Real Estate Brokerage Agreement template

Real Estate Brokerage Agreement Template Compliant with the Laws of the Kingdom of Saudi Arabia

Clause One: Subject of the Brokerage

• Purpose: (sale / purchase / letting / renting) of the property described below.
• Property: (land / villa / apartment / building / shop) in the city of ........, ........ District, plan ........, plot ........
• Title deed No.: ............ · Area: ........ m² · Boundaries: ........................
• Asking price: ........ riyals (which may be amended in writing).

Clause Two: Type of Brokerage — to be clearly specified

• ☐ Exclusive brokerage for a period of (........) days, during which the First Party undertakes not to contract with another broker for the same property.
• ☐ Non-exclusive brokerage; the commission is earned by the broker who actually completes the deal.

Clause Three: Commission and When It Is Earned

• Commission amount: (____%) of the transaction value, or a lump sum of (........) riyals, (plus / inclusive of) value added tax.
• Who pays it: (the First Party / the buyer / shared ____% and ____%).
• When it falls due: it is earned on ........................ (Choose and write it in: signing of the sale contract / payment of the full price / completion of the title transfer at the notary public or through Najiz.)
• A compliant tax invoice shall be issued when the commission falls due.
• The broker is not entitled to a commission if the deal is not concluded, unless it is concluded with a person the broker introduced within (........) days of the end of the contract.

Clause Four: Obligations of the Broker

• To exercise due care in marketing and presenting the property, and not to make untrue statements about it.
• To verify the property's ownership documents before offering it, and not to offer it without the owner's authorisation.
• Not to collect any part of the price in its own name except under an express written authorisation; otherwise the price shall be paid directly to the owner.
• To keep the parties' data confidential and not use it for any purpose other than this contract.
• To disclose in writing any interest it has in the deal or that it represents the other party.

Clause Five: Obligations of the Client

• To provide a copy of the title deed and correct documents, and to warrant that his ownership is sound and the property is free of disputes and third-party rights, failing which he shall be liable.
• To enable the broker to inspect the property and show it to serious prospective buyers.
• To notify the broker in writing of any direct negotiation with a buyer the broker introduced.

Clause Six: Term and Termination

• The term of the contract is (........) days from its date, extendable by written agreement.
• Either party may terminate it by written notice (........) days in advance, preserving the broker's right to commission on a deal that has been completed, or is close to completion, with a person it introduced.

Clause Seven: General Provisions

• Fees and taxes (such as the Real Estate Transaction Tax) shall be borne by whoever the law designates, and shall not be deducted from the commission.
• This contract is not a sale contract and does not transfer ownership; the sale and title transfer shall be concluded by a separate instrument.
• Matters not provided for herein are governed by the laws of the Kingdom and the regulations of the Real Estate General Authority, and the competent court in the city of ........ shall have jurisdiction.
• Executed in two copies, one held by each party to act upon.