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Buyer Agency Agreement for Saudi Arabia

Buyer Agency Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes and regulates the relationship between a property buyer and their appointed real estate agent. This document outlines the agent's authority to act on behalf of the buyer in property transactions, including property search, negotiations, and due diligence. The agreement incorporates specific requirements under Saudi law, including Sharia compliance principles, and addresses key aspects such as commission structures, service scope, and compliance with local real estate regulations. It provides protection for both parties while ensuring alignment with Saudi Arabia's Commercial Agencies Law and real estate transaction requirements.

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What is a Buyer Agency Agreement?

The Buyer Agency Agreement is a crucial document used in Saudi Arabian real estate transactions when a buyer wishes to formally engage a real estate agent to act on their behalf in property acquisitions. This agreement is particularly important in the Saudi Arabian context, where real estate transactions must comply with both civil law requirements and Sharia principles. The document establishes the agent's authority to search for properties, conduct negotiations, and perform due diligence on behalf of the buyer, while clearly defining the scope of services, compensation structure, and parties' obligations. It includes specific provisions required under Saudi law, such as compliance with the Commercial Agencies Law, anti-money laundering regulations, and, where applicable, foreign ownership restrictions. The agreement protects both parties' interests by clearly defining the agency relationship, responsibilities, and terms of engagement, while ensuring all activities align with local legal and regulatory requirements.

What sections should be included in a Buyer Agency Agreement?

1. Parties: Identification of the Principal (Buyer) and the Agent, including full legal names, addresses, and relevant registration numbers

2. Background: Context of the agreement, including the buyer's intention to purchase property and the agent's qualifications and licenses

3. Definitions: Key terms used throughout the agreement, including technical and legal terminology

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

5. Agent's Duties and Responsibilities: Comprehensive list of the agent's obligations, including property search, negotiations, and due diligence

6. Principal's Duties and Responsibilities: Buyer's obligations including providing necessary information and cooperation

7. Compensation: Details of agent's fees, commission structure, and payment terms

8. Term and Termination: Duration of the agreement and conditions for termination

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Compliance with Laws: Commitment to comply with Saudi laws, including anti-money laundering regulations

11. Liability and Indemnification: Scope of agent's liability and indemnification provisions

12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

13. Notices: Process and requirements for formal communications between parties

14. General Provisions: Standard clauses including severability, entire agreement, and amendments

What sections are optional to include in a Buyer Agency Agreement?

1. Foreign Ownership Compliance: Required when the buyer is non-Saudi, detailing compliance with foreign ownership restrictions

2. Sharia Compliance Declaration: Optional but recommended statement confirming the agreement's compliance with Sharia principles

3. Multiple Property Provisions: Required when the scope includes searching for multiple properties

4. Sub-Agency Authorization: Optional section permitting and regulating the use of sub-agents

5. Special Property Requirements: Used when the buyer has specific property requirements or restrictions

6. Electronic Communications: Required when parties agree to use electronic means for formal communications

7. Force Majeure: Optional but recommended clause addressing unforeseen circumstances

8. Language Declaration: Required when the agreement is bilingual Arabic/English, establishing the prevailing version

What schedules should be included in a Buyer Agency Agreement?

1. Schedule 1: Service Details: Detailed breakdown of services to be provided by the agent

2. Schedule 2: Fee Structure: Detailed breakdown of all fees, commissions, and payment terms

3. Schedule 3: Property Requirements: Specific criteria and requirements for the desired property

4. Schedule 4: Required Documents: List of documents required from both parties for property transactions

5. Schedule 5: Compliance Checklist: Checklist of regulatory requirements and necessary approvals

6. Appendix A: Agent's Licenses: Copies of agent's relevant licenses and registrations

7. Appendix B: Power of Attorney: If applicable, power of attorney documents for property transactions

8. Appendix C: KYC Documents: Required Know Your Customer documentation template

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
































Clauses































Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Hospitality

Office Space

Mixed-Use Development

Investment Banking

Legal Services

Property Management

Construction

Relevant Teams

Legal

Real Estate

Compliance

Property Acquisition

Facilities Management

Risk Management

Contract Administration

Asset Management

Investment

Operations

Relevant Roles

Real Estate Agent

Property Buyer

Legal Counsel

Compliance Officer

Real Estate Manager

Property Acquisition Manager

Investment Director

Facilities Manager

Real Estate Broker

Contract Administrator

Property Developer

Asset Manager

Real Estate Consultant

Risk Manager

Transaction Manager

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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