Questions & Answers
Protecting the rights of a broker in terms of commission
A commission agreement between broker and seller was drafted and signed by the two parties in Dubai. The agreement states that the seller shall pay the broker a certain amount of commission after the sale transaction is done.
How can the broker guarantee his right 100% in case the seller doesn’t pay?
Shall the broker register the agreement with the notary public or the Ministry of Economy?
Please take note that the location is Dubai.
Dear Questioner,
It depends on the deal, the nature of business and the contracting parties' legal structures and also whether both are located inside or outside the country and doing business with the correct license or not.
The commission agreement might be drafted in the perfect sense with the best legal wording but lack structure and relevance.
So, I advise you to consult a lawyer disclosing much more details than in the question and of course in private to take proper legal advice that protects you and your business.
Ahmed Elnaggar
Dear questioner,
You can prepare a mutual contract with the seller wherein you can protect your interest in the event of default by the seller.
Kindly contact us via phone for a detailed discussion or write us an email for further assistance.
