Understanding Real Estate Ethics Violations in Dubai | 95Dubai.com

What are the consequences of violating the RERA Code of Ethics?

Real estate market in Dubai is regulated by Real Estate Regulatory Agency (RERA) which has laid down a strict code of Ethics in the market. Breaking of this code has a potential of incurring severe penalties to real estate participants and organizations. It is important to be aware of these consequences so as to ensure continuous compliance with the set requirements as well as adherence to the industry norms.

Financial Penalties

However, the drastic measure of monetary penalties that the RERA metes out amongst the immediate effects of a violation of the Code of Ethics are a possibility. Fines can be of moderate to a large sum depending on the breaker of the rule and the extent of the violation he or she committed. Such fines help to prevent unethical actions and to make people follow the set rules and regulations.

Understanding Real Estate Ethics Violations in Dubai | 95Dubai.com
Understanding Real Estate Ethics Violations in Dubai | 95Dubai.com

This license can either be suspended or even revoked

A violation of the Code of Ethics entails fines and or suspension or even revocation of a real estate professional license especially if they violate the code severally or persistently. This can be greatly mishazardous as it withholds the ability of the individual or the company to lawfully participate in the real estate market. Temporary, where as revoking is usually for a long time which people have to make efforts to apply for the license again​.

Legal Consequences

This can involve legal action being taken against the violator of the Code of Ethics especially in cases where the violation was fraudulent or involved issues of misrepresentation or other serious breaches of the Code of Ethics may call for legal action. This can lead to litigation, criminal charges, and even imprisonment as has often been seen in many computers cases. Legal ramifications also have social implications where the people involved suffer as well as the company in reference.

Reputational Damage

The penalties that come with a violation of the RERA Code of Ethics are severe because it can lead to huge reputation loss. Unethical information spread faster than credible information and where such practices are involved they can damage the reputation of the company among customers or investors. This can lead to a loss in business and new clients, therefore, negatively affects the operations of the business and the brand’s image in the long run.

Client Compensation

In some cases, offenders may be made to restore clients that have been affected in one way or the other. This could be in form of reimbursement of money, compensation of property damage or any other compensation of a similar nature. This seeks to make up for the loss that clients would have undergone due to the unethical practices in the management of the business organization.

Increased Scrutiny

Any company or professional who commits violation of the Code of Ethics will be likely to be subjected to further investigation in the future by RERA. This may include more audits, surveillance, and higher standards of compliance checks and the acts monitored may occur more often. When there is more attention to being paid to the firm, there will be a tendency towards more significant difficulties in daily operations and a rise in operation expenses​.

Training and Reformation Programs

RERA may also require training and reformative measures of the violators. These programs are intended to increase awareness in real estate professionals with concern to ethical standards and legal compliance. Such programs can be sometimes necessary for reinstating licenses or removing certain penalties, if the program has been completed successfully.

These strategies are significant to observe the RERA Code of Ethics since it will make the real estate market of Dubai more appropriate, plain, and economical. The violation of these guidelines can result in hefty penalties of financial, legal and reputation risks. Real estate players and firms need to ensure that they practice ethical actions in order not to face these consequences and make positive impacts to the industry.


Quiz: Consequences of Violating the RERA Code of Ethics

Test your knowledge based on 95dubai.com

1. What is one immediate consequence of violating the RERA Code of Ethics?



2. What can happen to a real estate professional’s license if they repeatedly violate the Code of Ethics?



3. What legal actions might be taken against violators of the RERA Code of Ethics?



4. How can violations of the Code of Ethics impact a real estate company’s reputation?



5. What may RERA mandate for violators to educate them on ethical practices?