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?

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.

Q: Dear Sir, Please be informed that I contacted one of the real estate agents in Sep 2022 for a purchase of an apartment in Abu Dhabi. MOU signed with seller/agents in Oct 2022. The subject apartment was under lease and a tenant was staying there. I contacted my bank for a mortgage and the bank requested access permission for valuation. However, the agents informed me that the tenant is out of the country. And later once the tenant was back in the country, I requested agents for further permission. After multiple tries, the tenant provided the bank with access for valuation. I had no direct contact with the owner/seller. I paid the bank valuation fee. Once approval came from the bank, I informed the agent. I got a reply that the seller does not wish to proceed with the MOU. Then requested agents to return the agency commission fee, which I paid at the time of signing the MOU. Ever since I am behind the agency to return my amount. However, agents have not yet returned the amount to date. Appreciate your necessary legal advice. Thank you. Regards T.

Q: Dear Lawyers, I am a Dubai resident. I found a property in Dubai to buy through a real estate agent, and the seller agreed on the price I offered. At the time of signing the Sale Contract (Form F) on the DLD website, the system was down, so we signed it manually and gave the deposit check to the agent. The contract stated that the RERA system was down and that when it is back in operation, we should refile Form F digitally within 24 hours. The next day, the agent prepared it, and I signed it, but the seller refused to. He proceeded with the sale of the property to a different buyer and refused to pay the penalty stated in the contract. My questions are: 1. Is this legal? 2. Can he sell it to someone else even though he signed a contract with me? 3. RERA couldn't block the sale because the contract was done manually and not registered in their system. Do I have legal rights to demand the penalty be paid or for the sale to go through? I have a copy of the sale contract with his signature.

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.

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.

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.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.