Commission Agreement (Real Estate) for Hong Kong

Commission Agreement (Real Estate) Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the terms and conditions under which a licensed estate agent or agency will provide property sales or leasing services in exchange for commission. The document complies with the Estate Agents Ordinance (Cap. 511) and related regulations, detailing commission rates, payment terms, scope of services, and obligations of both parties. It includes mandatory regulatory disclosures and prescribed forms as required by the Estate Agents Authority (EAA) of Hong Kong, while addressing specific requirements for property transactions in the Hong Kong market.

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What is a Commission Agreement (Real Estate)?

The Commission Agreement (Real Estate) serves as a crucial document in Hong Kong's property market, establishing the professional relationship between licensed estate agents and their clients. This agreement is essential for any property transaction where an estate agent is engaged to market, sell, or lease property in Hong Kong. It must comply with the Estate Agents Ordinance (Cap. 511) and various regulations enforced by the Estate Agents Authority, including specific requirements for commission disclosure, prescribed forms, and professional conduct. The document typically includes details about commission rates, payment triggers, service scope, and party obligations, while incorporating mandatory regulatory requirements specific to Hong Kong's real estate industry. This template is designed for both residential and commercial property transactions, adaptable for various scenarios from individual property sales to large-scale development projects.

What sections should be included in a Commission Agreement (Real Estate)?

1. Parties: Identification of the estate agent/agency and the client (property owner/vendor or purchaser)

2. Background: Context of the agreement including the property transaction and appointment of the estate agent

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

4. Appointment and Duration: Terms of the agent's appointment and duration of the agreement, including whether exclusive or non-exclusive

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

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

7. Payment Terms: When and how commission becomes payable, including any staging of payments

8. Agent's Obligations: Legal and professional obligations of the agent under Hong Kong law and EAA regulations

9. Client's Obligations: Client's responsibilities including providing accurate information and necessary documentation

10. Termination: Circumstances and process for terminating the agreement

11. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction

What sections are optional to include in a Commission Agreement (Real Estate)?

1. Co-broker Arrangements: Terms for sharing commission with other agents, used when co-broking is permitted

2. Multiple Properties: Additional terms for handling multiple properties, used when the agreement covers more than one property

3. Marketing Budget: Details of any agreed marketing expenses and cost allocation, used when specific marketing commitments are made

4. Post-Termination Obligations: Terms regarding commission rights after termination, used for protecting agent's interests in ongoing negotiations

5. Dispute Resolution: Mediation or arbitration procedures, used when parties want to specify alternative dispute resolution methods

6. Force Majeure: Provisions for unforeseen circumstances, used when additional protection against external events is desired

What schedules should be included in a Commission Agreement (Real Estate)?

1. Property Details: Detailed description of the property including address, lot number, and specifications

2. Commission Calculation: Detailed breakdown of commission rates and calculation methods

3. Estate Agency Agreement Form: Prescribed form required under the Estate Agents Practice Regulation

4. Property Information Form: Standard property information form required by EAA regulations

5. Marketing Plan: Detailed marketing strategy and activities (if applicable)

6. Agency Disclosure Form: Required disclosures regarding agency relationships and potential conflicts of interest

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

Employment Contract

Cost

Free to use
Relevant legal definitions
Relevant Industries

Real Estate

Property Development

Commercial Property

Residential Property

Retail Property

Industrial Property

Property Management

Real Estate Investment

Property Services

Construction

Relevant Teams

Legal

Compliance

Real Estate

Sales

Business Development

Property Management

Operations

Contracts Administration

Risk Management

Corporate Services

Relevant Roles

Real Estate Agent

Property Manager

Real Estate Broker

Legal Counsel

Compliance Officer

Property Developer

Sales Director

Business Development Manager

Real Estate Investment Manager

Property Services Manager

Contract Administrator

Real Estate Operations Manager

Estate Agency Director

Property Consultant

Leasing Manager

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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