 |
Photo by Acharaporn Kamornboonyarush from Pexels
|
There is no fixed rules on how much you need to pay your real estate agent salesperson so long as both parties agree to it.
You will only need to pay The Council for Estate Agencies (CEA)* registered real estate agent salesperson that represents you upon successful completion of the transaction(s).
According to CEA, you should sign an agreement with your real estate agent salesperson to prevent any conflicts which also let you indicate the sales commission that both parties agree upon.
*The Council for Estate Agencies (CEA) （房地产代理理事会） was formed as a statutory board under the Ministry of National Development.
Established under the Estate Agents Act, CEA is empowered to administer the regulatory framework for the real estate agency industry.
A guide as below on the common practice in the market on how much to pay a real estate agent salesperson commission.
For HDB Seller (to agent representing seller)- Exclusive agent = usually 2% of the transacted amount
- Non-exclusive agent = usually 1% of the transacted amount
For HDB Buyer (to agent representing buyer)
- Exclusive agent = usually 1% ~ 2% of the transacted amount
- Non-exclusive agent = usually 1% of the transacted amount
For Private Residential Property Seller (to agent representing seller)
- Exclusive agent = usually 2% of the transacted amount
- Non-exclusive agent = usually 1% of the transacted amount
For Private Residential Property Buyer (to agent representing buyer)
- Private buyer agent = no need to pay commission
You can even pay higher commission to the real estate agent if you think
he/she adds value to your selling/buying process.
**Note:
- By law real estate salespersons are not allowed to represent both the Landlord’s/Seller’s Agent and the Tenant’s/Buyer’s Agent in a single deal, as this will present a conflict of interest.
- Real estate agent's commission will be subject to prevailing GST if the agent's Real Estate Agency is GST registered.