How commission splits work on a co-broke in Dubai

On a co-broked sale in Dubai, two brokerages share one commission. One brings the property and the other brings the buyer. Neither deal closes without the other, so the split decides how the work and the risk are shared. Most co-brokes run smoothly, and the ones that go wrong almost always come down to a split agreed loosely over the phone, before anyone knew who the buyer was or when the money would arrive.

This guide covers where the commission comes from, how it's usually divided, and what to settle with the other agent before any client details change hands.

Where the commission comes from

On a ready (secondary) sale, the standard agency fee is 2% of the purchase price plus 5% VAT. In most Dubai transactions the buyer pays it. A seller can also agree a separate fee with their own listing agent, and that arrangement is negotiated listing by listing, so it doesn't change what the buyer pays.

On rentals, the fee is usually 5% of the annual rent, paid by the tenant, and most brokerages set a minimum fee for lower-value leases.

Commission is paid to the brokerage, never to the individual agent. The brokerage then pays its agent under their own employment or commission agreement. This matters on a co-broke: the split is an agreement between two brokerages, and each agent's personal share comes out of their own brokerage's portion.

How a co-broke split is usually divided

The most common arrangement in Dubai is 50/50. The listing side has done the work of winning the instruction, signing the Form A and preparing the property, and the buyer side has found and qualified a client and brought them to an offer. An even split recognises that both halves are needed.

Splits move away from 50/50 for clear reasons:

• One side carries more of the deal. If the listing agent also arranges the viewings, negotiates both sides and handles the paperwork through to transfer, 60/40 in their favour is common.
• An exclusive or hard-won instruction. Agents holding an exclusive listing on a scarce unit sometimes ask for a larger share, and buyer agents with a strong client often accept it.
• A straight referral. When an agent passes a client on and takes no further part in the deal, a referral fee of around 20% to 30% of the commission is typical.
• Who collects the fee. On a sale where only the buyer pays, the buyer's brokerage invoices the full 2% and pays the listing brokerage its share. Where both sides collect from their own clients, some agents keep what they collect and skip the split entirely.

Who pays whom, and when

The fee is normally collected at transfer, at the trustee office, usually by manager's cheque. The brokerage that receives the commission then pays the other brokerage its share against an invoice.

Two points cause most payment disputes:

1. The payment window. Agree how many days after receiving the commission the other brokerage will be paid. Seven to fourteen days is a reasonable standard.
2. VAT. Each brokerage invoices its own share plus VAT. Agree in advance whether the figures you're quoting include VAT, because a 50/50 split of a VAT-inclusive amount and a VAT-exclusive one aren't the same number.

What to agree before you share a client

A co-broke split should be in writing before either side shares a unit number or a client's name. RERA's Form I is the agreement between two brokerages built for exactly this, and we've covered it in detail in RERA Form I in 2026: putting a commission split in writing. Whatever document you use, it should cover:

• Both brokerages and agents, with ORNs and BRNs.
• The property, and whether it's a sale or a rental.
• The split, as percentages of the total commission, with VAT treatment stated.
• Who invoices the client, and who pays whom.
• The payment window after the commission is received.
• How long the agreement covers the same buyer on the same property, so a deal that closes months later is still covered.
• A no-direct-contact clause, so neither side approaches the other's client about the property.

Before any of this, check the other agent's BRN against the DLD register. It takes a minute and confirms you're dealing with a licensed agent at a registered brokerage. Our guide on how to check a Dubai agent's BRN walks through it.

A worked example

A two-bedroom apartment in Dubai Hills Estate sells for AED 2,400,000. The buyer pays the agency fee:

• Commission at 2%: AED 48,000
• VAT at 5%: AED 2,400
• Total paid by the buyer: AED 50,400
• Listing brokerage's 50%: AED 24,000 plus AED 1,200 VAT
• Buyer brokerage's 50%: AED 24,000 plus AED 1,200 VAT

The buyer's brokerage invoices the buyer for AED 50,400 and collects it at transfer. The listing brokerage invoices the buyer's brokerage for AED 25,200, which is paid within the agreed window. Each brokerage then pays its own agent from its share.

How rental co-brokes are split

Rental co-brokes follow the same principle with smaller numbers and a faster timeline. The tenant usually pays the agency fee, commonly 5% of the annual rent plus VAT, when the tenancy contract is signed and the first rent cheques are handed over. Most rental deals close within days of the first viewing, so the split has to be agreed just as quickly.

Take an apartment in Jumeirah Village Circle let at AED 120,000 a year. The fee at 5% is AED 6,000, plus AED 300 VAT. On a 50/50 split, each brokerage receives AED 3,000 plus VAT. The tenant's brokerage usually collects the full fee and pays the landlord's brokerage its share, although on rentals the landlord's agent sometimes collects instead because they're handling the tenancy contract and the Ejari registration.

Two rental details deserve a line in the agreement. First, state who collects the fee, because both sides are often in the room when the cheques are handed over. Second, say whether the split applies to renewals. Most co-broke agreements cover the first tenancy only, and renewal fees, where charged, go to the agent managing the property.

When both the buyer and the seller pay

On some sales, the seller has agreed a fee with the listing brokerage under Form A, and the buyer pays their own brokerage under Form B. Each side then collects from its own client. Agents handle this in one of two ways.

• Each side keeps its own fee. The listing brokerage keeps what the seller pays and the buyer brokerage keeps what the buyer pays. No money changes hands between the brokerages, and the agreement simply records that.
• The fees are pooled and split. Both fees are added together and divided under the agreed split. This is less common and is normally used when one side's fee is much smaller than the other's.

Whichever approach you use, write it down. A listing agent who assumes they're keeping the seller's fee and also receiving half the buyer's is a common source of disputes.

If the deal falls through

Commission is earned at transfer. If a sale collapses before then, there's usually no fee to split. The exception is where the buyer withdraws after signing the memorandum of understanding (Form F) and forfeits their security deposit, which is commonly 10% of the price and usually held by the listing brokerage until transfer.

The MOU sets out who receives a forfeited deposit, and it normally goes to the seller. Some sellers agree to pay their listing agent a share of it for the work done. If that happens, the co-broke agreement should say whether the buyer's agent is entitled to part of it. Agents who settle this in advance avoid an argument at a point when both sides are already disappointed.

Agreeing a split with an agent you haven't worked with

Most co-brokes involve an agent you know only from a group chat or a single phone call. A few habits make these deals safer:

1. Confirm their BRN and brokerage first. It takes a minute and tells you who will sign the agreement.
2. Propose the split in writing before you discuss the client. A short message setting out the split, the payment window and the VAT treatment is enough to start, followed by the signed agreement.
3. Share general details first. Community, property type, size and price band are enough for the other agent to tell you whether their client fits.
4. Agree how you'll communicate with the client. Decide which agent arranges viewings and handles negotiations so the client hears one consistent message.
5. Keep everything in one record. The agreement, the viewings and the offers should all be easy to find when the deal transfers, which may be months later.

When the split goes wrong

Most split disputes trace back to one of three things: the terms were never written down, the agreement didn't cover a deal that closed later than expected, or one side contacted the other's client directly. A written agreement settles the first two. The third is a breach of that agreement, and the written record is what lets you pursue it.

Frequently asked questions

What is the standard co-broke split in Dubai?

50/50 of the total commission is the most common arrangement between two brokerages. Splits such as 60/40 are used when one side carries more of the work or holds an exclusive, hard-won instruction.

Who pays the commission on a Dubai property sale?

On most ready sales, the buyer pays an agency fee of 2% of the purchase price plus 5% VAT. Sellers sometimes pay a separate fee to their own listing agent, agreed under Form A.

When is co-broke commission paid?

The fee is collected at transfer at the trustee office. The brokerage that collects it then pays the other brokerage its share against an invoice, usually within seven to fourteen days.

Can an agent receive co-broke commission personally?

No. Commission is paid between brokerages. Each agent is then paid by their own brokerage under their own commission agreement.

On BrokerCircle, every introduction between two agents starts with a split agreement. It's proposed and accepted in the app before either side shares property or client details, and both agents keep a record of the terms alongside the deal.