Dubai RERA Broker Licensing & the Brokers Register question: purchase of a Business Bay apartment for AED

Dubai RERABroker Licensing & the Brokers Register

A buyer appoints two brokerages to work together on his purchase of a Business Bay apartment for AED 2,400,000, agreeing a fee of 2% of the price. Both negotiate and the sale is concluded. What total fee, excluding VAT, do the two brokerages share?

A AED 24,000
B AED 48,000
C AED 50,400
D AED 96,000

Show the answer and explanation

Answer: B. AED 48,000

Under Article 31 of Bylaw No. 85 of 2006, where several brokers act for one party and the contract is concluded, the fee is divided between them as if they were one broker. One fee is due: 2,400,000 x 2% = AED 48,000, which the two brokerages split between themselves. Paying each brokerage the full 2% gives AED 96,000, the mistake Article 31 prevents. AED 50,400 adds 5% VAT, which the stem excludes; AED 24,000 is only one half of the shared fee. Source: Bylaw No. (85) of 2006, Arts. 27 and 31; agreed rate given in the stem (in force 12 Oct 2026).

Common mistake

Charging the buyer a full fee per brokerage instead of one fee shared as if by a single broker.

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