Refunding of agents commission and the diplomatic clause

Discuss about where to live, renting a property, tenancy issues, property trend and property investment in Singapore.
Post Reply
pfjonesy
Newbie
Newbie
Posts: 3
Joined: Sat, 29 May 2010 1:41 pm

Refunding of agents commission and the diplomatic clause

Post by pfjonesy » Mon, 07 Jun 2010 1:28 pm

All,

I am in the process of agreeing a tenancy agreement, and whilst we have no agents commission to pay, the agent has sent me a ltter of undertaking for my review / agreement that if we need to exercise the 12+2 expat clause then we agree to refund the commission paid by the landlord on a pro rata basis. Is this standard, should I (or am I obliged) to agree to this?

Any views appreicated.

Cheers.

Singapore Property Search

 

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 39636
Joined: Thu, 11 Nov 2004 1:26 pm
Answers: 10
Location: Retired on the Little Red Dot

Post by sundaymorningstaple » Mon, 07 Jun 2010 2:43 pm

I would say it depends on how badly you want the property. Is it a deal breaker for you? Him?
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

User avatar
carteki
Editor
Editor
Posts: 1237
Joined: Mon, 28 Apr 2008 11:03 pm
Location: Singapore
Contact:

Post by carteki » Mon, 07 Jun 2010 2:59 pm

While I agree with SMS, It does seem a very logical request to make. The landlord has paid for a 2 year income stream. If you leave early, then that 2 year income stream has not materialised and he will need to pay another commission to obtain a new income stream. Should it be you or the agent who is responsible for the cost? Debatable - but ultimately it is your choice as to whether or not to leave early.

x9200
Moderator
Moderator
Posts: 9894
Joined: Mon, 07 Sep 2009 4:06 pm
Location: Singapore

Post by x9200 » Mon, 07 Jun 2010 3:46 pm

We did not have such clause in any of our TAs but I agree it is a reasonable request.

User avatar
Mad Scientist
Director
Director
Posts: 3524
Joined: Thu, 03 Dec 2009 6:31 am
Answers: 2
Location: TIMBUKTU

Re: Refunding of agents commission and the diplomatic clause

Post by Mad Scientist » Mon, 07 Jun 2010 5:57 pm

pfjonesy wrote:All,

I am in the process of agreeing a tenancy agreement, and whilst we have no agents commission to pay, the agent has sent me a ltter of undertaking for my review / agreement that if we need to exercise the 12+2 expat clause then we agree to refund the commission paid by the landlord on a pro rata basis. Is this standard, should I (or am I obliged) to agree to this?

Any views appreicated.

Cheers.
Guys

Correct me if I am wrong, OP said if he was to terminate the contract, the agent request to refund or pro rate the commission.
If this is the case, NO , it is not standard and you are not oblige. First of all the commission is between the agent and the landlord, you are the third party, under contract or tort if your TA has stated specifically third party liabilities albeit refund the commission then you have to adhere to it. If not, you are not liable, the agent is just wanting to compensate loss of income thru you.
To my understanding, commission paid is all up front after the TA is signed, refunding or pro rating it after the deal is not completed has no direct implication on you
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

x9200
Moderator
Moderator
Posts: 9894
Joined: Mon, 07 Sep 2009 4:06 pm
Location: Singapore

Post by x9200 » Tue, 08 Jun 2010 8:51 am

MS, to my understanding the agent has proposed an agreement to partly cover the commission by the tenant (under the mentioned circumstances). If the tenant (to be) agrees with it then he/she will be obliged. If not, then not.
I don't think neither it is a standard thing but I think it is fair.

User avatar
Mad Scientist
Director
Director
Posts: 3524
Joined: Thu, 03 Dec 2009 6:31 am
Answers: 2
Location: TIMBUKTU

Post by Mad Scientist » Tue, 08 Jun 2010 8:52 am

x9200 wrote:MS, to my understanding the agent has proposed an agreement to partly cover the commission by the tenant (under the mentioned circumstances). If the tenant (to be) agrees with it then he/she will be obliged. If not, then not.
I don't think neither it is a standard thing but I think it is fair.
Ok ,my bad ,I misread, yes I agree fair enough on both ends
The positive thinker sees the invisible, feels the intangible, and achieves the impossible.Yahoo !!!

NBB2
Member
Member
Posts: 35
Joined: Mon, 12 Feb 2007 10:51 pm
Location: Singapore

Post by NBB2 » Wed, 09 Jun 2010 10:41 am

Seems fair to me, and to my understanding, quite common, if not standard. After all, the dip clause gives you an escape hatch in the event of a premature bailing out of the lease by you. I mean, it may be outside your culpability, but you're still breaking lease.

So in return for this escape hatch, they request that you cover any costs that occur as a result of your premature bailing out.

So yeah, again, seems fair to me.

Post Reply
  • Similar Topics
    Replies
    Views
    Last post

Return to “Property Talk, Housing & Rental”

Who is online

Users browsing this forum: No registered users and 12 guests