Real Estate Agent Agreement

The real estate agent acts as an intermediary between two or more parties to carry out a purchase, sale or rental of real estate, business or shares. The real estate agent carries out real estate transactions as an intermediary between an owner and a buyer or a tenant. In Thailand, the exercise of the activity of real estate agent is free, and the person wishing to become an agent does not need to have a license or a specific diploma to exert this profession in Thailand.

The real estate agent agreement is a bilateral contract signed between a developer and a real estate agent. It is the first step in the transaction. It is a prerequisite for a professional to market a property and find buyers on behalf of the developers. It is also a very important document: several essential details of the sale are recorded in it, such as the asking price, the agency’s commission and the type of mandate, exclusive or simple. It is therefore essential to think carefully before signing a property agent agreement. The real estate agent agreement does not entail any fees upon signature; the only remuneration associated with it is the agency commission, payable only in the event of an actual real estate sale. These fees are often very high: they are generally between 5 and 15% of the sale price in Thailand.

The existence of a written collaboration contract will allow you to clarify, frame and secure the factual situations. Whether it is a regular collaboration, a one-time mutual aid, an advice or an assistance between real estate agents, it is essential to materialize your agreements by a contract.

The drafting of this contract will allow you to indicate the obligations that each of the partners undertakes to fulfil and to prevent or settle any disputes that may arise from this relationship. As we have seen, the partnership contract does not have a precise legal definition. It is therefore not subject to a specific legal regime. If we add to this the principle of contractual freedom, the content of your contract is therefore relatively free. However, this freedom is limited by Thai law, which prohibits certain specific clauses, such as abusive clauses, or on the contrary, imposes the presence of mandatory information. With the Themis Partner real estate agent agreement, you benefit from the following legal protection:

In addition to this essential information, certain clauses are advantageous in a real estate agent agreement:

The real estate agent agreement may provide for grounds for termination. Most of the time, there is an automatic termination clause. This occurs when one of the parties does not respect its obligations.

The exclusivity clause can concern the commercial agent or the principal company. If it concerns the commercial agent, it prohibits him from exercising his activity with another principal. However, this clause seems to oppose the autonomous and independent character of the commercial agent. If it concerns the principal, it guarantees the commercial agent that he will be the only one to act in the name and on behalf of the principal in the territory concerned. This is a security for the agent because, in the absence of exclusivity, he is in competition with the principal’s other commercial agents.

As the principal company, you can demand a non-competition clause. This clause prohibits your commercial agent, even if he is independent, from working for your competitors or even from carrying out an activity competing with yours. It can cover the duration of the real estate agent agreement, but it can also be post-contractual. In this case, it is governed by Thai law. Indeed, this clause must be in writing and concern the geographical area and, if applicable, the group of persons entrusted to the commercial agent and the type of goods or services for which he represents you under the real estate agent agreement. In addition, the non-competition clause is only valid for a maximum period of two years after the end of the real estate agent agreement.

Each partnership is different because of its duration, the quality of the co-contractors and the purpose of the agreement. For each of your collaborations, you must therefore sign a specific and personalized contract. With Themis Partner, you can obtain our real estate agent agreement template that protects you or contact a Thai lawyer to obtain a contract adapted to your situation. The lawyer in charge of the drafting will study all the legal issues of your business and will propose a contract that can be adapted to your activity to frame your services and protect you in case of litigation. Our partner lawyers also draft all types of rules and regulations, whether they are internal rules or rules for games with or without a purchase obligation. We work with multidisciplinary lawyers who can handle a wide range of services, from drafting real estate contracts to purchasing property and land in Thailand.

In the case of a fixed-term contract, the sales agent’s agreement should, in principle, only be terminated at the end of the term. However, the contract can be terminated if you agree with your partner on the characteristics of the termination. The notice period is 30 days if there is no notice period in the contract. However, an exception to this notice period is mentioned. The above provisions do not apply if the termination is due to gross negligence on the part of one of the parties or to the occurrence of force majeure. In the case of gross negligence, this must affect the common interests of the parties to the contract to such an extent as to make it impossible to continue their relationship.