Agents

[JR8]

+1

[Mad Scientist]

OP

Read this

URL CENSORED DUE TO COPYRIGHT ISSUES

and this

http://mortgageconsultants.biz/complain ... e-lawyers/

[Segue]

I've done a search on this, and I'm sill unclear...under the new rules (or guidlines) who is paying commission?

Liked property, made offer - offer accepted.

Now the LOI he stays commission of one month's rent for a 2 year contract paid by me

Isn't this the way its always been?

[nakatago]

I've done a search on this, and I'm sill unclear...under the new rules (or guidlines) who is paying commission?


Liked property, made offer - offer accepted.

Now the LOI he stays commission of one month's rent for a 2 year contract paid by me

Isn't this the way its always been?

yes

[Segue]

I've done a search on this, and I'm sill unclear...under the new rules (or guidlines) who is paying commission?


Liked property, made offer - offer accepted.

Now the LOI he stays commission of one month's rent for a 2 year contract paid by me

Isn't this the way its always been?

yes

I think in the past I must have negotiated well - twice on a two year contract all commission was paid by landlord. Last contract was a one year where I paid 1/2 months rent.

[beppi]

I've done a search on this, and I'm sill unclear...under the new rules (or guidlines) who is paying commission?

In my case:

Found listing online (.) and contacted agent.

Liked property, made offer - offer accepted.

Now the LOI he stays commission of one month's rent for a 2 year contract paid by me

Isn't this the way its always been?

yes

Yes, that's the way it has always been.
BUT: That has changed now, and for good reasons!

According to the new law, the party who engages the agent has to pay the fee to him/her.
Since in your case it is very obvious that the landlord engaged the agent to advertise his property and find a tenant (otherwise there would be no such ad), the landlord pays all fees and you need not pay anything.
The agent might curse and threaten (Who wouldn't want double pay?), but unless you have signed an agent agreement with him/her (usually before he takes any action for you) saying that you engage him/her, there is no legal basis to claim any fee from you.

If you were happy with the agent's service, you might give him/her a voluntary tip. S$50 - 100 is appropriate in my opinion.

[ecureilx]

If you were happy with the agent's service, you might give him a voluntary tip. S$50 - 100 is appropriate in my opinion.

You are surprising me .. I was under the impression that the landlord pays if the rental is below 2,500 ..

as for your suggestion of 'tip', you are cracking me up . the agents I came across here will go for half month rent or nothing .. and would not hesitate to say 'thanks, but no thanks .. '

[Saint]

I've done a search on this, and I'm sill unclear...under the new rules (or guidlines) who is paying commission?

In my case:

Found listing online (.) and contacted agent.

Liked property, made offer - offer accepted.

Now the LOI he stays commission of one month's rent for a 2 year contract paid by me

Isn't this the way its always been?

yes

Yes, that's the way it has always been.
BUT: That has changed now, and for good reasons!

According to the new law, the party who engages the agent has to pay the fee to him/her.
Since in your case it is very obvious that the landlord engaged the agent to advertise his property and find a tenant (otherwise there would be no such ad), the landlord pays all fees and you need not pay anything.
The agent might curse and threaten (Who wouldn't want double pay?), but unless you have signed an agent agreement with him/her (usually before he takes any action for you) saying that you engage him/her, there is no legal basis to claim any fee from you.

If you were happy with the agent's service, you might give him/her a voluntary tip. S$50 - 100 is appropriate in my opinion.

Exactly this and the link below shows the agreements that the agents have to either have the landlord or tennant sign. If you didn't sign the agent/tenant agreement then you don't pay any commission.

http://www.cea.gov.sg/cea/content/resou ... ement.html

[beppi]

If you were happy with the agent's service, you might give him a voluntary tip. S$50 - 100 is appropriate in my opinion.

You are surprising me .. I was under the impression that the landlord pays if the rental is below 2,500 ..

as for your suggestion of 'tip', you are cracking me up . the agents I came across here will go for half month rent or nothing .. and would not hesitate to say 'thanks, but no thanks .. '

The S$2500 limit has been scrapped for many years - but some agents apparently still tell the same story in their never-ending search of high fees for shoddy service.

Since beginning of this year (I believe) the new law came into force which basically says what I wrote above. Read more at http://www.cea.gov.sg.

[beppi]

To make matters very clear here, I cite from the new law (available from CEA website linked above):

ESTATE AGENTS (ESTATE AGENCY WORK) REGULATIONS 2010:
5.—(1) No salesperson or estate agent who is a natural person shall, in respect of the same property, have as clients both vendor and purchaser or both landlord and tenant

ESTATE AGENTS ACT 2010 CODE OF ETHICS AND PROFESSIONAL CLIENT CARE:
12.—(4) Estate agents and salespersons must also comply with the following requirements in respect of any form of advertising including name, calling or any other cards
(d) they must obtain the prior agreement of the client before advertising
any property of the client for any purpose, including sale or rental

Thus
- If an agent advertises a property, the owner is his client (otherwise 12.-(4) is violated).
- The prospective tenant cannot become client any more (otherwise 5.-(1) is violated).

Only clients need to pay.

[Segue]

I'm still so confused. The only thing I have to compare to is the practice in the USA which is far more transparent.

In the US, there are in fact two agents - one that represents the buyer, and one that represents the seller. When a seller sells a property, the commission is shared between the buyer and seller agents. How the split goes is specified in the listing. This applies for selling and renting.

Now in Singapore, I see that it is similar - there are both buyer and seller agents. When you respond to the advertisement, you engage the buyer agent. When you see the property, the seller agent is always there as well.

So, from the Singapore law both agents can collect a commission is how I see it. I think they both share it and its whatever you can negotiate for who pays.

[ksl]

ESTATE AGENTS (ESTATE AGENCY WORK) REGULATIONS 2010:
5.—(1) No salesperson or estate agent who is a natural person shall, in respect of the same property, have as clients both vendor and purchaser or both landlord and tenant

natural person is not problem in Singapore lah! Only immigrants that cheat like Sim Lim would be the answer!

[amoon]

[quote="nakatago"]Another vote for "report to CEA."

That bastard.[/quo

But beware of agent if you go to CEA.

[beppi]

When you respond to the advertisement, you engage the buyer agent.

Wrong!
The estate agents act says, in its First Schedule:

12.(4) Estate agents and salespersons must also comply with the following requirements in respect of any form of advertising including name, calling or any other cards:
...
(d) they must obtain the prior agreement of the client before advertising
any property of the client for any purpose, including sale or rental;
(e) they must not advertise any property at a price or on other terms, or in
any manner, different from those instructed by the client

In other words: If an agent advertises a property, the owner MUST be the agent's client and thus the agent acting on his/her behalf - which means the owner pays the agent fee and NOT the tenant!

[JR8]

Except where you take a place, and pay an agent for doing that.

Is that Sg, US? I forget.


(so much simpler in the UK: Owner pays comm, represents owner not you)