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Lease Commission Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Lease Commission Agreement is essential for formalizing the relationship between property owners and real estate brokers in Saudi Arabia. This document is typically used when a property owner wishes to engage a professional broker to market and secure tenants for their property in exchange for a commission. The agreement must comply with Saudi Arabian real estate regulations, including the Real Estate Broker Regulation (2020) and relevant Sharia law principles. It details commission structures, payment triggers, marketing obligations, and service scope while incorporating recent regulatory requirements under Saudi Vision 2030. The document is particularly important in commercial and residential real estate transactions where professional brokerage services are required, and it helps prevent disputes by clearly defining each party's rights and obligations.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Commercial Property

Residential Property

Retail Property

Industrial Property

Mixed-Use Development

Property Management

Real Estate Investment

Property Development

Hospitality

Relevant Teams

Legal

Real Estate

Property Management

Business Development

Operations

Compliance

Asset Management

Contract Administration

Sales

Finance

Relevant Roles

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

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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