In the high-velocity world of Dubai real estate, rental transactions often unfold rapidly—sometimes within a matter of hours. Amid the pressure to secure tenants, finalize payments, and hand over keys, there remains a recurring and costly oversight among agents: failing to execute a formal commission agreement.

At fäm Conveyancing, we continue to witness cases where agents lose their rightful commission due to the absence of proper documentation. Unlike property sales—where the Unified Contract F along with Brokerage Agreement Forms A and Forms B enforces a brokerage engagement—many rental deals are concluded based on informal verbal promises, emails, or WhatsApp conversations. This exposes the agent to unnecessary legal and financial risk.
This article serves as a professional and legal reminder: in every rental transaction, the commission agreement is not optional—it is essential.

The Risk: Rental Deals Without a Signed Commission Agreement
Rental transactions often move fast. Viewings, negotiations, approvals, tenancy contracts, and key handovers can occur within 24–48 hours. In this rush, some agents choose to proceed without having the client sign a proper engagement or commission agreement, relying instead on good faith.
However, good faith is not enforceable in court. In numerous cases, agents have:

• Been denied their commission after the key was handed over.
• Been bypassed by tenants or landlords who proceeded directly with the deal.
• Lost weeks of effort due to a lack of enforceable proof of engagement.

Even when messages or verbal confirmations exist, they are rarely sufficient to establish legal entitlement to a commission. Without a signed agreement, an agent’s position is weakened in front of any judicial or arbitration forum.

Legal Reference: Law No. 85 of 2006 – Why Courts Require Written Agreements
It is important to refer to Law No. 85 of 2006 regulating the real estate brokers register in the Emirate of Dubai, which clearly outlines the legal requirement for formal brokerage agreements:

Article (26):"A Brokerage Agreement must be in writing and must state the names of the contracting parties, the specifications of the Real Property, and the brokerage terms. The Brokerage Agreement will be entered in the record of the Real Property Register.”

Accordingly, and based on consistent court practice, any legal claim filed by a broker against a tenant or landlord to recover commission fees—without submitting a formally registered and signed brokerage contract—is likely to be rejected by the court, even if there are WhatsApp messages or informal exchanges confirming the deal.This makes it clear: only a properly executed written agreement protects your rights under UAE law.

What Every Agent Must Do to Protect Their Commission
To safeguard your commission, your effort, and your reputation, the following steps must be followed from the start of the client relationship:

1. Sign an Engagement Agreement: This confirms the agent’s appointment and the client’s acknowledgement that a commission will be due if a transaction is concluded through the agent’s efforts.
2. Sign a Commission Agreement: This clearly states the commission amount or percentage, payment terms, and obliges the client to pay the commission upon deal finalization.
3. Include Non-Circumvention Clauses: These clauses ensure that if the client bypasses the agent and deals directly with the landlord or tenant after an introduction, the commission is still due in full.

What Happens If You Don’t?
Failing to secure a written agreement means:

• You may have no enforceable legal claim for your commission.
• The client can deny having ever appointed you as their agent.
• Courts may dismiss your claim for lack of evidence.
• Your time, effort, and reputation can be lost—without any compensation.

This Is About Your Earnings, Your Legal Protection, and Your Professional Standards
A commission agreement is not a formality—it is a legal necessity. At fäm Conveyancing, we’ve supported numerous agents in commission disputes and have seen one recurring theme: those who formalized their engagement get paid. Those who didn’t, don’t.
Your time is valuable. Your service is professional. It deserves legal protection. Do not proceed in a rental transaction without a signed engagement and commission agreement in place.

Let’s Raise Industry Standards—Together
We urge every agent and broker across Dubai to standardize the use of commission agreements in rental deals, just as they would in sales. Stop relying on verbal assurances. Your protection lies in a signed PDF, not a promise over text.

If you need ready-to-use agreement templates, assistance with legal drafting, or help resolving commission disputes, fäm Conveyancing is here to support you every step of the way.

📞 00971588229107 | 00971521289592
📧 info@famconveyancing.com
🌐 www.famconveyancing.com

Your professionalism begins with protecting your commission. Let’s make that the new standard.