Ask the expert: did my estate agent swindle me?

I recently sold my apartment through a property agent. It was a stressful time, and I just wanted to sell as quickly as possible. The agent produced a Sale and Purchase Agreement and an Agreement between me and the buyer. These provided for a one-off payment of 2 per cent commission to the agent from the buyer. As the deal was nearing completion, the agent suddenly demanded a further 2 per cent commission from me. I was so anxious to sell that I paid the 2 per cent, around Dh50,000. In hindsight, I feel he was not entitled to it. I also think the agent undervalued my apartment. Can I recover the Dh50,000 and also the difference between the sale price and the actual property value?

The answer lies in the written agreements (as per article 125 of the UAE Civil Code). If, read together, these provide for two payments of 2 per cent commission, then the agent was legally justified. However, you say the agreements provided for a single payment, to be paid by the buyer. In this event, the agent would be liable under article 324 of the UAE Civil Code (taking undeserved payments) to repay you.

First, write a formal letter requesting repayment of the sum on the basis that the agent was never entitled to it, and took advantage of the stressful situation that had arisen. If he doesn’t respond, or any response is unsatisfactory, you can contact the Real Estate Regulatory Authority, seeking its assistance. If the agent still refuses to refund your money, you should send him a formal legal notice, setting out, by reference to the relevant terms of the documents themselves, that the agreements did not entitle him to two commission payments, and giving him a set period of time to refund your money before you will be forced to issue a formal claim in the Dubai Real Estate Court.

As for your second complaint, it appears you approved the valuation, so it would be difficult to argue that he was responsible for undervaluing the property.