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Broker Agent Agreement for Philippines

Broker Agent Agreement Template for Philippines

This document establishes a formal broker-agent relationship under Philippine law, outlining the terms and conditions under which a broker will represent a principal in property-related transactions. It complies with the Real Estate Service Act (RESA) and Civil Code of the Philippines, detailing commission structures, responsibilities, territory rights, and service scope. The agreement includes provisions for marketing obligations, confidentiality requirements, and dispute resolution mechanisms, while ensuring alignment with Philippine regulatory requirements for real estate and property transactions.

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Broker Agent Agreement

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What is a Broker Agent Agreement?

The Broker Agent Agreement is a crucial legal document used in the Philippines when engaging professional brokers for property-related transactions. This agreement is essential for establishing clear terms of representation, whether for single properties or multiple assets, and is particularly important given the regulated nature of brokerage services under Philippine law. The document typically includes comprehensive details about commission structures, service scope, exclusivity terms, and obligations of both parties. It must comply with the Real Estate Service Act (RESA) and related regulations, making it suitable for various scenarios from individual property sales to complex commercial transactions. The agreement provides necessary legal protection for both the principal and the broker while ensuring transparency in their professional relationship.

What sections should be included in a Broker Agent Agreement?

1. Parties: Identification of the Principal and the Broker, including their complete legal names, addresses, and any relevant license numbers or business registration details

2. Background: Context of the agreement, including the Principal's desire to engage the Broker's services and the Broker's qualifications and credentials

3. Definitions: Key terms used throughout the agreement, including 'Property', 'Commission', 'Exclusive Rights', 'Territory', etc.

4. Appointment and Scope: Formal appointment of the Broker and detailed description of services to be provided

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party

6. Broker's Rights and Obligations: Detailed listing of the Broker's responsibilities, including marketing efforts, reporting requirements, and professional conduct standards

7. Principal's Rights and Obligations: Principal's responsibilities, including providing necessary information, access to property, and cooperation

8. Commission Structure: Detailed breakdown of commission rates, payment terms, and conditions for commission eligibility

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Representations and Warranties: Statements affirming the Broker's qualifications and Principal's authority

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. General Provisions: Standard clauses including governing law, notices, amendments, and entire agreement

What sections are optional to include in a Broker Agent Agreement?

1. Exclusivity: Details of exclusive rights granted to the Broker, used when the agreement is exclusive rather than non-exclusive

2. Sub-Agents: Terms governing the Broker's right to appoint sub-agents, included when sub-agents are permitted

3. International Transactions: Special provisions for international property transactions or foreign clients

4. Marketing Budget: Specific provisions regarding marketing expenses and budget allocation, used when the Principal will contribute to marketing costs

5. Non-Compete: Restrictions on the Broker's ability to represent competing properties, used in high-value or specialized property arrangements

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term exclusive arrangements

7. Dispute Resolution: Specific procedures for handling disputes, including mediation or arbitration clauses

What schedules should be included in a Broker Agent Agreement?

1. Schedule A - Property Details: Detailed description of properties covered under the agreement, including addresses, titles, and specifications

2. Schedule B - Commission Structure: Detailed breakdown of commission rates for different types of transactions or property values

3. Schedule C - Marketing Plan: Specific marketing strategies and activities to be undertaken by the Broker

4. Schedule D - Required Documentation: List of documents required from the Principal for proper representation

5. Appendix 1 - Broker's Credentials: Copies of the Broker's license, certifications, and professional memberships

6. Appendix 2 - Standard Forms: Templates for regular reports, listing agreements, and other standard documents to be used

7. Appendix 3 - Territory Map: Geographic definition of the Broker's territory, if applicable

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

Philippines

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions






































Clauses









































Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Agricultural Land

Hospitality

Financial Services

Property Development

Commercial Leasing

Relevant Teams

Legal

Real Estate

Sales

Business Development

Compliance

Property Management

Contract Administration

Asset Management

Investment

Operations

Relevant Roles

Real Estate Broker

Property Manager

Business Development Manager

Sales Director

Asset Manager

Property Developer

Legal Counsel

Compliance Officer

Real Estate Agent

Commercial Property Manager

Investment Manager

Sales Manager

Contract Administrator

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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