The Property Commission Agreement is essential for formalizing the relationship between property owners and real estate agents/brokers in Pakistan. This document is typically used when engaging professional services for the sale, lease, or management of property, establishing clear terms for commission-based compensation. The agreement must comply with Pakistani legislation, including the Contract Act 1872, Transfer of Property Act 1882, and relevant real estate regulations. It outlines commission rates, payment terms, scope of services, and obligations of both parties, while incorporating local market practices and legal requirements. The document is crucial for protecting both parties' interests and ensuring transparency in property transactions, particularly important in Pakistan's dynamic real estate market.
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1. Parties: Identifies and provides full details of the property owner/seller and the agent/broker
2. Background: Contextual information about the property sale/lease requirement and appointment of the agent
3. Definitions: Defines key terms used throughout the agreement including 'Property', 'Commission', 'Successful Transaction'
4. Appointment and Scope: Details of the agent's appointment and specific services to be provided
5. Property Details: Specific information about the property being sold/leased
6. Commission Structure: Detailed breakdown of commission rates and calculation method
7. Payment Terms: When and how commission payments will be made, including any advance payments or deposits
8. Agent's Obligations: Specific duties and responsibilities of the agent
9. Owner's Obligations: Specific duties and responsibilities of the property owner
10. Term and Termination: Duration of the agreement and conditions for termination
11. Confidentiality: Obligations regarding confidential information
12. Governing Law: Specification of Pakistani law as governing law and jurisdiction
13. Dispute Resolution: Process for resolving any disputes between parties
14. Notices: How formal communications between parties should be made
15. Entire Agreement: Standard boilerplate confirming this is the complete agreement between parties
1. Exclusivity: Used when the agent is being granted exclusive rights to sell/lease the property
2. Sub-Agents: Include when the agent is permitted to appoint sub-agents
3. Marketing Budget: Include when specific marketing commitments or cost-sharing arrangements are agreed
4. Performance Targets: Used when specific performance metrics are required
5. International Transactions: Include for properties marketed to international buyers
6. Multiple Properties: Used when the agreement covers more than one property
7. Force Majeure: Include when specific provisions for unforeseen circumstances are required
8. Insurance Requirements: Used when specific insurance coverage is required from the agent
1. Property Schedule: Detailed description of the property including location, size, features, and title details
2. Commission Schedule: Detailed breakdown of commission rates, including any sliding scales or special conditions
3. Services Schedule: Comprehensive list of services to be provided by the agent
4. Marketing Plan: Detailed marketing strategy and activities to be undertaken
5. Required Documents: List of documents required from the owner and maintenance responsibilities
6. Authorized Representatives: List of authorized representatives who can act on behalf of each party
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