ADREC Broker Exam flashcards
ADREC Broker Exam · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Broker Registration Number
- A unique identifier issued by the emirate's land authority confirming the holder is licensed to broker property; it must appear on listings and advertisements.
- RERA
- The Real Estate Regulatory Agency within the Dubai Land Department that licenses brokers, regulates developers, and oversees escrow and owners' associations.
- Unlicensed Brokerage
- Acting for commission without a valid broker registration; it is prohibited and exposes the broker to fines, suspension, and loss of commission claims.
- Dual Agency Disclosure
- Representing both sides of a transaction requires written disclosure to and consent from both parties before proceeding; otherwise it is an ethics violation.
- Client Money Segregation
- Client funds such as deposits must be held separately from the broker's own money and disbursed only per the client's instructions.
- Material Fact Disclosure
- The broker's duty to reveal known defects, personal interest, and facts a reasonable client would consider important to the decision.
- Title Deed
- The official certificate evidencing registered ownership of a property and recording encumbrances such as mortgages, liens, and easements.
- Interim Register
- The register where off-plan units are recorded before project completion; on completion the unit moves to the main register.
- Strata Title
- Ownership of a unit plus an undivided share of common areas, managed by an owners' association that collects service charges.
- Mortgage Registration
- Recording the mortgage against the title makes it enforceable against the property and binds subsequent buyers until discharged.
- Special Agency
- An agency limited to specified acts; the agent cannot bind the principal to transactions outside the authorized scope.
- Exclusive Listing
- A brokerage agreement giving one broker the sole right to market the property, usually entitling that broker to commission regardless of who introduces the buyer.
- Memorandum of Understanding
- A signed document recording agreed price, deposit, and key terms between buyer and seller or landlord and tenant; binding once executed and deposit paid.
- Agency Termination
- An agency ends on completion, expiry of its term, revocation by the principal, or the principal's death or incapacity.
- Income Capitalization
- A valuation method that divides net operating income by a market cap rate to estimate the value of income-producing property.
- Gross Rental Yield
- Annual rent divided by purchase price, expressed as a percentage; it ignores vacancy, service charges, and management costs.
- Cap Rate
- Net operating income divided by property value; it reflects the market's required return and rises as values fall for fixed income.
- Highest and Best Use
- The use that is legally permissible, physically possible, financially feasible, and maximally productive, yielding the highest property value.
- Effective Gross Income
- Potential gross income minus vacancy and collection loss, plus other income; operating expenses are then deducted to reach net operating income.
- Escrow Account
- A project-specific account holding off-plan buyer payments, managed by an approved escrow agent and released against certified construction progress.
- Progress-Linked Disbursement
- Escrow funds are released to the developer only against engineer-certified construction milestones, preventing withdrawal ahead of completed work.
- Off-Plan Sale Contract
- The agreement for a unit not yet completed, specifying unit description, price schedule, handover date, specifications, and delay remedies.
- EJARI Registration
- The mandatory registration of a tenancy contract with the land authority, required for enforcement, utility connection, and licensing in Dubai.
- Rental Index Cap
- The maximum permitted rent increase at renewal, determined by comparing the current rent to the average for comparable units.
- Rental Disputes Center
- The tribunal that hears landlord-tenant disputes, including eviction, rent adjustment, and deposit refund claims, with appeals to the courts.
- Eviction Notice
- Written notice served through a notary or registered mail stating the ground and statutory period (often 12 months for personal use) before eviction.
- Loan-to-Value Ratio
- The mortgage amount divided by the property value; central bank caps limit it by buyer residency, property price, and purchase purpose.
- Debt Burden Ratio
- Total monthly debt obligations divided by gross monthly income; lenders generally cap it at 50% for salaried borrowers.
- Enhanced Due Diligence
- Additional scrutiny applied to politically exposed persons, high-risk jurisdictions, and complex ownership structures before accepting a client relationship.
- Suspicious Transaction Report
- A confidential filing to the Financial Intelligence Unit when a transaction has no apparent economic purpose or involves suspected illicit funds.
- Listing Permit
- The regulator-issued permission to advertise a specific property; advertisements must display the permit and the broker's registration number.
- Data Subject Consent
- The client's permission for collecting and using personal data for a stated purpose; it must be obtained before marketing use or third-party sharing.