{
    "entity_type": "page",
    "name": "Code of ethics for brokers: practice questions in the style of the DLD broker exam",
    "url": "https://continentalclub.ae/dld-broker-exam-practice/code-of-ethics/",
    "language": "en",
    "description": "Learn Dubai broker ethics for the DLD exam: Code principles, confidentiality, disclosure, records, conflicts, sanctions and common question traps.",
    "published_at": "2026-10-27T21:38:09+00:00",
    "updated_at": "2026-10-27T21:38:09+00:00",
    "publisher": {
        "name": "Continental Club Property LLC",
        "orn": "31933",
        "url": "https://continentalclub.ae/"
    },
    "faq": [
        {
            "question": "What is the main ethics rule for Dubai real estate brokers?",
            "answer": "Article 14 of Bylaw No. 85 of 2006 requires brokers to comply with the professional Code of Ethics. The Code covers fair treatment, privacy, honesty, document preservation and compliance with laws and DLD procedures."
        },
        {
            "question": "Can a broker reveal why a client is selling a property?",
            "answer": "No, not without permission. Revealing the reason for sale or other private client knowledge without permission is listed as a breach of client privacy."
        },
        {
            "question": "What happens if a broker breaches the Code of Ethics?",
            "answer": "Possible measures under Article 39 include a notice, warning, suspension for up to 6 months and blacklisting. Article 40 allows cancellation of registration for a Code breach, a fundamental violation, or three black points."
        },
        {
            "question": "Must a broker keep transaction documents?",
            "answer": "Yes. The Code requires preservation of all documents, instruments and things related to the deal, and Article 15 requires a personal transaction register and document retention."
        },
        {
            "question": "Can a broker represent both sides of a transaction?",
            "answer": "The RERA course says a broker must not represent more than one party without full written disclosure and consent from both parties. The official 2009 Code does not contain a separate dual-agency principle."
        }
    ],
    "markdown": "https://continentalclub.ae/dld-broker-exam-practice/code-of-ethics.md",
    "content_md": "This topic tests whether you can recognise the ethical standards expected of a Dubai real estate broker: fair treatment, confidentiality, honest disclosure, document preservation, lawful practice and proper conduct towards clients, colleagues and the public. Questions may ask you to identify a breach, match a duty to the relevant Code principle, or apply a Bylaw rule to a practical situation.\n\nEthics matters because a broker handles confidential information, negotiations, documents and sometimes entrusted funds. A breach can affect clients, transactions and the broker’s registration. In our 30-question training simulation, this topic usually represents about 2 questions, based on the experience of our brokers; DLD does not publish an official topic-by-topic exam format.\n\n## The 11 Code of Ethics principles\n\nUnder Article 14 of Bylaw No. 85 of 2006, brokers must comply with the professional Code of Ethics. The official Code includes the following core commitments:\n\n- **Fair Treatment:** treat all contracting parties equally and seek justice without prejudice or differentiation.\n- **Respectful Treatment:** respect the parties and their privacy, and avoid conduct that belittles them.\n- **Preservation of Privacy:** do not reveal confidential information about the buyer, seller or another party.\n- **Trust and Integrity:** present the transaction honestly and disclose known facts and circumstances concerning the property.\n- **Quality Observance:** provide brokerage services of practical value and improve accuracy and quality.\n- **Observance of Regulations and Laws:** comply with laws and contractual obligations; do not allow non-brokers to operate through the office or use its name or licence.\n- **Integrity:** work using trustworthy and clear information, transparently with all parties.\n- **Obligation towards the Society:** respect the values and principles of society and support market growth.\n- **Observance of the Interests of Contracting Party:** protect parties’ interests and avoid harming either party.\n- **Obligation to Preserve Document:** preserve all documents, instruments and things related to the deal.\n- **Respect of DLD Regulations and Procedures:** follow Department procedures and do not establish special relations with Department employees for personal gain.\n\n## Confidentiality, disclosure and fair dealing\n\nA broker must disclose negotiation details, stages and information needed by the client to make a proper decision, while also disclosing all substantial matters about the subject of the contract to the other party. A broker representing one party must still honestly disclose known transaction conditions.\n\n- Do not withhold relevant information from a buyer or seller, whether deliberately or unintentionally.\n- Do not mislead a party about the current market value of a property.\n- Do not reveal the client’s reason for sale, personal information or other private knowledge without permission.\n- Do not pressure a client to sign before reading or understanding a document, and do not deny an opportunity to seek legal advice.\n- Do not delay presenting an offer to buy to the seller or make an unauthorised decision regarding a sale.\n- Do not contact another broker’s client directly while a written agreement is in place.\n\n## Records, conflicts and consequences\n\nArticle 15 requires brokers to maintain a personal register of transactions and preserve documentation. A broker is a trustee for money, securities and other items entrusted for safekeeping or transfer. Under Article 23, a broker loses commission and expense reimbursement if acting for the benefit of the other party contrary to duties owed to the represented party, or accepting a promised benefit contrary to good faith and the Code.\n\n- A broker cannot be the other party to a transaction they arrange without permission from one of the parties; if permission is given, no remuneration is due.\n- For dual representation, the RERA course requires full written disclosure and consent from both parties.\n- Article 39 allows a notice, warning, suspension of activity for up to 6 months, or blacklisting.\n- Article 40 allows cancellation of registration for breaching the Code, a fundamental legal violation, or accumulating three black points.\n- Brokerage activity without a RERA licence carries a fine of 50,000 AED. A repeat violation within one year doubles the fine, capped at 1,000,000 AED.\n\n## Sample questions with explanations\n\n*Questions are paraphrased in the style of the exam; they are not official DLD questions.*\n\n### 1. According to Module 6, are ethics and law the same thing?\n\n1. Yes; the Code of Ethics is only a catalogue of legal sanctions for brokers\n2. Yes; ethics apply only once a court has issued a final ruling\n3. No; ethics are principles for fair treatment of colleagues, clients and the public\n4. No; ethics apply only to brokers employed by developers\n\n**Show answer and explanation**\n\n**Answer: C) No; ethics are principles for fair treatment of colleagues, clients and the public**. Module 6 distinguishes ethics from law. It presents ethics as principles of honest and fair conduct towards clients, colleagues and the public.\n\n### 2. Does a broker lose the right to commission and reimbursement of expenses if they improperly act for the other party’s benefit or accept an improper promised benefit from that party?\n\n1. Incorrect\n2. Correct\n\n**Show answer and explanation**\n\n**Answer: B) Correct**. Correct. Article 23 of Bylaw No. 85 of 2006 removes entitlement to remuneration and expense reimbursement in these circumstances.\n\n### 3. Which conduct is a breach of the broker Code of Ethics?\n\n1. Treating all contracting parties equally\n2. Respecting the privacy of the contracting parties\n3. Not preserving all documents and instruments connected with a real estate transaction\n\n**Show answer and explanation**\n\n**Answer: C) Not preserving all documents and instruments connected with a real estate transaction**. The Code requires brokers to preserve all documents, instruments and things related to the deal. Failing to do so breaches the document-preservation duty.\n\n### 4. Which Code principle requires equal treatment of all contracting parties and justice between them?\n\n1. First principle: Fair Treatment\n2. Second principle: Respectful Treatment\n3. Fourth principle: Trust and Integrity\n4. Ninth principle: Observance of the Interests of Contracting Party\n\n**Show answer and explanation**\n\n**Answer: A) First principle: Fair Treatment**. The first principle is Fair Treatment. It requires equal treatment of contracting parties without prejudice or differentiation.\n\n### 5. Can a broker’s registration be cancelled for breaching the Professional Ethics Charter, committing a fundamental legal violation, or accumulating three black points?\n\n1. Incorrect\n2. Correct\n\n**Show answer and explanation**\n\n**Answer: B) Correct**. Correct. Article 40 provides for cancellation of registration in these circumstances.\n\n### 6. What is the term for taking reasonable steps to prevent an error that could cause a client financial loss?\n\n1. Negligence\n2. Due diligence\n\n**Show answer and explanation**\n\n**Answer: B) Due diligence**. Due diligence means taking reasonable steps to prevent mistakes and reduce the risk of financial loss. Negligence is the opposite of exercising appropriate care.\n\n### 7. Which Code principle prohibits disclosure of confidential information about a buyer, seller or another brokerage-related party?\n\n1. Fifth principle: Quality Observance\n2. Seventh principle: Integrity\n3. Eighth principle: Obligation towards the Society\n4. Third principle: Preservation of Privacy\n\n**Show answer and explanation**\n\n**Answer: D) Third principle: Preservation of Privacy**. The third principle, Preservation of Privacy, prohibits revealing information that is confidential or considered confidential.\n\n### 8. Under the Code of Ethics, is it a privacy breach to disclose a client’s reason for selling or other private knowledge without permission?\n\n1. Incorrect\n2. Correct\n\n**Show answer and explanation**\n\n**Answer: B) Correct**. Correct. The official examples of ethical breaches specifically include revealing the reason for sale or other private client knowledge without permission.\n\n### 9. Which principle prevents a broker from allowing non-brokers to operate through the office or use the office name or licence?\n\n1. Third principle: Preservation of Privacy\n2. Sixth principle: Observance of Regulations and Laws\n3. Tenth principle: Obligation to Preserve Document\n4. Eleventh principle: Respect of the Regulations and Procedures of the Lands and Property Department\n\n**Show answer and explanation**\n\n**Answer: B) Sixth principle: Observance of Regulations and Laws**. The sixth principle, Observance of Regulations and Laws, states that non-brokers must not operate through the office or exploit its name or licence.\n\n### 10. What must a broker preserve under the Code of Ethics?\n\n1. Only documents signed by the property buyer\n2. All documents, instruments and things connected with the transaction\n3. Only bank documents required for mortgage approval\n4. Only documents created during the final thirty days of the transaction\n\n**Show answer and explanation**\n\n**Answer: B) All documents, instruments and things connected with the transaction**. The tenth principle requires preservation of all documents, instruments and things related to the deal.\n\n### 11. Is it an ethical duty for a broker to exercise due diligence to avoid an error that could cause financial loss to any party in a property transaction?\n\n1. Incorrect\n2. Correct\n\n**Show answer and explanation**\n\n**Answer: B) Correct**. Correct. Due diligence means taking reasonable steps to avoid mistakes that could result in financial loss to a client or another party.\n\n### 12. What conduct involving DLD employees is prohibited by the eleventh principle of the Code of Ethics?\n\n1. Attending the Department with a client to lodge documents.\n2. Requesting an official receipt for paid Department fees.\n3. Creating special relationships with Department employees for personal benefit.\n4. Using the Department’s e-services to submit documents.\n\n**Show answer and explanation**\n\n**Answer: C) Creating special relationships with Department employees for personal benefit.**. Principle 11 requires respect for DLD regulations and procedures and prohibits establishing special relations with Department employees for personal gain.\n\n### 13. It is unethical for a broker to report unregistered brokers and illegal market practices to RERA.\n\n1. Correct\n2. Incorrect\n\n**Show answer and explanation**\n\n**Answer: B) Incorrect**. The statement is incorrect. The RERA course Do’s state that registered brokers should report unregistered brokers and illegal broker activities to RERA.\n\n### 14. A registered broker must not withhold relevant information from a buyer or seller, whether deliberately or unintentionally, because of fear of losing a listing or transaction.\n\n1. Incorrect\n2. Correct\n\n**Show answer and explanation**\n\n**Answer: B) Correct**. This is correct. Withholding relevant information conflicts with the duty of honest disclosure and with the requirement to disclose material information needed for a proper decision.\n\n### 15. What must a broker do when buying or selling for their own account, or for their family or firm?\n\n1. Keep their interest private in order to protect the transaction.\n2. Disclose their true position or interest.\n3. Handle the transaction as ordinary brokerage and charge commission.\n4. Refer the other party to a lawyer without making any disclosure.\n\n**Show answer and explanation**\n\n**Answer: B) Disclose their true position or interest.**. A broker buying or selling on their own account, or for family or firm, must make their true position or interest known.\n\n## Common exam traps\n\n- **Privacy versus disclosure:** disclose material transaction facts, but do not disclose confidential client information, the reason for sale or private knowledge without permission.\n- **Equal treatment versus representing one client:** a broker may protect a client’s interests while still treating all parties honestly and fairly.\n- **Document retention:** the duty covers all documents, instruments and things related to the deal, not only signed or bank documents.\n- **Offer handling:** delaying an offer to buy or deciding on a sale without the owner’s prior consent is an ethical breach.\n- **Dual representation:** the RERA course requires full written disclosure and consent from both parties; this wording is course material rather than a separate principle in the 2009 Code.\n- **Sanctions and points:** Article 40 refers to three black points; the Red/Yellow/Green system appears in RERA course material, not in the official Bylaw text.\n\n[Practise “Code of ethics for brokers” in the free exam trainer](/dld-broker-exam-practice/?topic=ETH#ex-app) · [Take a mock exam: 30 questions, 60 minutes](/dld-broker-exam-practice/)\n\n## FAQ\n\n### What is the main ethics rule for Dubai real estate brokers?\n\nArticle 14 of Bylaw No. 85 of 2006 requires brokers to comply with the professional Code of Ethics. The Code covers fair treatment, privacy, honesty, document preservation and compliance with laws and DLD procedures.\n\n### Can a broker reveal why a client is selling a property?\n\nNo, not without permission. Revealing the reason for sale or other private client knowledge without permission is listed as a breach of client privacy.\n\n### What happens if a broker breaches the Code of Ethics?\n\nPossible measures under Article 39 include a notice, warning, suspension for up to 6 months and blacklisting. Article 40 allows cancellation of registration for a Code breach, a fundamental violation, or three black points.\n\n### Must a broker keep transaction documents?\n\nYes. The Code requires preservation of all documents, instruments and things related to the deal, and Article 15 requires a personal transaction register and document retention.\n\n### Can a broker represent both sides of a transaction?\n\nThe RERA course says a broker must not represent more than one party without full written disclosure and consent from both parties. The official 2009 Code does not contain a separate dual-agency principle.\n\n## All DLD exam topics\n\n- [Real estate mathematics](/dld-broker-exam-practice/real-estate-math/)\n- [Real estate concepts and systems](/dld-broker-exam-practice/real-estate-concepts/)\n- [Laws and legislation](/dld-broker-exam-practice/laws-and-legislation/)\n- [Sale brokerage agreements and property sales](/dld-broker-exam-practice/sale-brokerage-agreements/)\n- [Jointly owned property](/dld-broker-exam-practice/jointly-owned-property/)\n- [Rental and rental disputes](/dld-broker-exam-practice/rental-and-disputes/)\n- [Property valuation](/dld-broker-exam-practice/property-valuation/)\n- [Code of ethics for brokers](/dld-broker-exam-practice/code-of-ethics/)\n- [Registration of transactions, taxes and fees](/dld-broker-exam-practice/registration-and-fees/)\n- [Mortgages](/dld-broker-exam-practice/mortgages/)\n\n## Continental Club Broker Academy\n\nWant to start your broker career with a Dubai brokerage that trains its own team? [Learn about the Academy](/academy/).",
    "attribution": "Continental Club Property",
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