Broker Lease Commission Agreement Template for Philippines

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Key Requirements PROMPT example:

Broker Lease Commission Agreement

"Need a Broker Lease Commission Agreement for an exclusive arrangement with ABC Realty to market our portfolio of five commercial properties in Manila, with a tiered commission structure and performance targets to be achieved by March 2025."

Document background

The Broker Lease Commission Agreement serves as a crucial document in Philippine real estate transactions, establishing the professional relationship between property owners and licensed real estate brokers for leasing services. This agreement is essential when property owners seek to engage professional brokers to market and secure tenants for their properties, whether commercial, residential, or industrial. The document comprehensively addresses commission structures, broker responsibilities, property marketing requirements, and payment terms, while ensuring compliance with the Real Estate Service Act of the Philippines and other relevant regulations. It is particularly important in protecting both parties' interests by clearly defining expectations, obligations, and compensation terms, while providing a framework for successful property leasing operations.

Suggested Sections

1. Parties: Identifies and provides complete details of the parties entering into the agreement: the Property Owner/Landlord and the Licensed Real Estate Broker

2. Background: Outlines the context of the agreement, including the broker's qualifications and the owner's intention to lease the property

3. Definitions: Defines key terms used throughout the agreement including 'Commission', 'Lease', 'Property', 'Tenant', and other relevant terms

4. Appointment and Authority: Formally establishes the broker's appointment and scope of authority to market and secure tenants for the property

5. Property Details: Specific description of the property/properties covered by the agreement

6. Broker's Services and Obligations: Detailed listing of services to be provided by the broker and their responsibilities

7. Commission Structure: Clearly defines the commission rates, calculation methods, and payment terms

8. Payment Terms: Specifies when and how commissions will be paid, including any installment arrangements

9. Term and Renewal: Specifies the duration of the agreement and any renewal provisions

10. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority to enter into the agreement

11. Termination: Conditions and procedures for terminating the agreement

12. Governing Law and Jurisdiction: Specifies Philippine law as governing law and defines jurisdiction for dispute resolution

13. Miscellaneous Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Exclusivity: Optional clause granting exclusive rights to the broker, used when exclusive arrangement is agreed

2. Sub-Agents: Provisions regarding the broker's right to engage sub-agents, used when sub-agents may be needed

3. Marketing Budget: Details of marketing expenses and responsibilities, used when specific marketing arrangements are agreed

4. Performance Targets: Specific performance metrics for the broker, used in performance-based arrangements

5. Commission Protection: Provisions protecting broker's commission rights for future renewals, used for long-term relationships

6. Digital Marketing Provisions: Specific terms for online marketing activities, used when digital marketing is a key component

7. Multiple Property Provisions: Additional terms for managing multiple properties, used when agreement covers multiple properties

Suggested Schedules

1. Schedule A - Property Details: Detailed description of the property, including location, size, and specific features

2. Schedule B - Commission Rates: Detailed breakdown of commission rates for different types of leases or scenarios

3. Schedule C - Broker's Marketing Plan: Detailed marketing strategy and activities proposed by the broker

4. Schedule D - Required Documentation: List of documents required for lease transactions and commission processing

5. Appendix 1 - Broker's License and Credentials: Copies of broker's professional license and relevant certifications

6. Appendix 2 - Property Photos and Plans: Visual documentation of the property

7. Appendix 3 - Standard Commission Calculation Examples: Examples showing how commissions will be calculated in various scenarios

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Real Estate

Commercial Property

Residential Property

Retail Property

Industrial Property

Office Space

Mixed-Use Development

Hospitality

Shopping Centers

Logistics and Warehousing

Relevant Teams

Real Estate

Legal

Operations

Finance

Asset Management

Property Management

Business Development

Facilities Management

Contract Administration

Risk Management

Relevant Roles

Real Estate Broker

Property Manager

Leasing Manager

Asset Manager

Real Estate Director

Commercial Property Manager

Business Development Manager

Leasing Agent

Property Owner

Real Estate Operations Manager

Facilities Manager

Real Estate Portfolio Manager

Chief Real Estate Officer

Leasing Director

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Let's create your Broker Lease Commission Agreement

Authors

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