Real Estate Agent Commission Agreement Template for Indonesia

A Real Estate Agent Commission Agreement is a legally binding contract that formalizes the professional relationship between property owners and real estate agents or agencies in Indonesia. This document serves as your protection and roadmap when engaging real estate professionals to sell or lease your property, ensuring clear expectations and compliance with Indonesian law.

When do you need this document?

You need this agreement whenever you engage a real estate agent or agency to market and sell your property in Indonesia. Whether you're selling a residential home in Jakarta, leasing commercial space in Surabaya, or disposing of investment property in Bali, this contract protects your interests. The agreement is essential when working with licensed real estate companies, independent agents, or property management firms. You should have this document in place before any marketing activities begin, property listings are published, or potential buyers are shown your property. This ensures all parties understand their obligations from the outset and prevents disputes over commission payments or service expectations.

Key legal considerations

Several critical legal elements must be carefully addressed in your commission agreement. The commission structure should specify the exact percentage or fixed amount, payment conditions, and whether the arrangement is exclusive or non-exclusive. Under Indonesian Consumer Protection Law No. 8 of 1999, you have rights to transparent terms and fair treatment throughout the process. The agreement must clearly define the agent's marketing obligations, including advertising scope, property showings, and reporting requirements. Termination clauses should outline circumstances under which either party can end the agreement and any applicable notice periods. You should also ensure the contract addresses liability limitations, confidentiality requirements, and dispute resolution mechanisms. The agreement must comply with income tax obligations under Law No. 36 of 2008, particularly regarding commission payments and tax withholding requirements.

Legal requirements in Indonesia

Indonesian law imposes specific requirements on real estate commission agreements that you must follow. Under the Indonesian Civil Code (KUH Perdata), the contract must contain essential elements including clear identification of parties, specific property details, and unambiguous terms. Minister of Trade Regulation No. 33/M-DAG/PER/8/2008 requires real estate companies to operate with proper licensing and follow established business practices. Your agreement should reference relevant property registration requirements under Government Regulation No. 24 of 1997, ensuring the agent understands their role in facilitating legal property transfers. The contract must address consumer protection obligations, including transparency in pricing, service standards, and complaint handling procedures. Additionally, you should ensure the agreement complies with local taxation requirements and includes provisions for proper documentation and record-keeping as required by Indonesian business regulations.