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Real Estate Broker Agent Commission Split Agreement Template for Malaysia

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Key Requirements PROMPT example:

Real Estate Broker Agent Commission Split Agreement

"I need a Real Estate Broker Agent Commission Split Agreement for my Malaysian brokerage firm that includes a progressive commission structure starting at 70-30 split for new agents, increasing to 80-20 after reaching RM5 million in sales, with specific provisions for luxury property transactions."

Document background
The Real Estate Broker Agent Commission Split Agreement is a crucial document in the Malaysian real estate industry that formalizes the business relationship between licensed real estate brokers and their affiliated agents. This agreement is necessary when a real estate agent joins a brokerage firm and needs to establish clear terms for commission sharing arrangements. It ensures compliance with Malaysian regulations, particularly the Valuers, Appraisers, Estate Agents and Property Managers Act 1981, and provides a framework for professional conduct, commission calculations, and payment procedures. The document is essential for protecting both parties' interests and maintaining transparency in financial arrangements while adhering to local real estate industry standards and practices.
Suggested Sections

1. Parties: Identifies the broker and agent, including their full legal names, registration numbers, and business addresses

2. Background: Outlines the context of the agreement, including the broker's and agent's licenses and their intention to enter into a commission-sharing arrangement

3. Definitions: Defines key terms used throughout the agreement, including types of transactions, commission calculations, and relevant industry terminology

4. Appointment and Scope: Details the appointment of the agent and the scope of authorized activities

5. Commission Structure: Specifies the basic commission split percentages and calculation methods

6. Payment Terms: Outlines when and how commissions will be paid, including payment schedules and methods

7. Duties and Responsibilities: Lists the obligations of both broker and agent, including compliance with laws and professional standards

8. Term and Termination: Specifies the duration of the agreement and conditions for termination

9. Confidentiality: Addresses the handling of confidential information and client data

10. Compliance Requirements: Details compliance with BOVAEA regulations and other applicable laws

11. Dispute Resolution: Establishes procedures for resolving disputes between parties

12. General Provisions: Includes standard legal clauses such as governing law, notices, and amendments

Optional Sections

1. Training and Support: Details any training, mentoring, or support services provided by the broker to the agent

2. Marketing and Advertising: Specifies arrangements for sharing marketing costs and brand usage

3. Office Space and Resources: Includes terms for office space usage and access to broker's resources, if provided

4. Non-Compete Clause: Restrictions on agent's activities during and after the agreement term

5. Insurance Requirements: Specifies professional indemnity insurance requirements for the agent

6. Team Structure: Details arrangements for agents working in teams or with assistants

7. Referral Programs: Outlines terms for handling referrals and associated commission structures

Suggested Schedules

1. Schedule A - Commission Split Structure: Detailed breakdown of commission split percentages for different transaction types and values

2. Schedule B - Performance Incentives: Details of any bonus structures or increased commission splits based on performance

3. Schedule C - Approved Marketing Materials: Templates and guidelines for marketing materials and brand usage

4. Schedule D - Office Policies and Procedures: Detailed operational procedures and compliance requirements

5. Appendix 1 - Required Documentation: List of required documents for commission processing

6. Appendix 2 - Commission Calculator: Formula and examples for commission calculations

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

Property Development

Property Management

Real Estate Investment

Commercial Property

Residential Property

Property Consultancy

Real Estate Technology

Relevant Teams

Legal

Compliance

Real Estate Operations

Sales Administration

Finance

Human Resources

Business Development

Property Management

Commission Processing

Agent Support

Relevant Roles

Real Estate Broker

Property Agent

Estate Agent

Real Estate Agency Director

Compliance Officer

Real Estate Sales Manager

Property Consultant

Branch Manager

Agency Principal

Real Estate Operations Manager

Commission Administrator

Real Estate Partnership 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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