The Owner Agent Agreement serves as the primary legal instrument for establishing a professional relationship between property owners and real estate agents in Malaysia. This document is essential when a property owner wishes to engage a licensed real estate agent or agency to market, sell, or lease their property. It must comply with Malaysian legislation, particularly the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and associated regulations. The agreement outlines crucial elements including the agent's scope of authority, commission structure, marketing responsibilities, and operational procedures. It protects both parties' interests by clearly defining roles, responsibilities, and expectations while ensuring compliance with local real estate practices and regulatory requirements. The document is particularly important in Malaysia's dynamic property market, where clear agency relationships and professional standards are essential for successful property transactions.
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1. Parties: Identification of the property owner and the appointed real estate agent/agency, including registration/license numbers
2. Background: Context of the agreement, including brief description of the property and purpose of engagement
3. Definitions: Key terms used throughout the agreement, including technical and legal terminology
4. Appointment and Scope: Formal appointment of agent and detailed scope of services to be provided
5. Duration: Term of the agreement, including start date, end date, and renewal provisions
6. Agent's Rights and Obligations: Detailed responsibilities and authority of the agent, including marketing, showing property, and negotiating
7. Owner's Rights and Obligations: Owner's responsibilities, including providing accurate information and maintaining the property
8. Commission Structure: Detailed breakdown of commission rates, payment terms, and conditions for commission eligibility
9. Marketing and Advertising: Agreed marketing strategies, platforms, and budget allocation
10. Termination: Conditions and process for termination by either party
11. Confidentiality: Obligations regarding confidential information and privacy
12. Governing Law: Specification of Malaysian law as governing law and jurisdiction
13. Dispute Resolution: Process for handling disputes, including mediation and arbitration procedures
14. Execution: Signature blocks and execution requirements
1. Exclusivity: Terms of exclusive agency rights - include when the owner agrees to work exclusively with one agent
2. Sub-Agents: Provisions for appointing sub-agents - include when the agent may need to engage other agents
3. International Marketing: Specific provisions for international marketing efforts - include for high-value properties or those targeting foreign buyers
4. Virtual Tours and Digital Marketing: Specific provisions for digital marketing services - include when advanced digital marketing is required
5. Property Management: Additional provisions for property management services - include when agent will also manage the property
6. Force Majeure: Provisions for unforeseen circumstances - include when requested by either party or for longer-term agreements
7. Insurance Requirements: Specific insurance obligations - include when high-value properties are involved
8. Anti-Money Laundering Compliance: Detailed AML compliance procedures - include for high-value transactions or when dealing with foreign buyers
1. Schedule 1 - Property Details: Detailed description of the property, including title details, boundaries, and facilities
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates, including any sliding scales or special circumstances
3. Schedule 3 - Marketing Plan: Detailed marketing strategy and budget allocation
4. Schedule 4 - Property Pricing: Agreed listing price and pricing strategy, including any scheduled price reviews
5. Appendix A - Required Documents: List of documents required from the owner, including property titles and certificates
6. Appendix B - Agency Authorization Form: Standard form required under Malaysian real estate regulations
7. Appendix C - Property Photographs: Official photographs of the property for marketing purposes
8. Appendix D - Agent's License and Credentials: Copies of agent's professional licenses and certifications
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