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Lease Commission Agreement
"I need a Lease Commission Agreement for my commercial property portfolio in Riyadh, with an exclusive broker arrangement and a tiered commission structure based on lease value, to be effective from March 2025."
1. Parties: Identification of the property owner/landlord and the broker/agent, including full legal names, addresses, and commercial registration details
2. Background: Context of the agreement, including the property owner's intention to lease the property and engage the broker's services
3. Definitions: Key terms used throughout the agreement, including 'Property', 'Commission', 'Lease', 'Successful Transaction', and 'Marketing Period'
4. Appointment and Scope: Details of the broker's appointment, whether exclusive or non-exclusive, and the specific services to be provided
5. Property Details: Comprehensive description of the property/properties covered by the agreement
6. Commission Structure: Clear specification of commission rates, calculation method, and payment triggers in compliance with Sharia principles
7. Payment Terms: Timing and method of commission payments, including VAT considerations
8. Broker's Obligations: Detailed responsibilities of the broker, including marketing efforts, reporting, and compliance requirements
9. Property Owner's Obligations: Responsibilities of the property owner, including provision of information and cooperation
10. Term and Termination: Duration of the agreement and circumstances under which it may be terminated
11. Confidentiality: Obligations regarding confidential information and client data protection
12. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution mechanisms
13. General Provisions: Standard clauses including notices, amendments, and entire agreement provisions
1. Exclusivity: Detailed terms of exclusive appointment, used when the broker has exclusive rights to market the property
2. Marketing Plan: Specific marketing strategies and commitments, included when detailed marketing requirements are needed
3. Performance Targets: Specific targets or KPIs for the broker, included when performance-based elements are part of the agreement
4. Sub-Agents: Terms for appointment and management of sub-agents, included when sub-agents are permitted
5. Insurance Requirements: Specific insurance obligations, included for high-value properties or complex arrangements
6. Anti-Money Laundering Compliance: Detailed AML procedures, included for high-value transactions or when dealing with corporate clients
7. Force Majeure: Provisions for unforeseen circumstances, included when specifically requested or for longer-term agreements
1. Schedule 1 - Property Details: Detailed description of the property, including location, size, facilities, and permitted uses
2. Schedule 2 - Commission Rates: Detailed breakdown of commission rates for different types of transactions or property values
3. Schedule 3 - Marketing Guidelines: Specific requirements for property marketing and promotional activities
4. Schedule 4 - Required Documentation: List of documents required for property marketing and lease completion
5. Schedule 5 - Reporting Templates: Standard formats for periodic reports and updates
6. Appendix A - Power of Attorney: If applicable, specific powers granted to the broker
7. Appendix B - Marketing Materials: Approved forms of marketing materials and content guidelines
Authors
Real Estate
Commercial Property
Residential Property
Retail Property
Industrial Property
Mixed-Use Development
Property Management
Real Estate Investment
Property Development
Hospitality
Legal
Real Estate
Property Management
Business Development
Operations
Compliance
Asset Management
Contract Administration
Sales
Finance
Real Estate Broker
Property Manager
Leasing Manager
Real Estate Agent
Business Development Manager
Asset Manager
Property Owner
Real Estate Director
Leasing Director
Commercial Property Manager
Real Estate Operations Manager
Legal Counsel
Contracts Manager
Compliance Officer
Real Estate Investment Manager
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