Broker Agreement Template for Pakistan

A Broker Agreement creates a legal relationship between a broker and their client in Pakistan, spelling out how the broker will help buy, sell, or negotiate deals on the client's behalf. These contracts are especially common in real estate, stock trading, and import-export businesses operating under the Securities and Exchange Commission of Pakistan (SECP) guidelines.

The agreement sets clear terms about the broker's duties, commission rates, and service period while protecting both parties under Pakistani contract law. It includes specific details about performance standards, confidentiality requirements, and dispute resolution methods - making it an essential tool for professional intermediaries working in regulated Pakistani markets.

Use a Broker Agreement when engaging professional intermediaries to handle transactions in Pakistan's regulated markets. This becomes essential for real estate deals through licensed property agents, stock market trading via SECP-registered brokers, or international trade through customs-approved brokers.

The timing is crucial - put this agreement in place before any transactions begin, particularly when dealing with high-value assets or complex negotiations. Having clear terms from the start protects your interests, ensures compliance with Pakistani regulations, and provides a framework for resolving potential disputes. It's especially important when working with new brokers or entering unfamiliar markets.

• Broker Contract Agreement: The standard comprehensive agreement covering general brokerage services across industries in Pakistan
• Introducing Broker Agreement: Specialized for financial markets, focusing on client referrals to primary brokers
• Real Estate Agent Agreement: Tailored for property transactions with specific commission structures and local market terms
• Real Estate Agent Independent Contractor Agreement: Defines non-employee relationship with real estate agents
• Real Estate Agent Referral Form: Simplified agreement for one-time property referrals between agents

• Licensed Brokers: Primary users who offer services in real estate, stock trading, or import-export, operating under SECP regulations and professional licenses
• Business Clients: Companies or individuals seeking broker services for transactions, investments, or property deals in Pakistani markets
• Legal Counsel: Corporate lawyers who draft and review agreements to ensure compliance with Pakistani laws and protect client interests
• Regulatory Bodies: SECP, Pakistan Stock Exchange, and real estate authorities who oversee broker activities and enforce compliance
• Financial Institutions: Banks and investment firms that partner with brokers for client transactions and market operations

• Broker Details: Gather professional licenses, SECP registration numbers, and business credentials required under Pakistani law
• Service Scope: Define exact services, territories covered, and any industry-specific restrictions or requirements
• Commission Structure: Document fee calculations, payment terms, and performance metrics aligned with market standards
• Legal Requirements: Check current SECP regulations and relevant industry guidelines for compliance
• Risk Management: List dispute resolution methods, liability limits, and confidentiality terms
• Document Generation: Use our platform to create a legally-sound agreement that automatically includes all mandatory elements

• Party Information: Full legal names, addresses, and registration details of broker and client as per SECP requirements
• Service Description: Clear outline of brokerage services, territories, and any exclusivity arrangements
• Compensation Terms: Detailed commission structure, payment schedules, and performance benchmarks
• Duration & Termination: Agreement period, renewal terms, and conditions for early termination
• Compliance Clauses: References to relevant Pakistani laws, SECP regulations, and industry standards
• Dispute Resolution: Local jurisdiction choice, arbitration procedures, and governing law specifications
• Liability & Indemnity: Risk allocation, insurance requirements, and limitation of liability terms

A Broker Agreement is often confused with an Agency Agreement in Pakistan's business landscape. While both involve representation relationships, they serve distinct purposes and operate under different legal frameworks.

• Scope of Authority: Broker Agreements typically cover specific transactions or time-limited deals, while Agency Agreement creates broader, ongoing representation rights
• Legal Obligations: Brokers maintain neutrality and facilitate deals between parties, while agents have fiduciary duties and can legally bind their principals
• Compensation Structure: Brokers usually earn one-time commissions per transaction, while agents often receive regular fees or performance-based compensation
• Regulatory Oversight: Broker Agreements fall under specific SECP regulations and industry-specific rules, while Agency Agreements follow general contract law principles
• Duration: Broker relationships typically end after completing specific transactions, while agency relationships often continue indefinitely until formally terminated