Dubai Property Brokerage Commission: Who Pays, and What to Agree in Writing

The Short Answer

Who Pays the Commission?

Where Commission Should Be Recorded

Check the Agent and the Advert First

Questions to Ask Before You Agree

Do Not Pay Before the Paperwork Exists

Negotiating Sensibly

Common Mistakes

Why Banke?

Conclusion

Dubai Real Estate Insights · Costs Dubai Property Brokerage Commission: Who Pays, and What to Agree in Writing In Dubai, brokerage commission is negotiable. It should be agreed in writing before the agent starts work, and the person asking you to pay it should be a licensed professional. This Banke UAE guide explains who usually pays, where the fee should be recorded and the questions

to ask, without quoting a rate that may not apply to your deal. The Short Answer In Dubai, brokerage commission is a fee for the agent's service, and it is negotiable. Who pays it, how much it is and when it falls due should be agreed in writing before you instruct the agent. Do not treat a percentage you hear in conversation as a fixed

rule. This guide explains how commission usually works for sales and rentals, the paperwork that should record it, and the questions to settle before you sign. It does not quote a standard rate, because rates differ by deal and by agency. Who Pays the Commission? Practice differs between a sale and a rental, and between ready and off-plan property. In many resale deals the buyer,

the seller or both pay a fee, depending on what was agreed. In rentals, the tenant often pays the agent a fee at signing. In off-plan sales, the developer commonly pays the agency, but the buyer should still ask in writing whether any fee falls on them. The safe approach is simple: ask "Will I pay you anything, and if so how much, when and

why?" and get the answer in writing. Where Commission Should Be Recorded The agency agreement. If you are selling, the Form A listing agreement sets out the agent's fee, the exclusivity period and the services. Read it before you sign. See our guide to Banke UAE: what sellers check before signing Form A . The memorandum of understanding. For a resale, Form F records the

sale terms between buyer and seller. Our guide to Banke UAE: Form F shows what it should contain. The buyer's side. If you are a buyer who has agreed a fee with an agent, ask for it to be recorded in writing as well. Check the Agent and the Advert First Before any fee is discussed, confirm the agent and the advert are genuine. Dubai

property adverts carry a Trakheesi permit number, and agents hold a broker registration number (BRN) issued under the regulator's rules. Our guide to Banke UAE: checking a Trakheesi permit and BRN explains how to verify both on the official Dubai Land Department channels. Questions to Ask Before You Agree Is the fee a percentage or a fixed amount, and what is it calculated on? Is

VAT charged on top, and is it included in the quoted figure? When is it due: on signing the MOU, on transfer or on handover? What happens to the fee if the deal falls through? Does the exclusivity period stop me using another agent, and for how long? Is the fee payable to the agency, and does the receipt show the agency name and licence?

Do Not Pay Before the Paperwork Exists Never pay a commission or a "reservation" amount in cash to an individual without a written agreement and a receipt from the licensed agency. Payments for the property itself should follow the process set by the Dubai Land Department, including the use of regulated escrow where it applies. Commission is separate from the DLD transfer fee. For that,

see our article on Banke UAE: what the DLD fee covers . Negotiating Sensibly A lower fee is not always a better deal. A good agent should explain pricing with evidence from recent sold prices, manage viewings and paperwork, and tell you when a price is unrealistic. Compare services as well as percentages: marketing, viewings, handling of the buyer's paperwork, and support through to transfer.

Ask for comparable sold prices from the Dubai Land Department data rather than relying on asking prices. Common Mistakes Agreeing a fee verbally and finding a different figure in the contract. Signing a long exclusive agreement without a way out if the agent does not perform. Forgetting VAT or other charges when comparing quotes. Paying a fee before the agency has issued a receipt. Why

Banke? Banke International Properties explains costs plainly before you commit and tells you who pays what. To talk through a purchase, sale or rental, contact the Banke UAE team . Conclusion Commission in Dubai is negotiable and should be agreed, in writing, before work begins. Verify the agent, ask who pays, check VAT and timing, and keep every receipt. This is general information, not legal,