COMMISSION AGREEMENT (continue to pay for another new term)

[senspino]

This is my situation:

I rented a house last year which is going to end by end of June (30th June 2011). Due to this, we already sign a new contract with owner without any agent either side.

But few days ago, the agent called and mention about the Commission Agreement that signed during last year. There is 1 clause stated there I agree to pay the agent's company a total of amount in the event I continued to rent the above property for another term.

As I understand, agent can't represent both parties so the agent either represent landlord or tenant. Because of that, the agent try to represent tenant (which are me and my friends) and want us to provide some document for rental renewal.

In this case, can I just ignore this agent since the agreement has already been made between owner and me?

Appreciate for the advice.
Thanks.[/img]

[Mad Scientist]

The devil is in the detail

This might help

http://www.saea.org.sg/1-category.htm

[BillyB]

This is my situation:

I rented a house last year which is going to end by end of June (30th June 2011). Due to this, we already sign a new contract with owner without any agent either side.

But few days ago, the agent called and mention about the Commission Agreement that signed during last year. There is 1 clause stated there I agree to pay the agent's company a total of amount in the event I continued to rent the above property for another term.

As I understand, agent can't represent both parties so the agent either represent landlord or tenant. Because of that, the agent try to represent tenant (which are me and my friends) and want us to provide some document for rental renewal.

In this case, can I just ignore this agent since the agreement has already been made between owner and me?

Appreciate for the advice.
Thanks.[/img]

You need to double check the initial agreement and examine the fine print in more detail. If in doubt get it checked out by a lawyer.

Personally, I hope you are in the position to tell the agent where to go. And of course, in the meantime, do not send him anything. He wants to make an easy commission from you guys.

Sounds like he is just trying it on, but I'd still make sure you have all your bases covered.

[Saint]

The agent is trying to make a quick buck illegally since the new Act 2010 came in to force. Unless the agent and you as the tenants have signed an estate agency agreement the agent can not act for you and renew the TA.

Below is a quote from the CEA site and a link to the agency agreements. Just make sure you don't sign one and just go ahead with the direct agreement with the Landlord.

"Starting from 1 January 2011 estate agents will also need to use prescribed estate agency agreement/s with their clients for the sale, purchase or lease of residential property in Singapore. "

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

[senspino]

Thanks for all the info.

Yesterday the agent called and told my friend that if we bypass and sign the contract with landlord, we still need to pay the commission cause we already signed the Commission Agreement last year.

I actually called to CASE and they refer me to CEA.
According to them, if we signed the agreement then we have to pay.
Then I continue to question what if the agent never assist in the process of the contract renewal. Then this CEA asked me to ask for legal advice.

The Commission Agreement that I'd signed last year is a separated paper from the Tenancy Agreement.
I doubt the validity of this agreement.

But now seems like I have no choice but to look for legal advice.
Do you guys know where to look for??

THX THX!!!



[/quote]

[Mad Scientist]

OP, this just came out today fyi from the local newspaper

- Estate agents and salespersons are required to obtain the owner's prior consent before advertising any property for sale or rental.

- In the case of leased property which is sought to be sublet, the estate agent or salesperson is required to ascertain if prior consent of the owner to sublet the property has been given - or that the tenant/sub-landlord is entitled to sublet the property - before advertising the property.

- Estate agents and salespersons using photographs in advertising materials must not alter or enhance the photographs in any way that would misrepresent actual aspects of the property.

- If photos of interior of the property are shown, it must be the actual interior and not a similar/different unit nor the same unit in a different condition.

- Where past data is used, the time-period of data used must be indicated in the advertisement.

- Where there are terms and conditions stated in the promotions and/or guarantees, explanatory footnotes and disclaimers must be displayed in a minimum font size of 8

- Any claim of property market trend or movement or economic forecast must be substantiated by statistics from reliable sources, such as from a government agency's reports.

[Saint]

The Commission Agreement that I'd signed last year is a separated paper from the Tenancy Agreement.
I doubt the validity of this agreement.

[/quote]

As far I can see this has no validity at all as didn't form part of the actual TA. Also I would imagine only the TA would have been stamped after paying the Stamp Duty which is the only legally binding contract in the eye's of Singapore Law. This Commission Agreement is just a worthless piece of paper in the same way a LOI is.

[BillyB]

OP, this just came out today fyi from the local newspaper

- Estate agents and salespersons are required to obtain the owner's prior consent before advertising any property for sale or rental.

- In the case of leased property which is sought to be sublet, the estate agent or salesperson is required to ascertain if prior consent of the owner to sublet the property has been given - or that the tenant/sub-landlord is entitled to sublet the property - before advertising the property.

- Estate agents and salespersons using photographs in advertising materials must not alter or enhance the photographs in any way that would misrepresent actual aspects of the property.

- If photos of interior of the property are shown, it must be the actual interior and not a similar/different unit nor the same unit in a different condition.

- Where past data is used, the time-period of data used must be indicated in the advertisement.

- Where there are terms and conditions stated in the promotions and/or guarantees, explanatory footnotes and disclaimers must be displayed in a minimum font size of 8

- Any claim of property market trend or movement or economic forecast must be substantiated by statistics from reliable sources, such as from a government agency's reports.

Good find MS. However my recent experience tells me that the majority of agents are not taking a blind bit of notice of any of the 7 points!!

[Saint]

OP, this just came out today fyi from the local newspaper

- Estate agents and salespersons are required to obtain the owner's prior consent before advertising any property for sale or rental.

This is going to hurt most agents and online portals big time!

[Saint]

Good find MS. However my recent experience tells me that the majority of agents are not taking a blind bit of notice of any of the 7 points!!

They don't officially come in to affect until 1st August

[BillyB]

Good find MS. However my recent experience tells me that the majority of agents are not taking a blind bit of notice of any of the 7 points!!

They don't officially come in to affect until 1st August

You think that it will change anything and the way agents behave here??!! I'd give you even money that it won't make much difference at all. You'll still hear all the excuses under the sun and all the tricks in the book.

I think the problem stems from the fact they are mostly commission based - hence the necessity to do anything for a sale in order to survive.

[Saint]

Good find MS. However my recent experience tells me that the majority of agents are not taking a blind bit of notice of any of the 7 points!!

They don't officially come in to affect until 1st August

You think that it will change anything and the way agents behave here??!! I'd give you even money that it won't make much difference at all. You'll still hear all the excuses under the sun and all the tricks in the book.

I think the problem stems from the fact they are mostly commission based - hence the necessity to do anything for a sale in order to survive.

Well at least agents will now have to have an agency agreement signed with the owner before they can advertise, will get rid of 90% of the online advertisements which are obviously fake.

[JR8]

To the OP.

you don't need legal advice, you just need to read what is in the contracts that you have signed.

If you have agreed in a contract that you are liable for commission to the agent on renewal, then there is no point paying a lawyer $1000 to confirm that you have to pay it.

The fact the agent 'did nothing' is irrelevant and a distraction. Focus on what matters, i.e. what you signed agreement to.