Questions & Answers
Can the brokerage company of the property buyer withhold the commission of the seller's company?
I am writing to seek your legal expertise and advice on a pressing issue concerning a property sale transaction that my brokerage company has facilitated.
Here are the details:
Our brokerage company represented the seller in a property sale where the property was sold with an existing rental agreement in place.
As per the terms of the agreement, the rental balance was supposed to be given to the buyer, who is now the new owner of the property.
In this transaction, our company is entitled to a 40% commission, and the buyer's brokerage company is entitled to 60%.
However, the buyer's brokerage company, which has complete control over the buyer's funds, has transferred the entire 100% commission to their own account.
They are currently withholding this commission, stating that they will release it once the rental balance is paid to the buyer.
Unfortunately, we have lost contact with the buyer, as he has blocked the seller's agent, making it impossible for us to fulfill this condition.
Dear Client,
Thanks for your question, I hope you are doing well. I will definitely assist you in this matter.
In this situation, where the buyer's brokerage company is withholding the commission due to a condition related to the rental balance, follow these steps:
Maintain thorough documentation, make efforts to contact the buyer, seek legal advice from us, explore mediation as a resolution method, and consider legal action if necessary to enforce the commission agreement.
For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.
We will definitely be happy to help you.
Thanks & Regards
ABDUL WAHIED
Thank you for your time and consideration.
Under UAE law, it is possible to take legal action against the buyer's brokerage company for withholding the commission due to your company.
You may file a complaint with the relevant authorities, such as the Real Estate Regulatory Agency (RERA), and seek a resolution to the dispute.
The complaint should include all relevant documents and evidence, such as the property sale agreement and the rental agreement.
In addition, you may also consider filing a civil lawsuit against the buyer's brokerage company in the relevant court.
The lawsuit should include all relevant documents and evidence, such as the property sale agreement and the rental agreement.
The court may then order the buyer's brokerage company to release the commission due to your company.
We hope this information is helpful. Please contact us by phone if you have any further questions.
Hello, please note that since there is a breach of the terms by the buyer broker, please share the agreement ( if you have any), we need the full details for the same, please email us - a.chowdhury@alyassiadvocates.com or call - 0564300545
You can send a letter of claim to the buyer's brokerage company, stating that they are in breach of the commission agreement and demanding immediate payment of your commission.
If they refuse to pay, you can escalate the matter to the appropriate regulatory authority, such as the Real Estate Regulatory Authority (RERA).
