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The Commercial Lease Commission Agreement is essential for property transactions in South Africa's commercial real estate sector. It is used when property owners or landlords engage professional property practitioners to secure tenants for commercial properties. The agreement must comply with South African legislation, particularly the Property Practitioners Act 22 of 2019 and related regulations. It details commission structures, payment triggers, and obligations of all parties involved. This document is crucial for protecting both the property practitioner's right to commission and the property owner's interests, ensuring transparency in commercial lease transactions. It typically includes specific provisions for different types of commercial properties, commission rates based on lease values or terms, and conditions for exclusive or non-exclusive mandates.

1. Parties: Identification of the Principal/Property Owner and the Agent/Broker, including full legal names, registration numbers, and physical addresses

2. Background: Context of the agreement, including the property details and the parties' intention to enter into a commission arrangement

3. Definitions: Clear definitions of key terms used throughout the agreement, including 'Commission', 'Lease', 'Tenant', 'Property', and 'Successful Transaction'

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

5. Agent's Obligations: Detailed responsibilities of the agent in marketing the property and securing tenants

6. Principal's Obligations: Property owner's commitments and responsibilities to the agent

7. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

8. Payment Terms: Timing and method of commission payments, including conditions for payment

9. Duration of Agreement: Term of the agreement, including start date and termination conditions

10. Exclusivity: Whether the appointment is exclusive or non-exclusive and related terms

11. Professional Indemnity: Agent's professional insurance requirements and liability limitations

12. Breach and Termination: Consequences of breach and conditions for termination

13. Dispute Resolution: Process for resolving disputes between parties

14. General Provisions: Standard legal clauses including notices, entire agreement, and governing law