Agency Agreement (Real Estate) Template for Saudi Arabia

The Real Estate Agency Agreement (Real Estate) is a crucial document used in Saudi Arabian real estate transactions to formalize the relationship between property owners and real estate agents/agencies. This agreement is essential when a property owner wishes to engage professional services for marketing, managing, or transacting their property. It must comply with Saudi Arabia's real estate regulations, including the Real Estate Broker Regulation and relevant Sharia law principles. The document typically includes detailed provisions on commission structures, marketing responsibilities, transaction handling, and regulatory compliance requirements. It's particularly important given Saudi Arabia's evolving real estate market and recent regulatory changes, including new broker licensing requirements and real estate transaction taxes. The agreement serves as both a legal protection mechanism and an operational framework for the agency relationship.

1. Parties: Identification of the Principal (property owner) and the Agent (real estate broker), including their full legal names, addresses, and commercial registration details

2. Background: Context of the agreement, including brief description of the property and purpose of the agency relationship

3. Definitions: Key terms used throughout the agreement, including technical real estate terms and regulatory references

4. Appointment and Scope: Formal appointment of the agent and detailed scope of services to be provided

5. Agent's Authority: Specific powers granted to the agent, including limitations and restrictions

6. Agent's Obligations: Detailed responsibilities including marketing, showing property, negotiating, reporting, and compliance requirements

7. Principal's Obligations: Responsibilities of the property owner, including providing information and access to the property

8. Commission Structure: Detailed breakdown of fees, commission rates, and payment terms

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Compliance Requirements: Obligations regarding Saudi real estate regulations, anti-money laundering, and other applicable laws

11. Liability and Indemnity: Allocation of risks and responsibilities between parties

12. Confidentiality: Protection of confidential information and trade secrets

13. Governing Law and Jurisdiction: Specification of Saudi law application and dispute resolution mechanisms

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