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Commission Agreement (Real Estate) Template for Indonesia

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Key Requirements PROMPT example:

Commission Agreement (Real Estate)

"I need a Real Estate Commission Agreement for an exclusive 6-month listing of a luxury apartment complex in Jakarta, Indonesia, with a tiered commission structure starting at 3% for the first IDR 10 billion and 5% for amounts above that, commencing March 1, 2025."

Document background
The Commission Agreement (Real Estate) is a crucial document used in Indonesian property transactions to formalize the relationship between property owners/sellers and real estate agents/brokers. This agreement is essential when engaging professional real estate services for property sales or leasing in Indonesia, ensuring compliance with local regulations including the Indonesian Civil Code and real estate licensing requirements. It defines commission structures, payment terms, service scope, and obligations of all parties involved. The document is particularly important in the Indonesian market where real estate transactions must adhere to specific local property laws and industry practices, providing legal protection for both property owners and real estate professionals while establishing clear performance expectations and compensation terms.
Suggested Sections

1. Parties: Identification of the property owner/seller and the real estate agent/broker, including complete legal names, addresses, and any relevant license numbers

2. Background: Context of the agreement, including the owner's intention to sell/lease the property and appointment of the agent

3. Definitions: Key terms used throughout the agreement, including 'Property', 'Commission', 'Closing', 'Listing Period', etc.

4. Appointment and Authority: Formal appointment of the agent and scope of authority granted

5. Property Details: Complete description of the property subject to the agreement, including address and registration details

6. Agent's Services and Obligations: Detailed list of services to be provided by the agent, including marketing, showing property, negotiating, etc.

7. Owner's Obligations: Property owner's responsibilities and commitments during the listing period

8. Commission Structure: Detailed explanation of commission rates, calculation method, and qualifying transactions

9. Payment Terms: Timing and method of commission payment, including conditions precedent

10. Term and Termination: Duration of the agreement, renewal terms, and termination conditions

11. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

12. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional details

13. Dispute Resolution: Process for resolving disputes, including mediation and arbitration provisions

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Exclusivity: Section defining whether the appointment is exclusive or non-exclusive, used when parties want to explicitly address agent exclusivity

2. Post-Termination Obligations: Section covering obligations that survive after agreement termination, used for protecting commission rights for pending transactions

3. Marketing Budget: Section detailing marketing expense arrangements, used when specific marketing commitments are required

4. Performance Targets: Section setting specific performance metrics for the agent, used in high-value properties or long-term agreements

5. Sub-Agents: Section governing the appointment and management of sub-agents, used when sub-agents are permitted

6. Insurance Requirements: Section specifying required insurance coverage, used for high-value properties or when required by local regulations

Suggested Schedules

1. Property Description Schedule: Detailed description of the property including lot size, building specifications, and amenities

2. Commission Rate Schedule: Detailed breakdown of commission rates for different transaction types or value ranges

3. Marketing Plan: Detailed marketing strategy and activities to be undertaken by the agent

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

5. Agent's License and Credentials: Copies of agent's professional licenses and certifications

6. Property Ownership Documents: Copies of relevant property ownership certificates and documentation

Authors

Alex Denne

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

Relevant legal definitions



































Clauses




































Relevant Industries

Real Estate

Property Development

Commercial Property

Residential Property

Real Estate Investment

Property Management

Construction

Housing Development

Retail Property

Industrial Property

Hospitality

Mixed-use Development

Relevant Teams

Legal

Real Estate

Sales

Business Development

Operations

Compliance

Property Management

Asset Management

Contract Administration

Transaction Management

Relevant Roles

Real Estate Agent

Property Broker

Real Estate Manager

Property Manager

Sales Director

Business Development Manager

Legal Counsel

Contracts Manager

Property Developer

Asset Manager

Real Estate Operations Manager

Compliance Officer

Real Estate Transaction Manager

Property Sales Executive

Commercial Real Estate Broker

Residential Property Consultant

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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