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When is a broker's commission due in Lebanon: at signing, at registration or when the buyer pays?

6 min read4 sourcesReviewed by Tatyana Alwan, lawyer, 18 Oct 2026
On this page
  1. Key facts
  2. What the law says
  3. Promise of sale, deed or registration: what the law leaves open
  4. The amount and who pays are also a matter of agreement
  5. When a broker loses the right to the fee
  6. How to fix when the commission is due
  7. It depends on
  8. Common questions
  9. Sources

Short answer

It depends on what you sign with the broker. By law the fee is due when the broker's work leads to the contract[1], and only once any suspensive condition is met. The law does not say whether that means the promise of sale, the notarial deed or registration, so fix the moment in writing before the broker starts.

Also asked as: “When is the real estate agent paid in Lebanon?” · “Is broker commission due at the promise of sale or at the deed?” · “Article 293 Commercial Code broker fee” · “When do I pay the estate agent in Lebanon?”

Key facts

The law
Commercial Code (Legislative Decree 304/1942): Art. 291 defines brokerage[1], Art. 293 says when the fee is due
When the fee is earned
when the broker's work leads to the contract[1]
Conditional contract
Due only once the suspensive condition is met[1]
Agreed expenses
Owed even if no contract results[1]
How much
set by agreement; a judge may reduce an excessive fee[1]
Custom on a sale
2.5% of the final price from each side[2,3], according to JSK Real Estate (2018) and the brokers' syndicate REAL (2015)
When the broker loses the fee
If he acts for the other party against his duties, or obtains a fee from them in bad faith[1]

What the law says

Lebanese law treats brokerage as a contract. For a fee, the broker guides you to a chance to make a deal, or acts as go-between in the negotiation, and the general rules of agency apply[1]. Article 293 of the Commercial Code says the broker earns the fee when the broker's work leads to the contract, meaning when the information he gave or the negotiation he ran results in the agreement.

The same article adds two details. If the contract only takes effect once a condition is fulfilled (a suspensive condition), the fee is due only when that condition is met. Any expenses you agreed to cover are owed even if no contract is ever signed[1]. Article 293 ties the fee to the contract and says nothing about the moment the buyer pays the price.

Promise of sale, deed or registration: what the law leaves open

A purchase in Lebanon runs in stages: a recent Land Registry extract, an optional promise of sale, the notarial deed, then inscription at the Land Registry. Ownership passes only on inscription[4]. The Commercial Code does not say which of these stages is "the contract" that triggers the fee, and it does not address off-plan sales or sales conditional on registration[1].

We found no court ruling or other published source that settles this. None of our sources covers whether you owe commission if you later sell directly to a buyer the broker introduced; that question has its own page, do I owe the broker if I sell another way. If a broker claims a fee at a stage you did not agree to, a Lebanese lawyer can tell you how courts in your area treat it.

The amount and who pays are also a matter of agreement

The fee is set by agreement; a judge may reduce an excessive fee[1]. No law fixes a rate or says which side pays, and we found no official tariff for real-estate brokerage. JSK Real Estate wrote in October 2018 that custom on a sale is 2.5% of the final price from each side[2,3], with buyer and seller each paying their own agent, and the president of the brokers' syndicate REAL cited the same 2.5% in December 2015. Both sources are brokers, custom is not law, and we found no source after 2019 on whether the rate has changed, so ask the broker for the rate in writing. More in what commission brokers charge on a sale and who pays the broker.

For rentals of up to three years, JSK Real Estate (2018) describes the custom as one month's rent from each side[2]. If an agreed fee is far out of line with the deal and the work done, a judge may reduce it[1]. See challenging a broker's fee.

When a broker loses the right to the fee

A broker loses any right to the fee, and to his expenses, if he works for the other party in breach of his duties to you, or gets that party to promise him a fee in bad faith[1]. According to JSK Real Estate (2018), one agent acting for both sides is accepted in Lebanon. Article 294 removes the fee only where the broker acts for the other side against his duties or obtains a fee from them in bad faith. More in one broker for both buyer and seller.

How to fix when the commission is due

  1. Sign a written agreement before the broker starts. You and the broker set the rate, who pays and the exact trigger: the promise of sale, the notarial deed or inscription at the Land Registry. The law lets the agreement set the fee[1]. If you live abroad, have it sent to you and keep a signed copy.
  2. Name any condition in the deal. If the sale only takes effect once something happens, the fee waits until that condition is met[1]. Write that into the broker agreement too, so nobody argues about it later.
  3. Agree expenses up front. Agreed expenses are owed even if no sale results[1], so list what is covered and set a ceiling.
  4. Check the stage before you pay. If the trigger is the deed or registration, ask the notary or the Land Registry for proof that the stage has happened. Ownership passes only on inscription[4].
  5. Pay against a receipt. Get a signed receipt or invoice stating the amount, the property and what the payment settles. Ask whether VAT applies; see VAT on broker commission.

It depends on

  • Your written agreement. It can fix the moment the fee is due, which the law leaves open[1]. Without one, ask a lawyer how a court would read the deal.
  • A conditional contract. If the sale depends on a suspensive condition, the fee is due only once it is met[1].
  • Sale or rental. Custom differs: JSK Real Estate (2018) describes one month's rent from each side[2] on rentals of up to three years.
  • Whom the broker served. A broker who acts for the other side against his duties loses the fee[1].
  • Off-plan or later direct sales. No source we found covers these. Ask a Lebanese lawyer before you sign anything with the broker.

Common questions

Is the broker's commission due when we sign the promise of sale?

The law says the fee is due when the broker's work leads to the contract, but it does not say whether a promise of sale counts[1]. Your written agreement with the broker can settle it, so set the moment there before the broker starts.

Do I pay the broker's expenses if the sale falls through?

Expenses you agreed to cover are owed even if no contract results[1]. That rule does not cover expenses you never agreed to, so list them in writing.

Can a broker lose the right to the commission?

Yes. Under Article 294 of the Commercial Code, a broker loses the fee and his expenses if he works for the other party against his duties or obtains a fee from them in bad faith[1].

Can a court lower a broker's commission?

Yes. A judge may reduce an agreed fee that is out of proportion to the deal and the work required[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.