Real Estate Agent Agreement

A Real Estate Agent Agreement in Hong Kong is a legally binding contract between a property owner (Seller or Landlord) and a licensed agent. It outlines the scope of agency representation, property listing terms, and commission arrangements. In compliance with the Estate Agents Ordinance (Cap. 511), such agreements help ensure accountability and transparency in real estate transactions across the city. This agreement authorizes the agent to market, negotiate, and complete real estate transactions on behalf of the seller. It ensures legal protection for both parties and establishes accountability for commissions, marketing practices, and dispute resolution. For agents coordinating broader property transactions involving renovations or redevelopment, it’s often necessary to align with technical professionals. Download the Architect Contract to ensure design compliance and approvals.

A standard Real Estate Agent Agreement in Hong Kong includes the following key clauses:

For formal documentation, agents and sellers should also refer to the prescribed EAA forms, such as Form 3 for residential sale and purchase agreements.

Commission fees are typically non-refundable once a successful transaction is completed and full payment is received by the seller. However, the agreement may include specific refund scenarios, such as contract cancellation due to fraud or misrepresentation. In most cases, if the transaction fails due to the seller’s breach, the agent may still be entitled to a partial or full commission, depending on the agreement’s terms.

Commission terms are crucial in defining payment conditions for a Real Estate Agent Agreement in Hong Kong. These terms often include percentage-based commission agreements (commonly 1–2% of the total property value), payment timelines (upon transaction completion or contract signing), and co-brokerage fee splits.

It’s also essential to clarify whether the agent is entitled to full or shared commission in co-listing scenarios. The agreement should explain if commissions are voided or reduced when a buyer is previously known to the seller or sourced outside the agreement. These terms often include:

The agreement should explicitly mention whether the agent is the sole or joint recipient of the commission and how it applies in co-brokerage arrangements.

Yes, many Real Estate Agent Agreements in Hong Kong include provisions for marketing and advertising expenses. These typically cover listings on real estate platforms, digital campaigns, photography, brochures, and other promotional tools.

The agreement should specify whether the seller or agent bears these costs upfront, whether reimbursement is required, and who approves specific marketing activities. Cost transparency helps avoid disputes and supports accountability in campaign execution.. These can include property listings, online advertisements, brochures, virtual tours, and staging services. The contract should clarify:

Clarity on this point prevents disputes over expenses and ensures transparency during the sales process. Selling a property that will be renovated or staged before listing? Download the Interior Design Contract to align layout, materials, and branding with market appeal.

Yes, a real estate agent agreement can be exclusive or non-exclusive:

Exclusive agreements often include stricter termination clauses and higher service commitments from the agent.

A Real Estate Agent Agreement in Hong Kong can generally be terminated by either party, provided that the termination terms outlined in the contract are respected. The Seller may terminate the agreement immediately in cases of serious breaches, such as fraud, misconduct, or disclosure of confidential information. Otherwise, termination usually requires written notice within the notice period specified in the agreement, which is typically 7 to 30 days. Terminating an exclusive agreement before the expiry date without valid cause may still entitle the agent to compensation. It’s crucial to review the termination clause to understand if any penalties or post-termination obligations apply, particularly those relating to commissions for buyers introduced during the agent’s mandate.

Real estate agents in Hong Kong are regulated under the Estate Agents Ordinance (Cap. 511) and must:

Failure to meet these obligations can result in disciplinary action or revocation of their license. Coordinating the development or renovation of the purchased property? Download the Construction Contract to define contractor responsibilities, timelines, and protections during the build process.

Yes. A well-drafted Real Estate Agent Agreement in Hong Kong must comply with the Estate Agents Ordinance (Cap. 511). This legislation governs:

Agreements should also follow the Estate Agents Authority’s guidelines to ensure compliance with Hong Kong’s regulatory framework, avoid disputes, and protect both sellers and prospective buyers. which provide templates, best practices, and enforcement procedures to ensure compliance and protect consumers.

For individuals and businesses engaging in property transactions, having a valid and compliant Real Estate Agent Agreement is essential to ensure legal clarity, service accountability, and fair commission practices. It protects both the seller and the agent, outlines each party’s duties, and helps avoid disputes. If you need help drafting or reviewing a Real Estate Agent Agreement in Hong Kong, Themis Partner provides professionally prepared templates and legal advice aligned with local laws and best practices. professionally prepared documents tailored to Hong Kong’s regulatory framework. Download your Real Estate Agent Agreement today to ensure your real estate activities meet all legal standards and expectations in Hong Kong.