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Letting Agency Agreement for Hong Kong

Letting Agency Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the professional relationship between a property owner and a letting agent. The document outlines the agent's authority to market and secure tenants for the property, details the scope of services, commission structures, and respective obligations of both parties. It incorporates specific requirements under Hong Kong's Estate Agents Ordinance and related regulations, ensuring compliance with local real estate agency practices and professional standards. The agreement includes provisions for marketing strategies, tenant screening, negotiation authority, and the handling of property-related documentation.

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What is a Letting Agency Agreement?

The Letting Agency Agreement is a crucial document used in Hong Kong's real estate market when a property owner wishes to engage a professional letting agent to market and secure tenants for their property. This agreement, governed by Hong Kong law and regulated under the Estate Agents Ordinance (Cap. 511), establishes the formal relationship between the property owner and the letting agent. It's essential for both residential and commercial properties, providing clear guidelines on the agent's authority, responsibilities, commission structure, and service scope. The document typically includes specific provisions required by Hong Kong regulations, including mandatory disclosures and prescribed forms from the Estate Agents Authority. Property owners should use this agreement before commencing any formal letting agency relationship to ensure proper protection of their interests and compliance with local real estate regulations.

What sections should be included in a Letting Agency Agreement?

1. Parties: Identification of the property owner (the Principal) and the letting agent (the Agent), including full legal names and addresses

2. Background: Brief context explaining the owner's intention to let the property and engage the agent's services

3. Definitions: Key terms used throughout the agreement, including 'Property', 'Services', 'Commission', 'Letting Period', etc.

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

5. Agent's Services: Detailed description of services to be provided by the agent, including marketing, viewings, tenant screening, etc.

6. Commission Structure: Details of the agent's fees, commission rates, and payment terms

7. Property Owner's Obligations: The owner's responsibilities, including providing accurate information and necessary documentation

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Warranties and Representations: Statements of fact and promises made by both parties

10. Liability and Indemnity: Allocation of risks and responsibilities between the parties

11. Confidentiality: Obligations regarding confidential information and data protection

12. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes

What sections are optional to include in a Letting Agency Agreement?

1. Exclusivity: Terms establishing whether the appointment is exclusive or non-exclusive, used when the owner wants to grant exclusive rights to the agent

2. Property Management Services: Additional services for managing the property, included when the agent will provide ongoing management services

3. Marketing Budget: Specific provisions regarding marketing expenses and budget, used when marketing costs are to be shared or specified

4. Insurance Requirements: Specific insurance obligations, included when additional insurance coverage is required

5. Multiple Properties: Provisions for handling multiple properties, used when the owner is engaging the agent for more than one property

6. Sub-Agents: Terms governing the appointment of sub-agents, included when sub-agents may be engaged

7. Digital Marketing Provisions: Specific terms for online marketing and virtual viewings, used when digital marketing is a significant component

What schedules should be included in a Letting Agency Agreement?

1. Schedule 1 - Property Details: Detailed description of the property, including address, features, and condition

2. Schedule 2 - Commission Rates: Detailed breakdown of commission structures and payment terms

3. Schedule 3 - Services Scope: Comprehensive list of services to be provided by the agent

4. Schedule 4 - Marketing Plan: Detailed marketing strategy and promotional activities

5. Schedule 5 - Required Documentation: List of documents required from the property owner

6. Appendix A - Property Photographs: Current photographs and condition report of the property

7. Appendix B - Estate Agents Authority Prescribed Forms: Mandatory forms required under Hong Kong regulations

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

Jurisdiction

Hong Kong

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions

































Clauses







































Relevant Industries

Real Estate

Property Management

Residential Property

Commercial Property

Retail Property

Industrial Property

Professional Services

Property Investment

Property Development

Relevant Teams

Real Estate

Legal

Compliance

Property Management

Asset Management

Operations

Business Development

Investment

Facilities Management

Risk Management

Contract Administration

Property Services

Relevant Roles

Property Owner

Real Estate Agent

Letting Agent

Property Manager

Estate Agency Director

Compliance Officer

Legal Counsel

Property Investment Manager

Asset Manager

Facilities Manager

Real Estate Operations Manager

Property Portfolio Manager

Business Development Manager

Regional Property Director

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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