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Real Estate Commission Contract Template for India

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Key Requirements PROMPT example:

Real Estate Commission Contract

"I need a Real Estate Commission Contract for a luxury residential property in Mumbai, with an exclusive 6-month listing period starting January 2025, including a 2% commission rate and special provisions for international buyer marketing."

Document background
The Real Estate Commission Contract is essential for formalizing the relationship between property owners and real estate agents in India. This document is used when a property owner wishes to engage a real estate agent's services for selling, leasing, or managing their property. It ensures compliance with the Real Estate (Regulation and Development) Act, 2016 (RERA) and other applicable Indian laws, while protecting the interests of all parties involved. The contract specifies commission structures, payment terms, service scope, and professional obligations, providing a clear framework for the transaction process. It's particularly important in the Indian real estate market where regulations require transparent documentation of agent-owner relationships and commission arrangements.
Suggested Sections

1. Parties: Identification of the property owner/seller and the real estate agent/broker, including RERA registration details

2. Background: Context of the agreement, including property details and the owner's intention to sell/lease the property through the agent

3. Definitions: Key terms used in the agreement including 'Commission', 'Property', 'Transaction Value', 'Successful Transaction'

4. Appointment and Scope of Services: Terms of agent appointment and detailed description of services to be provided

5. Duration of Agreement: Period of agent's appointment, including start date and end date

6. Commission Structure: Detailed breakdown of commission rates, calculation method, and payment terms

7. Payment Terms: Timing and method of commission payment, including conditions for commission becoming due

8. Agent's Obligations: Specific duties and responsibilities of the real estate agent

9. Owner's Obligations: Specific duties and responsibilities of the property owner

10. Representations and Warranties: Statements of fact and guarantees by both parties

11. Termination: Conditions and process for terminating the agreement

12. Governing Law and Jurisdiction: Applicable laws and courts having jurisdiction over disputes

13. Notices: Process and addresses for serving formal notices between parties

14. Execution: Signature blocks and execution formalities

Optional Sections

1. Exclusivity: Section defining whether the appointment is exclusive or non-exclusive, used when the owner wants to specify agent exclusivity

2. Sub-Agents: Terms governing the appointment of sub-agents, used when sub-agents may be involved

3. Marketing Budget: Details of marketing expenses and responsibilities, used when specific marketing commitments are required

4. Post-Termination Obligations: Obligations surviving termination, used when there are specific post-termination requirements

5. Force Majeure: Provisions for unforeseen circumstances, used when specific force majeure protection is needed

6. Confidentiality: Terms regarding confidential information, used when sensitive information will be shared

7. Non-Circumvention: Provisions preventing direct deals between owner and agent-introduced buyers, used in high-value transactions

Suggested Schedules

1. Property Details Schedule: Detailed description of the property including address, dimensions, and specifications

2. Commission Rate Schedule: Detailed breakdown of commission rates for different transaction types or value ranges

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

4. Marketing Plan: Detailed marketing strategy and activities to be undertaken

5. Required Documentation: List of documents required from the owner and compliance requirements

6. Agent's RERA Registration: Copy of agent's RERA registration certificate and details

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses





























Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Hospitality

Mixed-use Development

Construction

Property Development

Property Investment

Relevant Teams

Legal

Real Estate

Sales

Business Development

Compliance

Operations

Property Management

Contract Administration

Transaction Advisory

Document Management

Relevant Roles

Real Estate Agent

Property Broker

Real Estate Manager

Property Owner

Property Developer

Real Estate Consultant

Legal Counsel

Compliance Officer

Property Manager

Business Development Manager

Sales Director

Contract Manager

Real Estate Partner

Transaction 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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