Real estate can be a complex world. And navigating it not so simple. If you’re entering the world for the first time, real estate titles can be a tad confusing. Sometimes people use these titles interchangeably, but there are some important differences that you need to know.
For one, whilst working with a Dubai real estate agent, it is important to understand the differences between a real estate agent in Dubai and a real estate broker.
If you are looking to buy or sell a property, both a Dubai real estate agent and broker can represent you in the process of acquiring and selling Dubai real estate. A real estate agent in Dubai and broker can also accompany clients on property viewings, list a home on the market and draft real estate contracts. However, both need a real estate license to be able to legally practice. This may involve taking and passing an exam and getting a certification. RERA, which is the regulatory arm of Dubai Land Department, recently introduced regulations such as increasing the pass mark for the mandatory test for renewal of the license from 75 to 85 percent in a bid to regulate the market and establish robust service standards. They have also phased out broker cards and have linked registration to the Emirates ID instead. In fact, anyone operating without a Dubai real estate agent card could be reported to RERA.
To put it simply, a real estate agent in Dubai will work directly for a broker and can only practice under his/her supervision. A Dubai real estate agent cannot work independently or establish a real estate brokerage but only work for a broker. Further, a real estate agent in Dubai will pay a fee to work under a broker. This fee will likely cover the cost of renting an office space in the building that the broker has a presence in and receiving marketing and promotional materials from the brokerage. A Dubai real estate agent may also give a portion of the commission received on property sales to the brokerage.
In the real estate industry, brokers undergo more intensive training and are expected to adhere to higher business standards in comparison to a real estate agent in Dubai. For one, brokers can legally establish a brokerage and employ and supervise other real estate agents to work for them. Further, the broker takes on all legal responsibility for real estate transactions done either by himself/herself or a Dubai real estate agent who works for him. Not just this, within the brokerage, the broker also takes on additional financial and management responsibilities that are required in order to operate a real estate business. Additionally, brokers oversee the training and education of agents in order to enhance and maintain service standards and professionalism. This gives them more authority and the power to resolve conflicts and issues in a real estate transaction than a real estate agent in Dubai.