The Broker Lease Agreement serves as a crucial legal instrument in the Malaysian real estate market, establishing the framework for professional property leasing services. This document is essential when property owners wish to engage licensed real estate professionals to market and lease their properties. It encompasses key elements required under Malaysian law, including broker licensing requirements, commission structures, and service obligations. The agreement is particularly important in ensuring compliance with the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and related regulations. It provides clear guidelines on the scope of the broker's authority, marketing responsibilities, tenant screening processes, and commission terms, while protecting the interests of all parties involved in the leasing transaction.
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1. Parties: Identification of the property owner and the licensed real estate broker/agency, including registration numbers and contact details
2. Background: Context of the agreement, including brief description of the property and the owner's intention to lease it through the broker
3. Definitions: Key terms used throughout the agreement, including 'Property', 'Commission', 'Lease Term', 'Successful Transaction', etc.
4. Appointment and Authority: Terms of broker's appointment and scope of authority to act on behalf of the property owner
5. Broker's Services and Obligations: Detailed description of services to be provided by the broker, including marketing, showing property, tenant screening, etc.
6. Property Owner's Obligations: Owner's responsibilities, including providing accurate information, access to property, and necessary documentation
7. Commission Structure: Details of broker's compensation, including commission rate, payment terms, and conditions for commission eligibility
8. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party
9. Confidentiality: Obligations regarding confidential information and property details
10. Representations and Warranties: Statements of fact and guarantees by both parties
11. Liability and Indemnification: Allocation of risks and responsibilities between parties
12. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for dispute resolution
13. General Provisions: Standard clauses including notices, amendments, assignment, and severability
1. Exclusive Agency Rights: Used when granting exclusive rights to the broker for the property, including terms and duration of exclusivity
2. Marketing Budget and Expenses: Include when there are specific arrangements about marketing costs and their allocation
3. Sub-Agents: Include when the broker is permitted to engage sub-agents or other brokers
4. Online Listing Provisions: Specific terms for digital marketing and online property platforms
5. Property Management Services: Include if the broker will also provide property management services
6. Insurance Requirements: Specific insurance obligations for either party beyond standard requirements
7. Multiple Property Provisions: Include when the agreement covers multiple properties
8. International Marketing: Include for properties targeting international tenants with specific international marketing requirements
1. Schedule 1: Property Details: Detailed description of the property, including address, size, facilities, and conditions
2. Schedule 2: Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms
3. Schedule 3: Marketing Plan: Specific marketing strategies, platforms, and activities to be undertaken
4. Schedule 4: Property Documentation: List of required property documents, certificates, and permits
5. Schedule 5: Broker's License and Credentials: Copies of broker's professional licenses and registrations
6. Appendix A: Property Photographs: Official photographs and floor plans of the property
7. Appendix B: Standard Operating Procedures: Procedures for property viewings, tenant screening, and lease execution
8. Appendix C: Reporting Templates: Standard forms for periodic reports and tenant feedback
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