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Seller guide · UAE

My property sale fell through. Do I still owe the agent commission?

Possibly. A failed sale does not automatically cancel the agent's fee. Check where the property is, whether a sale contract was agreed, and what your agency agreement says about commission and cancellation.

For UAE property sellers: UAE-wide commercial law, with Dubai and Abu Dhabi comparisons. Other emirates and financial free zones need specific local checks.

Two empty chairs beside a sunlit table, with an apartment key separated from a closed folder and red pen
AI-generated editorial illustration of an unfinished property meeting; not an actual transaction.

What should I check first?

Put the agency agreement and sale contract side by side. The agency agreement is your contract with the broker; the sale contract is between seller and buyer. Find who must pay, when commission becomes payable, any conditions and what happens if the sale fails. Keep all amendments and messages.

What does UAE-wide law say?

A broker who brings about agreement on a sale's essential terms may earn commission before completion. Article 254 allows exceptions based on the agreement or established practice. Article 255 preserves a fee claim after termination unless broker fraud or serious error is established. Check applicable local rules too. Federal law, Articles 254-255 (Arabic text).

What if the property is in Dubai?

Check the agency terms. Dubai Land Department (DLD) ties commission to concluding and registering the sale unless the agency agreement says otherwise. DLD guidance

Cancellation and sale conditions also matter under Articles 28-30. Have the complete agreement reviewed; a failed transfer alone does not establish whether a fee is owed. Dubai broker rules

What if the property is in Abu Dhabi?

A completed transfer is not always required. Article 7 of Abu Dhabi Law 3/2015 says commission can become due when the broker's work leads to agreement on the sale's essential terms, even if it is not carried out, unless agreed otherwise. Check the brokerage agreement before assuming cancellation removes the fee. Abu Dhabi Real Estate Centre: Article 7

What about property elsewhere in the UAE?

Have the local rules checked before applying either example. Start with UAE-wide commercial law and your agreements, then confirm the rules for the property's emirate. The Dubai and Abu Dhabi answers above are not nationwide rules. For a disputed demand, use a UAE lawyer familiar with that location.

What if the buyer's mortgage was rejected?

Check the finance condition and agency terms. Under federal Article 254(3), commission waits if the contract cannot take effect until a stated condition is met. Mortgage rejection alone does not establish that exception. Ask which clause applies; a deposit-refund clause does not necessarily settle commission. Federal law

What if we never agreed a sale?

A failed negotiation differs from a cancelled sale. Federal Article 254(4) allows compensation for effort when the client causes negotiations to fail. Federal law

Dubai Article 30 says unsuccessful negotiations do not justify compensation or expense recovery unless the brokerage agreement provides otherwise. Ask whether the demand is for commission, agreed expenses or compensation, and why. Dubai bylaw

Does the seller always have to pay?

No. Check who appointed the broker. Federal Article 257 links fees to the appointing party. If both appointed the broker, each can owe their share. Being the seller alone does not establish liability. Federal law, Article 257

What should I do before paying or refusing?

  1. Request the clause, amount and calculation in writing.
  2. Keep both contracts and evidence of why the sale failed. Separate commission from the buyer's deposit in any settlement.
  3. Have a licensed UAE lawyer review a disputed claim before settling.

Message to the agent: "Please explain the contractual basis and calculation for commission after this failed sale. List any expenses or compensation separately."

Official sources checked 23 October 2026. General information, not advice on a particular dispute. The Arabic legal text controls where translations differ.