Commercial Real Estate Commission Agreement Template for Pakistan

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Key Requirements PROMPT example:

Commercial Real Estate Commission Agreement

"I need a Commercial Real Estate Commission Agreement for appointing an exclusive agent to sell my retail shopping complex in Lahore, with a tiered commission structure starting at 2% for the first 500M PKR and 1.5% thereafter, with the agreement to commence from March 1, 2025."

Document background
The Commercial Real Estate Commission Agreement is a crucial document used in Pakistan's commercial property market to formalize the relationship between property owners and real estate professionals. This agreement is essential when engaging a real estate agent or broker to market, sell, lease, or manage commercial properties. It outlines the agent's authority, responsibilities, commission structure, and service scope while ensuring compliance with Pakistani legal requirements, including the Contract Act 1872, Transfer of Property Act 1882, and provincial real estate regulations. The document is particularly important in protecting both parties' interests by clearly defining commission rates, payment triggers, and service expectations in the context of Pakistani commercial real estate practices. It should be used whenever engaging professional real estate services for commercial property transactions in Pakistan.
Suggested Sections

1. Parties: Identification of the property owner/seller and the real estate agent/broker with complete legal names and addresses

2. Background: Context of the agreement, including property owner's intention to sell/lease the property and appointment of the agent

3. Definitions: Key terms used throughout the agreement including 'Property', 'Commission', 'Closing', 'Gross Sale Price', etc.

4. Appointment and Authority: Formal appointment of the agent and scope of authority granted

5. Property Details: Description and identification of the subject property

6. Services to be Provided: Detailed description of services the agent will provide

7. Commission Structure: Commission rate, calculation method, and payment terms

8. Payment Terms: When and how commission payments will be made, including any staging of payments

9. Term and Termination: Duration of the agreement and conditions for termination

10. Agent's Obligations: Specific duties and responsibilities of the agent

11. Owner's Obligations: Specific duties and responsibilities of the property owner

12. Confidentiality: Provisions regarding confidential information handling

13. Governing Law: Specification of Pakistani law as governing law and relevant jurisdiction

14. Dispute Resolution: Process for resolving disputes between parties

15. Entire Agreement: Integration clause confirming the agreement represents the complete understanding between parties

Optional Sections

1. Protection Period: Defines period after agreement termination during which agent may still be entitled to commission - include when standard market practice

2. Sub-Agents: Terms for appointment and management of sub-agents - include when sub-agents may be needed

3. Marketing Budget: Details of marketing expenses and cost allocation - include when specific marketing commitments are required

4. Multiple Listing Service: Terms for MLS listing if applicable - include when property will be listed on MLS

5. Force Majeure: Provisions for unforeseen circumstances - include when requested by parties

6. Insurance Requirements: Specific insurance requirements for agent - include for high-value properties

7. Cross-Border Transactions: Special provisions for international buyers - include when targeting international market

Suggested Schedules

1. Schedule A - Property Description: Detailed description of property including location, dimensions, and specifications

2. Schedule B - Commission Rate Structure: Detailed breakdown of commission rates for different transaction types or values

3. Schedule C - Marketing Plan: Detailed marketing strategy and activities to be undertaken

4. Schedule D - Required Documentation: List of documents required for property transaction

5. Appendix 1 - Property Photos and Plans: Visual documentation of the property

6. Appendix 2 - Agent's Credentials: Agent's licenses, certifications, and qualifications

7. Appendix 3 - Service Level Standards: Detailed performance metrics and service standards

Authors

Alex Denne

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

Relevant Industries

Commercial Real Estate

Retail

Office Space

Industrial

Hospitality

Mixed-Use Development

Warehousing and Logistics

Healthcare Facilities

Educational Facilities

Shopping Centers and Malls

Relevant Teams

Real Estate

Legal

Business Development

Operations

Asset Management

Property Management

Facilities Management

Contract Administration

Finance

Risk Management

Compliance

Investment

Relevant Roles

Real Estate Agent

Commercial Property Broker

Property Manager

Real Estate Director

Business Development Manager

Commercial Property Lawyer

Property Portfolio Manager

Asset Manager

Facilities Manager

Real Estate Investment Manager

Commercial Property Consultant

Real Estate Operations Manager

Property Development Manager

Real Estate Transaction 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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