Abu Dhabi Real estate agents in Abu Dhabi complain of getting a raw deal by clients who refuse to pay their commissions.
Real estate agents are entitled to a commission of two per cent of the net sale price of a property.
However, many agents who spoke to XPRESS said they lose out on their entitlement once the deal goes through.
“Several of my clients have refused to pay me my commission once I help them close the deal. We have to run after them to get our money. This is unfair,” said R.K, a real estate agent from a South Asian country.
All for nothing
She claimed her clients owe her at least Dh75,000 in commissions for various deals she brokered last year.
She and other property brokers were unwilling to be identified for fear of losing their goodwill with clients.
“We are stuck between the devil and the deep sea. We get work based on the goodwill and trust we build in the market. But unfortunately, the same trust is not reciprocated by many clients,” said another agent, who has been in the market for four years.
Citing an incident two months ago, the Arab national said he brokered a deal for a two-bedroom house in Reem Island for a net worth of Dh2.1 million. “The client is a rich businessman who owns several properties in Abu Dhabi and Dubai, or so he told me. But after all the paperwork was done and the keys of the apartment were handed over, he started haggling me to reduce my commission by one per cent,” said the agent.
“He still owes me Dh23,000. Now he is not even picking up my calls,” complained the agent.
Though real estate companies refused to come on record on the issue, a leading company said the rights of property brokers are protected by law.
“There is a contract that clients have to sign agreeing to pay the two per cent commission. Both the agent and the client are legally bound by that contract. The agent cannot charge more than two per cent,” said the head of sales at a real estate company that has branches in Dubai and Abu Dhabi.
However, agents say the ground realities are different.
“Many of our clients don’t want to sign the contract. And when they insist on paying after the key is handed over, we take their word at face value. But not anymore,” said A.R, an Indian property broker.
