The Letting Agency Agreement is a crucial document in the Philippine real estate market that formalizes the professional relationship between property owners and letting agencies. This agreement is essential when a property owner wishes to delegate the management and leasing of their property to a professional agency. It is designed to comply with Philippine real estate laws, particularly the Real Estate Service Act of 2009 (RESA) and the Civil Code of the Philippines. The document typically includes detailed provisions for property management services, tenant screening, rent collection, maintenance coordination, and financial reporting. It is particularly relevant in urban areas with high rental activity and is commonly used for both residential and commercial properties. The agreement protects both parties by clearly defining service scope, compensation terms, and legal obligations while ensuring regulatory compliance in the Philippine real estate sector.
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1. Parties: Identification of the Property Owner (Principal) and the Letting Agency (Agent), including complete legal names, addresses, and registration details
2. Background: Brief context explaining the purpose of the agreement and the property owner's intention to engage the letting agency's services
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Appointment and Scope of Authority: Details of the agency appointment and the specific powers granted to the letting agency
5. Property Details: Specific information about the property(ies) covered by the agreement
6. Agency Services: Comprehensive list of services to be provided by the letting agency
7. Fees and Commission Structure: Detailed breakdown of all fees, commissions, and payment terms
8. Rights and Obligations of the Agency: Specific duties and responsibilities of the letting agency
9. Rights and Obligations of the Property Owner: Specific duties and responsibilities of the property owner
10. Term and Termination: Duration of the agreement and conditions for termination
11. Compliance with Laws: Commitment to comply with relevant Philippine laws and regulations
12. Liability and Indemnification: Allocation of risks and responsibilities between parties
13. Confidentiality: Provisions for handling confidential information
14. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes
15. General Provisions: Standard clauses including force majeure, entire agreement, and amendments
1. Multiple Properties Management: Additional terms for managing multiple properties - include when the owner has multiple properties under agency management
2. International Owner Provisions: Special provisions for foreign property owners - include when the property owner is not a Philippine resident
3. Marketing and Advertising: Detailed marketing strategy and cost allocation - include when specific marketing commitments are required
4. Property Maintenance Services: Terms for additional maintenance services - include when the agency will handle maintenance
5. Insurance Requirements: Specific insurance obligations - include when particular insurance coverage is required
6. Digital Services: Provisions for online listing and digital property management - include when specific digital services are offered
7. Sub-Agency Authorization: Terms for allowing the agency to appoint sub-agents - include when sub-agents may be needed
1. Schedule 1 - Property Details: Detailed description of the property(ies), including address, title information, and specifications
2. Schedule 2 - Fee Schedule: Comprehensive breakdown of all fees, commissions, and charges
3. Schedule 3 - Services Specification: Detailed list of included and excluded services
4. Schedule 4 - Property Owner's Guidelines: Specific requirements or preferences set by the property owner
5. Schedule 5 - Marketing Plan: Detailed marketing strategy and budget allocation
6. Appendix A - Required Documents: List of necessary documents for property management
7. Appendix B - Property Condition Report: Detailed assessment of the property's condition at the start of the agreement
8. Appendix C - Agency's Standard Operating Procedures: Standard procedures for property management and tenant handling
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Property Management
Residential Property
Commercial Property
Legal Services
Property Investment
Property Development
Rental Market
Real Estate Brokerage
Relevant Teams
Legal
Real Estate Operations
Property Management
Leasing
Business Development
Compliance
Asset Management
Client Relations
Documentation
Finance
Relevant Roles
Property Manager
Real Estate Broker
Legal Counsel
Property Owner
Real Estate Agent
Leasing Manager
Operations Manager
Compliance Officer
Business Development Manager
Property Administrator
Real Estate Consultant
Asset Manager
Portfolio Manager
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