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The Commission Agreement (Real Estate) is a crucial document used in Saudi Arabian real estate transactions to formalize the relationship between property owners and real estate brokers. This agreement is essential when engaging professional real estate brokerage services for property sales, leasing, or other real estate transactions in Saudi Arabia. It defines the scope of authority granted to the broker, commission structures, and service expectations while ensuring compliance with Saudi regulations, including Real Estate Broker Regulations and Anti-Money Laundering requirements. The document is particularly important in the Saudi market where real estate transactions must adhere to both modern commercial practices and Islamic Shariah principles. It provides legal protection for all parties and clarity on commission entitlements, payment triggers, and service obligations.

1. Parties: Identification of the principal and the real estate broker/agent, including their full legal names, addresses, and commercial registration details

2. Background: Context of the agreement, including the principal's ownership of the property and intention to engage the broker

3. Definitions: Key terms used throughout the agreement, including 'Property', 'Commission', 'Successful Transaction', and other relevant terms

4. Appointment: Formal appointment of the broker and scope of authority

5. Broker's Services: Detailed description of services to be provided by the broker

6. Commission Structure: Details of commission rates, calculation methods, and payment terms

7. Payment Terms: Timing and method of commission payment, including conditions precedent

8. Broker's Obligations: Specific duties and responsibilities of the broker, including compliance with Saudi regulations

9. Principal's Obligations: Responsibilities and commitments of the property owner

10. Term and Termination: Duration of the agreement and circumstances for termination

11. Compliance: Compliance with Saudi laws, anti-money laundering regulations, and Shariah principles

12. Governing Law: Specification of Saudi law and Shariah principles as governing law

13. Dispute Resolution: Process for resolving disputes, including reference to Saudi courts or arbitration