Real Estate Broker Commission Agreement Template for Hong Kong

The Real Estate Broker Commission Agreement is a crucial document in Hong Kong's property market that formalizes the relationship between property owners and licensed real estate brokers. It is used when property owners wish to engage professional real estate services for selling or leasing their properties, whether residential or commercial. The agreement must comply with Hong Kong's Estate Agents Ordinance (Cap. 511) and related regulations, which set strict requirements for broker licensing, conduct, and commission arrangements. The document typically includes detailed provisions about commission structures, payment triggers, marketing obligations, property details, and the scope of authorized services. It serves as a legal safeguard for both parties by clearly defining their rights, responsibilities, and the terms under which commission becomes payable.

1. Parties: Identification of the property owner/seller and the licensed real estate broker, including license numbers and contact details

2. Background: Brief context of the agreement, including the intent to sell/lease the property and engage the broker's services

3. Definitions: Key terms used in the agreement, including 'Property', 'Commission', 'Exclusive Period', and 'Qualifying Transaction'

4. Appointment and Scope of Services: Terms of the broker's appointment and detailed description of services to be provided

5. Duration of Agreement: Term of the agreement, including start date, end date, and any renewal provisions

6. Commission Structure: Detailed breakdown of commission rates, calculation method, and payment terms

7. Payment Terms: Timing and method of commission payment, including conditions for when commission becomes due

8. Broker's Obligations: Specific duties and responsibilities of the broker, including marketing efforts and reporting requirements

9. Property Owner's Obligations: Owner's responsibilities, including providing accurate information and access to the property

10. Termination: Conditions and process for terminating the agreement, including any early termination fees

11. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes

12. Entire Agreement: Standard clause confirming the agreement represents the complete understanding between parties