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Buyer Representation Agreement Template for Hong Kong

A Buyer Representation Agreement is a formal contract governed by Hong Kong law that establishes a legal relationship between a licensed estate agent/agency and a property buyer. The agreement outlines the scope of services, responsibilities, and obligations of both parties in accordance with the Estate Agents Ordinance (Cap. 511) and related regulations. It includes specific provisions for commission structures, service terms, confidentiality requirements, and compliance with Hong Kong's property transaction regulations and anti-money laundering requirements. This document is essential for protecting both the agent's and buyer's interests in the Hong Kong property market.

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What is a Buyer Representation Agreement?

The Buyer Representation Agreement is a crucial document in Hong Kong real estate transactions that formalizes the professional relationship between a licensed estate agent and a property buyer. This agreement is designed to comply with Hong Kong's Estate Agents Ordinance (Cap. 511) and related regulations, providing a clear framework for the services to be rendered and the obligations of both parties. It is typically used when a buyer seeks professional representation in property transactions, whether for residential or commercial properties. The document includes essential details such as service scope, commission structures, confidentiality provisions, and compliance requirements with local regulations. The agreement also addresses specific Hong Kong market considerations, including provisions for handling potential conflicts of interest and dual agency situations, making it an indispensable tool for protected and regulated property transactions in the Hong Kong market.

What sections should be included in a Buyer Representation Agreement?

1. Parties: Identifies and provides full details of the estate agent/agency and the buyer client

2. Background: Contextual information explaining the purpose of the agreement and the buyer's intention to engage the agent

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Appointment and Scope of Services: Details the official appointment of the agent and comprehensive list of services to be provided

5. Term of Agreement: Specifies the duration of the agreement, including start date and termination conditions

6. Agent's Obligations: Comprehensive list of the agent's duties, responsibilities, and standard of service

7. Client's Obligations: Outlines the buyer's responsibilities, including providing accurate information and cooperation

8. Commission Structure: Details of the agent's compensation, including rate, calculation method, and payment terms

9. Confidentiality: Provisions regarding the handling and protection of confidential information

10. Conflict of Interest: Addresses potential conflicts and how they will be handled

11. Termination: Conditions and procedures for ending the agreement by either party

12. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for disputes

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

What sections are optional to include in a Buyer Representation Agreement?

1. Dual Agency: Required when the agent may potentially represent both buyer and seller

2. International Property Services: Include when the buyer may be interested in overseas properties

3. Language Declaration: Required when the agreement is bilingual or when the client's primary language is not English or Chinese

4. Special Requirements: Include when the buyer has specific property requirements or conditions

5. Property Management Services: Include if the agent will provide additional property management services post-purchase

6. Digital Communications Consent: Include when parties agree to use electronic communications for official notices

7. Anti-Money Laundering Compliance: Include detailed AML obligations when dealing with high-value transactions or foreign buyers

What schedules should be included in a Buyer Representation Agreement?

1. Schedule 1: Service Package Details: Detailed breakdown of services included in the agreement and associated fees

2. Schedule 2: Commission Structure: Detailed commission calculations, including examples and special circumstances

3. Schedule 3: Buyer's Requirements: Detailed specification of the buyer's property requirements and preferences

4. Schedule 4: Required Documentation: List of documents required from the buyer for compliance and verification

5. Appendix A: Estate Agents Authority Prescribed Forms: Relevant forms required under Hong Kong regulations

6. Appendix B: Agent's License and Credentials: Copies of the agent's professional licenses and certifications

7. Appendix C: Privacy Policy: Detailed privacy policy and data handling procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Publisher

Ƶ

Cost

Free to use

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