Buyer Commission Agreement for Hong Kong

Buyer Commission Agreement Template for Hong Kong

A legally binding agreement governed by Hong Kong law that establishes the professional relationship between a licensed estate agent and a property buyer. The agreement outlines the terms under which the agent will assist in finding and acquiring property, including commission structures, service scope, and obligations of both parties. It complies with the Hong Kong Estate Agents Ordinance and related regulations, incorporating mandatory disclosures and professional standards required by the Estate Agents Authority of Hong Kong.

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What is a Buyer Commission Agreement?

The Buyer Commission Agreement is a crucial document in Hong Kong's real estate market that formalizes the relationship between estate agents and property buyers. It is commonly used when a buyer engages an agent's services to locate and acquire property, whether residential or commercial. The agreement must comply with Hong Kong's Estate Agents Ordinance (Cap. 511) and related regulations, which set strict requirements for content, disclosures, and professional conduct. This document typically includes commission structures, service scope, duration of appointment, agent obligations, and buyer responsibilities. It's particularly important in Hong Kong's dynamic property market where clear terms of engagement and commission structures are essential for protecting both parties' interests.

What sections should be included in a Buyer Commission Agreement?

1. Parties: Identification of the estate agent/agency and the buyer client, including full legal names and addresses

2. Background: Context of the agreement, including the buyer's intention to purchase property and appointment of the agent

3. Definitions: Key terms used in the agreement, including 'Property Requirements', 'Commission', 'Exclusive Period' if applicable

4. Appointment and Scope: Terms of agent appointment and specific services to be provided

5. Duration: Term of the agreement, including start date and termination provisions

6. Agent's Obligations: Detailed listing of agent's duties, responsibilities, and service commitments

7. Client's Obligations: Buyer's responsibilities, including providing accurate requirements and cooperating with the agent

8. Commission Structure: Commission rate, calculation method, and payment terms

9. Payment Terms: Specific conditions for when commission becomes payable and payment mechanics

10. Termination: Grounds for termination and consequences thereof

11. Confidentiality: Obligations regarding confidential information and personal data protection

12. General Provisions: Standard contractual terms including governing law, notices, and entire agreement

What sections are optional to include in a Buyer Commission Agreement?

1. Exclusivity: Terms making the appointment exclusive, used when the agreement is exclusive rather than non-exclusive

2. Property Requirements: Detailed section specifying buyer's property requirements, used for more complex searches

3. Anti-Money Laundering: Additional compliance terms, used for high-value transactions or when dealing with corporate buyers

4. Dual Agency Disclosure: Required when the agent may potentially represent both buyer and seller

5. Dispute Resolution: Detailed arbitration or mediation procedures, used in higher-value agreements

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in uncertain market conditions

What schedules should be included in a Buyer Commission Agreement?

1. Schedule 1 - Property Requirements: Detailed specifications of the type of property sought, including location, size, price range

2. Schedule 2 - Commission Calculation Examples: Examples illustrating how commission will be calculated in different scenarios

3. Schedule 3 - Required Documents: List of documents required from the buyer for compliance and verification

4. Appendix A - Estate Agent's License: Copy of the estate agent's license as required by Hong Kong regulations

5. Appendix B - Standard Disclosures: Mandatory disclosures required under the Estate Agents Ordinance

Authors

Alex Denne

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Real Estate

Property Development

Property Investment

Residential Property

Commercial Property

Real Estate Agency Services

Property Management

Professional Services

Financial Services

Relevant Teams

Legal

Compliance

Real Estate

Sales

Business Development

Risk Management

Operations

Finance

Contract Administration

Relevant Roles

Estate Agent

Property Consultant

Real Estate Broker

Compliance Officer

Legal Counsel

Property Acquisition Manager

Real Estate Director

Contracts Manager

Business Development Manager

Sales Director

Property Investment Manager

Risk Management 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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