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Broker Service Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Broker Service Agreement

"I need a Broker Service Agreement governed by Saudi law for appointing an exclusive real estate broker to market our commercial properties in Riyadh, with a 3% commission structure and an initial term starting March 1, 2025."

Document background
The Broker Service Agreement is essential for businesses operating in Saudi Arabia that engage brokers or intermediaries to facilitate transactions or provide specialized services. This document is particularly crucial given Saudi Arabia's unique legal framework, which combines modern commercial law with Sharia principles. The agreement needs to address specific regulatory requirements, including those from the Commercial Agencies Law, Capital Market Law, and anti-money laundering regulations. It should detail the broker's authority, responsibilities, compensation structure, and compliance obligations while ensuring all terms are enforceable under Saudi law. The document is typically used when engaging brokers for various services such as real estate transactions, financial services, trade facilitation, or business consulting, and must include provisions for commercial registration, regulatory compliance, and appropriate dispute resolution mechanisms.
Suggested Sections

1. Parties: Identification of the broker and the client, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement, including specific industry terminology and regulatory references

4. Appointment and Scope: Formal appointment of the broker and detailed description of authorized services

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Broker's Obligations: Detailed responsibilities including service standards, reporting requirements, and compliance obligations

7. Client's Obligations: Client's responsibilities including information provision and cooperation requirements

8. Fees and Payment Terms: Commission structure, payment terms, and expenses policy

9. Compliance with Laws: Obligations to comply with Saudi laws, regulations, and Sharia principles

10. Confidentiality: Protection of confidential information and trade secrets

11. Liability and Indemnification: Limitations of liability and mutual indemnification provisions

12. Force Majeure: Events excusing performance and related procedures

13. Dispute Resolution: Process for resolving disputes, including Saudi law compliance and jurisdiction

14. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions

Optional Sections

1. Non-Competition: Restrictions on broker's ability to represent competing interests, used when exclusive representation is required

2. Insurance: Insurance requirements for the broker, included when handling high-value transactions

3. Anti-Money Laundering: Detailed AML procedures, required for financial services brokers

4. Performance Metrics: Specific KPIs and performance standards, used in complex service arrangements

5. Training and Support: Requirements for broker training and client support, included for technical or specialized services

6. Data Protection: Specific data handling requirements, included when personal or sensitive data is involved

7. Marketing and Branding: Guidelines for using client's brand and marketing materials, included for client-facing services

8. Succession Planning: Procedures for change in key personnel, included for long-term agreements

Suggested Schedules

1. Schedule 1 - Services Description: Detailed breakdown of brokerage services and deliverables

2. Schedule 2 - Fee Schedule: Detailed commission structures, rates, and calculation methods

3. Schedule 3 - Service Levels: Performance standards, response times, and quality metrics

4. Schedule 4 - Compliance Requirements: Specific regulatory and reporting requirements

5. Schedule 5 - Required Documentation: List of documents required for transactions and compliance

6. Schedule 6 - Authorized Representatives: List of key contacts and authorized signatories

7. Appendix A - Power of Attorney: Standard form of power of attorney if required for broker activities

8. Appendix B - Reporting Templates: Standard forms for regular reporting and documentation

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

Relevant legal definitions








































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Relevant Industries

Real Estate

Financial Services

Insurance

International Trade

Securities and Investments

Commodities

Maritime and Shipping

Industrial Equipment

Technology Services

Business Consulting

Import/Export

Commercial Property

Relevant Teams

Legal

Compliance

Commercial Operations

Finance

Risk Management

Business Development

Procurement

Operations

Regulatory Affairs

Strategy

Corporate Governance

Relevant Roles

Chief Executive Officer

Commercial Director

Legal Counsel

Compliance Officer

Risk Manager

Business Development Manager

Operations Director

Finance Director

Procurement Manager

Contract Manager

Regulatory Affairs Manager

Business Unit Head

Regional Director

Strategy Manager

Commercial Operations 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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