Dubai RERA Contracts A, B and F, and Commission question: brokerage hold the cheque

Dubai RERAContracts A, B and F, and Commission

After Contract F is signed for a Dubai Hills villa, the buyer hands the seller's brokerage a manager's cheque for the agreed deposit, to be held until transfer. In what capacity does the brokerage hold the cheque?

A As owner of the funds until the sale is registered with the Department
B As trustee, bound to deliver it as agreed under the rules of trusteeship
C As an escrow agent, so the cheque must go into a project escrow account
D As the seller's agent, so it must pay the cheque to the seller on request

Show the answer and explanation

Answer: B. As trustee, bound to deliver it as agreed under the rules of trusteeship

Article 21 of Bylaw No. 85 of 2006 deems a broker the trustee of any amounts, securities or other items a party delivers to him for safekeeping or for delivery to the other party; he must deliver them as agreed and is bound by the trusteeship rules. The size of the deposit (often 10% in practice) is set by the parties in Contract F, not by law. Paying it to the seller on request ignores the agreed terms, and project escrow accounts under Law No. 8 of 2007 apply to off-plan sales by developers, not to a resale deposit. Source: Bylaw No. (85) of 2006, Art. 21 (in force 12 Oct 2026); RERA Practice Guide (Nov 2024), Contract F.

Common mistake

Treating the deposit as the seller's money the brokerage must hand over on demand.

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Original study material mapped to the public exam domains; not a real test question.Independent. Not affiliated with DLD, RERA or DREI. Verify figures and rules against current guidance before relying on them.