UAE Property Agent Commission Rules You Must Know in 2025

REAL ESTATE1 month ago

In the fast-growing UAE property market, real estate agents play a key role in connecting buyers, sellers, landlords, and tenants. Whether it’s a luxury villa in Dubai or a studio in Sharjah, agents work hard to close the deals. But many people still have doubts about how agent commissions work in the UAE.

Understanding commission rules is important for both customers and property professionals. The government has set certain regulations to make the process more transparent. This article breaks down the latest commission rules for property agents in the UAE, using simple language and real-life examples to guide buyers, sellers, and renters.

What Is Real Estate Commission?

Commission is the fee a property agent earns after successfully helping with a transaction. It is usually a percentage of the property’s sale price or annual rent amount. Commission is not a fixed salary—it’s performance-based, and it motivates agents to work efficiently for their clients.

In most cases, the commission is paid at the time of signing the contract, once the deal is confirmed.

Standard Commission Rates in the UAE

Although rates may vary slightly between emirates or companies, there are standard practices followed in most real estate transactions.

For property sales:

Agents usually charge 2% of the final sale price from the buyer or seller, depending on the agreement.
In many cases, the buyer pays the commission.

For rental transactions:

The agent typically receives 5% of the annual rent amount.
This amount is usually paid by the tenant.

Some premium agents or luxury brokers may charge higher fees due to the size and value of the property or added services they offer. However, these must always be disclosed upfront.

Is Commission Regulated by Law?

Yes. The UAE real estate sector is well-regulated, especially in cities like Dubai and Abu Dhabi. Government departments like the Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA) have set rules to protect both clients and agents.

In Dubai, for example:

All property agents must be RERA-certified and licensed.
The agent must have a valid brokerage agreement signed by the client.
Commission amounts and payment terms should be clearly mentioned in the Form A (sales) or Form B (rental), which are official RERA documents.

Failure to follow these guidelines can result in penalties or loss of license for the agent.

Who Pays the Commission?

This often depends on the agreement between the parties and the nature of the transaction.

In sales, usually the buyer pays the agent. But sometimes the seller may also agree to pay or share the cost.
In rentals, the tenant pays the commission, unless it is a large-scale or commercial lease where the landlord may cover the fee.

To avoid confusion, both parties should agree in writing about who will pay the commission and how much will be charged.

Can You Negotiate the Commission?

Yes, commissions are negotiable, especially in high-value or long-term deals. However, agents will usually quote a standard rate at first. Clients can try to negotiate the fee before signing any agreement.

Keep in mind:

An agent with a strong track record may not be open to big discounts.
If you’re buying or renting multiple properties, you might get a better deal on the commission.

Always confirm the agreed percentage or amount in the contract to avoid disputes later.

Are Agents Allowed to Take Extra Payments?

No, agents are not allowed to take hidden charges or extra fees beyond the agreed commission. RERA regulations strictly prohibit illegal commissions or side payments.

Also, agents must not collect any deposit money or cheques in their personal name. All payments must go directly to the seller, landlord, or licensed company account.

If an agent asks for suspicious payments, you should report them to the authorities.

Digital Platforms and Online Listings

The rise of digital real estate platforms like Bayut, Property Finder, and Dubizzle has made it easier to find properties online. However, these platforms also list agents, so it’s important to check their license number and certification.

When dealing with agents online:

Ask for their RERA ID or company trade license.
Make sure all property details and commission terms are clearly written in the official documents.

This helps ensure the transaction stays legal and smooth.

New Trends and Future of Commission Rules

With the UAE’s property market growing, especially after the launch of golden visa programs and foreign ownership reforms, more regulations are expected in the coming years.

Some suggested updates include:

Fixed commission ceilings for certain types of properties.
Clearer online regulations for digital brokerages.
Greater transparency in brokerage contracts.

The goal is to protect both local and international investors while encouraging fair practices among agents.

Final Thoughts

Understanding the commission rules for property agents in the UAE is important for anyone planning to buy, sell, or rent property. Always work with licensed professionals, ask the right questions, and read the fine print before signing anything.

Whether you’re dealing with a villa in Abu Dhabi or a studio apartment in Dubai, a good agent can make the process faster, easier, and legally secure. Just make sure you understand how their commission works.

For property agents, following the official rules not only builds trust but also ensures long-term success in one of the world’s most exciting real estate markets.