No Written Contract, Court Throws Out Broker’s Dh117,000 Commission Claim

The Abu Dhabi Commercial Court of First Instance has dismissed a lawsuit filed by a real estate broker seeking Dh117,000 in commission from a property owner, ruling that no approved written brokerage contract had been registered as required by law.

The broker had asked the court to order the owner to pay the commission from the sale of a property, along with Dh20,000 in compensation and legal costs, claiming he had completed the mediation work but was not paid.

In support of his claim, the broker submitted a copy of his trade licence, WhatsApp correspondence and property ownership documents. The defendant argued the case was inadmissible, stating that the broker had dealt with him in a personal capacity rather than through a licensed brokerage company.

The court held that Abu Dhabi property sector regulations require brokers to obtain the necessary licences and conclude a written brokerage contract using the municipality’s approved template. Such contracts must be registered in the real estate development register within 15 days and before any funds are received.

It noted that the case file contained no registered written contract and stressed that merely holding a brokerage licence does not remove the requirement for additional approvals and permits.

Finding the claim legally unfounded for breaching mandatory regulatory provisions, the court dismissed the case and ordered the broker to bear the court costs.

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