Real estate agent commission in Egypt is the fee a broker earns when their introduction leads to a signed sale or lease. For real estate agent commission in Egypt, Trade Law No. 17 of 1999 sets the order of authority: your written agreement first, local custom if there is none, and a judge's estimate as the last resort. On a property sale, the fee falls due when the preliminary contract is signed, not when the title is registered.
TL;DR: There is no statutory commission rate for apartment sales in Egypt. A broker earns the fee only if their mediation produces the contract, and collects it from whoever hired them. Agree the rate, the payer and the payment trigger in writing before you view anything, and confirm the broker is officially registered.
What the law actually says about broker fees
Egypt regulates brokerage as a commercial contract. Article 192 of the Trade Law defines it as an undertaking by the broker to find a counterparty for a specific contract and mediate its conclusion. The relationship starts with a mandate, even an informal one, and the fee rewards a result.
Article 193 covers the amount. If neither the law nor the agreement fixes the fee, custom decides. If no custom exists, a court sets it based on the effort and time the broker spent. That is why rates quoted in the market are a starting point for negotiation, not a legal entitlement.
Many Egyptian buyers also ask whether taking a fee from both sides is acceptable. Dar al-Ifta, Egypt's official fatwa authority, has ruled brokerage a legitimate contract. A broker may contract with the seller, the buyer or both, provided they are not acting as one party's agent, the fee is agreed with whoever pays it, and they deal honestly and follow the regulations.
When is real estate agent commission in Egypt earned?
Most disputes come down to timing. Article 194 answers the common scenarios:
| Scenario | Is the fee owed? | Source |
|---|---|---|
| Viewings happened, no deal was signed | No; the fee depends on a concluded contract | Art. 194 |
| The deal collapsed because the client was unreasonable | A court may compensate the broker's effort | Art. 194 |
| Preliminary sale contract signed, registration pending | Yes, on signing the preliminary contract | Art. 194(4) |
| Contract conditional on an event, such as mortgage approval | Only once the condition is met | Art. 194(3) |
| Contract later rescinded | Broker may claim or keep the fee unless fraud or gross error is proven | Art. 195 |
| Fee out of proportion to the work | A court may reduce it, unless it was paid after the contract | Art. 196 |
For overseas buyers this matters. Registration at the Real Estate Publicity Department can take time, and our property registration guide explains the routes. The broker does not wait for that step to be paid.
Buyer or seller: who pays real estate agent commission in Egypt?
The articles following Article 196 state that a broker can collect only from the party who mandated them. If both parties did, each owes their own share, with no joint liability. This holds even if buyer and seller privately agree that one of them will cover the whole fee.
In practice you will meet three arrangements:
- Seller-paid. An owner lists a flat with an office and asks it to find a buyer.
- Buyer-paid. A buyer, often abroad, hires a broker to source a unit that fits a brief.
- Both sides. One broker works the deal from both ends. Each party should know exactly what they personally owe.
Whichever model applies, the law requires the broker to present the deal honestly to both sides and disclose the circumstances they know. Concealing a title dispute or a defect is not just bad manners; the broker is liable for fraud or gross error.
A worked example, with illustrative numbers
The figures below are hypothetical. They are not a market rate or a real listing. Say a buyer based in Riyadh hires a Sheikh Zayed broker to find a resale townhouse. The agreed fee is 1.5% of the final contract price, payable by the buyer.
| Item | Example value |
|---|---|
| Asking price advertised | EGP 6,200,000 |
| Final price in the preliminary contract | EGP 5,800,000 |
| Agreed commission, in writing | 1.5% of final price |
| Fee owed by the buyer | EGP 87,000 |
| Payment trigger | Signing the preliminary contract |
| Broker's marketing expenses | Not recoverable unless agreed in writing |
Two details decide most real estate agent commission in Egypt disputes, and they protect both sides. The rate applies to the final price, not the asking price. Expenses are only reimbursable when the agreement says so, and in that case they are owed even if no sale happens. If several brokers worked the deal without separate fees, the law splits the shared fee according to each one's effort.
What a written agreement should contain
Law No. 21 of 2022, amending the commercial agency and brokerage law, addresses real-estate brokers directly. According to a senator on the housing committee quoted by Al-Ahram Gate, it bars unregistered brokerage and requires a written brokerage contract with specified details. Our article on the real estate marketing licence covers registration.
A sensible agreement records:
- Date, both parties' names and national ID or passport numbers.
- The broker's commercial register and tax numbers, plus proof of registration.
- The unit's address and specifications.
- The commission rate or amount, and the base (final contract price).
- Who pays, and the exact trigger.
- Whether the mandate is exclusive, and for how long.
- Whether expenses are reimbursable.
Developer marketing deals, where a firm sells off-plan stock for a percentage, are a different relationship. See our guide to the real estate marketing contract.
Mistakes that cost buyers and brokers
- A verbal deal. Any dispute becomes an argument about custom.
- Two brokers, one flat. Both claim the fee. Keep a dated record of who introduced the unit first.
- Cutting the broker out. If their mediation produced the contract, the fee survives a side deal.
- A broker who is secretly the buyer. They may not become a party without your consent, and if they do, they earn no fee.
How Buildoura helps agencies
Buildoura does not set real estate agent commission in Egypt or settle disputes. What it gives an agency is a clean record. Every enquiry from the branded site, a project landing page or a Facebook campaign lands in the CRM with its source and the rep who owns it, and the history of calls, notes and deal stages stays attached. Digital contracts keep the reservation step visible once the buyer agrees, so "who brought this client" is a lookup, not a WhatsApp archaeology project. Routing and follow-up are covered in our broker lead management guide.
FAQ
What is the standard real estate agent commission in Egypt?
There is no rate fixed by law for apartment sales. Under Article 193 of the Trade Law, the agreement sets the fee, then custom, then a court if neither exists. Treat any quoted percentage as negotiable and write the final figure down.
Does the buyer or the seller pay the broker in Egypt?
Whoever mandated the broker pays. If both sides did, each owes its own share without joint liability. A private arrangement between buyer and seller does not stop the broker claiming each share.
When does a broker become entitled to the commission?
On signing the preliminary sale contract, even if registration has not happened, under Article 194(4). If the contract depends on a condition such as financing approval, the fee is owed only once that condition is met.
Can I avoid the commission by dealing with the seller directly?
Not if the broker's mediation is what led to the contract. The fee remains owed even if the final signature happens without them. A written mandate and a dated introduction record make this easy to prove.
How do I check that an Egyptian broker is registered?
Law No. 21 of 2022 bars unregistered real-estate brokerage, as reported by Al-Ahram. Ask for the broker's commercial register, tax card and registration proof, and put them in the agreement.
Written by Hala Mostafa, Real-Estate Solutions Lead at Buildoura. General information only, not legal advice; for a live dispute, consult an Egyptian lawyer and the official text of the law.
If you run a brokerage and want every client tied to the rep who brought them from day one, start on Buildoura.
Buying or selling and want a registered broker with clear terms?
Tell us the area, unit type and budget, and the Buildoura team will connect you with agencies that work from a written agreement.