A study guide for the DLD broker exam. Not official DLD material; DLD does not publish the exam format — details are based on our brokers' experience. Updated: 13 Oct 2026. All guides · Glossary
In brief: Mathematics in the DLD exam and in practice consists of two dozen recurring types of problems. Almost all mistakes occur not because of arithmetic, but because of the condition: the wrong percentage base (sale or listing price), the wrong units (m² or ft²), the wrong period (year, quarter, week), or the wrong sign in an adjustment. Below, for each type: formula, AED worked example, and pitfall. Exam conventions: 1 m² = 10.764 ft² (in exam problems they round to 10.76 — look at the answer options), year = 12 months = 52 weeks, percentages are simple, commission is calculated from the price stated in the contract.
What is calculated within the agency for the client (assignment estimate, 4% DLD) is explained in detail in Assignment estimate: formula, 5 scenarios, top mistakes beginners make and 4% DLD: what price it is calculated from, reassessment, why underreporting is not possible; here they are provided in a condensed exam format.
1. Areas and unit conversion
Formulas. Area of a rectangle = length × width (in the same unit!). ft² = m² × 10.764; m² = ft² / 10.764. Price per ft² = price per m² / 10.764 (the price per unit changes inversely to the area).
- Plot 60 × 120 ft = 7,200 ft².
- 250 m² = 250 × 10.764 = 2,691 ft² (in an exam problem with 10.76 — 2,690).
- Price of 12,917 AED per m² = 12,917 / 10.764 ≈ 1,200 AED per ft².
Pitfall. The price per m² is converted into the price per ft² by division, not multiplication. Second, the plot is stated in feet while the price is per m²: first convert everything to one unit. Perimeter instead of area is another classic mistake.
2. Land plot: area and price
Formula. Price = length × width × rate per unit of area.
Example. Plot 140 × 75 feet, rate 130 AED per ft²: 140 × 75 = 10,500 ft²; 10,500 × 130 = 1,365,000 AED.
Pitfall. An extra “×100” or “×10” multiplier in the answer options — check the order of magnitude. Confused units (m instead of feet) change the answer by 10 times.
3. Commission: amount and rate
Formulas. Commission = price × rate; rate = commission / price; invoice with VAT = price × rate × 1.05.
Example. Sold for 5,450,000 AED, commission 4% → 218,000 AED. Conversely: commission of 275,000 from 5,000,000 → 5.5%.
The market rate is 2% from each side; 5% VAT on agent services is added on top ⚠️ to be confirmed: “2% + VAT” is guidance from portals, see the broker agreement (Form A/B/F) for the actual condition.
Pitfall — base. Listing 2,000,000, sold for 1,800,000, rate 2%: commission from the sale price is 36,000, from the listing price 40,000. Read “of the sale price” / “of the listed price”. If not stated, calculate from the sale price.
4. Commission from the sale price and from the listing price at a discount
If the discount from the listing is known: sale = listing × (1 − discount). Example: listing 1,400,000, sold at a 10% discount → 1,260,000; commission of 6% from the sale = 75,600, while 6% from the listing = 84,000. The difference in the condition is one word, while the answer options differ.
5. Division of commission between brokers
In the ratio a : b
Share = commission × a / (a + b); “how much more” = commission × (a − b) / (a + b).
Example. Sale for 900,000, commission 5% = 45,000, divided 3 : 2. The first receives 3/5 = 27,000, the second 2/5 = 18,000. How much more the first receives is 9,000, i.e. 1/5 of the commission.
In percentages (60/40, 70/30)
Share = commission × percentage; difference = commission × (p₁ − p₂).
Example. 990,000 × 6% = 59,400. Broker B with 60% receives 35,640, broker A with 40% — 23,760, difference 11,880.
Three-way split (50/30/20)
Example. 2,400,000 × 5% = 120,000. Shares: 60,000 / 36,000 / 24,000. How much less the third received than the second: 10% of 120,000 = 12,000.
Pitfalls. Confusing who is “first” in the ratio; dividing by a instead of (a + b); calculating “how much more” as a share rather than the difference in shares; in wording such as “A made more than B”, reading who is actually greater.
6. Reverse calculation: seller’s net amount and commission rate
Formulas. Net = price × (1 − r). Required price for the desired net amount: price = Net / (1 − r). Rate: r = (price − Net) / price.
Example. The seller wants to receive 1,470,000 net with a 2% commission. Price = 1,470,000 / 0.98 = 1,500,000. Check: 1,500,000 × 0.98 = 1,470,000.
Example (rate). Listing 1,700,000, sold for 95% of the listing = 1,615,000. Net amount 1,501,948. Commission 1,615,000 − 1,501,948 = 113,052; rate = 113,052 / 1,615,000 = 7%. (In this exam problem, the system marked a different answer as correct — arithmetic does not have to match the key, see DLD Broker Exam: How It Works and How to Prepare.)
Pitfall. “Price × 1.02” and “Net / 1.02” are incorrect: commission is charged on the final price, not the net amount. The expression “Sale price × (1 − 0.055)” is the net amount with a 5.5% commission.
7. Service charge
Formulas. Chargeable area = unit area + 25% of balcony area; year = chargeable area × rate per ft²; quarter = year / 4; month = year / 12. For more details about the charge itself — service charge.
Example. Unit 1,500 ft², balcony 200 ft², rate 15 AED per ft², balcony counted at 25%. Chargeable area: 1,500 + 0.25 × 200 = 1,550 ft². Year: 1,550 × 15 = 23,250 AED. Quarter: 5,812.5 AED.
Pitfalls. The balcony is counted not at 100%, but at 25% (exam problem rule; in reality it depends on the project declaration ⚠️ to be confirmed). Area in m² is first converted to ft². Year and quarter are adjacent in the answer options — answer for the period asked. The rate per ft² is approved by RERA (Mollak) annually; the typical market range is 12–20 AED, higher in Downtown and on Palm ⚠️ to be confirmed by project.
8. Yield and monthly income
Formulas. Income = investment × rate; monthly = annual / 12; gross yield = annual rent / price; net yield = (rent − expenses) / price; GRM = price / annual rent. See also ROI.
Example 1 (monthly). Investment 1,260,000, yield 12.5% per annum: 1,260,000 × 0.125 / 12 = 13,125 AED per month.
Example 2 (yield). Price 1,500,000, rent 105,000 per year: gross yield = 7%. If expenses are 15,000: net yield = 90,000 / 1,500,000 = 6%. GRM = 1,500,000 / 105,000 ≈ 14.3.
Pitfall. Annual income instead of monthly income (forgot /12); gross instead of net; confusing yield and GRM (the lower the GRM, the more profitable the property).
9. Capitalization
Formulas. Cap rate = NOI / value; value = NOI / cap rate; NOI = income − operating expenses (excluding mortgage).
Example. NOI 150,000 per year, cap rate 7.5%: value = 150,000 / 0.075 = 2,000,000 AED.
Pitfall. Value is divided by the rate, not multiplied; mortgage payments are not included in NOI.
10. Rent with different frequencies and expenses
Formula. Annual income = Σ (rate × number of units × number of periods per year) − expenses. There are 12 months and 52 weeks.
Example. Out of five units, three are rented at 4,500 AED per month, two — at 1,700 AED per week; expenses 27,220 per year. 3 × 4,500 × 12 = 162,000; 2 × 1,700 × 52 = 176,800; 162,000 + 176,800 − 27,220 = 311,580 AED.
Pitfall. A year has 52 weeks, not 4 × 12 = 48; expenses are deducted once.
11. Free month of rent
Formulas. Amount payable = monthly rate × (months in the contract − free months). Effective discount = free months / contract term.
Example. Rent 8,000 AED per month, contract for 13 months, one month free: the Tenant pays 12 × 8,000 = 96,000. Effective discount = 1/13 = 7.69%; effective rate = 96,000 / 13 ≈ 7,385 AED per month. If the month is free within a 12-month contract, the discount is 1/12 = 8.33%.
Pitfall. Brokers call it a “1-month discount” and calculate 1/12. Always divide by the total term of the contract, including the free month.
12. Percentage rent for a retail outlet
Formula. Rent = area × rate per unit + share × (turnover − threshold). The percentage is paid only on the excess over the threshold.
Example. Shop 60 × 120 ft = 7,200 ft², rate 100 AED per ft² and 4.5% of turnover above 400,000; turnover 2,000,000. Base: 720,000. Percentage: 4.5% × (2,000,000 − 400,000) = 72,000. Total per year 792,000; for 3 years 2,376,000 AED.
Pitfall. Calculating the percentage from total turnover instead of the excess; forgetting to multiply by the number of years.
13. Appreciation and depreciation
Formulas. New price = price × (1 ± d). Reverse calculation of the original price after a decrease of d: original = current / (1 − d). After an increase of d: original = current / (1 + d). Increase per year (simple) = total increase / number of years.
Example 1. House sold for 1,330,000 after depreciation of 15%: original price = 1,330,000 / 0.85 ≈ 1,564,706 AED.
Example 2. Sold for 1,380,000 after a decrease of 8%: original = 1,380,000 / 0.92 = 1,500,000 AED.
Example 3. Price 1,000,000, increase of 10% over 5 years = 100,000; per year (simple) 100,000 / 5 = 20,000 AED.
Pitfall. After a decrease of 8%, divide by 0.92, not multiply by 1.08.
14. CMA: comparable adjustments
Rule. Adjust the comparable to the subject property: subtract what the comparable has in excess, add what the comparable does not have but the subject property has.
Example 1. A comparable sold for 2,000,000, but it has one more bedroom (value 50,000) and one more bathroom (20,000) than the subject property. Adjusted value = 2,000,000 − 70,000 = 1,930,000 AED.
Example 2. The comparable has no parking space (worth 30,000), while the subject property has one: 1,500,000 + 30,000 = 1,530,000 AED.
Pitfall. The sign. Ask yourself: “is the comparable better or worse than my subject property?” Better — subtract, worse — add.
15. Mortgage: LTV, down payment, discount points
Formulas. Loan = price × LTV; down payment = price × (1 − LTV); one discount point = 1% of the loan. See Mortgages in the UAE: Central Bank rules and what they change in a transaction and mortgage.
Example 1. Price 4,500,000, LTV 80% (expat, first home, up to 5 million): loan 3,600,000, down payment 900,000.
Example 2. Price 6,000,000, expat, first home, above 5 million — LTV 70%: loan 4,200,000, down payment 1,800,000.
Example 3. Property 184,000, LTV 75%, closing includes 2.5 points: loan 138,000; 2.5% × 138,000 = 3,450 AED.
LTV rates according to Mortgages in the UAE: Central Bank rules and what they change in a transaction: an expat’s first home is 80% up to 5 million and 70% above; off-plan 50% for all; sources differ for a second home — ⚠️ to be confirmed (60% according to Mortgages in the UAE: Central Bank rules and what they change in a transaction or 65% and 50% according to new publications).
Pitfall. Points are calculated from the loan, not the price; the threshold is 5 million; LTV is different for property under construction.
16. Simple interest, annuity, and DBR
Simple interest. I = P × r × t, where t is in years. Loan 600,000 at 5% for 3 months: 600,000 × 0.05 × 3/12 = 7,500 AED. The pitfall is leaving t in months.
Annuity payment. PMT = P × r / (1 − (1 + r)⁻ⁿ), r is the monthly rate, n is the number of months. Loan 1,000,000, 4.5% per annum, 25 years: r = 0.045/12, n = 300; payment ≈ 5,558 AED per month. It is usually not needed for the exam, but in practice it is convenient to show to the client.
DBR. Permitted payments on all loans = 50% of gross income. Income 40,000: limit 20,000; already pays 8,000 — 12,000 AED remains for a new mortgage.
17. Inheritance shares and joint ownership
Inheritance
Share = area × weight / sum of weights. In exam problems, a son receives a share 2 times larger than a daughter. The condition may be incomplete (the number of children is not stated) — then a standard assumption is made.
Example. Plot 129,120 ft² = 12,000 m² (when converting with 10.76). Heirs: two sons (weight 2 each) and two daughters (weight 1). Sum of weights 6. A son receives 2/6 × 12,000 = 4,000 m², a daughter — 2,000 m². For calculations involving a real family, the law and will are determined separately (see Multiple Owners, Gifting, and Inheritance of Property in Dubai).
Joint ownership by shares
Owner’s share in money = price × their share. Property sold for 3,000,000; shares 60/40: 1,800,000 and 1,200,000. If an owner with a 25% share sells only their share when the entire property is valued at 2,400,000, their part = 600,000 AED.
Pitfall. Shares are fractional (60/40, 1/3) — add them as a check: the sum of shares must be 100%.
18. DLD 4% fees and other buyer’s additional costs
Formulas. DLD = 4% of the price (for an assignment — of the higher of the sale price and Original Price, see 4% DLD: what price it is calculated from, reassessment, why underreporting is not possible). Trustee and administrative fee amounts are fixed.
Example. Price 2,350,000: DLD = 94,000 AED. The condition “DLD by cheque” at a price of 1,750,000 — 70,000 AED.
Under ECR 30/2013, DLD is divided equally, 2% + 2% (buyer and seller), unless the parties agree otherwise — in the exam, follow the condition of the problem. Land for 5 million with a 2% + 2% split — 100,000 from each side.
Fee table as at 13.10.2026 (source — verification of dubai_fees_2026, most figures from secondary sources):
| Fee | Rate | Status |
|---|---|---|
| DLD for transfer | 4% | confirmed secondarily, by several sources |
| Trustee, ready property | 2,100 (up to 500,000) and 4,200 (from 500,000) AED with VAT | ⚠️ to be confirmed |
| Trustee, off-plan (Oqood) | 3,675 and 5,250 AED with VAT | ⚠️ to be confirmed (only the amount of 5,250 is indirectly confirmed) |
| Title Deed (ready) | 580 AED; DLD states 250 in the mortgage section | ⚠️ to be confirmed, sources differ |
| Admin fee | structure unclear | ⚠️ to be confirmed |
| Mortgage registration | 0.25% of the loan (confirmed by DLD) + fixed fees | percentage confirmed; fixed amounts ⚠️ to be confirmed |
| Bank valuation | 2,500–3,500 AED | ⚠️ to be confirmed |
| Developer NOC | 500–5,000 AED + VAT | ⚠️ to be confirmed |
| Agent commission | 2% + 5% VAT | ⚠️ to be confirmed according to the agreement |
| Ejari | approximately 177.75 AED online | ⚠️ to be confirmed |
| Early mortgage settlement | the lower of 1% of the balance and 10,000 AED | according to Bayut data, not the primary source ⚠️ to be confirmed |
Do not quote a figure from this table to the client without marking it “indicative” and checking it as at the transaction date.
19. Assignment estimate (briefly)
The full explanation is in Assignment estimate: formula, 5 scenarios, top mistakes beginners make, here are the formulas needed for the exam. Definitions: Original Price (OP), Sale Price (SP), Paid — paid, Overdue, Future — future payments, Penalties.
- Check: Paid + Overdue + Future = OP.
- To the seller before commission: SP − (Overdue + Future) = Paid + (SP − OP).
- Net to the seller: this amount − Penalties − seller’s commission.
- Buyer at the transaction: SP − Future + DLD 4% + buyer’s commission. Future is not included in this amount — the buyer pays it to the developer later.
Example. OP 2,000,000, Paid 1,000,000, Overdue 100,000, Future 900,000, SP 2,100,000, Penalties 20,000, commission 2% from each side = 42,000, DLD 4% × 2,100,000 = 84,000. To the seller before commission 1,100,000; net 1,100,000 − 20,000 − 42,000 = 1,038,000. Buyer at the transaction 2,100,000 − 900,000 + 84,000 + 42,000 = 1,326,000 AED.
Pitfall — DLD base at a discount. SP = 1,300,000 (below OP 2,000,000), Overdue 100,000, Paid 1,000,000, Future 900,000. DLD is paid from the higher price — from OP: 4% × 2,000,000 = 80,000, not 52,000. Buyer: 1,300,000 − 900,000 + 80,000 + 26,000 = 506,000 AED (if DLD is calculated from SP, the result is 478,000 — incorrect). Seller: 1,300,000 − 1,000,000 = 300,000 before commission, 274,000 after commission of 26,000.
20. Transaction when the seller has a mortgage
The procedure and documents are in Mortgages in the UAE: Central Bank rules and what they change in a transaction. Simple calculation: SP − seller’s outstanding bank debt (from the Liability Letter) − seller’s commission = what the seller receives.
Example. SP 2,500,000, seller’s outstanding mortgage 1,200,000, seller’s commission 2% = 50,000. To the seller’s bank — 1,200,000; to the seller — 2,500,000 − 1,200,000 − 50,000 = 1,250,000 (the seller pays the commission to the agency separately). DLD 4% = 100,000 is paid by the buyer.
If the buyer takes a mortgage with LTV 80%: loan 2,000,000; down payment 500,000; plus DLD 100,000 and mortgage registration 0.25% × 2,000,000 = 5,000 AED (plus fixed fees ⚠️ to be confirmed) and agency commission. From the bank’s 2,000,000 and the buyer’s 500,000, cheques are prepared: 1,200,000 to the seller’s bank, the balance to the seller.
Pitfall. If the bank values the property below the transaction price, the loan is calculated from the lower amount, and the buyer pays the difference themselves.
General pitfalls: checklist before answering
- Percentage base: sale price or listing price.
- Share or difference in shares; who is “first” in the ratio.
- Units: m² and ft²; price per m² and per ft².
- Period: year, quarter, month, week (52).
- Sign of the CMA adjustment and direction of the reverse calculation (÷ (1 − d), not × (1 + d)).
- Thresholds: turnover of 400,000, 5 million for LTV.
- Who pays: DLD under the law is 2% + 2%, under the problem condition — as stated.
- Ignore an extraneous number in the condition.
See also
- Assignment estimate: formula, 5 scenarios, top mistakes beginners make
- 4% DLD: what price it is calculated from, reassessment, why underreporting is not possible
- Mortgages in the UAE: Central Bank rules and what they change in a transaction
- Multiple Owners, Gifting, and Inheritance of Property in Dubai
- DLD Broker Exam: How It Works and How to Prepare
Test yourself
1. Listing 2,000,000 AED, sold for 1,800,000, commission 2% of the sale price. What is the commission?
A) 40,000 B) 36,000 C) 38,000 D) 41,400
Answer
B. 1,800,000 × 2% = 36,000. Option A is a pitfall (commission from the listing).
2. Commission 900,000 × 5% = 45,000 is divided between two brokers 3 : 2. How much more does the first receive?
A) 27,000 B) 18,000 C) 9,000 D) 4,500
Answer
C. The first receives 27,000, the second 18,000, difference 9,000 (1/5 of the commission). Option A is the first’s share, not the difference.
3. House sold for 1,380,000 after a price decrease of 8%. What was the original price?
A) 1,490,400 B) 1,500,000 C) 1,269,600 D) 1,600,000
Answer
B. 1,380,000 / 0.92 = 1,500,000. Option A is a pitfall (× 1.08).
4. Unit 1,500 ft², balcony 200 ft² (counted at 25%), rate 15 AED per ft². Quarterly service charge?
A) 23,250 B) 5,812.5 C) 6,375 D) 25,500
Answer
B. Area 1,500 + 50 = 1,550 ft²; year 23,250; quarter 23,250 / 4 = 5,812.5. Option A is annual, C is a calculation with the balcony at 100% for the quarter.
5. Assignment: SP 1,300,000, OP 2,000,000, Future 900,000, DLD 4%, buyer’s commission 2% of SP. How much does the buyer pay at the transaction?
A) 478,000 B) 506,000 C) 1,406,000 D) 400,000
Answer
B. DLD is calculated from the higher price, i.e. OP: 80,000. Total 1,300,000 − 900,000 + 80,000 + 26,000 = 506,000. Option A is DLD from SP.