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Do I owe the broker a commission if the sale falls through or I sell to someone else?

6 min read4 sourcesReviewed by Tatyana Alwan, lawyer, 18 Oct 2026
On this page
  1. Key facts
  2. What the law says about earning the fee
  3. If the sale falls through
  4. If you sell to someone else, or to a buyer you found
  5. When a broker loses the fee, or it can be cut
  6. What to do when a broker claims a commission
  7. It depends on
  8. Common questions
  9. Sources

Short answer

It depends on whether the broker's work led to a contract. Under the Commercial Code, the fee is earned when the broker's work leads to the contract[1]. If it leads to no contract, Article 293 gives no fee, though agreed expenses are still owed. No source we found covers selling to another buyer or one you found yourself; read your mandate and ask a lawyer.

Also asked as: “Do I pay the agent if the buyer backs out in Lebanon?” · “Is broker commission due if I find the buyer myself?” · “Is commission due if the sale is cancelled?” · “Do I owe the agent if I sell privately?”

Key facts

The law
Commercial Code (Legislative Decree 304/1942), from Art. 291 on brokerage[1]
When the fee is earned
when the broker's work leads to the contract[1]
Conditional contract
The fee is due only once the condition is met[1]
If no contract results
Agreed expenses are still owed[1]
How much
The fee is set by agreement; a judge may reduce an excessive fee[1]
When a broker loses the fee
Acting for the other party against his duties, or getting a fee promise from that party in bad faith[1]
Proof of the deal
The broker must record each deal and give a certified copy to a party who asks[1]

What the law says about earning the fee

In Lebanese law, brokerage is a contract in which the broker, for a fee, guides you to an opportunity to conclude a deal or acts as intermediary in the negotiations[1]. Article 293 of the Commercial Code says the fee is earned when the broker's work leads to the contract, meaning the information the broker gave or the negotiation the broker ran. If the contract depends on a suspensive condition, the fee is due only once that condition is met.

The law does not say whether "the contract" means the promise of sale, the notarial deed or registration at the Land Registry. Your written agreement with the broker can fix that moment[1]. In a Lebanese sale, the promise of sale is optional, the sale itself is a notarial deed, and ownership passes only when the sale is registered[2]. There is more on this in when the commission becomes due.

If the sale falls through

Article 293 ties the fee to a contract that results from the broker's work. If the broker's work leads to no contract, Article 293 gives no fee, though any expenses you agreed to pay are still owed[1]. Check whether your mandate lists expenses (advertising, travel, paperwork) and at what amount.

The harder case is a deal that collapses after something was signed or a deposit was paid. We found no source, law or court ruling that deals with it, and the law does not define which document counts as "the contract". Read your mandate and ask a lawyer before you pay or refuse.

If you sell to someone else, or to a buyer you found

No source we found covers three common cases:

  • a sale to a different buyer while a mandate is running;
  • a buyer the broker introduced, but with whom you then closed directly;
  • a buyer you found yourself.

The only general test is the one in Article 293: did the broker's information or negotiation lead to the contract[1]? Our sources do not say how a court applies that test to these cases, or how an exclusive mandate changes it. Read up on exclusive and open listings, and have a lawyer read your mandate.

Records help in any of these disputes. The broker must record every deal concluded through them, with its terms, keep the documents, and give a certified copy to any party who asks[1].

When a broker loses the fee, or it can be cut

A broker loses any right to the fee, and to expenses, if they act for the other party in breach of their duties. The same applies if they get that party to promise a fee in circumstances that go against good faith[1]. Article 294 removes the fee only where the broker acts for the other party against the broker's duties; it does not ban acting for both sides as such. One Lebanese agency, JSK Real Estate, wrote in 2018 that one agent acting for buyer and seller is accepted in Lebanon, which is its view of custom, not a rule of law[3]. See one broker for both buyer and seller.

Even when the fee is owed, its size can be challenged. A broker's fee is set by agreement, and under Article 292 a judge may reduce an agreed fee that is out of proportion to the nature of the deal and the work required[1]. There is more in challenging a broker's commission.

What to do when a broker claims a commission

  1. Read your written mandate. Look for what triggers the fee, whether the mandate is exclusive, how long it lasts and which expenses you agreed to. If nothing is in writing, note down what was agreed and when.
  2. Ask the broker for the record of the deal. The broker must give you a certified copy of the record of a deal concluded through them, with its terms[1].
  3. Pin down where the sale stands. Note whether a promise of sale, a notarial deed or a Land Registry registration exists[2]. Keep copies of every message and document showing who introduced the buyer.
  4. See a lawyer before you pay or refuse. No source we found settles the disputed cases on this page. A lawyer can tell you how the Commercial Code's brokerage rules apply to your mandate[1].
  5. Report misconduct to the syndicate. In April 2026, the brokers' syndicate REAL asked people who see violations or suspicious conduct by a broker to contact REAL directly[4]. We found no published complaint procedure, and a syndicate report does not replace a court claim. See complaining about a broker.

It depends on

  • The written mandate. It can fix the moment the fee is due[1]. Our sources do not cover exclusivity and duration clauses, so ask a lawyer.
  • A condition in the contract. If the sale depends on a suspensive condition, the fee waits until the condition is met[1].
  • Agreed expenses. These are owed even if no contract results[1], unless the broker forfeits them.
  • How the broker behaved. Acting for the buyer against the broker's duties, or getting a fee promise from the buyer in bad faith, removes the fee[1].
  • The size of the fee. A judge may reduce an agreed fee that is out of proportion to the deal and the work required[1].

Common questions

Do I owe commission if the buyer pulls out before the notarial deed?

The fee is earned when the broker's work leads to the contract[1], but the law does not say whether a promise of sale counts as that contract. Your written agreement can fix the moment, so read it and ask a lawyer.

Do I pay the broker's expenses if nothing is sold?

Yes, if you agreed to them. Under Article 293 of the Commercial Code, agreed expenses are owed even when no contract results[1], unless the broker has forfeited them under Article 294.

Can I refuse to pay a broker who also took a fee from the buyer?

Only in some cases. Under Article 294, a broker loses the fee if they act for the other party in breach of their duties, or get that party to promise a fee in bad faith[1]. One Lebanese agency describes acting for both sides as accepted practice in Lebanon[3].

Sources

Checked against these sources. The numbers in the text point here.

  1. 1.
    Commercial Code (Legislative Decree 304/1942), Arts 291-297 on brokerage

    Lebanese University Legal Informatics Centre (legallaw.ul.edu.lb) · 24 Dec 1942 · read 17 Oct 2026

  2. 2.
  3. 3.
    What Are Buyer Vs. Seller Agent Roles & Responsibilities?

    JSK Real Estate · 1 Oct 2018 · read 17 Oct 2026

  4. 4.