The Abu Dhabi Commercial Court (First Instance) has ordered a real estate broker to refund Dh100,000 he received as part of a commission for mediating the sale of an industrial plot, ruling that he was not licensed to practice real estate brokerage, Emarat Al Youm reported.
The court found that the broker’s lack of a valid mediation license from the competent authority meant he was not entitled to any fees, profits, or rewards for the work he carried out, in line with Abu Dhabi’s real estate regulations.
According to court documents, the broker had filed a lawsuit against an investor seeking Dh200,000 in unpaid commission plus interest and legal fees. He claimed both parties had signed a contract for him to mediate the transfer of usufruct rights to an industrial property, with an agreed commission of Dh300,000. He said he completed the deal—worth Dh3.2 million—but received only part of the payment.
The investor denied breaching the agreement and filed a counterclaim demanding the return of the Dh100,000 already paid, plus Dh20,000 in compensation, asserting that the broker had failed to transfer the usufruct rights as promised.
Citing Article 5 of the Abu Dhabi Real Estate Sector Regulation Law, the court noted that no one may act as a broker or represent themselves as such without a valid license. Those operating without one are not entitled to claim or retain any commission.
The court concluded that the broker lacked a valid license when the contract was signed, rendering his claim invalid. It also ruled that the previous payment of Dh100,000 could not legalize an unlawful transaction.
As a result, the court dismissed the broker’s lawsuit and ordered him to refund the Dh100,000 with interest from the date of the counterclaim until full repayment, as well as pay court fees and legal expenses.
