Brokerage Agreement

A Brokerage Agreement in Hong Kong is a legally enforceable contract between a property owner, buyer, or tenant and a licensed real estate broker. It outlines the broker’s responsibilities, terms of representation, commission, and dispute resolution process. This document is widely used in residential, commercial, and industrial property transactions across Hong Kong to ensure compliance with the Estate Agents Authority (EAA) guidelines and safeguard the interests of both parties. For official information on the regulation of estate agency work, visit the Estate Agents Authority.

Standard agreement includes the following essential clauses:

Including a detailed property annex and clearly stating commission terms can prevent legal disputes. More information on contract enforceability in Hong Kong is available on the Hong Kong e-Legislation portal. If your brokerage work involves coordinating with design or construction teams, make sure your project foundation is secure. Download the Construction Contract to manage contractor obligations and protect the timeline and budget.

The agreement protects brokers by formalizing their role and commission. It also ensures they operate within the scope defined by the EAA and can defend themselves legally if a dispute arises.

Under EAA regulations, brokers must use written agreements for residential sales. This also proves that the broker acted with transparency and integrity. For compliance guidelines, refer to the Code of Ethics published by the EAA. If your project includes collaborating with licensed architects on zoning or structure changes, safeguard responsibilities on both ends. Download the Architect Contract to formalize architectural contributions.

Clients benefit from having obligations, deliverables, and service terms clearly outlined. It minimizes miscommunication and ensures that brokers act ethically and disclose all material information.

The agreement guarantees commission payment upon successful transaction and shields the broker from unfair claims through indemnification and limitation clauses.

Some agreements include tiered commissions or exclusive bonuses. The parties may agree to split the commission, particularly in co-brokered deals. Commission structures must be clearly disclosed and agreed upon in writing.

Yes, a Brokerage Agreement in Hong Kong can be modified after it has been signed, provided all amendments are documented in writing and signed by both parties. Common adjustments include changes to the commission rate, listing price, or the duration of the agreement. It’s important to understand that verbal modifications are not enforceable under Hong Kong contract law. To ensure legal validity, any changes should be added through a formal written addendum to the original agreement. For more detailed information on the procedures and legal implications of modifying contracts, you can consult the Department of Justice of Hong Kong.

Brokers are legally bound to:

Failure to meet obligations can result in disciplinary action, fines, or suspension of license. For legal recourse, brokers or clients can refer to the Hong Kong Judiciary.

You can terminate the agreement:

Some contracts include penalties for early termination or post-termination commissions if the broker introduced the buyer or tenant. Always terminate in writing and confirm that all obligations are fulfilled before parting ways.

For residential transactions, the Estate Agents Authority mandates written agreements for compliance and consumer protection. For commercial and leasing transactions, it is not strictly required but highly recommended.

Without a written agreement, disputes over commission or responsibility are harder to resolve. Having a signed contract ensures clarity and legal standing in court or arbitration.

For property owners and real estate professionals operating in Hong Kong, having a legally compliant Brokerage Agreement is essential to ensure transparency, protect commissions, and comply with the regulatory standards set by the Estate Agents Authority. If you require assistance in drafting or reviewing your Brokerage Agreement, Themis Partner offers professionally prepared documents tailored by corporate lawyers familiar with Hong Kong real estate law. Download your Brokerage Agreement today to ensure your transaction meets all legal requirements and protects your rights in Hong Kong.