FAQ: Latest Government Measures
1. Must I pay commission to a salesperson if the deal falls through?
Generally, you are required to pay commission to salespersons after the transaction is completed.However, you may be obligated to pay some cost if the transaction is aborted or terminated by you. It will depend on the agreed amount stated as an additional terms in the estate agency agreement. You are advised to negotiate on the default payment prior to signing the agreement.
2. Does CEA regulate the commission rates under the new regulatory framework?
CEA does not stipulate the commission rates charged by salespersons. Commissions are determined by market forces. Consumers are advised to find out the different commission rates and they can negotiate the commission rate before engaging a salesperson.
3. If one of our salespersons act and collect a fee from the tenant/buyer, can another one of our salespersons act and collect a fee from the landlord/seller?
If the salesperson collects a fee from the tenant/buyer and also collects part of the fee from the landlord/seller, it will be a case of dual representation and is an offence under the Act.
However, if the landlord/seller is represented by another salesperson, it will not be considered dual representation if neither of the two salespersons collect/share commission from both landlord/seller as well as tenant/buyer, even if the two salespersons are from the same estate agent.
If the tenant’s/buyer’s salesperson and the landlord’s/seller’s salesperson are from the same estate agent, they are required to declare this fact in writing to their respective clients and obtain their client’s consent to continue to act for the client. Further, if either salesperson is collecting an overriding fee from the other salesperson’s commission, this must also be disclosed in writing by the receiving salesperson to his client as a potential conflict of interest.
4. What is the difference between estate agents and salespersons?
Under the Estate Agents Act (EAA), estate agents refer to estate agency businesses (sole proprietors, partnerships and companies). Salespersons refer to individuals who do estate agency work in the course of his employment or engagement by an estate agent, or as a director of an estate agent.
Estate agents are of central importance in the EAA. They are one of the key features in the legislation to promote and drive greater industry accountability. As defined in the Act, every estate agent will have to appoint a Key Executive Officer (KEO) who will be responsible for the proper administration and overall management of the real estate agency business. The KEO will also be expected to be primarily responsible and accountable for the supervision and control of their salespersons. The EAA empowers estate agents to do so more effectively through the registration scheme of salespersons, where salespersons can only be considered for registration with CEA through and with the support of their respective agents. Further, the EAA will require a salesperson to contract with only one estate agent and operate under a written agreement with the estate agent.
5. What are the licence and registration fees and the payment methods?
Please refer to the section Fees.
Generally, you are required to pay commission to salespersons after the transaction is completed.However, you may be obligated to pay some cost if the transaction is aborted or terminated by you. It will depend on the agreed amount stated as an additional terms in the estate agency agreement. You are advised to negotiate on the default payment prior to signing the agreement.
2. Does CEA regulate the commission rates under the new regulatory framework?
CEA does not stipulate the commission rates charged by salespersons. Commissions are determined by market forces. Consumers are advised to find out the different commission rates and they can negotiate the commission rate before engaging a salesperson.
3. If one of our salespersons act and collect a fee from the tenant/buyer, can another one of our salespersons act and collect a fee from the landlord/seller?
If the salesperson collects a fee from the tenant/buyer and also collects part of the fee from the landlord/seller, it will be a case of dual representation and is an offence under the Act.
However, if the landlord/seller is represented by another salesperson, it will not be considered dual representation if neither of the two salespersons collect/share commission from both landlord/seller as well as tenant/buyer, even if the two salespersons are from the same estate agent.
If the tenant’s/buyer’s salesperson and the landlord’s/seller’s salesperson are from the same estate agent, they are required to declare this fact in writing to their respective clients and obtain their client’s consent to continue to act for the client. Further, if either salesperson is collecting an overriding fee from the other salesperson’s commission, this must also be disclosed in writing by the receiving salesperson to his client as a potential conflict of interest.
4. What is the difference between estate agents and salespersons?
Under the Estate Agents Act (EAA), estate agents refer to estate agency businesses (sole proprietors, partnerships and companies). Salespersons refer to individuals who do estate agency work in the course of his employment or engagement by an estate agent, or as a director of an estate agent.
Estate agents are of central importance in the EAA. They are one of the key features in the legislation to promote and drive greater industry accountability. As defined in the Act, every estate agent will have to appoint a Key Executive Officer (KEO) who will be responsible for the proper administration and overall management of the real estate agency business. The KEO will also be expected to be primarily responsible and accountable for the supervision and control of their salespersons. The EAA empowers estate agents to do so more effectively through the registration scheme of salespersons, where salespersons can only be considered for registration with CEA through and with the support of their respective agents. Further, the EAA will require a salesperson to contract with only one estate agent and operate under a written agreement with the estate agent.
5. What are the licence and registration fees and the payment methods?
Please refer to the section Fees.
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