Is it normal for a real estate agent to ask for agency fee in cash...

Is it normal for a real estate agent to ask for agency fee in cash and to transfer the half of the deposit in the landlord's account before Ejari?

Unterkunft vor 2T 5 answers •

I'm a Dubai resident looking to rent a property and I've been approached by a real estate agent who wants me to pay the agency fee in cash and transfer half of the deposit to the landlord's account before Ejari registration. I've already given him a holding deposit to stop showing the flat to others, but I'm unsure if this is a standard procedure in Dubai's real estate market.

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3 Answers · 2 replies

camila • vor 2T

Once you've completed the Ejari process, you can use cheques for any remaining payments. If you need cash, you can return the cheques and collect the money.

aisha • vor 2T

The agent wants to pocket the agency fee by asking for it in cash. This way, he can avoid splitting the commission with his agency, who would likely take 50% of the fee. You shouldn't send a security deposit until everything is signed, and you can give the cheques then.

Fahad • vor 1T

As a property consultant in Dubai, I advise against paying any agency fees in cash. The standard agency fee is 5% plus VAT, and it should be paid to the agency's bank account. When you pay the first payment of the rental agreement, you can do it in cash or by bank transfer, but I still recommend avoiding cash payments to protect yourself.

Matteo OP • vor 1T

Given that the agency fee is higher than 5%, it's likely that the agent is trying to pocket the full commission by asking for cash.

Fahad • vor 1T

For unfurnished units, the standard agency fee is 5%, while it's 10% for furnished units. However, if an agent asks for cash, it's a red flag, as they're likely not splitting the commission with their company. If you have a specific unit in mind, I'd be happy to help you find a more reputable agent.

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Is it normal for a real estate agent to ask for agency fee in cash and to transfer the half of the deposit in the landlord's account before Ejari?