No. 85 of 2006 and the ethics code
None, because the offer matched the asking price
Disclosure is needed only if the brother asks for a commission discount
The sale is automatically money laundering
A broker takes a villa listing on the owner's word that it is unencumbered and advertises it without checking the title through DLD. A buyer later discovers a court attachment on the title. Which duties did the broker fail?
None, because brokers may rely on owners' statements
Only a Trakheesi formatting rule
Competence and diligence: the broker should have verified the title and encumbrances through DLD before marketing, and is liable for loss caused by mistakes or failure to follow the rules
None, because title checks are only the trustee centre's job
Sections you finish are checked off in the contents.