Buying Property

Agent Commission & Fees

Standard commissions and who pays them.

Updated: September 2026 5 min read

No law fixes real estate agent commission in Dubai. Under Bylaw No. 85 of 2006, the fee is whatever you agree in writing with the broker, or prevailing practice if nothing is agreed. On a resale purchase, 2% of the price is the customary buyer's fee, plus 5% VAT. It normally becomes payable once the sale is signed and registered.

What the law says about commission

A brokerage agreement must be in writing, naming the parties, the property and the terms (Bylaw No. 85 of 2006, Article 26).
The fee is set by agreement. Only where there is no agreement is it set by prevailing practice (Article 27).
Unless the agreement says otherwise, the broker earns the fee when the sale contract is signed and registered with the DLD (Article 28).
If the broker's work does not lead to a sale, the broker cannot claim a fee or expenses unless the agreement says so (Article 30).

Who pays the agent?

Each party pays the broker it appointed (Bylaw No. 85 of 2006, Article 33). On a resale, the seller signs Contract A with the listing broker and the buyer signs Contract B with theirs. Contract B records the commission and how long the agreement lasts. If one broker acts for both sides, each side owes its own share, even if they agree between themselves that one will pay it all. On off-plan sales, the developer must use a licensed broker under a marketing agreement registered with the DLD. Buyers commonly pay no commission on a direct developer sale, but confirm this in writing.

What is customary

Buyer's side on a resale: about 2% of the price is common practice, not a legal rate. You can negotiate it.
VAT: the UAE's standard VAT rate is 5%. Ask whether a quoted fee includes it.
Where more than one broker works for the same side, they share one fee as if they were a single broker (Article 31).

When a broker loses the right to a fee

The broker acts against you, favouring the other side or accepting a benefit from them, in breach of good faith (Article 23).
The broker makes themselves the other party to the deal without authority (Article 20).
You engaged several brokers separately and a different one closed the deal. Only the broker who concluded it earns the fee (Article 32).

Checking the agent before you sign

The DLD publishes a list of licensed brokers, lets you validate licences and permits online, and lets you verify brokers in the Dubai REST app. Adverts must carry a permit number issued through the DLD's Trakheesi system. An agent who cannot give you a broker card number, or asks you to skip Contract B, is a warning sign.

Before you agree a fee

Get the rate, VAT treatment and payment date written into Contract B.
Check whether any fee is due if the purchase falls through.
Confirm the broker's licence on the DLD website.
Never let a broker take off-plan payments into their own account. They must go to the project escrow account (Executive Council Resolution No. 6 of 2010, Article 12).
See Property Buying Costs in Dubai for how commission fits into your total budget.

Frequently asked questions

How much commission do real estate agents charge in Dubai?

No law fixes it: the fee is whatever you agree in writing with the broker, or prevailing practice if nothing is agreed. On a resale purchase, about 2% of the price is the customary buyer's fee, plus 5% VAT, and you can negotiate it.

Does the buyer or the seller pay the agent in Dubai?

Each party pays the broker it appointed. On a resale, the seller signs Contract A with the listing broker and the buyer signs Contract B with theirs. If one broker acts for both sides, each side owes its own share.

Do I pay agent commission when buying off-plan from a developer?

Buyers commonly pay no commission on a direct developer sale, but confirm this in writing. On off-plan sales, the developer must use a licensed broker under a marketing agreement registered with the DLD.

Do I owe the agent a fee if the purchase falls through?

Not unless your agreement says so. If the broker's work does not lead to a sale, the broker cannot claim a fee or expenses unless the agreement provides for it. By default, the fee is earned when the sale contract is signed and registered with the DLD.

Sources

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