The Sole Agency Contract is a crucial legal instrument in Philippine business practice, particularly in real estate transactions, where exclusive representation is required or beneficial. This document is essential when a principal wishes to grant exclusive rights to an agent to act on their behalf in specified matters, typically in property sales, leasing, or other real estate transactions. The agreement must comply with Philippine law, specifically the Real Estate Service Act (RESA) and the Civil Code of the Philippines, while addressing key aspects such as scope of authority, commission structures, and territorial limitations. It's commonly used by property owners, developers, and real estate professionals to establish clear, exclusive representation rights and responsibilities, protecting both parties' interests while ensuring compliance with local regulatory requirements.
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1. Parties: Identifies the Principal and the Agent, including their complete legal names, addresses, and business registration details if applicable
2. Background: Contextualizes the agreement and establishes the intention to create an exclusive agency relationship
3. Definitions: Defines key terms used throughout the agreement including 'Territory', 'Services', 'Commission', and 'Exclusive Period'
4. Appointment and Scope: Clearly states the exclusive appointment of the agent and details the scope of authority granted
5. Duration: Specifies the term of the exclusive agency agreement, including start date and end date
6. Agent's Rights and Obligations: Details the agent's responsibilities, duties, and authorized activities
7. Principal's Rights and Obligations: Outlines the principal's commitments, including providing necessary information and cooperation
8. Commission Structure: Specifies the commission rates, payment terms, and conditions for commission entitlement
9. Exclusivity Provisions: Details the nature of exclusivity and consequences of breach
10. Termination: States the grounds and procedures for termination of the agreement
11. Confidentiality: Addresses the handling of confidential information shared during the agency relationship
12. Governing Law: Specifies Philippine law as the governing law and jurisdiction
13. Execution: Formal closing and signature blocks
1. Force Majeure: Include when parties want specific provisions for unforeseeable circumstances preventing performance
2. Sub-Agents: Include when the agent may need to appoint sub-agents for specific tasks
3. Insurance: Include when specific insurance requirements need to be maintained by either party
4. Data Protection: Include when personal data processing is involved in the agency services
5. Non-Competition: Include when restricting the agent's ability to compete after agreement termination
6. Marketing and Promotion: Include when specific marketing obligations or restrictions need to be detailed
7. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods before litigation
1. Schedule A - Services Description: Detailed description of services to be provided by the agent
2. Schedule B - Commission Structure: Detailed breakdown of commission rates and calculation methods
3. Schedule C - Territory Definition: Detailed description or map of the geographical area covered by the agreement
4. Schedule D - Reporting Requirements: Templates and schedules for required reports from the agent
5. Appendix 1 - Agent's Licenses and Certifications: Copies of relevant professional licenses and certifications
6. Appendix 2 - Standard Operating Procedures: Detailed procedures for common transactions or services
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Development
Commercial Property
Residential Property
Industrial Property
Retail Property
Business Services
Investment Services
Asset Management
Property Management
Relevant Teams
Legal
Real Estate
Sales
Business Development
Compliance
Operations
Commercial
Property Management
Asset Management
Contracts Administration
Relevant Roles
Real Estate Broker
Property Manager
Business Development Manager
Sales Director
Commercial Director
Legal Counsel
Contracts Manager
Real Estate Agent
Property Developer
Asset Manager
Investment Manager
Compliance Officer
Real Estate Professional
Business Owner
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