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Provide a template for a Real Estate Brokerage Representation Agreement

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Introduction

In Kenya, a Real Estate Brokerage Representation Agreement is a legally binding contract between a property owner (the principal) and a real estate broker (the agent). This agreement outlines the terms and conditions under which the broker will represent the owner in the sale, purchase, or lease of real estate property. The agreement ensures that both parties understand their rights and obligations, thereby minimizing potential disputes.

Sources
Template for Real Estate Brokerage Representation Agreement
- 2.1. Agreement Title
- 2.2. Parties Involved
- 2.3. Property Description
- 2.4. Term of Agreement
- 2.5. Broker's Duties
- 2.6. Owner's Duties
- 2.7. Commission and Fees
- 2.8. Marketing and Advertising
- 2.9. Confidentiality
- 2.10. Termination
- 2.11. Dispute Resolution
- 2.12. Governing Law
- 2.13. Signatures

1. Sources

The Law of Contract Act (Cap 23)
The Land Act, 2012
The Land Registration Act, 2012
The Estate Agents Act (Cap 533)
The Constitution of Kenya, 2010

2. Template for Real Estate Brokerage Representation Agreement

2.1. Agreement Title

REAL ESTATE BROKERAGE REPRESENTATION AGREEMENT

2.2. Parties Involved

This Real Estate Brokerage Representation Agreement ("Agreement") is made and entered into on this [Date] day of [Month], [Year], by and between:

Owner/Principal: [Full Name], residing at [Address], hereinafter referred to as the "Owner."
Broker/Agent: [Full Name], of [Real Estate Brokerage Firm], located at [Address], hereinafter referred to as the "Broker."

2.3. Property Description

The property subject to this Agreement is located at [Full Address], and is legally described as follows:

Plot Number: [Plot Number]
Title Number: [Title Number]
Other Descriptions: [Any other relevant descriptions]

2.4. Term of Agreement

This Agreement shall commence on [Start Date] and shall continue until [End Date], unless terminated earlier in accordance with the provisions of this Agreement.

2.5. Broker's Duties

The Broker agrees to perform the following duties:

Marketing: Market the property through various channels including online listings, print media, and open houses.
Negotiation: Negotiate terms and conditions of sale, purchase, or lease on behalf of the Owner.
Documentation: Prepare and review all necessary documents related to the transaction.
Advisory: Provide professional advice on market conditions, pricing, and other relevant matters.
Compliance: Ensure compliance with all applicable laws and regulations.

2.6. Owner's Duties

The Owner agrees to:

Access: Provide the Broker with reasonable access to the property for showings and inspections.
Information: Furnish accurate and complete information about the property.
Cooperation: Cooperate with the Broker in marketing and selling the property.
Exclusivity: Not engage any other broker or agent during the term of this Agreement without prior written consent from the Broker.

2.7. Commission and Fees

The Owner agrees to pay the Broker a commission of [Percentage]% of the final sale price or lease value of the property. The commission shall be payable as follows:

Sale: Upon the successful closing of the sale.
Lease: Upon the signing of the lease agreement.

2.8. Marketing and Advertising

The Broker is authorized to:

Advertising: Advertise the property in various media.
Signage: Place "For Sale" or "For Lease" signs on the property.
MLS: List the property on Multiple Listing Services (MLS) and other real estate platforms.

2.9. Confidentiality

Both parties agree to keep confidential all information obtained during the term of this Agreement, except as required by law or as necessary to perform the duties under this Agreement.

2.10. Termination

This Agreement may be terminated by either party upon [Number] days' written notice to the other party. In the event of termination, the Owner shall reimburse the Broker for all reasonable expenses incurred up to the date of termination.

2.11. Dispute Resolution

Any disputes arising out of or in connection with this Agreement shall be resolved through:

Negotiation: Initial negotiation between the parties.
Mediation: If negotiation fails, the parties shall attempt to resolve the dispute through mediation.
Arbitration: If mediation fails, the dispute shall be resolved through binding arbitration in accordance with the Arbitration Act, 1995.

2.12. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of Kenya.

2.13. Signatures

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

[Owner's Full Name]
Owner

[Broker's Full Name]
Broker

Conclusion

A Real Estate Brokerage Representation Agreement is essential for clearly defining the roles, responsibilities, and expectations of both the property owner and the broker. This template provides a comprehensive framework that can be customized to fit specific needs and circumstances. It is advisable to consult with a legal professional to ensure that the agreement complies with all applicable laws and regulations in Kenya.