Real Estate Broker Agreement Template for Indonesia

The Real Estate Broker Agreement is a crucial document used in Indonesian property transactions to formalize the relationship between property owners/sellers and real estate brokers. This agreement is essential when engaging professional representation for property sales or leasing in Indonesia, ensuring compliance with local regulations including the Minister of Trade Regulation No. 33/M-DAG/PER/8/2008 and the Indonesian Civil Code. It details broker responsibilities, commission structures, marketing approaches, and property representation terms while protecting both parties' interests under Indonesian law. The document is particularly important in Indonesia's dynamic property market, where clear definition of roles, responsibilities, and compensation is crucial for successful property transactions.

1. Parties: Identification of the property owner/seller and the real estate broker, including complete legal names, addresses, and business registration details

2. Background: Context of the agreement, including brief description of the property and the parties' intention to enter into a broker relationship

3. Definitions: Key terms used throughout the agreement, including technical real estate terms and Indonesian legal terminology

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of services to be provided

5. Term of Agreement: Duration of the broker agreement, including start date and end date

6. Broker's Rights and Obligations: Detailed listing of the broker's responsibilities, marketing commitments, and authorized activities

7. Property Owner's Rights and Obligations: Property owner's responsibilities, including providing accurate information and property access

8. Commission Structure: Detailed breakdown of broker's commission, payment terms, and conditions for commission earning

9. Marketing and Advertising: Specific terms regarding marketing strategies, approved methods, and budget allocation

10. Representations and Warranties: Standard declarations about property ownership, broker credentials, and authority to enter agreement

11. Confidentiality: Terms regarding handling of confidential information and privacy obligations

12. Termination: Conditions and process for ending the agreement, including notice requirements

13. Governing Law and Dispute Resolution: Specification of Indonesian law application and dispute resolution procedures

14. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions