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Commercial Lease Commission Agreement Template for Malaysia

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Key Requirements PROMPT example:

Commercial Lease Commission Agreement

"I need a Commercial Lease Commission Agreement for my office building in Kuala Lumpur, establishing an exclusive 12-month arrangement with a 3% commission rate, starting from January 2025."

Document background
The Commercial Lease Commission Agreement is a vital document in Malaysian commercial real estate transactions, used when property owners engage professional real estate agents or agencies to secure tenants for their commercial properties. This agreement is essential for defining the business relationship between property owners and their appointed agents, establishing clear commission structures, and outlining service expectations. It must comply with Malaysian regulations, particularly the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and the Board's rules. The document typically includes detailed provisions about commission calculations, payment timing, marketing responsibilities, and the scope of the agent's authority, providing legal protection for all parties involved in the commercial leasing process.
Suggested Sections

1. Parties: Identification of the property owner/landlord and the real estate agent/agency, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including property details and the owner's intention to lease the property through the agent

3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Lease', 'Property', 'Tenant', and 'Term'

4. Appointment and Authority: Formal appointment of the agent and scope of authority granted by the property owner

5. Agent's Services and Obligations: Detailed description of services to be provided by the agent, including marketing, showing property, and lease negotiation

6. Commission Structure: Details of commission rates, calculation methods, and payment terms

7. Payment Terms: Timing and method of commission payments, including any staging or installment arrangements

8. Property Owner's Obligations: Responsibilities of the property owner, including providing accurate information and necessary documentation

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Confidentiality: Provisions regarding handling of confidential information and property details

11. Governing Law: Specification of Malaysian law as governing law and jurisdiction

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Exclusivity: Terms establishing whether the appointment is exclusive or non-exclusive, used when specific agency arrangements are required

2. Sub-Agents: Provisions regarding the appointment and management of sub-agents, included when sub-agents may be involved

3. Marketing Budget: Details of marketing expenditure and cost responsibilities, included when specific marketing arrangements are agreed

4. Performance Targets: Specific performance metrics for the agent, included when performance-based terms are required

5. Insurance Requirements: Specific insurance obligations for either party, included when additional coverage is required

6. Dispute Resolution: Detailed dispute resolution procedures, included when specific resolution mechanisms are preferred

7. Force Majeure: Provisions for unforeseen circumstances, included when specific risk allocation is needed

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the property, including address, lot number, and specific features

2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates for different lease scenarios

3. Schedule 3 - Marketing Plan: Specific marketing activities and timeline proposed by the agent

4. Schedule 4 - Required Documentation: List of documents required from both parties for the lease process

5. Appendix A - Agent's License: Copy of the agent's current registration/license with the Board of Valuers, Appraisers and Estate Agents

6. Appendix B - Property Title: Copy of the property title or relevant ownership documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses



























Relevant Industries

Real Estate

Commercial Property

Retail

Office Space

Industrial Property

Professional Services

Property Management

Commercial Leasing

Relevant Teams

Legal

Real Estate

Property Management

Commercial Operations

Business Development

Asset Management

Facilities Management

Contract Administration

Finance

Relevant Roles

Real Estate Agent

Property Manager

Commercial Property Manager

Leasing Manager

Property Owner

Legal Counsel

Contract Manager

Business Development Manager

Asset Manager

Facilities Manager

Commercial Director

Real Estate Director

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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