Agency Agreement (Real Estate)

Agency Agreement (Real Estate) Template for Denmark

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Document background

The Agency Agreement (Real Estate) is a critical document used in Danish property transactions to formalize the relationship between property owners and licensed real estate agents. This agreement is essential when a property owner wishes to engage a professional agent to market and sell/lease their property in Denmark. It defines the scope of the agent's authority, responsibilities, and compensation structure while ensuring compliance with Danish regulations, particularly the Estate Agents Act. The document is designed to protect both parties' interests by clearly outlining service expectations, commission terms, marketing approaches, and legal obligations. It incorporates necessary provisions for consumer protection, anti-money laundering compliance, and professional standards specific to the Danish real estate market.

Suggested Sections

1. Parties: Identification of the Principal (property owner) and the Agent (licensed real estate agency), including registration numbers and contact details

2. Background: Context of the agreement and brief description of the property to be sold/leased

3. Definitions: Key terms used throughout the agreement, including specific Danish real estate terminology

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

5. Agent's Obligations: Detailed responsibilities including marketing, viewings, negotiations, and compliance with Danish real estate regulations

6. Principal's Obligations: Property owner's responsibilities, including providing accurate information and maintaining the property

7. Commission and Fees: Detailed fee structure, payment terms, and conditions for commission earning

8. Marketing and Advertising: Agreed marketing approach, channels, and budget

9. Duration and Termination: Term of agreement, notice periods, and termination conditions

10. Compliance and Anti-Money Laundering: Obligations under Danish AML regulations and other compliance requirements

11. Liability and Insurance: Scope of agent's liability, professional indemnity insurance, and limitations

12. Confidentiality: Handling of confidential information and data protection obligations

13. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction

Optional Sections

1. Exclusive Agency Rights: Used when the agreement grants exclusive rights to the agent

2. Additional Services: For cases where extra services like property management or legal assistance are included

3. International Marketing: When the property will be marketed internationally

4. Property Management: For agreements including ongoing property management services

5. Digital Services: When specific digital marketing or virtual viewing services are included

6. Sub-Agents: When the agent may appoint sub-agents or cooperate with other agencies

7. Force Majeure: Optional but recommended clause covering extraordinary circumstances

Suggested Schedules

1. Property Details: Detailed description of the property, including legal identification numbers and specifications

2. Commission Structure: Detailed breakdown of fees, commissions, and payment terms

3. Marketing Plan: Specific marketing activities, timeline, and budget

4. Service Level Agreement: Detailed performance metrics and service standards

5. Required Documentation: List of necessary documents and certificates for the property sale

6. Client Due Diligence: AML documentation and verification requirements

7. Agency Credentials: Agent's licenses, certifications, and professional memberships

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