Real Estate Brokerage Agreement (UAE)

A Real Estate Brokerage Agreement in the United Arab Emirates is the contract by which a property owner, buyer, or tenant appoints a licensed real estate broker to represent them in a property transaction — whether a sale, purchase, or lease — in return for a commission. In Dubai, every person or company that brokers property transactions must hold a RERA broker registration card issued by the Real Estate Regulatory Agency under the Dubai Land Department (DLD), as required by Dubai Law No. 85 of 2006 Regulating the Real Estate Brokers Register.

The agreement defines the broker's mandate, the property concerned, the duration of the appointment, whether the appointment is exclusive, and the commission rate. These terms are governed by the general law of agency and contract in the UAE Civil Code (Federal Law No. 5 of 1985), which sets out the duties of agent and principal, the right to commission, and the consequences of early termination or breach. The Commercial Transactions Law (Federal Decree-Law No. 50 of 2022) also applies where the brokerage is conducted on a commercial basis.

Two standard appointment types exist. Under an exclusive appointment, the broker is the client's sole agent and the commission is payable even if the client completes the transaction without the broker during the exclusive term. Under a non-exclusive appointment, the client may use other brokers and commission is payable only to the broker who effectively causes the transaction. The Dubai Land Department's Form A records the seller's listing appointment and Form B records the buyer's or tenant's appointment, and both must be registered on the DLD's Trakheesi system before the broker can legitimately market or seek property.

Commission rates in Dubai follow RERA-approved customary practice: 2% of the agreed sale price for sales and 5% of the annual rent for rentals, in each case subject to Value Added Tax at 5% under Federal Decree-Law No. 8 of 2017. The brokerage agreement should state clearly which party bears the commission, the basis of calculation, and when payment is due — typically upon signing the Memorandum of Understanding (Form F) or upon transfer at the DLD.

Beyond commission, the agreement must set out the broker's obligations: marketing the property on approved portals and the Dubai MLS, conducting viewings, preparing the relevant DLD forms, verifying the identity of counterparties under anti-money-laundering requirements, and taking the transaction through to DLD registration. Proper documentation of these obligations protects both the client who wants a diligent broker and the broker who wants to demonstrate entitlement to commission.

For transactions outside Dubai, the licensing framework differs by Emirate. Abu Dhabi, Sharjah, and the northern Emirates have their own real-estate regulatory bodies, and a broker operating there must hold the relevant Emirate-level registration. This template follows the Dubai RERA framework, which is the most widely used in the UAE and the most detailed in its documentation requirements.

A Real Estate Brokerage Agreement in the United Arab Emirates is needed every time a property owner, buyer, or tenant engages a broker to represent them in a transaction, whether for sale, purchase, or lease. Without a written appointment, there is no clear record of the broker's mandate, the commission rate, or the period during which the broker is entitled to act — and disputes over commission are one of the most common sources of property-related litigation in Dubai.

Sellers and landlords appointing a broker to market a property are the most common users. A written brokerage agreement — which forms the basis of the DLD's Form A listing — records the exclusive or non-exclusive nature of the appointment, the asking price, the marketing obligations, and the commission. Without this, the broker has no clear authority to list the property on portals or the Dubai MLS, and the seller has no enforceable basis to require the broker to perform.

Buyers and tenants appointing a broker to find property also benefit from a written agreement corresponding to the DLD's Form B. This records the buyer's or tenant's criteria, the broker's authority to present properties and negotiate on their behalf, and the commission arrangement — whether the broker is paid by the other side (common in Dubai sales) or by the buyer or tenant.

Investors managing a property portfolio use brokerage agreements to control how each property is marketed, to ensure only licensed brokers handle transactions, and to have a clear record of commission entitlements across the portfolio. A written agreement also triggers the broker's formal obligations: KYC verification, DLD form preparation, and systematic reporting.

The agreement is also essential when the broker is from a different firm to the one that holds the listing, as is common in the Dubai market where sub-brokerage and co-brokerage are widespread. Recording who holds the listing, who represents the buyer or tenant, and how commission is divided between them prevents disputes when the transaction completes and commission falls due.

Finally, the agreement is needed to set the duration and termination terms. A client who is dissatisfied with a broker's performance needs to know how to end the appointment. A broker who has invested in marketing needs to know that an introduction made during the term is protected. A written brokerage agreement answers both questions and keeps the relationship professional and transparent throughout the transaction.

A Real Estate Brokerage Agreement in the United Arab Emirates must contain a set of defined elements to be enforceable and to satisfy the requirements of the Real Estate Regulatory Agency (RERA) and the Dubai Land Department (DLD). The forms-legal.com Real Estate Brokerage Agreement template is structured to capture each of these.

Party identification requires the client's full name or company name and the broker's name or company name, trade licence, and RERA broker card number. The broker's RERA registration must be current at the time the agreement is signed and throughout the appointment, and the client should verify this through the DLD portal.

Mandate and property definition must state clearly whether the broker is acting for a seller, buyer, landlord, or tenant, and describe the property by address and DLD title deed number or, for off-plan property, the developer and project reference. The mandate type determines which DLD form applies — Form A for a seller or landlord listing, Form B for a buyer or tenant instruction — and the agreement should reference this.

Appointment type — exclusive or non-exclusive — governs the broker's exclusivity and the commission triggers. An exclusive appointment should state the period clearly, because the DLD's Trakheesi system records the listing period and a broker acting after the registered period may lose the commission protection.

Commission terms are central. The rate, the basis of calculation, which party pays, whether VAT at 5% under Federal Decree-Law No. 8 of 2017 is added, and the trigger event for payment must all be stated precisely. RERA's customary rates are 2% of sale price and 5% of annual rent, but variations are permissible if agreed in writing.

Broker obligations must specify the marketing activities the broker will perform: portal listings, Dubai MLS registration, viewings, DLD form preparation (Form F Memorandum of Understanding, title-transfer coordination), KYC verification of counterparties, and reporting. These obligations give the client grounds to require performance and protect the broker against claims that nothing was done to earn the commission.

Duration and termination terms must state the start and end dates, the notice required for early termination, and the period after termination during which a broker's introduction remains protected for commission purposes.

Governing law must confirm that the agreement is governed by the laws of the Emirate of Dubai and the UAE, including the UAE Civil Code (Federal Law No. 5 of 1985) and Dubai Law No. 85 of 2006, with disputes referred to the Dubai Courts, the DIFC Courts, or arbitration under the DIAC as agreed. Signature blocks for client and broker complete the agreement.

Completing a Real Estate Brokerage Agreement for the United Arab Emirates is straightforward once the parties have the key details to hand. Begin with the parties section: enter the client's full name or company name and contact details. For the broker, enter the full firm name, the trade licence number, and the RERA broker card number of the individual broker or the firm's RERA registration, and verify these against the DLD's online portal before signing.

Move to the mandate and property section. Select the mandate type — whether the broker is acting for a seller, buyer, landlord, or tenant. Enter the property description with the full address and, if available, the DLD title deed number; for off-plan property, use the developer's project and unit reference. Enter the target sale price or annual rent. Choose whether the appointment is exclusive or non-exclusive: for an exclusive appointment, enter a clear start and end date, because this is the period during which the broker's commission entitlement is protected.

Complete the commission section with care, because this is the term most likely to be disputed. Enter the commission rate — typically 2% for sales or 5% for rentals — and confirm whether VAT at 5% is added on top or included. State clearly when commission is payable: for sales, this is commonly on signing the Form F Memorandum of Understanding and confirmed on transfer at the DLD; for rentals, it is usually on signing the tenancy contract. Enter the commission payable field to specify the trigger event precisely.

In the special conditions field, record any marketing obligations agreed with the broker: minimum portal listings, Dubai MLS registration, frequency of viewings reports, and timelines. This section converts general expectations into enforceable terms.

Select the dispute resolution mechanism that suits the parties: Dubai Courts for most domestic transactions, DIFC Courts for parties with international or common-law preferences, or DIAC arbitration for higher-value commercial transactions. After completing all fields, both client and broker should sign and date the agreement. The broker should register the listing on the Trakheesi system (Form A) or the buyer/tenant instruction (Form B) promptly after signing, as unregistered listings cannot be lawfully marketed under RERA regulations.

Legal requirements for a Real Estate Brokerage Agreement in the United Arab Emirates arise from several overlapping frameworks. Dubai Law No. 85 of 2006 Regulating the Real Estate Brokers Register requires every broker conducting property transactions in Dubai to hold a RERA broker registration card and to operate through a DLD-licensed brokerage firm. Brokerage without valid registration is a regulatory offence and the broker may be unable to enforce a commission claim. The client should verify the broker's RERA registration before signing.

The general law of agency and contract is governed by the UAE Civil Code (Federal Law No. 5 of 1985). Articles 924 to 954 of the Civil Code cover agency relationships and establish the agent's duty to act with due care and in the principal's interests, the principal's right to revoke authority subject to any liability for losses caused, and the agent's right to commission when a transaction is brought to conclusion through the agent's effective effort. The Commercial Transactions Law (Federal Decree-Law No. 50 of 2022) applies where the brokerage is commercial in character and supplements the Civil Code provisions.

All listing agreements must be registered on the DLD's Trakheesi system before the property can be marketed. The DLD prescribes Forms A, B, and F for the principal stages of a transaction, and failure to use the correct forms may prevent registration of the transaction. Transfer of title requires DLD registration at an approved trustee office, and the client should ensure the brokerage agreement covers the broker's role in taking the transaction through to DLD registration.

Value Added Tax at 5% under Federal Decree-Law No. 8 of 2017 applies to brokerage commission as a taxable supply of services. The broker must issue a valid tax invoice with their Tax Registration Number (TRN) if registered for VAT with the Federal Tax Authority (FTA). Anti-money-laundering obligations under Federal Decree-Law No. 20 of 2018 and the associated Cabinet Decisions require brokers and dealers in property to perform KYC checks on their clients and to report suspicious transactions to the Financial Intelligence Unit.

For properties in free zones such as the DIFC or ADGM, the registration and conveyancing requirements differ from the mainland Dubai framework, and transactions in those zones are governed by the DIFC or ADGM Registrar of Real Property rather than the DLD. Outside Dubai, each Emirate has its own real-estate regulatory authority, and a broker operating in Abu Dhabi, Sharjah, or the northern Emirates must be registered with the relevant authority.

Common mistakes with a Real Estate Brokerage Agreement in the United Arab Emirates frequently result in lost commission, unenforceable appointments, and disputes that reach the Dubai Courts or the Real Estate Dispute Resolution Centre (DRERC). The most basic error is engaging a broker who does not hold a current RERA registration. An unregistered broker cannot lawfully list property on Trakheesi or enforce a commission claim, and the client who discovers this after a transaction may dispute the obligation to pay. Checking the broker's RERA card and trade licence before signing prevents this problem.

Leaving commission terms vague causes many disputes. When the agreement does not specify the rate, the basis of calculation, which party pays, and when payment is triggered, both parties may have different expectations. A seller who believes commission is due only on completion of title transfer and a broker who believes it is due on signing the Form F are both correct in different interpretations of a poorly drafted agreement. Stating the rate, the trigger, and the VAT treatment removes this ambiguity.

Failing to register the listing on Trakheesi promptly means the broker is not authorised to market the property under RERA regulations. The client who later claims the broker failed to market the property effectively will have a strong case if the listing was never registered. The agreement should require the broker to register within a stated timeframe of signing.

Using an exclusive appointment without specifying its duration and the post-termination protection period creates disputes when the client wants to change broker or when the exclusive term expires and the original broker claims commission on a transaction introduced during the appointment. The duration and protection period must be clearly stated.

Overlooking the KYC and anti-money-laundering obligations is increasingly risky. Federal Decree-Law No. 20 of 2018 requires real estate brokers to conduct due diligence on clients and to keep records. A broker who fails to do this faces regulatory consequences, and a brokerage agreement that does not reference these obligations may be used to argue that the broker had no duty to perform them. The agreement should confirm both parties' obligations in this area.