Buyer Broker Agreement Template for Saudi Arabia

The Buyer Broker Agreement is a crucial document used in Saudi Arabian real estate transactions to formalize the relationship between a property buyer and their appointed broker. This agreement becomes necessary when a buyer seeks professional assistance in identifying, evaluating, and acquiring property within the Kingdom. The document outlines the broker's duties, including property search parameters, negotiation responsibilities, and documentation requirements, while ensuring compliance with Saudi real estate regulations and Sharia principles. It protects both parties' interests by clearly defining the scope of services, commission structure, and terms of engagement, making it an essential tool for professional real estate transactions in Saudi Arabia. The agreement typically includes specific provisions for the local market, such as compliance with Ministry of Commerce regulations and Islamic financial principles.

1. Parties: Identification of the broker and the buyer, including full legal names, addresses, and registration/ID numbers

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement, including 'Property Requirements', 'Territory', 'Commission', and 'Term'

4. Appointment and Scope: Exclusive or non-exclusive appointment of the broker and detailed scope of services

5. Broker's Duties and Responsibilities: Comprehensive list of broker's obligations, including property search, negotiations, and documentation

6. Client's Duties and Responsibilities: Buyer's obligations, including providing accurate requirements and timely responses

7. Commission Structure: Details of broker's compensation, payment terms, and conditions for commission earning

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

9. Confidentiality: Obligations regarding confidential information and client privacy

10. Compliance with Laws: Commitment to comply with Saudi laws, including real estate regulations and Sharia principles

11. Liability and Indemnification: Extent of broker's liability and mutual indemnification provisions

12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

13. Notices: Methods and addresses for official communications between parties

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