The For Sale By Owner Commission Agreement is essential in Malaysian real estate transactions where property owners engage real estate agents while maintaining primary control over the sale process. This document is typically used when owners want to actively participate in the sale while leveraging professional real estate services. It establishes clear parameters for commission payments, defines the scope of agent services, and protects both parties' interests under Malaysian law. The agreement must comply with the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and related regulations, making it suitable for both residential and commercial property sales. It includes detailed sections on commission structures, marketing responsibilities, property access arrangements, and terms of engagement, while ensuring alignment with local real estate practices and legal requirements.
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1. Parties: Identification of the property owner and the real estate agent/agency, including all relevant contact details and registration numbers
2. Background: Context of the agreement, including the owner's intention to sell the property and engage the agent's services
3. Definitions: Key terms used throughout the agreement, including 'Property', 'Commission', 'Listing Period', and 'Selling Price'
4. Appointment and Authority: Formal appointment of the agent and scope of authority granted by the property owner
5. Property Details: Complete description of the property being sold, including legal description and address
6. Commission Structure: Detailed explanation of commission rates, calculation method, and payment terms
7. Term of Agreement: Duration of the agreement, including start and end dates
8. Agent's Obligations: Detailed list of services and duties to be performed by the agent
9. Owner's Obligations: Property owner's responsibilities and commitments during the listing period
10. Payment Terms: Specifics about when and how the commission will be paid
11. Termination: Conditions and procedures for ending the agreement
12. Governing Law: Specification that Malaysian law governs the agreement
1. Protection Period: Defines a period after agreement termination during which the agent may still be entitled to commission; include when standard practice in the region
2. Marketing Plan: Specific details of how the property will be marketed; include when comprehensive marketing services are part of the agreement
3. Dispute Resolution: Procedures for handling disagreements; include when parties prefer specific dispute resolution mechanisms
4. Exclusivity Clause: Terms making the agreement exclusive; include when the arrangement is exclusive
5. Property Access: Terms regarding access to the property for viewings; include when specific arrangements are needed
6. Commission Exceptions: Specific situations where commission rates may vary; include when there are multiple commission scenarios
1. Schedule A - Property Details: Detailed description of the property, including lot number, title details, and specific inclusions/exclusions
2. Schedule B - Commission Structure: Detailed breakdown of commission rates and calculation methods
3. Schedule C - Marketing Services: Comprehensive list of marketing services to be provided by the agent
4. Appendix 1 - Required Documents: List of documents required from the owner for the listing
5. Appendix 2 - Property Photos: Approved photographs of the property for marketing purposes
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