The Estate Agency Agreement is a crucial document used in Indonesian property transactions to formalize the relationship between property owners and real estate agents. It is essential when engaging professional real estate services for selling or leasing property in Indonesia, whether for residential or commercial purposes. The agreement must comply with Indonesian regulations, including the Civil Code and relevant Ministry of Trade regulations governing real estate services. This document typically includes detailed provisions about the scope of services, commission structures, marketing obligations, property details, and the agent's authority to act on behalf of the owner. It serves as a protective mechanism for both parties by clearly defining their rights, responsibilities, and the terms of their business relationship. The agreement is particularly important in the Indonesian context where property transactions must adhere to specific local legal requirements and cultural business practices.
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1. Parties: Identifies the property owner (Principal) and the estate agent (Agent), including their full legal names, addresses, and any relevant registration numbers
2. Background: Establishes the context of the agreement, including the property owner's intention to sell/lease the property and the agent's qualification to provide such services
3. Definitions: Defines key terms used throughout the agreement, including 'Property', 'Services', 'Commission', 'Exclusive Period' etc.
4. Appointment and Authority: Formally establishes the agent's appointment and specifies the scope of authority granted by the property owner
5. Property Details: Comprehensive description of the property including address, title details, and relevant characteristics
6. Agent's Services and Obligations: Details the specific services to be provided by the agent, including marketing, showings, and negotiation responsibilities
7. Principal's Obligations: Outlines the property owner's responsibilities, including providing accurate information and maintaining the property
8. Commission Structure: Specifies the commission rate, calculation method, and payment terms
9. Term and Termination: States the duration of the agreement and conditions for termination
10. Confidentiality: Establishes obligations regarding confidential information
11. Dispute Resolution: Outlines the process for resolving disputes between parties
12. Governing Law: Specifies that Indonesian law governs the agreement
13. Execution: Signature blocks and execution details
1. Exclusivity: Used when the agreement is exclusive, preventing the principal from engaging other agents
2. International Marketing: Include when the property will be marketed to international buyers/tenants
3. Online Marketing Provisions: Specific terms for digital marketing and online platforms
4. Sub-Agency: Terms allowing the agent to engage sub-agents
5. Property Management: Include when the agent will provide property management services
6. Force Majeure: Provisions for unforeseen circumstances preventing performance
7. Insurance Requirements: Specific insurance obligations beyond standard coverage
8. Multiple Properties: Used when the agreement covers multiple properties
1. Schedule 1 - Property Details: Detailed property specification, including lot number, certificate details, and physical characteristics
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates, including any sliding scales or special circumstances
3. Schedule 3 - Marketing Plan: Specific marketing activities and timeline
4. Schedule 4 - Service Level Agreement: Detailed performance metrics and service standards
5. Schedule 5 - Required Documentation: List of documents required from the principal
6. Appendix A - Property Photos and Floor Plans: Visual documentation of the property
7. Appendix B - Agent's Licenses and Certifications: Copies of relevant professional credentials
8. Appendix C - Standard Operating Procedures: Detailed procedures for property showings and customer handling
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Commercial Property
Residential Property
Property Management
Construction
Property Investment
Professional Services
Legal Services
Relevant Teams
Legal
Real Estate
Sales
Business Development
Compliance
Operations
Marketing
Property Management
Contract Administration
Risk Management
Relevant Roles
Real Estate Agent
Property Manager
Legal Counsel
Contract Manager
Business Development Manager
Sales Director
Property Developer
Real Estate Broker
Compliance Officer
Operations Manager
Real Estate Transaction Coordinator
Property Consultant
Marketing Manager
General Counsel
Property Portfolio Manager
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