Q: I am in contact with a real estate broker for a 2 BHK apartment. He showed me an apartment and he said there is an agency fee of 5% and a broker fee of 2500. Is there any rule as show fee?… A: Asking how much should be the commission for finding the unit you are renting then the answer is 5%…

Dear Questioner, First of all. Thanks for your inquiry. I have to be very honest in my reply so please excuse my honesty and take my advice subjectively. You did contact a Real Estate Broker who showed you an apartment that you like, you did not want to pay his fee - which is reasonable and exactly as per the law and the market customary practice - then you decided to bypass him reaching out to the landlord directly. The landlord - who previously gave access to the Real Estate Broker who allowed you to make the viewing - denied that they do business through brokers, which saves the landlord the brokerage fee that he might pay as well. The broker job is to show you an apartment that you might like. He is eligible to get his fee if he reaches this conclusion. Securing the apartment which is probably the administration work to execute the contract between you and the landlord is part of his job but a very small part. The fact that you did not sign any agreement with the broker gives you a way out of paying him his fee. But, the ethical obligation will always remain. Think again about your decision. I hope I made myself clear and excuse my honesty. Best regards, Ahmed Elnaggar

Real estate brokerage fees and obligation to pay

Questions & Answers

Questions & Answers

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Broker's commission which should be paid while buying an apartment in Dubai

Q: Hi, I am going to buy an apartment in Dubai. If I am going directly from the seller's broker, shall we both (seller and buyer) pay 2% each to this broker? And also it asks for a convenience fee of 5000 Dhs, what is it? Thanks

Nov 5, 2017

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Real estate broker's fee in Dubai

Q: 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?

Jun 10, 2016

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Filing complaint before RERA for property deceit by the broker

Q: 5 years back, I paid a real estate broker an amount of AED 797,420 in cash towards booking amount for 3 units in an under construction building in Dubai Marina. He has cheated me by giving me bogus stamped registration forms from the developer and has never paid the money to them. The developer has no record of me in their system. I have tried to speak numerous times with the broker but he insists that the documents are all true and the money has been paid to the escrow account, but the developer has verbally confirmed otherwise. Since the forms are all bogus, the developer is refusing to communicate with me officially. I need legal assistance to get information from the developer as they are the only ones who can prove that these forms are bogus. Do let me know future course of action and fees applicable as well. Best Regards,

Jul 5, 2018

8580

Denying brokers fee after closing a property sale deal

Q: Hello Sir, I have a real estate in Dubai and have closed deals with the developers. They've kept my broker commission on hold since a year. What are my rights to claim it?

Oct 6, 2019

2690

Knowing the fees to be paid to a broker for a furnished villa

Q: Hi, Wondering if someone can advise me, please! What is the commission to be paid on a furnished villa when the rent is 66,000?

Feb 6, 2020

791

Protecting the rights of a broker in terms of commission

Q: 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.

Feb 11, 2020

6665

Refund of the broker's fee in case of no agreement with the landlord

Q: On 20th April, we paid 5% agency fee and 5% landlord deposit for a new property rental contract, ready to move in on the 1st May. A week after the 20th April, we contacted the agent and landlord to request to urgently pull out of the agreement due to husband losing his job. We lost the 5% deposit to the landlord as he insisted on cashing our cheque. However, are we entitled to ask for the 5% agency fee back as we didn't even move into the new property? We have tried to contact the agent but he is not communicating with us.

May 6, 2020

1660

Apartment owner's agreement with an agency to maintain the relationship with the tenant

Q: I am a non-UAE resident and willing to buy an apartment for rental investment. I have been told by the agent that once I buy this, I need to give POA to the agency to maintain the relationship with the tenant. I am not sure about this, is this how it works? Can't I manage it remotely? And, what would be their (agency) cost of maintaining?

Oct 26, 2020

747

What are the market fees of the broker when you sell a property in Dubai?

Q: I have agreed through a real estate broker to sell a property in Dubai. The agent is charging the buyer a commission and the seller (me) a marketing fee which is about 40% of the size of the commission. In the event of the contract not being completed through my fault, the contract I am being asked to sign requires me to: a) repay the deposit to the seller, b) repay an additional amount equal to the deposit to the seller, and c) pay the broker commission to the agent. This contract is between myself and the buyer, and the contract between myself and the broker does not cover me paying the broker commission, so is c) above enforceable?

Nov 24, 2020

1057

Who is responsible for paying the fees of the broker when purchasing a property in Dubai?

Q: Who pays the broker's fee during a flat or apartment purchase in Dubai? Is it the seller/developer or the buyer and what is the percentage amount or fees stipulated as per the law?

Sep 23, 2022

810

A realtor brought a client and the deal went through without him. Can a court force me to pay the commission?

Q: Guys, I have a question. A realtor brought a client, and the deal went through, but we didn’t sign a form for the realtor’s commission payment. I wasn’t satisfied with the realtor’s work because he took the other side’s position and tried to persuade me to sell for a lower price. From my side, there was only indirect confirmation via email that the commission would be paid. Can a court force me to pay the commission?

Mar 25, 2025

Legal blog

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Online POA and Other Notary Public Services in the UAE

With the introduction of the new procedures for obtaining a power of attorney (POA) remotely in the UAE, after it was mandatory to appear in person in front of the notary public as a global rule to ensure the identity and intention of the person requesting a POA, we put between your hands this brief guide for how you get it done.

Jun 8, 2021

19165

Protecting Your Real Estate Brokerage Firm

Did you know that 225 establishments were fined approximately AED 77 million for flouting AML regulations? About, 50 entities’ operations and licenses were put on suspension in 2023-Q3 for failing to register in the goAML system. That’s alarming! Out of the said numbers, many were real estate brokerage firms.

May 9, 2024

169

Laws & Regulations

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Bylaw No. (85) of 2006 Regulating the Real Estate Brokers Register in the Emirate of Dubai

This Bylaw regulates the Real Estate Brokers Register in the Emirate of Dubai. No person may engage in real estate brokerage activities in Dubai unless he is licensed by the competent entities and entered in the register, which is maintained by Dubai Land Department.

May 30, 2006

4914

Law No. (16) of 2007 Establishing the Real Estate Regulatory Agency

By virtue of this Law, a public corporation named the “Real Estate Regulatory Agency” is established in the Emirate of Dubai. It is affiliated to Dubai Land Department. The objective of RERA is to regulate the real estate sector in the Emirate.

Jul 30, 2007

3242

Premium

Ahmed Elnaggar

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How can I vacate my tenant if the rental agreement ends before the eviction notice deadline?

My Dubai tenant's rental agreement is ending by the end of September 2024 and the completion of 12 months of legally served Eviction Notice is the end of December 2024. I have two questions: (a) Can I send a rent increase notice 3 months before as the rent has increased as per the RERA rent calculator? (b) The second question is, do I have to renew the rental agreement for 3 months (until December 2024) or not? Thank you.

May 1, 2024

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How can I reach a settlement with the bank for a mortgage of a jointly owned property?

I have a jointly owned property in Abu Dhabi. The mortgage was defaulted on as I had to leave the property with my children following an assault by my ex-husband. He left the country in 2018 and never paid the mortgage. As I was in the country, the bank filed a criminal case against me, and I was sentenced to 3 years. I won the appeal against the bank and then filed another criminal case a few months later in Dubai. Again, I won and paid a fine. In 2019, the bank started a civil case against me and my ex-husband to have the property repossessed. However, at the time of the purchase of the property, there were no Title Deeds, the bank requires this. I cannot give them the Title Deeds to sell the property and pay back the amount owed to them as my ex-husband refuses to provide a POA. The bank has filed another criminal case against me only for our jointly owned property. I wish to resolve this and pay off the bank and receive any money left from the sale. How can I resolve this issue of the Title Deeds?

Oct 4, 2022

282

The procedures for filing for divorce on mutual consent

Dear sir/madam, I am separated from my wife due to compatibility reasons. We got married in the Indian consulate in Dubai on December, 23rd. We would like to file a divorce on mutual consent as soon as possible. May I get some advice here on the procedures?

Sep 13, 2022

673

My previous employer failed to pay my gratuity. Can I file a case 6 months after resignation?

My previous employer failed to pay my gratuity six months past now since I resigned, Is it possible to file a case against him after a 6 months period?

May 31, 2022

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Can a real estate agency hold a percentage of a property sale until transfer is done?

A real estate agency has signed an MOU stating that a 10% security deposit from the buyer and the seller will be kept in the real estate agency and will be released upon transferring the property. The transfer of the property was blocked due to the court order. According to my colleagues, the real estate agency is not a trustee and they are not allowed to have taken my security check in the first place, is this correct?

Jun 28, 2021

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