Off-plan property sales in Dubai represent the largest share of real estate transactions in the UAE — and they come with a distinct commission structure that every agent must understand.
RERA regulations
The Real Estate Regulatory Agency (RERA) governs commission rates and disclosure requirements. Key rules: written commission agreement must exist before any transaction; standard commission is 2% of the property value for resale, but developer-paid commissions for off-plan can range from 3–8%.
Developer-paid vs. client-paid
For off-plan, developers typically pay the agent commission directly. This creates a split structure: the developer pays a gross commission (e.g., 5%) and the brokerage retains a percentage (e.g., 40%) while the agent receives the remainder (60%). These splits are negotiated per brokerage policy and developer relationship.
Co-brokerage splits
When two agents are involved — one representing the developer and one representing the buyer — the commission is split. Typical Dubai market split: 50/50 or 60/40 in favor of the buyer's agent when the developer's side is the project developer's own sales team.
Zold commission calculator
Zold's commission module automates these calculations. When a deal is marked as closed, the system automatically: reads the deal's project and applies the preset developer commission rate; applies the brokerage's agent split formula; creates commission payable records for each co-agent; feeds into the next payroll cycle. No manual calculation or spreadsheet required.
Tax implications
UAE has no personal income tax, but VAT applies to agent commissions at 5%. Your invoicing must include VAT if your brokerage is VAT-registered (mandatory above AED 375,000 annual revenue).
Common disputes and how to avoid them
- **Dual agency conflicts**: Always disclose to both parties if your firm represents both sides
- **Introduction clauses**: Some developer agreements include 12–24 month exclusivity — track introduction dates in your CRM
- **Cancellation policies**: If a sale falls through during the off-plan period, confirm your commission retention policy in writing
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