The Real Estate Broker Agreement is a crucial document in Malaysian property transactions that formalizes the relationship between property owners and licensed real estate professionals. This agreement is essential when property owners wish to engage professional services for marketing and selling their property, whether residential or commercial. The document must comply with Malaysian regulations, particularly the Valuers, Appraisers, Estate Agents and Property Managers Act 1981, and includes detailed terms about commission structures, service scope, marketing strategies, and mutual obligations. It provides legal protection for both parties and ensures clarity in the professional relationship, helping prevent potential disputes and misunderstandings during the property sale process.
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1. Parties: Identification of the property owner/seller and the real estate broker/agency, including registration/license numbers
2. Background: Context of the agreement and brief description of the property to be marketed
3. Definitions: Key terms used throughout the agreement including 'Property', 'Commission', 'Exclusive Agency', etc.
4. Appointment and Authority: Formal appointment of the broker and scope of authority granted
5. Duration of Agreement: Term of the agreement, including start and end dates
6. Broker's Services and Obligations: Detailed listing of services to be provided by the broker
7. Owner's Obligations: Responsibilities and commitments of the property owner
8. Commission Structure: Details of broker's commission, payment terms, and conditions for commission eligibility
9. Marketing and Advertising: Terms regarding marketing strategy, advertising approach, and related costs
10. Property Information: Owner's warranties about the property condition and information accuracy
11. Termination: Conditions and process for terminating the agreement
12. Governing Law: Specification of Malaysian law as governing law and jurisdiction
13. Entire Agreement: Standard clause confirming the agreement represents the complete understanding between parties
1. Exclusivity Clause: Used when the agreement is exclusive, preventing the owner from engaging other agents
2. Sub-Agents: Include when the broker may need to engage other agents or agencies
3. Virtual Tours and Digital Marketing: Specific terms for digital marketing services and virtual property tours
4. International Marketing: Include for properties targeting international buyers
5. Post-Termination Obligations: Used when specific obligations continue after agreement termination
6. Property Management Services: Include if the broker will provide additional property management services
7. Dispute Resolution: Alternative dispute resolution procedures if preferred over court litigation
1. Schedule 1: Property Details: Detailed description of the property, including title details, size, features
2. Schedule 2: Commission Structure: Detailed breakdown of commission rates, payment terms, and special conditions
3. Schedule 3: Marketing Plan: Specific marketing activities, timeline, and budget allocation
4. Schedule 4: Property Documentation: List of property documents provided by owner
5. Appendix A: Broker's License: Copy of broker's current registration/license with BOVAEA
6. Appendix B: Property Photos: Official photographs of the property approved for marketing
7. Appendix C: Required Disclosures: Mandatory disclosures required under Malaysian real estate regulations
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Residential Property
Commercial Property
Property Management
Real Estate Investment
Property Sales and Marketing
Legal Services
Construction
Relevant Teams
Legal
Real Estate
Property Management
Sales
Compliance
Business Development
Contract Administration
Property Services
Marketing
Relevant Roles
Real Estate Agent
Property Manager
Real Estate Broker
Legal Counsel
Property Sales Manager
Real Estate Director
Compliance Officer
Business Development Manager
Property Consultant
Real Estate Agency Principal
Contract Administrator
Property Sales Executive
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