Propery agents follow same protocol on commissions

Property agents in Dubai and Abu Dhabi all follow the same protocol when it comes to receiving the payment of their commission.

We are relocating to a new rental property in Abu Dhabi, approximately in one month's time, and the contracts are now available to be signed. I was informed by the respective agent they expect their fees on signing the contract, whereas I would expect to pay them once the move is complete and final. I am not sure what the correct or reasonable protocol is. Furthermore can you provide clarity on post-dated cheques? Is it still normal practice and can they be cashed in advance of the date? WF, Dubai

I understand your reluctance to pay commission before actually having the keys or the handover of your new property. I can confirm, however, that as per Rera here in Dubai, the monies that are handed over to the agent/landlord at the point of signing the tenancy agreement are as follows;

a) The 5 per cent deposit cheque — current dated

b) The rental cheque(s) — the first one current dated and subsequent cheques post-dated

c) The agent’s commission cheque — current dated

I am aware you are not in Dubai but Abu Dhabi, however, the agents all follow the same protocol when it comes to receiving the payment of their commission. If, however, you feel so strongly about this, then there is no harm in expressing this to the agents and negotiating a solution. Payment of future rent via post-dated cheques is still the norm when renting property. These cheques could possibly be presented early to the bank by the landlord but will not be cashed by the bank before the date on the cheque.

Mario Volpi is the managing director of Prestige Real Estate in Dubai. He has 29 years’ of property industry experience in the emirate and London. Send any questions to [e-mail]