The Real Estate Agent Commission Agreement is a crucial document in Philippine real estate transactions, designed to establish clear terms for commission-based relationships between property owners and real estate professionals. This agreement is essential when engaging a licensed real estate agent or broker to market, sell, or lease property, ensuring compliance with the Real Estate Service Act (RESA) and related Philippine regulations. It protects both parties' interests by clearly defining commission rates, payment terms, and service expectations. The document is particularly important in the Philippine context where real estate transactions must follow specific regulatory requirements, including proper documentation of professional fees and commissions. It serves as a foundational agreement for both residential and commercial property transactions, providing a legal framework for professional real estate services.
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1. Parties: Identifies the principal/property owner and the real estate agent/broker, including their respective licenses and registration numbers as required by RESA
2. Background: Establishes the context of the agreement, including the agent's qualifications and the owner's intention to sell/lease the property
3. Definitions: Defines key terms used throughout the agreement, including 'Commission', 'Property', 'Closing', and 'Gross Sale Price'
4. Appointment and Authority: Formal appointment of the agent and scope of authority granted by the property owner
5. Property Details: Description of the property subject to the agreement, including complete address and property specifications
6. Commission Structure: Detailed explanation of commission rates, calculation method, and payment terms
7. Payment Terms: Specifies when and how commission payments will be made, including conditions for commission earning
8. Agent's Obligations: Lists the specific services and duties the agent agrees to perform
9. Owner's Obligations: Outlines the property owner's responsibilities and commitments
10. Term and Termination: Specifies the duration of the agreement and conditions for termination
11. Confidentiality: Provisions regarding the handling of confidential information
12. Governing Law: Specifies that the agreement is governed by Philippine law and relevant regulations
13. Dispute Resolution: Procedures for handling disagreements between parties
14. Entire Agreement: Confirms that the document represents the complete agreement between parties
1. Co-Brokerage: Include when the agent may work with other brokers and how commissions will be split
2. Post-Termination Obligations: Include when there's a need to protect the agent's right to commission for leads generated during the agreement period
3. Marketing Budget: Include when specific marketing expenses are to be shared or reimbursed
4. Exclusivity Clause: Include when the agreement is exclusive, preventing the owner from engaging other agents
5. Property Management: Include when the agent will also provide property management services
6. Force Majeure: Include when parties want to address unforeseen circumstances affecting performance
7. Digital Marketing Rights: Include when specific terms are needed for online marketing and social media promotion
1. Schedule A - Property Details: Detailed description of the property, including lot area, floor area, and specific inclusions/exclusions
2. Schedule B - Commission Rate Structure: Detailed breakdown of commission rates for different transaction types or value ranges
3. Schedule C - Marketing Plan: Specific marketing activities and timeline proposed by the agent
4. Schedule D - Required Documentation: List of documents required from the owner for property listing and sale
5. Appendix 1 - Agent's License and Credentials: Copies of the agent's PRC license and other relevant certifications
6. Appendix 2 - Property Photos and Floor Plans: Visual documentation of the property for marketing purposes
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Commercial Property
Residential Property
Industrial Property
Retail Property
Hospitality
Mixed-Use Development
Land Development
Property Investment
Relevant Teams
Real Estate
Sales
Business Development
Legal
Compliance
Property Management
Asset Management
Contract Administration
Operations
Marketing
Relevant Roles
Real Estate Agent
Real Estate Broker
Property Manager
Sales Director
Business Development Manager
Property Developer
Real Estate Manager
Leasing Manager
Asset Manager
Real Estate Consultant
Property Sales Executive
Real Estate Division Head
Compliance Officer
Legal Counsel
Contract Administrator
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