Agent fees from landlord to their own agent

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macaroonie
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Agent fees from landlord to their own agent

Post by macaroonie » Thu, 20 Jun 2013 4:33 pm

Dear All
In a contract with a diplomatic clause, is it fair for the landlord to demand that you pay the pro-rated agents fee she paid her own agent if you leave early?

It doesn't seem very fair if one leaves after the 14th month of the rental contract.

Can anything be done about this and what exactly are the rule and regulations regarding this?

Thanks!

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Re: Agent fees from landlord to their own agent

Post by Mi Amigo » Thu, 20 Jun 2013 6:31 pm

macaroonie wrote:Dear All
In a contract with a diplomatic clause, is it fair for the landlord to demand that you pay the pro-rated agents fee she paid her own agent if you leave early?

It doesn't seem very fair if one leaves after the 14th month of the rental contract.

Can anything be done about this and what exactly are the rule and regulations regarding this?

Thanks!
It depends on what is in the tenancy agreement. If there is a clause that stipulates a requirement to reimburse the landlord's agent fees on a pro rata basis, then that is 'fair'. If there is no such wording in the TA then IMO there should be no obligation to compensate the landlord for those fees.

What does your TA say (or not say) on this point?
Be careful what you wish for

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Post by x9200 » Thu, 20 Jun 2013 6:41 pm

If she paid to the agent for renting out for 24 month more than she would for 12 month then I would say it is fair. On the other hand if the diplomatic clause is not a subject to such condition then I would think she has no right to demand it.
No, there are no specific regulations.

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Post by macaroonie » Fri, 21 Jun 2013 12:52 pm

They want to put in the contract that if you leave early you have to reimburse the landlord pro-rated agent fees. Apparently they say it is standard. My point is standard does not mean it is mandatory!? RIGHT?

But who really protects tenants here?

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Post by x9200 » Fri, 21 Jun 2013 1:40 pm

Nobody or better the tenants themselves. It is a semi-standard thing. I've heard about it many times but never had it in any of my contracts.
As you are still negotiating, if you like the place let them have it (at your risk) if you are just so-so insist on your way (at their risk).

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Post by AngMoG » Fri, 21 Jun 2013 3:33 pm

It's really up to you what you want to negotiate, and how much you like the place... If you insist on having no agent fee sharing on enactment of diplomatic clause, that may be a deal breaker for them.

IMO I would not accept the co-payment on enactment of diplomatic clause, but that's just me.

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Post by JR8 » Fri, 21 Jun 2013 4:16 pm

IME so much comes down to what is considered 'Reasonable ('Just and reasonable')'.


And the definition of that.... is (intentionally) so wide as to give the benefit of the doubt to everyone.

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Re: Agent fees from landlord to their own agent

Post by JR8 » Fri, 21 Jun 2013 4:31 pm

macaroonie wrote:Dear All
In a contract with a diplomatic clause, is it fair for the landlord to demand that you pay the pro-rated agents fee she paid her own agent if you leave early?

It doesn't seem very fair if one leaves after the 14th month of the rental contract.

Can anything be done about this and what exactly are the rule and regulations regarding this?

Thanks!
You cannot be bound to a contract to which you are not a party. [That's Rule #1]

Her commitments/her fees/her agreements, what ever random stuff she might have entered into, is entirely her own matter...

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Post by macaroonie » Sat, 22 Jun 2013 10:53 am

Thanks everyone for your comments. The landlord and agent say that this is a standard thing in Singapore, for such a condition to be added to the contract. They will not budge on this.

So if it's standard, that must mean that the majority of people renting out there will have this clause in their contracts? especially if the majority of landlords won't budge.

So it would be very difficult then to get any sort of contract without such a clause then?

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Post by macaroonie » Sat, 22 Jun 2013 10:58 am

one more thing, it also says in your very own guide there that it is standard for the tenant to reimburse the landlord any (pro-rated) agent fees paid to their own agent, if the diplomatic clause is exercised.

http://www.singaporeexpats.com/guides-f ... rental.htm

So appears mandatory?

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Post by x9200 » Sat, 22 Jun 2013 11:19 am

This is a standard thing is a standard thing any agent will tell you if you question anything in the contract. Majority of them don't know any other response. It is only up to you and the other party to have it or not so if you are really not comfortable with it just walk away but IMO it is fair enough to have it. It is not mandatory. As I said earlier, I have never had it any of my contracts (6 at this point).

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