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A brokerage marketing a registered off-plan project takes a 20% down payment from the buyer of a AED 1,450,000 unit. The developer pays it 5% commission on the price. How much must it pay into the project escrow account?
Down payment: 20% x 1,450,000 = AED 290,000. Article 12 of Executive Council Resolution No. 6 of 2010 (in force 12 Oct 2026) requires the broker to deposit the sale proceeds into the project escrow account, without using its own account or deducting its commission first; a contrary agreement is void. So all AED 290,000 goes in, and the commission (5% x 1,450,000 = 72,500) is settled separately. 217,500 deducts the commission and 275,500 deducts 5% of the payment. Source: Executive Council Resolution No. (6) of 2010, Art. 12 (in force 12 Oct 2026); RERA Practice Guide (Nov 2024).
Deducting the broker's commission from the buyer's payment before it reaches escrow.
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