Article 138 – 2017 Fixed administration fees for developers and fixed commission for real estate brokers
Abu Dhabi Municipal Affairs and Transport
Article 1: Broker’s Commission
- The commission of the real estate brokers will be now fixed to 2% for any selling and purchasing contract, with a maximum amount of AED 500,000.
- The commission should be discussed and agreed between both parties (brokers/tenants or owners) and also clearly mentioned in the contract. Failing to that, the commission taken by the real estate broker should not increase 5% of the annual lease amount.
- The real estate broker is only allowed to take commission from one party, either the owner/landlord or the buyer/tenant.
- Every real estate brokers will have to follow an official Brokers Contract, issued by Abu Dhabi Municipal Affairs and Transport.
Article 2: Administration fees for Developers
- The developer is not allowed to collect any kind of fees except for the administration fees which can’t exceed more than AED 5,000.
The first two articles are to be implemented after the official announcements made in newspapers.
As a real estate broker firm in Abu Dhabi, PSI guarantee that we precisely follow this process and make sure our service fees are mentioned in each and every issued contract.
- How much is the brokerage commission for selling?
- PSI will collect 2% fees directly from the buyer.
- How much do the transfer fees represent?
- Transfer fees vary depending on the type of project as well as the concerned developer; some would only take AED 5,000 whereas some developers such as Aldar for example would collect 1% for each transaction fees.
- How many cheques can be done when you lease an apartment?
- Depending on the landlords, the payments can be made with 1 or 2 cheques, or even 12 cheques in certain cases.
- Can I find a rent-to-own property in Abu Dhabi?
- In Abu Dhabi, you will be able to find rent-to-own property in some areas. But in most cases, a rent-to-own option is at high risk: you can expect to provide a considerable amount of down payment and a higher interest rate than what a landlord is currently offering.