Realtor commissions in Dubai. Who pays? How are rates determined? Uncover legal aspects and future trends for a successful property transaction.

Understanding Realtor Commissions in Dubai: A Complete Guide for Property Buyers

When buying property in Dubai, one of the most overlooked yet important aspects is understanding how realtor commissions work. Knowing who pays what — and why — helps avoid confusion, ensures transparency, and makes your property transaction smooth and stress-free.

Let’s break down how realtor commissions operate in Dubai’s real estate market, the legal regulations behind them, and how they can affect your overall investment strategy.

The Role of Realtors in Dubai

Realtors are the backbone of Dubai’s real estate ecosystem. They do much more than just connect buyers and sellers — they:

Help identify properties that match your needs and budget.

Handle negotiations to secure the best deal.

Ensure compliance with Dubai Land Department (DLD) regulations.

Guide you through the transaction paperwork and legal formalities.

In a market as competitive as Dubai’s, having a professional realtor on your side can make all the difference between a good investment and a great one.

Who Typically Pays the Realtor Commission?

In Dubai, commission structures can vary, depending on the type of transaction, property, and negotiation terms. Here’s how it usually breaks down 👇

1. Seller-Paid Commissions

This is the most common model in Dubai.
The seller pays the realtor’s commission — usually around 2% of the sale price (plus VAT). The amount is factored into the property’s listing price. Once the deal is closed and registered with the DLD, the seller’s proceeds are adjusted to cover the realtor’s fee.

2. Buyer-Paid Commissions

Less common, but sometimes used — especially for exclusive buyer representation or off-market deals.
Here, the buyer pays the agent directly for their dedicated services, ensuring full representation and priority treatment. This approach can be beneficial for serious investors seeking personalized assistance.

3. Developer/Builder-Paid Commissions

In the off-plan segment, the developer often pays the agent.
This is standard practice when promoting new projects — builders incentivize realtors through commissions so that buyers don’t incur additional fees.

Law No. 85 of 2006: The Legal Framework

Dubai’s real estate brokerage activities are regulated under Law No. 85 of 2006, which outlines the rights, responsibilities, and payment terms for brokers and clients.

Key highlights include:

✅ Mandatory Contract Registration
Every broker-client agreement must be registered with the Dubai Land Department (DLD) before any payment is made.

✅ Clear Contract Terms
The brokerage agreement must clearly state:

Names of both parties

Property details

Commission amount and payment conditions

✅ When a Broker is Entitled to Payment
The broker can only receive payment after the sale agreement is signed and registered with the DLD — unless otherwise specified in writing.

✅ Authorized Payment Source
The broker can only receive remuneration from the party that authorized them. If both parties authorize the broker, each is separately responsible for their share of the commission.

✅ Loss of Commission Rights
If the broker acts in favor of the opposite party or fails to bring both parties to a finalized agreement, they lose the right to claim any remuneration.

This legal framework ensures transparency and accountability, protecting both buyers and sellers from unfair practices.

Why Buyers Sometimes Choose to Pay Commission

While it’s uncommon, there are situations where buyers voluntarily pay commissions — and there are strategic benefits to doing so 👇

1. Enhanced Buyer Representation

When a realtor is directly compensated by the buyer, they’re fully focused on protecting the buyer’s interests — from finding undervalued deals to negotiating better terms.

2. Attracting Top Realtors

Offering a commission can incentivize high-performing agents to prioritize your property search and go the extra mile to secure you the best opportunities.

Practical Tips for Buyers in Dubai

Always clarify who pays the commission before signing any agreement.

Verify the broker’s registration on the Dubai Land Department’s official portal (RERA).

Get the agreement in writing — verbal commitments don’t count in real estate.

Negotiate commission rates — they’re not always fixed, especially for high-value properties.

Conclusion

Understanding Dubai’s commission structure is essential for every property buyer or investor.
It not only helps you budget more effectively but also ensures fair, transparent, and legally compliant transactions.

Whether you’re buying your first apartment or adding another luxury villa to your portfolio, having clarity on how realtor commissions work will help you make smarter, more confident investment decisions.

At Gulf Realty, our experts ensure complete transparency in every step of your real estate journey — from shortlisting properties to finalizing deals, with no hidden costs or surprises.

📞 Connect with Gulf Realty today to make your Dubai property investment safe, smart, and successful.