Do I owe the broker a commission if the sale falls through or I sell to someone else?
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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
- 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.
- 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].
- 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.
- 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].
- 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?
Sources
Checked against these sources. The numbers in the text point here.
- 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.How to Buy Property in Lebanon: The Legal Steps from Verification to Inscription
Kallas Law Firm · 9 Jun 2026 · read 16 Oct 2026
- 3.What Are Buyer Vs. Seller Agent Roles & Responsibilities?
JSK Real Estate · 1 Oct 2018 · read 17 Oct 2026
- 4.Syndicate of Real Estate Brokers follows what is circulating about suspicious activity in Hazmieh and Baabda
Annahar · 15 Apr 2026 · read 17 Oct 2026
Related questions
- When is a broker's commission due in Lebanon: at signing, at registration or when the buyer pays?By law, when the broker's work leads to the contract; the law does not say if that is the promise, deed or registration. What to put in writing.
- Can I give one broker an exclusive mandate to sell in Lebanon, or is it open listing, and what is an irrevocable sale agency?No Lebanese law sets exclusive or open listing rules; your signed agreement decides. Broker fees under the Commercial Code, and irrevocable sale POAs.
- Can I challenge or reduce a broker's commission in Lebanon if I think it is too high?Yes: under Art. 292 of the Commercial Code a judge may cut an agreed broker fee that is out of proportion to the work. Evidence, grounds and whom to ask.
- Where can I complain about a real estate broker in Lebanon, or sue over a commission?We found no official body for broker complaints in Lebanon. Report misconduct to REAL, fraud to the ISF, and take fee disputes to a lawyer. What the law says.
- Can one broker act for both buyer and seller in Lebanon, and is that a conflict of interest?No law we found bans one broker acting for both sides, but one who acts for the other side in breach of duty loses his fee (Art. 294). Risks and safeguards.
- What commission do real estate brokers charge in Lebanon when a property is sold?No law sets the rate: brokers cite 2.5% from each side by custom, but the fee is agreed and a judge can cut it. When it is due, VAT, what to ask.
- Who pays the real estate broker in Lebanon, the buyer or the seller?No law decides: the fee is set by agreement. Brokers cite 2.5% from each side on sales. Rentals, dual agents, timing and what to put in writing.
