Hedwig Properties v (1) Haynes (2) Hasan Real Estate [2017] DIFC SCT 113 (21 June 2017)

Hedwig Properties v (1) Haynes (2) Hasan Real Estate [2017] DIFC SCT 113 (21 June 2017)

The Claimant rendered agency services by introducing the First Defendant to the property, arranging viewings, and negotiating terms, which directly led to the lease. The absence of a formal contract does not negate the entitlement to commission where services are performed and the transaction is completed as a result. The First Defendant is liable for the unpaid portion of the agency fee, and the Second Defendant must reimburse the commission received from the First Defendant.

Citation
[2017] DIFC SCT 113
Parties
Claimant: Hedwig Properties; First Defendant: Haynes; Second Defendant: Hasan Real Estate
Jurisdiction
United Arab Emirates
Judgment Date
21 June 2017
Procedural Posture
Small Claims Tribunal / Judgment
Outcome
Claim partly allowed
Legal Topics
Agency Fees, Breach of Implied Contract, Commission Entitlement, Real Estate Agency Services
Contract Law Real Estate Law Agency Fees Breach of Implied Contract Commission Entitlement Real Estate Agency Services

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Parties

Hedwig Properties

Claimant

Haynes

First Defendant

Hasan Real Estate

Second Defendant

Procedural Posture

Small Claims Tribunal / Judgment

Legal Issues

  1. 1 Whether the Claimant is entitled to a 5% agency fee for services rendered in connection with the lease of Unit 42, DIFC
  2. 2 Whether the First Defendant and/or Second Defendant are liable to pay the agency fee

Ratio Decidendi

The Claimant rendered agency services by introducing the First Defendant to the property, arranging viewings, and negotiating terms, which directly led to the lease. The absence of a formal contract does not negate the entitlement to commission where services are performed and the transaction is completed as a result. The First Defendant is liable for the unpaid portion of the agency fee, and the Second Defendant must reimburse the commission received from the First Defendant.

Court Disposition

Claim partly allowed

Orders

  • The First Defendant shall pay the Claimant AED 3,050 as 2% of the commission fee.
  • The Second Defendant shall pay AED 4,950 as reimbursement of 3% of the commission fee that was paid by the First Defendant.