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Mortgage Broker Agreement In Principle Template for Singapore

A Mortgage Broker Agreement In Principle is a formal agreement governed by Singapore law that establishes the preliminary terms between a licensed mortgage broker and their client. The document outlines the scope of services, responsibilities, and fee structure while ensuring compliance with Monetary Authority of Singapore (MAS) regulations, including the Financial Advisers Act and relevant consumer protection laws. It serves as a foundation for the mortgage broking relationship before proceeding with specific mortgage applications.

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What is a Mortgage Broker Agreement In Principle?

The Mortgage Broker Agreement In Principle is a fundamental document used in Singapore's financial services sector when establishing a professional relationship between mortgage brokers and their clients. This document is typically employed at the initial stage of engagement, before specific mortgage products are identified or applications submitted. It ensures compliance with Singapore's regulatory framework, including MAS guidelines, the Financial Advisers Act, and PDPA requirements. The agreement outlines the broker's services, fee structures, and obligations while protecting both parties' interests through clear terms and conditions.

What sections should be included in a Mortgage Broker Agreement In Principle?

1. Parties: Details of the mortgage broker and client, including registration numbers and addresses

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement, including regulatory terms under Financial Advisers Act and MAS guidelines

4. Scope of Services: Detailed description of mortgage broking services to be provided under Singapore regulations

5. Broker's Obligations: Legal and professional duties of the broker under MAS regulations and Financial Advisers Act

6. Client's Obligations: Requirements for client cooperation and information provision including AML compliance

7. Fees and Commission: Payment terms, commission structures, and disclosure requirements as per MAS guidelines

8. Confidentiality: PDPA compliance and data protection obligations under Singapore law

9. Term and Termination: Duration of agreement and termination provisions

What sections are optional to include in a Mortgage Broker Agreement In Principle?

1. Exclusivity: Terms of exclusive arrangement between broker and client

2. Insurance Requirements: Professional indemnity insurance details as required by MAS regulations

3. Marketing Authorization: Permission to use client information for marketing purposes under PDPA guidelines

What schedules should be included in a Mortgage Broker Agreement In Principle?

1. Schedule 1 - Fee Structure: Detailed breakdown of fees and commission calculations

2. Schedule 2 - Service Level Agreement: Specific performance metrics and service standards

3. Appendix A - Required Documentation: List of documents required from client for MAS compliance

4. Appendix B - MAS Compliance Checklist: Regulatory compliance requirements and declarations

5. Appendix C - Privacy Policy: Detailed PDPA compliance procedures and data protection measures

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

Jurisdiction

Singapore

Document Type

Mortgage Agreement

Cost

Free to use

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