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Real Estate Broker Commission Agreement for United Arab Emirates

Real Estate Broker Commission Agreement Template for United Arab Emirates

A Real Estate Broker Commission Agreement under UAE law is a legally binding document that establishes the terms and conditions under which a licensed real estate broker will provide property marketing and transaction services. The agreement complies with UAE Federal Law No. 39 of 2006 and relevant RERA regulations, particularly in Dubai. It outlines the broker's scope of services, commission structure, payment terms, and obligations while ensuring compliance with local real estate regulations and professional standards. The document includes specific provisions for broker licensing requirements, maximum commission rates, and broker obligations as mandated by UAE law.

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What is a Real Estate Broker Commission Agreement?

The Real Estate Broker Commission Agreement is essential for formalizing the relationship between property owners/sellers and licensed real estate brokers in the UAE. This document is required whenever a property owner engages a broker to market and facilitate the sale or lease of their property. The agreement must comply with UAE Federal Law No. 39 of 2006 and RERA regulations, particularly in Dubai where specific commission caps and broker requirements apply. It includes crucial details about commission rates, payment terms, scope of services, and broker obligations. The document serves as both a legal protection and operational framework, ensuring transparency in the brokerage relationship while meeting regulatory requirements. It's particularly important given the UAE's strict regulation of real estate brokerage activities and the need for clear documentation of commission arrangements.

What sections should be included in a Real Estate Broker Commission Agreement?

1. Parties: Identification of the property owner/seller and the licensed real estate broker, including their full legal names, license numbers, and contact details

2. Background: Context of the agreement, including brief description of the property and the owner's intention to sell/lease

3. Definitions: Key terms used in the agreement including 'Property', 'Commission', 'Successful Transaction', 'Asking Price', etc.

4. Appointment and Scope: Formal appointment of the broker and detailed scope of services to be provided

5. Broker's Obligations: Detailed listing of broker's duties, responsibilities, and professional conduct requirements

6. Commission Structure: Clear definition of commission rates, calculation method, and payment terms

7. Payment Terms: Specific conditions for when commission becomes due and payment procedures

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Representations and Warranties: Statements of fact and promises made by both parties

10. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes

What sections are optional to include in a Real Estate Broker Commission Agreement?

1. Exclusivity: Terms of exclusive agency rights if applicable - used when broker has exclusive rights to market the property

2. International Marketing: Additional terms for international property marketing - included when targeting foreign investors

3. Sub-Agents: Terms governing the appointment and management of sub-agents - used when broker may need to engage other agents

4. Virtual Tours and Digital Marketing: Specific terms for digital marketing services - included when advanced marketing services are offered

5. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID

6. Anti-Money Laundering Compliance: Specific AML obligations and procedures - included for high-value transactions

7. Multiple Property Provisions: Additional terms for marketing multiple properties - used when agreement covers multiple properties

What schedules should be included in a Real Estate Broker Commission Agreement?

1. Schedule 1 - Property Details: Detailed description of the property including location, size, title deed number, and other relevant details

2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates for different transaction types or value ranges

3. Schedule 3 - Marketing Plan: Detailed marketing strategy and activities to be undertaken by the broker

4. Schedule 4 - Broker's License and Credentials: Copies of broker's license, RERA registration, and other relevant certifications

5. Appendix A - Property Documentation: List of property documents provided by the owner

6. Appendix B - Marketing Materials: Ƶ or samples of marketing materials to be used

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions























Clauses


























Relevant Industries

Real Estate

Property Development

Construction

Professional Services

Property Management

Investment Services

Hospitality (for hotel properties)

Retail (for commercial properties)

Financial Services

Relevant Teams

Legal

Real Estate

Sales

Business Development

Compliance

Operations

Contract Management

Property Management

Transaction Processing

Executive Leadership

Relevant Roles

Real Estate Broker

Property Manager

Sales Director

Business Development Manager

Legal Counsel

Compliance Officer

Real Estate Agent

Property Consultant

Transaction Manager

Operations Manager

Managing Director

Chief Executive Officer

Contract Manager

Real Estate Portfolio Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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