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Dubai, UAE

Can the developer agree with the broker for higher fees because of the law caption?

Hello,

We are a European (Slovakia) registered LLC company legally structured to do real estate brokerage. We are about to sign a contract with a major Dubai developer as a service provider to help them sell their units.

We agreed on a commission which is more than 5% but in the contract, they provide us only 2% stating that this contract is as per the DLD and that the difference between these two percentages is agreed on an email basis.

Is this really the fact that the Dubai Land Department is limiting developers on how much they can give commission to the (international) brokers?

In the contract "as per the DLD" there are clauses that we cannot advertise units anywhere (not even online), but in reality, we received info that again we can still do that, but it is there just to follow the DLD layout.

To me as a business owner, this practice seems as a total shady activity when we will agree on something via email which I will then deny by signing the main contract.

Thank you

MIO Law Firm (Abu Baker Salem Advocates & Legal Consultants)
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16 Jun 2022, 14:13

Hello,

Yes, the trend is 2% for all the real estate brokers, however, the brokerage fees can increase if the developer wants to get more and can be put in RERA form.

Please contact RERA for more information.

16 Jun 2022, 14:14

Please call or e-mail us.

Disclaimer- The above-referred view is not a legal opinion, these opinions cannot be challenged or presented before any court of law.

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Shamsa Albedwawi Advocates & Legal Consultants
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17 Jun 2022, 10:44

Hi,

Yes, it is a fact that Dubai Real Estate Legislation has a set of rules which every developer has to follow and should ensure that brokers associated with them also follow the same.

If they are found violating any of these conditions, they are liable for a fine.

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