Where the money comes from
- Off-plan sales: the developer pays the brokerage a commission, commonly 2% to 5% of the price. The buyer pays no agency fee.
- Secondary (resale) market: the agency fee is usually 2% of the price, commonly paid by the buyer.
- Rentals: the agency fee is usually 5% of the annual rent, commonly paid by the tenant.
A referral fee is a share of that commission paid to the person who brought the client.
Typical referral fee rates in Dubai
| Situation | Usual referral fee | Example |
|---|---|---|
| Agent-to-agent referral | Often 20% to 50% of the agency commission | AED 6,000 to 15,000 on a AED 30,000 commission |
| Agency referral program (clients, partners) | A share of the agency commission or a fixed amount | Varies by agency |
| Sofara ambassador (off-plan) | Up to 3% of the property price | AED 45,000 on a AED 1.5M apartment |
Sofara is built around off-plan sales, where developer commissions are highest, which is why the ambassador share is expressed as a percentage of the property price rather than of the agency fee.
How referral fees are documented
Between two licensed brokerages, co-operation is documented with the RERA agreement between agents (Form I), which sets how the commission is shared. For referral partners who are not brokers, the agency sets out the terms in its own referral agreement: the rate, when the fee is earned, how it is invoiced and how long the referral is protected.
With Sofara, the terms are accepted when you join. Each lead is protected for 12 months, the commission is earned when the buyer signs the SPA and pays the down payment with the DLD fees, and it is paid in AED within 7 days of the developer paying Cevitas, against an invoice generated from your dashboard.
What to check before referring a client
- The agency is registered with RERA and its brokers hold valid cards.
- The rate and the trigger for payment are written down before you refer.
- You can see the status of your lead, not just a promise of a call back.
- How long your referral stays attached to you if the client takes time to decide.
Compare with the Dubai real estate referral program and the UAE affiliate program.