When buying or selling a property in Dubai, it’s common to involve the services of a real estate agent. However, the question arises as to who bears the responsibility of paying the agent fees – the buyer or the seller?
Understanding the real estate market in Dubai
Dubai is a booming real estate market, attracting both local and international investors. It offers a wide range of properties, including luxurious apartments, villas, and commercial spaces. With an increasing number of transactions taking place, it’s essential to clarify the payment structure.
Typical practice in Dubai
In Dubai, it is customary for the seller to cover the agent fees. This means that the seller pays the commission to both their own listing agent and the buyer’s agent. The fees are usually calculated as a percentage of the property’s sale price and are negotiable between the seller and the real estate agent.
By including the agent fees in the selling price, the seller ensures that the buyer does not have to bear the additional cost. This practice encourages more buyers to consider the property and simplifies the transaction process.
Exceptions to the rule
While it is a general practice for sellers to pay agent fees in Dubai, there can be exceptions. In some cases, the buyer may decide to hire a buyer’s agent to represent their interests. In such situations, the buyer may need to cover the fees of their agent.
Additionally, in off-plan property sales, the developer often pays the agent fees instead of the seller. This is because the developer is the primary seller in off-plan transactions, and the property is not yet owned by an individual seller.
The benefits of the seller paying agent fees
The practice of the seller paying agent fees in Dubai offers several advantages:
- Attracting more buyers: By including the agent fees in the selling price, the buyer does not have to bear any additional costs. This makes the property more attractive and affordable to potential buyers.
- Transparent pricing: When the agent fees are included in the selling price, the buyer has a clear understanding of the total cost of the property without any hidden charges.
- Efficient transaction process: Having the seller pay the agent fees streamlines the transaction process and minimizes the buyer’s financial burden, facilitating a smoother real estate transaction.
In Dubai, it is generally the seller who pays the agent fees. By including the fees in the selling price, the seller attracts more buyers and ensures a transparent and efficient transaction process. However, there can be exceptions to this practice, such as when the buyer hires a buyer’s agent or in off-plan property sales where the developer pays the fees. Consulting with a real estate agent or legal professional is recommended to fully understand the payment structure in a specific transaction.