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Land Sale Commission Agreement Template for Malaysia

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Key Requirements PROMPT example:

Land Sale Commission Agreement

"I need a Land Sale Commission Agreement under Malaysian law for an exclusive 6-month arrangement starting March 1, 2025, with a 2% commission rate for the sale of a commercial property in Kuala Lumpur."

Document background
The Land Sale Commission Agreement is a crucial document used in Malaysian real estate transactions to formalize the relationship between property owners and real estate agents. This agreement is essential when a property owner wishes to engage a professional real estate agent or agency to market and sell their property for a commission-based fee. The document ensures compliance with Malaysian real estate regulations, particularly the Valuers, Appraisers, Estate Agents and Property Managers Act 1981, and provides clear terms regarding commission rates, payment conditions, agent responsibilities, and property marketing requirements. It protects both parties' interests by clearly defining the scope of services, exclusivity arrangements (if any), and circumstances under which commission becomes payable.
Suggested Sections

1. Parties: Identification of the property owner/seller and the licensed real estate agent/agency, including registration numbers and addresses

2. Background: Context of the agreement, including brief description of the property and the owner's intention to sell

3. Definitions: Key terms used in the agreement including 'Property', 'Commission', 'Completion', 'Effective Date', and 'Exclusive Period' if applicable

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

5. Agent's Services: Detailed scope of services to be provided by the agent

6. Commission Structure: Details of commission rate, calculation method, and when commission becomes payable

7. Payment Terms: Timing and method of commission payment, including any deposit requirements

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

9. Owner's Obligations: Responsibilities of the property owner, including providing accurate information and access to the property

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

11. Confidentiality: Obligations regarding confidential information and client privacy

12. Representations and Warranties: Standard declarations about authority, capacity, and compliance with laws

13. Liability and Indemnity: Extent of agent's liability and mutual indemnification provisions

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

15. Notices: Method and addresses for formal communications between parties

16. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

Optional Sections

1. Marketing Budget: Used when specific marketing commitments and budget allocations need to be agreed upon

2. Sub-Agents: Include when the primary agent may need to engage other agents or agencies

3. International Marketing: Required when the property will be marketed to international buyers

4. Digital Marketing Rights: Include when specific digital marketing provisions need to be addressed

5. Minimum Price: Used when the owner wants to specify a minimum acceptable sale price

6. Post-Termination Obligations: Include when there's a need to protect the agent's rights to commission for leads generated during the agreement period

7. Dispute Resolution: Optional alternative dispute resolution procedures beyond court jurisdiction

8. Force Majeure: Include when specific provisions for unforeseen circumstances are required

Suggested Schedules

1. Property Details: Complete description of the property including title details, lot number, and specifications

2. Commission Schedule: Detailed breakdown of commission rates, including any sliding scales or special circumstances

3. Marketing Plan: Detailed marketing strategy and timeline for the property sale

4. Agent's License and Credentials: Copies of relevant licenses and professional certifications

5. Property Documents: List of all property-related documents provided by the owner

6. Service Level Agreement: Specific performance metrics and service standards

7. Approved Marketing Materials: Templates or examples of approved marketing materials and property descriptions

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

Property Development

Construction

Investment Management

Real Estate Investment

Commercial Property

Residential Property

Industrial Property

Agriculture (for agricultural land)

Hospitality

Retail

Relevant Teams

Legal

Real Estate

Sales

Business Development

Contracts

Compliance

Property Management

Investment

Operations

Finance

Risk Management

Relevant Roles

Real Estate Agent

Property Agent

Real Estate Broker

Property Sales Manager

Real Estate Director

Property Developer

Land Owner

Investment Manager

Real Estate Investment Manager

Property Portfolio Manager

Legal Counsel

Contract Manager

Business Development Manager

Sales Director

Managing Director

Chief Executive Officer

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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