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Broker Commission Agreement
"I need a Broker Commission Agreement for my real estate company based in Kuala Lumpur, with a tiered commission structure starting at 2% for properties under RM1 million and increasing to 3% for properties over RM1 million, to be effective from March 1, 2025."
1. Parties: Identification of the principal and broker, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, nature of the principal's business, and broker's qualifications
3. Definitions: Define key terms including 'Commission', 'Successful Transaction', 'Territory', 'Customers', and other relevant terms
4. Appointment and Scope: Terms of broker's appointment, exclusivity/non-exclusivity, and territorial scope
5. Broker's Duties and Responsibilities: Detailed obligations of the broker, including reporting requirements and compliance with regulations
6. Commission Structure: Basic commission rates, calculation methods, and payment terms
7. Payment Terms: Timing of payments, invoice requirements, currency, and payment methods
8. Term and Termination: Duration of agreement, renewal terms, and termination conditions
9. Confidentiality: Protection of confidential information and trade secrets
10. Non-Circumvention: Prevention of direct dealings between principal and introduced customers
11. Representations and Warranties: Standard warranties regarding capacity, authority, and compliance with laws
12. Governing Law and Jurisdiction: Specification of Malaysian law and jurisdiction for dispute resolution
1. Non-Competition: Restrictions on broker's ability to work with competitors, used when broker has access to sensitive information
2. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets
3. Insurance Requirements: Specific insurance coverage requirements for broker, important in high-value transactions
4. Training and Support: Details of any training or support provided by principal to broker
5. Marketing and Branding: Guidelines for use of principal's branding and marketing materials
6. Dispute Resolution: Alternative dispute resolution procedures such as mediation or arbitration
7. Post-Termination Obligations: Ongoing obligations after agreement ends, particularly for long-term customer relationships
8. Data Protection: Specific provisions for handling personal data under Malaysian law
1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates for different products/services or transaction values
2. Schedule 2 - Territory Definition: Specific geographical areas or market segments covered by the agreement
3. Schedule 3 - Approved Customer List: List of pre-approved customers or customer types if applicable
4. Schedule 4 - Reporting Requirements: Templates and timing for regular reports required from broker
5. Schedule 5 - Compliance Requirements: Specific regulatory requirements and compliance procedures
6. Appendix A - Product/Service Description: Detailed description of products/services for which broker is authorized to arrange sales
7. Appendix B - Documentation Requirements: Templates and requirements for transaction documentation
Authors
Financial Services
Real Estate
Insurance
Commodities Trading
Securities and Investments
Import/Export
Manufacturing
Technology
Telecommunications
Professional Services
Legal
Finance
Sales
Business Development
Compliance
Risk Management
Commercial Operations
Channel Management
Contract Administration
Treasury
Chief Executive Officer
Commercial Director
Sales Director
Business Development Manager
Commission Broker
Legal Counsel
Compliance Officer
Finance Manager
Sales Operations Manager
Contract Administrator
Account Manager
Regional Sales Manager
Channel Partner Manager
Commission Analyst
Risk Manager
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