Real Estate Agent Commission Agreement for Malaysia

Real Estate Agent Commission Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions under which a licensed real estate agent or agency will provide property sales or leasing services to a property owner. The document outlines commission rates, payment terms, scope of services, and obligations of both parties while ensuring compliance with Malaysian real estate regulations, particularly the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and related professional standards. It includes specific provisions for commission structures, marketing responsibilities, and conditions for successful transactions.

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What is a Real Estate Agent Commission Agreement?

The Real Estate Agent Commission Agreement is a crucial document in Malaysian property transactions that formalizes the professional relationship between licensed real estate agents and property owners. This agreement is essential when engaging a real estate agent to market, sell, or lease property in Malaysia, whether residential or commercial. It must comply with Malaysian real estate regulations, particularly the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and the Rules of the Board of Valuers, Appraisers and Estate Agents 1983. The document specifies commission structures, payment conditions, service scope, and mutual obligations, protecting both parties' interests while ensuring transparency and professional conduct in the property transaction process.

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

1. Parties: Identifies the real estate agent/agency and the client (property owner/seller), including their full legal names, registration numbers, and addresses

2. Background: Contextual information about the property sale/lease transaction and the agent's appointment

3. Definitions: Defines key terms used throughout the agreement, including 'Property', 'Commission', 'Successful Transaction', and 'Exclusive Period' if applicable

4. Appointment and Authority: Formal appointment of the agent and scope of authority granted by the client

5. Agent's Services and Obligations: Detailed description of services to be provided by the agent, including marketing, showing property, and negotiating

6. Client's Obligations: Client's responsibilities, including providing accurate information and reasonable access to the property

7. Commission Structure: Detailed terms of commission payment, including rates, calculation method, and payment timing

8. Payment Terms: Specific conditions for when commission becomes payable and payment procedures

9. Term and Termination: Duration of the agreement and conditions for termination by either party

10. Confidentiality: Obligations regarding confidential information shared during the engagement

11. Governing Law: Specification that Malaysian law governs the agreement and jurisdiction details

12. Execution: Formal signing section with space for signatures, witnesses, and dates

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

1. Exclusive Agency Rights: Used when the agreement is exclusive, preventing the client from engaging other agents

2. Multiple Property Provisions: Include when the agreement covers multiple properties

3. Sub-Agency Provisions: Required when the agent may need to engage other agents or agencies

4. Marketing Budget and Plans: Detailed marketing commitments and cost arrangements, if specific marketing plans are agreed upon

5. Post-Termination Obligations: Include when there's a need to protect the agent's interests in ongoing negotiations after termination

6. Force Majeure: Optional clause for unforeseen circumstances affecting performance

7. Dispute Resolution: Specific procedures for handling disputes, including mediation or arbitration provisions

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

1. Schedule A - Property Details: Detailed description of the property, including address, title details, and specific features

2. Schedule B - Commission Rates: Detailed breakdown of commission rates for different transaction types or value ranges

3. Schedule C - Marketing Plan: Specific marketing activities and timeline agreed upon between parties

4. Schedule D - Required Documentation: List of documents required from the client for the agent to perform services

5. Appendix 1 - Agent's License and Credentials: Copies of the agent's professional licenses and BOVAEA registration

6. Appendix 2 - Property Photos and Floor Plans: Visual documentation of the property to be marketed

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

Malaysia

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant Industries

Real Estate

Property Development

Residential Property

Commercial Property

Property Management

Professional Services

Legal Services

Construction

Retail Property

Industrial Property

Relevant Teams

Real Estate

Sales

Legal

Compliance

Operations

Business Development

Property Management

Marketing

Administration

Finance

Contracts

Relevant Roles

Real Estate Agent

Property Manager

Real Estate Broker

Sales Director

Business Development Manager

Property Consultant

Legal Counsel

Compliance Officer

Contract Administrator

Property Developer

Real Estate Agency Owner

Transaction Manager

Branch Manager

Marketing Manager

Operations 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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