What You Are Actually Paying For
Agent commission is one of the most common questions from buyers, sellers and tenants in Dubai, and it is often misunderstood. A good agent earns their fee by pricing correctly, marketing the property, qualifying the other party, handling negotiation and steering the transaction through registration safely. This guide explains the typical figures and the framework that protects you.
Sale Commission
For a property purchase, the buyer-side agency commission is typically around 2% of the purchase price, plus VAT.
- This is a market convention, not a fixed statutory rate, so it can be discussed.
- It is agreed in your brokerage agreement before the deal proceeds.
- On some deals the structure differs, so always confirm the figure in writing.
Because it is customary rather than mandated, clarity upfront avoids any misunderstanding at closing.
Rental Commission
For leasing, the agent commission is typically around 5% of the annual rent, plus VAT where applicable.
- As with sales, this is a market norm that can vary by deal.
- It is usually paid by the tenant, though terms should be confirmed in advance.
- Agree the amount before signing the tenancy so there are no surprises.
On renewals of an existing tenancy, an agent is not always involved, so a commission may not apply. It is mainly on a new lease, where the agent sources the property and arranges the paperwork, that the rental fee comes into play.
RERA Registration and the BRN
Dubai regulates real estate agents through RERA, part of the Dubai Land Department.
- Registered agents hold a Broker Registration Number (BRN), which you can ask to see.
- Registration means the agent operates under a recognised framework with accountability.
- Dealing only with registered agents is one of the simplest ways to protect yourself.
An agent who cannot show a valid BRN is a reason to pause. Registration also means the agent is bound by a code of conduct, which matters when large sums and important paperwork are involved.
The RERA Forms
Dubai uses standardised forms to keep transactions transparent. The main ones are:
| Form | Purpose |
|---|---|
| Form A | Agreement between the seller and their listing agent |
| Form B | Agreement between the buyer and their agent |
| Form I | Agreement between two agents cooperating on a deal |
These forms document who represents whom and on what terms, which reduces disputes and keeps commission arrangements clear for everyone involved.
What the Commission Covers
A professional agent's fee generally reflects work such as:
- Accurate pricing and market advice.
- Marketing and access to qualified buyers or tenants.
- Viewings, negotiation and offer management.
- Coordinating paperwork, NOCs and the transfer or Ejari process.
Seen this way, the commission is payment for managing risk and getting the deal done correctly, not just for making an introduction.
Why a Registered Agent Protects You
The commission you pay buys more than convenience. A registered agent:
- Operates under RERA rules and uses the official forms, creating a clear paper trail.
- Verifies ownership and documentation before you commit money.
- Guides you through NOCs, transfer appointments and payment safeguards.
- Is accountable if something goes wrong, unlike an unregistered middleman.
In a market where transactions involve significant sums, that accountability is exactly what the fee is protecting.
Can You Negotiate?
Because these figures are market norms rather than fixed rates, commission can be discussed. In practice, the strongest position is to agree the fee and scope in writing at the start, so both sides know what is included. Focus on value and service quality, not only the headline percentage, since a capable agent often saves you far more than the fee through better pricing and a cleaner process.
The Bottom Line
Dubai's commission norms, around 2% plus VAT on sales and about 5% of annual rent on leases, are straightforward once you understand the framework and the RERA forms behind them. The key protection is simple: work with a registered agent who holds a valid BRN and documents everything properly. Binayah's agents are RERA-registered and happy to walk you through the numbers and forms before you commit. Get in touch for clear, upfront advice.