What is Real Estate Agent Commission (Dubai)?
The standard real estate agent commission in Dubai is 2% of the purchase price plus 5% VAT on resale (secondary market) transactions, paid by the buyer to their agent. On off-plan purchases the developer pays the commission, so buyer-side advice costs the buyer nothing.
Description
Dubai's commission structure splits cleanly by market. On resale, the buyer pays their agent 2% of the agreed price plus 5% VAT on that fee, due at transfer. On off-plan, the developer pays the selling agent's commission out of its own marketing budget, and the buyer pays no commission at all.
On the sell side of a resale, the listing agent's fee is agreed with the seller in the RERA Form A listing agreement, and the 2% benchmark is the customary reference point there too. Where one brokerage introduces the buyer and another holds the listing, the agents agree a split between themselves; the buyer's cost does not change.
The relationship paperwork is standardised: Form A ties the listing agent to the seller, Form B ties the buyer's agent to the buyer, and the commission terms belong in those forms, not in side conversations. An agent asking for commission without a signed form and a verifiable licence is a red flag.
How to interpret
Anchor on 2% plus VAT as the market rate for resale and treat quotes far from it with curiosity in both directions: an unusually cheap agent is often an order-taker rather than an advisor, and anything above the norm needs justifying in service terms.
On off-plan, remember who the paying client is. The developer funds the commission, which is why independent, buyer-side analysis matters more there, not less: the fee structure rewards closing, and the buyer's protection is an advisor whose process is transparent about that.
Commission is earned at completion in the ordinary case: for resale that means at or around transfer at the trustee office, typically by manager's cheque alongside the other closing payments.
दुबई मार्केट संदर्भ
Verify before you engage: every practising agent holds a RERA broker registration number (BRN) and a DLD broker card, and both can be checked against the advertised name. Oliva DB Properties CO. L.L.C. S.O.C. operates under RERA BRN 1573501 and DLD office card 92025, and any legitimate brokerage can quote its equivalents.
Advertising is regulated alongside commission: listings must carry a Trakheesi permit, and the RERA forms trail (A for listings, B for buyer engagement) is what turns a handshake into an enforceable fee arrangement.
Frequently asked questions
2% of the purchase price plus 5% VAT on resale transactions, paid by the buyer to their agent. The same 2% benchmark is the customary reference for seller-side listing fees under Form A.
The developer. Off-plan buyers pay no commission, which is why buyer-side advice on off-plan costs the buyer nothing.
The 2% benchmark applies on the sell side as well, agreed between seller and listing agent in the RERA Form A. Where two agents are involved, they split fees between themselves without changing the buyer's 2% plus VAT.
Legally yes, commercially within limits: 2% plus VAT is the entrenched market norm on resale, and material discounts usually signal a thinner service rather than a bargain.
At completion, which for resale means at the transfer appointment at the registration trustee office, usually by manager's cheque alongside the DLD fees.
Check the agent's RERA broker registration number (BRN) and DLD broker card, and confirm any listing carries a Trakheesi permit. Commission terms should sit in a signed RERA form, not a verbal agreement.
This content is for educational purposes only and does not constitute investment, financial, legal, or tax advice. Yields, returns, and market data referenced are historical or estimated and are not guaranteed. Capital is at risk. Seek independent professional advice before making investment decisions. Oliva is a licensed Dubai real estate advisor (DLD Broker Card: 92025, RERA BRN: 1573501). Read our Key Risks Disclosure and Disclaimer.