Questions & Answers
Real estate broker's fee in Dubai
Recently I found an agent who managed to sell my property in Dubai and is now demanding a 2% seller’s agent fee. Am I obliged to pay such amount?
Real estate brokerage in Dubai is regulated by By-Law No. 85 of 2006 Regarding the Regulation of Real Estate Brokers’ Register in the Emirate of Dubai (The Broker’s Law).
In regard to your matter, it may be noted that there are no specific legal provisions stipulating the broker’s fee in Dubai, which means that the fee is negotiable. The fee may be determined in accordance with the ‘prevailing practice’. This is in accordance with the provisions of Article (26) and Article (27) of the Broker’s Law, which states as follows:
“Article (26): The brokerage contract shall be in writing and shall state the names of the contracting parties, specifications of the real property and the brokerage conditions. The contract shall be registered in the real estate register.
Article (27): A broker’s fee shall be determined by agreement. If there is no agreement, the fees shall be determined according to the prevailing practice.”
Generally, Real Estate Agent’s commission in Dubai is 2% of the purchase price unless you and the broker agreed otherwise.
For further details on the subject, you can contact our office.
