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What commission do real estate brokers charge in Lebanon when a property is sold?

6 min read7 sourcesReviewed by Tatyana Alwan, lawyer, 18 Oct 2026
On this page
  1. Key facts
  2. What the law says about broker fees
  3. The 2.5% custom, and why it is only a starting point
  4. When the fee is due, and when it is lost
  5. VAT and the rest of the bill
  6. Agreeing a broker's commission
  7. It depends on
  8. Common questions
  9. Sources

Short answer

No law fixes a rate in Lebanon[1]. Under the Commercial Code a broker's fee is set by agreement; a judge may reduce an excessive fee. Two brokers, JSK Real Estate (2018) and the brokers' syndicate REAL (2015), describe 2.5% of the final price from each side[2,3], with the buyer paying the buyer's agent and the seller paying the seller's agent. We found no newer source, so agree the rate in writing.

Also asked as: “Is broker commission in Lebanon 2.5% or 5%?” · “Real estate agent fee when selling in Lebanon” · “How much do agents take on a house sale in Lebanon?” · “Samsara commission in Lebanon”

Key facts

The law
Commercial Code (Legislative Decree 304/1942), Arts 291 to 297[1]
How the fee is set
set by agreement; a judge may reduce an excessive fee[1]
Customary rate, according to two brokers (2015, 2018)
2.5% of the final price from each side[2,3]
Official tariff
None found for real-estate brokerage[1]
When the fee is earned
when the broker's work leads to the contract[1]
The broker loses the fee if
He acts for the other side in breach of his duties, or gets a promise of a fee in bad faith[1]
Standard VAT rate (PwC, July 2026)
11%[4,5]; whether your broker charges it is not published

What the law says about broker fees

Lebanese law calls brokerage samsara. Article 291 of the Commercial Code defines it as a contract in which the broker, for a fee, guides you to a deal or acts as go-between in the negotiations, and the rules of agency apply to it generally[1]. We read Articles 291 to 297 and found no licensing rule for real-estate brokers in them. More on that in whether brokers are licensed in Lebanon.

Article 292 says the fee is set by agreement or an official tariff, and failing those by custom or the judge's estimate[1]. We found no official tariff for real-estate brokerage, and no law names which party pays. A judge may also reduce an agreed fee that is out of proportion to the deal and the work it took. See whether a court can reduce a broker's fee.

The 2.5% custom, and why it is only a starting point

The figure people quote comes from brokers. JSK Real Estate, a Lebanese agency, wrote in October 2018 that the buyer pays 2.5% of the final price to the buyer's agent and the seller pays 2.5% to the seller's agent. The president of REAL, the brokers' syndicate, referred to the same 2.5% in a December 2015 interview[2,3]. That adds up to 5% of the price when both sides have their own agent. If a broker quotes you 5%, ask whether that comes from you alone or is the total for both sides.

This is custom, and under Article 292 it is negotiable[1]. We found no source from after 2019 on whether the rate has changed or whether it is quoted in US dollars. To learn what brokers charge today, ask several brokers for written quotes, or ask REAL what its members usually charge. Who pays which share is covered in who pays the broker, buyer or seller.

JSK also says it is accepted in Lebanon for one agent to act for both sides[1]. No source says what that agent charges each side, so get it in writing.

When the fee is due, and when it is lost

Under Article 293, the broker earns the fee when the information or negotiation he provided leads to the contract[1]. If the contract has a suspensive condition, the fee is due only once the condition is met. Any expenses you agreed to pay are owed even if no contract results. The law does not say whether "the contract" means the promise of sale, the notarial deed or the registration. A sale in Lebanon can pass through all three, and ownership moves only at registration[6]. Your written agreement can fix the moment. See when the broker's commission becomes due.

Under Article 294, a broker loses both the fee and any expenses if he acts for the other party in breach of his obligations, or gets that party to promise him a fee in bad faith[1].

VAT and the rest of the bill

PwC's tax summaries (July 2026) give Lebanon's standard VAT rate as 11%[4,5], charged on commercial transactions by businesses unless they are exempt. No source says whether brokerage commissions carry VAT; it depends on whether your broker is VAT-registered. Before you agree, ask the broker whether the quoted rate includes VAT, and ask for a VAT invoice. More in VAT on a broker's commission.

The commission comes on top of the state charges. Kallas Law Firm puts a buyer's charges at about 4% (Lebanese), about 6% (non-Lebanese)[7] of the property's value, and that estimate leaves out broker commission. The seller's side is set out in what it costs to sell a property.

Agreeing a broker's commission

  1. Ask for a written mandate before the broker starts. You and the broker both sign it, wherever you are. It should state the rate, who pays it, the currency and any expenses you agree to cover. The law leaves the fee to agreement, so this paper is your protection[1].
  2. Fix the moment the fee is due. Write whether it is due at the promise of sale, the notarial deed or the registration at the Land Registry, because the law does not say[1].
  3. Ask whom the broker works for. If the same broker also acts for the other side, have that written down, along with what each side pays.
  4. Ask about VAT. Ask whether the quoted rate includes VAT and whether the broker will issue a VAT invoice[4,5].
  5. Pay against a receipt. Pay only when the agreed moment arrives, by bank transfer if you can. Keep the mandate, the receipt and your messages with the broker.

It depends on

  • Which side you are on. The custom JSK and REAL describe has each side pay its own agent[2,3]. Your mandate decides it in the end, so ask the broker to write it down.
  • What your written agreement says. The agreed rate applies, though a judge can cut a fee that is out of proportion to the deal and the work[1]. A lawyer can tell you whether a dispute is worth taking to court.
  • Whether the deal completes. Without a contract the broker earns no fee, but agreed expenses are still owed[1]. Check which expenses you signed up to.
  • Whether the broker is VAT-registered. That decides whether VAT is added on top. Ask the broker, or ask the Ministry of Finance[4,5].
  • Sale or rent. For rentals of up to three years, JSK (October 2018) says each side pays its own agent one month's rent[2].

Common questions

Is broker commission in Lebanon 2.5% or 5%?

No law sets either figure. Two brokers, JSK Real Estate (2018) and the syndicate REAL (2015), describe 2.5% of the final price paid by each side to its own agent, which comes to 5% in total when both sides have an agent[2,3]. If you are quoted 5%, ask whether it is from you alone or for both sides.

Can I negotiate the broker's commission in Lebanon?

Yes. Under Article 292 of the Commercial Code the fee is set by agreement, and a judge may reduce an agreed fee that is out of proportion to the deal and the work it took[1].

Do I owe the broker if the sale falls through?

Under Article 293 the fee is earned only when the broker's work leads to the contract, but expenses you agreed to pay are owed even if no contract results[1].

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

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

  3. 3.
    Pushing for reform

    Executive Magazine · 16 Dec 2015 · read 17 Oct 2026

  4. 4.
    Lebanon: Individual – Other taxes

    PwC Worldwide Tax Summaries · 1 Jul 2026 · read 17 Oct 2026

  5. 5.
    PwC Worldwide Tax Summaries: Lebanon corporate, other taxes

    PwC Worldwide Tax Summaries · 1 Jul 2026 · read 17 Oct 2026

  6. 6.
  7. 7.
    Real estate fees calculator

    Kallas Law Firm · 24 May 2026 · read 17 Oct 2026