Co-broking off-plan property in Dubai: how the commission flows

Off-plan sales make up a large share of Dubai's transactions, and they're co-broked more often than most agents expect. One agent has the developer relationship and access to the launch, and another has the buyer. The commission flows differently from a ready sale: it comes from the developer, it's paid against the buyer's instalments, and it goes to whichever agency the developer has on record for the sale. Agents who know these mechanics agree the right split up front. Agents who don't often find out at payout time.

The developer pays, not the buyer

On a primary off-plan purchase, the buyer pays no agency fee. The developer pays commission to the agency that brought the sale, at a rate set by the developer for that project. Rates on Dubai launches typically range from about 2% to 5% of the purchase price, with higher rates and one-off incentives on some launches and sales campaigns.

To be paid, the agency must be registered with the developer as a broker partner, and the sale must be attributed to that agency at the point of reservation. Attribution happens on the expression of interest or booking form, which names the agency. The developer pays the agency named there, and no one else.

When the commission is paid

Developers don't pay commission when the booking form is signed. Payment is linked to the buyer's progress through the payment plan. The usual triggers are:

• The buyer has paid a set percentage of the price, commonly 10% to 20% depending on the developer and the plan.
• The sale and purchase agreement (SPA) is signed by both parties.
• The sale is registered with the Dubai Land Department through Oqood, the off-plan registration system, with the 4% DLD fee paid.

Some developers pay the full commission once these are met, and others pay in tranches as the buyer reaches later milestones. Developer agreements also commonly include a clawback: if the buyer defaults or the sale is cancelled within a defined period, commission already paid is recovered from the agency.

Buyer payments go into the project's escrow account, which Dubai law requires for every off-plan project. That protects the buyer's money, but it doesn't change when the agency is paid. The developer's commission terms decide that.

How the split works on an off-plan co-broke

Because the developer pays only the agency named on the booking, the commission on an off-plan co-broke always arrives at one brokerage first. That brokerage then pays the other its share. Every off-plan co-broke depends on a single question being settled first: whose agency goes on the booking form?

Usually it's the agency registered with the developer, which is often the one with the launch allocation or the stronger developer relationship. The other agency, the one with the buyer, is paid from that commission under the agreement between the two of them.

Off-plan splits tend to follow these patterns:

• 50/50 where both sides contribute equally: one brings the buyer, the other brings registration, unit allocation and the developer relationship.
• A larger share to the buyer's agent on launches where unit access is open to most registered agencies and the buyer is the scarce part of the deal.
• A larger share to the registered agency on high-demand launches where allocation is tight and getting a unit at all is the hard part.

What to put in writing for off-plan

An off-plan split agreement needs everything a ready-sale agreement has, plus terms that cover the developer's payment structure:

• Which agency is named on the booking, and confirmation that it's registered with the developer.
• The commission rate agreed with the developer, so both sides are splitting the same number. Agree whether incentives and bonuses are part of the split.
• When the other agency is paid: within a set number of days after the developer pays, and in matching tranches if the developer pays in stages.
• Clawback: if the developer recovers commission, each agency returns its share in proportion.
• The buyer's identity and the unit, so a buyer who later reserves a different unit in the same project is still covered.

Off-plan resales are a different deal

Once a buyer resells an off-plan unit before handover, the transaction is no longer a primary sale. The seller is assigning their contract to a new buyer, usually with a developer no-objection certificate and a transfer fee set by the developer. The developer pays no commission on this. The agency fee works the same way as on a ready resale, typically 2% plus VAT from the buyer, and a co-broke split follows the ready-sale model covered in How commission splits work on a co-broke in Dubai.

Registering with a developer

Each developer keeps its own list of approved broker partners, and an agency has to register with each one separately. The documents developers ask for are broadly the same:

• The brokerage's trade licence and RERA registration (ORN).
• The BRNs of the agents who will sell the project.
• A VAT registration certificate, where the brokerage is registered for VAT.
• The brokerage's bank details, on letterhead, for commission payments.
• A signed broker agreement with the developer, which sets the commission rate, the payment triggers and the clawback terms.

Registration takes anywhere from a day to a few weeks, depending on the developer. An agent with a buyer for a project their brokerage isn't registered with has two choices: register before the buyer reserves, or co-broke with an agency that's already registered. On a fast-moving launch, the second is usually the only practical option.

Launch days and expressions of interest

New launches in Dubai often sell through expressions of interest (EOIs). Buyers pay a refundable deposit through a registered agency to secure a place in the allocation queue, and units are offered in order on launch day. The agency that submits the EOI is the agency the developer attributes the sale to.

This makes the EOI the point where an off-plan co-broke is won or lost. If the buyer's agent introduces their client to a registered agency without a written split, and the EOI goes in under the registered agency's name, the buyer's agent has no claim on the developer. Their only claim is against the other agency, under whatever was agreed. On launch days, when agents are handling dozens of EOIs at once, that agreement needs to exist before the EOI is submitted.

A worked example

A buyer reserves a one-bedroom apartment in a new tower for AED 1,800,000. The developer pays registered agencies 4% on this project, released once the buyer has paid 20% of the price and the sale is registered in Oqood.

• Developer commission at 4%: AED 72,000 plus AED 3,600 VAT.
• Payment trigger: the buyer pays the 20% (AED 360,000) over the first few months of the payment plan, and the developer registers the sale in Oqood.
• Payment to the registered agency: AED 75,600, typically within 30 to 60 days of the trigger being met, depending on the developer.
• Split at 50/50: the registered agency pays the buyer's agency AED 36,000 plus AED 1,800 VAT within the agreed window.

If the developer instead pays half the commission at 20% and the rest at 40%, the agreement should require the registered agency to pay each tranche on in proportion as it arrives, rather than holding the whole share until the end.

Payment plans and commission timing

Dubai developers offer a wide range of payment plans. Typical structures include 60/40 or 70/30 splits between construction and handover, and post-handover plans that spread payments over several years after the keys are released. The payment plan decides when the buyer reaches the developer's commission threshold, and so when the agencies are paid.

On a plan with a small down payment and slow construction-linked instalments, it can take months for the buyer to reach 20%. Both agencies should know the expected date when they agree the split, so that neither is surprised by how long payment takes. On high-value units, some agencies agree a partial payment to the buyer's agency when the SPA is signed, with the balance paid when the developer releases the commission.

Choosing who to co-broke with on off-plan

The registered agency carries the developer relationship, and its reliability decides whether the buyer's agent is ever paid. Before agreeing an off-plan co-broke, a buyer's agent should be confident that the registered agency:

• Is genuinely registered with the developer for that project, which can be confirmed with the developer's sales team.
• Has a record of paying co-broke shares on time.
• Will pass on tranche payments as they arrive.
• Puts the split in writing before the EOI or booking form is submitted.

Where off-plan co-brokes go wrong

The common failures are predictable. A buyer's agent introduces a client to a registered agency, and the booking goes through with no written split. A buyer reserves a different unit from the one discussed, and the registered agency treats it as a new deal. The developer pays in tranches, but the other agency is paid only at the end. A sale is cancelled, and one side absorbs the full clawback. Each of these is settled by a written agreement made before the booking form is signed.

Frequently asked questions

Does the buyer pay agency commission on off-plan property in Dubai?

No. On a primary off-plan purchase, the developer pays commission to the registered agency that brought the sale. The buyer pays no agency fee.

How much commission do Dubai developers pay agents?

Rates typically range from about 2% to 5% of the purchase price, set by the developer for each project, with higher rates and incentives on some launches.

When do developers pay agency commission?

Once the buyer has paid a set share of the price, commonly 10% to 20%, the SPA is signed and the sale is registered in Oqood. Some developers pay in tranches.

Can two agencies share developer commission?

Yes. The developer pays the agency named on the booking, and that agency pays the other its share under a written split agreement.

On BrokerCircle, an off-plan opportunity and a buyer requirement can be matched like any other deal, and the split, including whose agency books the unit, is agreed in the app before the client and unit details are shared.