Realtor commission on a renewal

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nilamsmehta
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Realtor commission on a renewal

Post by nilamsmehta » Sat, 14 Apr 2012 4:12 pm

Hello,
We are trying to renew our lease for a year and I am receiving some dodgy information from my agent. I understand that if we only renew for 1 year the landlord will only pay half the commission which than needs to be split between both agents. My agent is saying that since this falls below $3500 it is the tenants responsibility to pay this. I have been researching online and with friends and I am not able to find anything about this. All my friends who renewed a year have not paid a dime. I did see if the rental price is below $2500 its the tenants responsibility but this is not the case as we are paying much more.

Any information you can share would be much appreciated. Thanks.

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Re: Realtor commission on a renewal

Post by x9200 » Sat, 14 Apr 2012 6:06 pm

And what your tenancy agreement says about this?

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Post by beppi » Mon, 16 Apr 2012 5:38 pm

This depends not on the tenancy agreement (which is between you and the landlord), but the agent agreement (between the agent and you).
If the agent was engaged by you (not by the landlord), you should have such an agreement. If it states you have to pay some fee on renewal if the rent is below S$3500, you have to pay.
But if you didn't engage the agent, or if the agreement does not specify fees on renewal, you don't need to pay.
If in doubt, consult the Council of Estate Agents (CEA).

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Post by Saint » Tue, 17 Apr 2012 9:01 am

Agents can only act for one party, either the Landlord or the Tenant, not both. They also not allowed to collect commission from both parties.

Agents are not happy since the new legislation what introduced 18 months as TA renewal use to be easy money for them and quite often they would get double commission on the sly!

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Post by x9200 » Tue, 17 Apr 2012 10:06 am

beppi wrote:This depends not on the tenancy agreement (which is between you and the landlord), but the agent agreement (between the agent and you).
If the agent was engaged by you (not by the landlord), you should have such an agreement. If it states you have to pay some fee on renewal if the rent is below S$3500, you have to pay.
But if you didn't engage the agent, or if the agreement does not specify fees on renewal, you don't need to pay.
If in doubt, consult the Council of Estate Agents (CEA).
Technically you are right but all the obligations I have seen so far of the tenants towards the agent upon the renewal were included to the TA. Formally I see no legal restriction for doing this as this is just a contract so you may design it the way to make some third party beneficial. Note, you typically define also some other duties owned to the external bodies (i.e. Stamping fee, property tax, insurance), all in the TA.

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Re: Realtor commission on a renewal

Post by BillyB » Tue, 17 Apr 2012 10:16 am

nilamsmehta wrote:Hello,
We are trying to renew our lease for a year and I am receiving some dodgy information from my agent. I understand that if we only renew for 1 year the landlord will only pay half the commission which than needs to be split between both agents. My agent is saying that since this falls below $3500 it is the tenants responsibility to pay this. I have been researching online and with friends and I am not able to find anything about this. All my friends who renewed a year have not paid a dime. I did see if the rental price is below $2500 its the tenants responsibility but this is not the case as we are paying much more.

Any information you can share would be much appreciated. Thanks.
Your agent is talking out of his arse - the issue of rental price and thresholds has been discussed numerous times on here. I thought there was a genera consensus that it's purely a sales tactic and nothing more.

There is no legal framework that states 'if the rental is below a certain figure then it's the tenants responsibility to pay' - unless of course there is a specific condition in your tenancy agreement.

Think back to how agents are paid - no base salary and working on commission only. It's a sure thing they'll try it on if they sniff an opportunity as they only eat what they kill.

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Post by Anthony249 » Thu, 26 Apr 2012 9:38 pm

I work in real estate. You do not need to pay the agent any commission at all during renewals unless it is explicitly stated in your TA.

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sundaymorningstaple
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Post by sundaymorningstaple » Thu, 26 Apr 2012 10:04 pm

tic...toc...tic...toc....

Be careful. Be very careful...... :-|

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Post by ecureilx » Fri, 27 Apr 2012 9:34 am

Anthony249 wrote:I work in real estate. You do not need to pay the agent any commission at all during renewals unless it is explicitly stated in your TA.
For argument sake .. "You do not need to pay the agent any commission at all during renewals unless it is explicitly stated in your TA"

Does that mean, unless stated you MUST NOT Pay, or you should pay or could pay or ??? How do the agents react to this kind of stuff ??

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sundaymorningstaple
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Post by sundaymorningstaple » Fri, 27 Apr 2012 11:21 am

It's pretty clear if you ask me. Are you havin' a Friday #-o moment? :lol:
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

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Post by zzm9980 » Fri, 27 Apr 2012 1:23 pm

Interestingly I don't think my TA says I need to pay this on my renewal, but I think the invoice I received (didn't sign) from the commission I paid upon leasing my place said I was expected to. I'll need review all of this paperwork again carefully.

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Post by ecureilx » Fri, 27 Apr 2012 1:44 pm

sundaymorningstaple wrote:It's pretty clear if you ask me. Are you havin' a Friday #-o moment? :lol:
Nah, I am just doing a health check on my intelligence ... as well as the "AGENT'S" intelligence on how the wording is explained ;)

More of a 'I am eager to know .. ' moment .. cos our apartment too is coming up for renewal .. and our agent, let's say, in his English, terms such as "co-share" and such means much different = tenant only pays .. etc. etc.

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Post by Anthony249 » Sun, 29 Apr 2012 6:26 pm

It's simple:

1.) Does your agreement say you need to pay renewal agent commission?

2.) If Yes - then you need to pay renewal agent comm
2.) If No (aka it doesn't mention anything about it), don't give them a cent.

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Post by JR8 » Sun, 29 Apr 2012 8:09 pm

zzm9980 wrote:Interestingly I don't think my TA says I need to pay this on my renewal, but I think the invoice I received (didn't sign) from the commission I paid upon leasing my place said I was expected to. I'll need review all of this paperwork again carefully.
Expectations are not obligations :)

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