The Ministry of Justice has directed the abolition of certain customs related to brokerage fees in real estate sales and lease transactions, as stipulated in the Real Estate Brokerage Regulation, The regulations abolished the custom requiring the seller to pay the commission and the custom of setting it at 2.5%. Article 5 stipulates that the commission must be determined by agreement between the real estate agency owner, the seller, and the buyer, and to specify the party or parties responsible for paying the commission.

The same article also stipulates that «in all cases, the total commission may not exceed 2.5 percent of the contract value,» and the Ministry of Justice explained the article on its Twitter account, stating “It is clear from this that all of the above must be agreed upon in advance by all parties; otherwise, the action would be in violation of the law, and the matter is determined solely by the provisions of the law, not by custom.”.

The Ministry stated that this matter was highlighted due to the large number of claims filed in courts outside the regulatory framework, including claims by other brokers operating outside the licensed professional scope of real estate offices, as well as claims by some office owners who fail to include the aforementioned agreement in sales and lease contracts, and who do not possess the title deed or provide a copy to the buyer for verification.