Real estate agent fees in Dubai: what to agree before you sign

Start with the actual brokerage agreement

Dubai Land Department’s published real estate legislation sets out written brokerage agreements and remuneration agreed between the parties in Articles 26 and 27 of Bylaw No. 85 of 2006. Do not assume an online example or a rate quoted for someone else automatically determines your fee.

Ask the agent to identify the commission in your proposed agreement and explain how it is calculated. Dubai Land Department’s published buyer-and-broker Form B includes fields for commission and the agreement’s duration. Read the completed document, including any additional conditions, before signing.

Turn a headline rate into a comparable quote

Request a total in AED alongside any percentage. Establish the amount to which the percentage applies and whether any applicable tax is included or added. If a minimum charge, fixed administration fee or additional service charge applies, ask for it to be listed separately.

Compare proposals using the same property assumptions and service scope. A lower percentage may cover fewer tasks; a more expensive offer should explain the additional work. Neither price alone nor the size of an agency tells you which service best fits your needs.

• Who pays the commission, and who receives it?
• Is the fee fixed, a percentage or subject to a minimum?
• What value is used to calculate a percentage?
• Is any applicable VAT included in the quote?
• Which services are included, optional or separately charged?

Clarify when the fee becomes payable

Ask which event triggers payment and where this is recorded in the agreement. Also ask what happens if an offer changes, a transaction does not complete or an agreement expires. The answers can depend on the actual contract and circumstances, so do not rely on a generic online rule.

Sellers should check the marketing scope, reporting, duration and exclusivity alongside commission. Buyers and tenants should ask who manages viewings and follow-up, and which steps require another professional. Keep a copy of the final agreement and an itemised invoice.

Separate agent fees from the rest of your budget

Broker commission is only one possible part of the cost of moving or purchasing. Depending on the transaction, other items may include government registration charges, bank costs, deposits, building or developer charges and ongoing service costs. Ask the relevant provider to confirm each applicable item.

Have the agent separate their own fee from third-party charges in the cost summary. Check whether each item is a one-off payment, refundable deposit or recurring expense, and when it must be paid. This creates a more useful comparison than adding every payment under a single “fees” heading.

Use a short final check before appointing an agent

You should be able to explain the agreed service, total proposed agent fee, payment trigger and agreement duration in your own words. If any of those remain unclear, request a revised written proposal. Obtain independent professional advice where your contract or circumstances need interpretation.

Submitting a request through realestateagents.ae does not appoint a broker or fix a brokerage commission. We provide lead generation and introductions; any brokerage fees and transaction terms must be agreed directly with the relevant provider.