PLEASE READ BEFORE YOU RENT A CONDO IN SINGAPORE

Discuss about where to live, renting a property, tenancy issues, property trend and property investment in Singapore.
Post Reply
AngMoG
Reporter
Reporter
Posts: 609
Joined: Wed, 17 Apr 2013 11:39 am

Post by AngMoG » Mon, 24 Jun 2013 11:44 am

Northcote wrote:With regard to agent commissions, I've noticed on the forum quite a number of people who lease a property also pay a commission to their agent.

As far as I know, when we entered our lease, one month's rent was paid as commission by the landlord that was then shared equally between their agent and our agent.

Is this normal practice or were we just lucky we didn't have to pay any commission ourselves? I've been curious about this for a while.
Until 2010/1 (not sure which), it was normal practice for property below a certain amount ($2500 - $3000) that both the landlord and the tenant pay agent fees (or just the tenant). Since then, a law has been implemented that forbids dual representation. Since receiving money from a party is seen as de facto representation of that party, in most cases now only the landlord should pay, as it is his agent advertising the property (and thus already representing him).

Sometimes, as mentioned on these forums, agents try to "pull a fast one" where they get a second agent to "represent you" when you are viewing the property / arranging the contract. Of course, since the second agent is "your" agent, you're expected to pay him.

If you do not have the time to look for a property yourself, and enough extra money that you think it's worth it, you can always engage an agent of your own to look for a place for you. That agent is yours to pay.

Singapore Property Search

 

Northcote
Newbie
Newbie
Posts: 11
Joined: Tue, 29 Jan 2013 3:16 pm

Post by Northcote » Mon, 24 Jun 2013 3:17 pm

Thanks for the update AngMoG

I'm still a little unclear as to the sharing of the landlord's first month rent commission though. We had an agent that was working exclusively for us, and spent quite a bit of time showing us numerous properties however never expected payment from us, it was always half the landlord's commission they were working for. Is this normal or unusual?

AngMoG
Reporter
Reporter
Posts: 609
Joined: Wed, 17 Apr 2013 11:39 am

Post by AngMoG » Mon, 24 Jun 2013 6:07 pm

Northcote wrote:Thanks for the update AngMoG

I'm still a little unclear as to the sharing of the landlord's first month rent commission though. We had an agent that was working exclusively for us, and spent quite a bit of time showing us numerous properties however never expected payment from us, it was always half the landlord's commission they were working for. Is this normal or unusual?
That means he was showing you properties he already was the agent for, engaged by the landlord. That is an advantageous legal route for you, we did the same in our current property.

You only need to pay him if another agent represents the landlord, in which case he is able to represent your interests.

Though I have heard other opinions on this forum, and practices still vary from the legal code sometimes.

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 0 guests