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Real Estate Broker Commission Agreement

Real Estate Broker Commission Agreement Template for Malaysia

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Key Requirements PROMPT example:

Real Estate Broker Commission Agreement

"I need a Real Estate Broker Commission Agreement for my luxury property development in Kuala Lumpur, with exclusive listing rights and a tiered commission structure based on property values ranging from RM2 million to RM10 million."

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Document background
The Real Estate Broker Commission Agreement serves as a crucial legal document in Malaysian property transactions, establishing the formal relationship between property owners and real estate brokers. This agreement is essential when engaging professional real estate services for property sales, clearly defining commission structures, service expectations, and payment terms. It's designed to comply with Malaysian regulations, including the Estate Agency Act 1979 and the Board of Valuers, Appraisers, Estate Agents and Property Managers Act 1981. The document is particularly important in protecting both parties' interests by clearly outlining commission rates, payment triggers, exclusive or non-exclusive listing arrangements, and the specific services to be provided by the broker. It's commonly used in both residential and commercial property transactions throughout Malaysia.
Suggested Sections

1. Parties: Identification of the property owner/seller and the real estate broker, including registration/license numbers

2. Background: Context of the agreement, including brief description of the property and the broker's engagement

3. Definitions: Key terms used in the agreement including 'Property', 'Commission', 'Closing', 'Listing Period'

4. Appointment and Authority: Formal appointment of broker and scope of authority granted

5. Broker's Services: Detailed description of services to be provided by the broker

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

7. Payment Terms: When and how commission payments will be made, including conditions for payment

8. Term and Termination: Duration of the agreement and conditions for termination

9. Obligations of Property Owner: Owner's responsibilities and commitments

10. Representations and Warranties: Standard declarations by both parties

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

12. Dispute Resolution: Process for handling disputes between parties

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Protection Period: Defines period after agreement termination during which broker may still be entitled to commission. Include when requested by broker

2. Exclusive Rights: Grants exclusive rights to the broker. Include in exclusive listing agreements only

3. Sub-Agents: Terms for broker's ability to engage sub-agents. Include when sub-agents may be used

4. Marketing Budget: Details of marketing expenses and responsibilities. Include when marketing costs are shared

5. International Buyers: Special provisions for international transactions. Include when targeting foreign buyers

6. Digital Marketing Rights: Specific rights for online marketing and virtual tours. Include when digital marketing is significant

Suggested Schedules

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

2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates for different transaction types or values

3. Schedule 3 - Broker's Services: Comprehensive list of services to be provided by the broker

4. Appendix A - Required Documentation: List of required documents for property listing and sale

5. Appendix B - Marketing Plan: Detailed marketing strategy and timeline

6. Appendix C - Broker's License: Copy of broker's current license and registrations

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 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

Construction

Property Management

Real Estate Investment

Hospitality

Commercial Property

Residential Property

Relevant Teams

Legal

Real Estate

Sales

Business Development

Compliance

Property Management

Operations

Commercial

Contracts Administration

Relevant Roles

Real Estate Broker

Property Owner

Real Estate Agent

Property Developer

Legal Counsel

Contract Manager

Property Manager

Sales Director

Business Development Manager

Real Estate Negotiator

Compliance Officer

Property Consultant

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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