The Abu Dhabi Commercial Court (First Instance) has ruled against a real estate broker, ordering him to return Dh100,000 he received as commission for mediating the sale of an industrial plot. The court found that he was not licensed to practice brokerage.
The court stated that the broker’s lack of a valid real estate mediation license from the competent authority made him ineligible to receive any commission, profit, or reward for his work under Abu Dhabi’s real estate laws.
According to case documents, the broker had sued an investor seeking Dh200,000 in outstanding commission, along with legal interest and court costs. He claimed that both parties had signed a brokerage contract under which he was to mediate the transfer of usufruct rights for an industrial plot and its buildings. The total commission was set at Dh300,000, payable upon completion of the deal.
The broker asserted that he fulfilled his duties, successfully mediated the transaction, and helped close a sale worth Dh3.2 million. However, the investor allegedly paid him only Dh100,000, refusing to pay the remainder.
In response, the investor denied breaching the contract and filed a counterclaim, demanding a refund of the Dh100,000 already paid, plus Dh20,000 in damages. He argued that the broker had failed to complete the transfer of usufruct rights as agreed.
During the trial, the broker presented documents showing a settlement agreement between the investor and the land’s usufruct holder for Dh3.2 million, as well as a subsequent sale agreement where the investor resold the same land for Dh6.8 million.
However, the court clarified that the case revolved around a brokerage contract. Under Article 5 of the Abu Dhabi Real Estate Sector Regulation Law, no individual may act as a broker, developer, or auctioneer—or represent themselves as one—without obtaining a license from the relevant authority. Any person working without a permit is not entitled to claim any commission or compensation.
The court found that the broker did not hold a valid license when the deal was made. Therefore, his claim for unpaid commission was invalid. It further ruled that the Dh100,000 already paid could not legalize an agreement made in violation of the law.
As a result, the court dismissed the broker’s claim and ordered him to pay all legal fees and court expenses. It also ruled in favor of the investor on the counterclaim, ordering the broker to return the Dh100,000 with interest from the date of the counterclaim until full repayment, along with the defendant’s legal costs.
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