Dubai: What is the maximum percentage of the rent, which a real estate agent can charge in Dubai? A Gulf News reader who was helping a friend find an accommodation in Dubai, wrote in, confused by the high agency commission charges she had recently encountered.
She asked: “I was wondering if you would be able to highlight the confusing and also concerning the situation about the real estate agencies’ commissions in Dubai, upon renting a property. I was helping a friend find a suitable apartment, and I was very surprised by the fact that all of the real estate agencies in that particular area are claiming double the amount compared to what is stated by the Real Estate Regulatory Authority – five per cent of the annual rental amount. It is quite puzzling that the agencies can go so as far as that.”
Gulf News raised the reader’s query with Ahmed Elnaggar, Managing Partner at Abu Dhabi-based Elnaggar Legal Advisors Limited, who clarified that there was no limit specified in writing on the maximum percentage of annual rent, which real estate agents could charge in Dubai.
“There is no maximum or minimum commission stipulated in the law for brokerage fees. This is a subject that is to be regulated contractually,” he said.