The Letting Agency Contract is a crucial document used in Hong Kong's real estate market to formalize the appointment of a professional letting agency by a property owner. This agreement is essential when a property owner wishes to engage a licensed agency to market, let, and potentially manage their property. The contract addresses key aspects such as commission rates, service scope, marketing strategies, and compliance with Hong Kong's Estate Agents Ordinance and related regulations. It provides protection for both parties by clearly defining roles, responsibilities, and performance expectations, while ensuring adherence to local legal requirements and professional standards. The document is particularly important in Hong Kong's dynamic property market, where professional letting services play a vital role in property management and investment.
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1. Parties: Identification of the property owner (the Principal) and the letting agency (the Agent), including full legal names, addresses, and contact details
2. Background: Brief context of the agreement, including the property owner's intention to let the property and engage the agency's services
3. Definitions: Key terms used throughout the agreement, including 'Property', 'Services', 'Commission', 'Tenant', 'Letting Period', etc.
4. Appointment and Agency: Terms of appointment, whether exclusive or non-exclusive, and duration of the agency agreement
5. Services: Detailed description of services to be provided by the agency, including marketing, tenant screening, and property viewing arrangements
6. Agent's Obligations: Comprehensive list of the agent's duties, responsibilities, and professional standards in accordance with Hong Kong regulations
7. Principal's Obligations: Property owner's responsibilities, including providing accurate information and maintaining the property in lettable condition
8. Commission Structure: Details of agency fees, commission rates, payment terms, and conditions for commission becoming payable
9. Marketing and Advertising: Agreed approach to property marketing, including permitted advertising methods and costs
10. Data Protection: Compliance with Personal Data (Privacy) Ordinance and handling of personal information
11. Termination: Conditions and procedures for terminating the agreement by either party
12. Governing Law and Jurisdiction: Confirmation of Hong Kong law as governing law and jurisdiction for disputes
1. Property Management Services: Additional section when the agency will provide ongoing property management services
2. Rental Collection: Optional section for agencies offering rent collection services
3. Maintenance Coordination: When the agency will handle property maintenance and contractor coordination
4. Insurance Requirements: Specific insurance obligations when the agency handles property insurance matters
5. Multiple Property Provisions: Additional terms for managing multiple properties under the same agreement
6. Sub-Agency Arrangements: Terms for allowing or prohibiting the appointment of sub-agents
7. Digital Services: Specific provisions for online marketing and digital property management services
1. Property Details: Detailed description of the property, including address, features, and condition
2. Commission Schedule: Detailed breakdown of commission rates, payment structures, and special circumstances
3. Services Schedule: Comprehensive list of included and excluded services
4. Marketing Plan: Detailed marketing strategy and advertising plan
5. Agency Personnel: List of key agency personnel assigned to the property
6. Property Photos: Recent photographs of the property in its current condition
7. Maintenance Contractors: List of approved contractors for property maintenance (if applicable)
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