Real Estate Agent Commission Agreement

Real Estate Agent Commission Agreement Template for Hong Kong

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Key Requirements PROMPT example:

"I need a Real Estate Agent Commission Agreement for my luxury residential property in Hong Kong, with an exclusive agency period of 6 months starting March 1, 2025, including a tiered commission structure that increases with the final sale price."

Document background

The Real Estate Agent Commission Agreement is essential for establishing professional relationships in Hong Kong's property market. This document is required whenever a property owner, buyer, landlord, or tenant engages a real estate agent's services for property transactions. It must comply with the Estate Agents Ordinance (Cap. 511) and the Estate Agents Authority's regulations, which govern real estate agency practices in Hong Kong. The agreement typically includes commission rates, payment terms, service scope, agent obligations, and client responsibilities. It serves as a crucial tool for preventing disputes and ensuring transparency in commission arrangements, while also providing clear guidelines for the services to be rendered. The document can be adapted for both residential and commercial properties, and can accommodate exclusive or non-exclusive agency arrangements.

Suggested Sections

1. Parties: Identification of the Estate Agent/Agency and the Client (seller/landlord or buyer/tenant)

2. Background: Brief context of the agreement, including the subject property and the agent's appointment

3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Property', 'Transaction', and 'Exclusive Period' if applicable

4. Appointment: Formal appointment of the estate agent and whether it's an exclusive or non-exclusive arrangement

5. Services: Detailed description of services to be provided by the estate agent

6. Commission Structure: Clear statement of commission rate, calculation method, and payment terms

7. Payment Terms: When and how commission becomes payable, including any deposit requirements

8. Agent's Obligations: Specific duties and responsibilities of the agent, including compliance with regulations

9. Client's Obligations: Client's responsibilities, including providing accurate information and cooperation

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Governing Law: Confirmation that Hong Kong law governs the agreement

12. Signatures: Execution block for all parties

Optional Sections

1. Exclusive Rights: Additional terms applicable when the agent is granted exclusive rights to market the property

2. Multiple Agency Arrangements: Terms for cases where multiple agencies are involved in the transaction

3. Online Marketing: Specific terms regarding online marketing and digital promotion of the property

4. Commission Sharing: Terms for splitting commission with other agents if applicable

5. Property Management: Additional services related to property management if offered

6. Overseas Client Provisions: Special terms for clients who are not Hong Kong residents

7. Force Majeure: Provisions for unforeseen circumstances affecting the agreement

8. Dispute Resolution: Optional mediation or arbitration procedures before court proceedings

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the property, including address, size, and specifications

2. Schedule 2 - Commission Rate Table: Detailed breakdown of commission rates for different transaction values or scenarios

3. Schedule 3 - Service Scope: Comprehensive list of services included in the agreement

4. Schedule 4 - Marketing Plan: Detailed marketing strategy and activities to be undertaken

5. Appendix A - Required Documents: List of documents required from the client

6. Appendix B - Estate Agents Authority Prescribed Forms: Relevant forms required under Hong Kong regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Real Estate

Property Development

Property Management

Residential Property

Commercial Property

Industrial Property

Retail Property

Luxury Property

Property Investment

Relevant Teams

Real Estate

Property Sales

Leasing

Legal

Compliance

Business Development

Contracts

Operations

Property Management

Agency Operations

Documentation

Relevant Roles

Real Estate Agent

Property Agent

Estate Agent

Real Estate Broker

Property Consultant

Sales Director

Leasing Manager

Real Estate Manager

Property Manager

Compliance Officer

Legal Counsel

Contract Manager

Business Development Manager

Agency Director

Managing Director

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