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Agency Agreement (Real Estate) for Philippines

Agency Agreement (Real Estate) Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes and regulates the relationship between a property owner (Principal) and a real estate agency or broker (Agent) for the purpose of marketing, selling, or leasing property in the Philippines. The document complies with the Real Estate Service Act of 2009 (RESA) and other relevant Philippine legislation, outlining the terms of engagement, scope of services, commission structure, and respective rights and obligations of both parties. It includes specific provisions for compliance with Philippine real estate regulations, professional licensing requirements, and local market practices.

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What is a Agency Agreement (Real Estate)?

The Agency Agreement (Real Estate) is a crucial document in Philippine real estate transactions that formalizes the professional relationship between property owners and real estate agents or brokers. This agreement is essential when a property owner wishes to engage professional representation for selling or leasing their property in the Philippines. The document must comply with the Real Estate Service Act of 2009 (RESA), the Civil Code of the Philippines, and other relevant local regulations. It typically includes detailed provisions about the scope of authority granted to the agent, commission structures, marketing responsibilities, and compliance requirements. The agreement is particularly important in the Philippine context due to specific local requirements for real estate professionals and the need to ensure clear documentation of agency relationships in property transactions.

What sections should be included in a Agency Agreement (Real Estate)?

1. Parties: Identification of the Principal (property owner) and the Agent (licensed real estate broker/agency), including their complete details and licenses

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 agreement-specific definitions

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

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Agent's Rights and Obligations: Comprehensive list of agent's duties, responsibilities, and authorized activities

7. Principal's Rights and Obligations: Principal's responsibilities, including providing necessary information and cooperation

8. Commission Structure: Detailed breakdown of commission rates, payment terms, and conditions for commission earning

9. Property Details: Complete description of the property, including legal description and selling/leasing terms

10. Representations and Warranties: Statements of fact and guarantees from both parties

11. Confidentiality: Obligations regarding confidential information and client data protection

12. Compliance with Laws: Commitment to comply with relevant Philippine real estate laws and regulations

13. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution

What sections are optional to include in a Agency Agreement (Real Estate)?

1. Exclusivity: Terms of exclusive agency rights - used when the agreement is intended to be exclusive

2. Sub-Agents: Provisions for appointing sub-agents or cooperating with other brokers - used in cases where multiple agents may be involved

3. Marketing Budget and Plan: Detailed marketing arrangements and cost sharing - used when specific marketing commitments are required

4. International Marketing: Specific provisions for international marketing efforts - used when targeting foreign buyers/tenants

5. Online Listings: Terms for online property listings and digital marketing - used when specific digital platforms are to be used

6. Force Majeure: Provisions for unforeseen circumstances - particularly relevant in uncertain market conditions

7. Insurance Requirements: Specific insurance obligations - used when additional coverage is required

8. Anti-Money Laundering Compliance: Detailed AML procedures - used for high-value transactions or when dealing with foreign clients

What schedules should be included in a Agency Agreement (Real Estate)?

1. Schedule A - Property Details: Detailed property information including lot area, floor area, technical specifications, and property features

2. Schedule B - Commission Structure: Detailed breakdown of commission rates, payment schedules, and special commission arrangements

3. Schedule C - Marketing Plan: Comprehensive marketing strategy and timeline

4. Schedule D - Required Documentation: List of required documents from both parties

5. Schedule E - Property Photos and Floor Plans: Visual documentation of the property

6. Appendix 1 - Agent's Licenses and Certifications: Copies of relevant professional licenses and certifications

7. Appendix 2 - Property Title and Tax Documents: Copies of property ownership and tax documentation

8. Appendix 3 - Standard Operating Procedures: Detailed procedures for property viewings, offers, and transactions

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions




































Clauses



























Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Hospitality

Mixed-Use Development

Property Development

Property Management

Property Investment

Relevant Teams

Legal

Real Estate Operations

Sales

Business Development

Compliance

Property Management

Asset Management

Contract Administration

Investment

Property Development

Relevant Roles

Real Estate Broker

Property Manager

Real Estate Agent

Business Development Manager

Sales Director

Property Developer

Legal Counsel

Compliance Officer

Real Estate Operations Manager

Contract Administrator

Real Estate Transaction Manager

Asset Manager

Property Portfolio Manager

Real Estate Investment Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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