Call Us Now: (65) 6466-2311

Commission Guidelines

COMMISSION GUIDELINE

1 Introduction

1.1 The remuneration system for Agents / Agencies is based on the provision of service and / or upon successful transaction.

1.2 This document stipulates the professional fee / commission for Agents / Agencies based on standard services rendered on property transactions.

1.3 This scale of professional fee / commission is not intended to restrict or interfere with any private arrangements which Agents / Agencies may have with their clients.

1.4 It is recommended that:

1.4.1 Agreements and undertakings in all transactions shall be made between clients and Agencies and not with the individual Agent. Payment for commission shall be made payable to the Agencies and not the individual Agents;

1.4.2 Agencies and their clients and Agencies amongst themselves shall document / communicate at the outset, their agreement on commission, costs and disbursements. The documentation / communication shall also include the scope of works, duties and undertakings by the Agencies;

1.4.3 Members shall conduct themselves at all times in a professional manner that would not prejudice the standards and reputation of the real estate industry.

2. Professional Fee 1 Commission

2.1 Sale by Private Treaty, Auction or Tender (All types of properties except HDB Resale Flats and Non-Privatised HUDC Flats)

Party Professional Fee / Commission payable to Agency
Vendor Minimum two percent (2%) of contracted price as sales commission.
Purchaser One percent (1%) of contracted price as finders fee (if the agency is appointed representative).

2.1.1 An Agency shall not accept any commission from both the Vendor and Purchaser in the same transaction without the prior knowledge or written consent of the Vendor and Purchaser of the transaction.

2.1.2 For project marketing (sale or purchase of more than 4 units), commission shall be negotiable.

2.1.3 Commission shall become due immediately upon completion sale and purchase or as otherwise agreed between the parties.

2.2 Sale of HDB Resale Flats and Non-Privatised HUDC Flats

Party Professional Fee / Commission payable to Agency
Vendor Minimum two percent (2%) of contracted price as sales commission.
Purchaser One percent (1%) of contracted price as service charge
2.2.1 An Agency shall not accept any commission from both the Vendor and Purchaser in the same transaction without the prior knowledge or written consent of the Vendor and Purchaser of the transaction.

2.2.2 Commission shall become due immediately upon completion of sale and purchase or as otherwise agreed between the parties.

2.2.3 In a co-brokerage, the agents shall collect the commission from their respective clients as in the table above or as otherwise agreed between the parties.

2.3 Rental (All types of properties except HDB Flats and Rooms)

Party Professional Fee / Commission payable to Agency
Landlord One (1) months gross rental for lease of first twelve (12) months or up to twenty four (24) months, and an additional one half (1/2) a months gross rental for every subsequent twelve (12) months lease or less.

One half (1/2) of a months gross rental for less than twelve (12) months lease.

Tenant For cases where the gross monthly rental is $3,000 or less

One half (1/2) of a months gross rental for less than twelve (12) months lease.

One (1) months gross rental for lease of first twelve (12) months or up to twenty four (24) months.

2.3.1 An Agency shall not accept any commission from both the Landlord and Tenant in the same transaction without the prior knowledge or consent of the Landlord and Tenant of the transaction.

2.3.2 Commission shall become due immediately upon execution of the tenancy agreement by Landlord and Tenant.

2.3.3 In a co-brokerage, where the gross monthly rental is S$3,000 or less, the co-broking agents shall collect the commission from their respective clients as in the above or as otherwise agreed between the parties.

2.4 Rental of HDB Flats and Rooms

Party Professional Fee / Commission payable to Agency
Landlord One (1) months gross rental for lease of first twelve (12) months or up to twenty four (24) months, and an additional one half (1/2) a months gross rental for every subsequent twelve (12) months lease or less.

One half (1/2) of a months gross rental for less than twelve (12) months lease.

Tenant One half (1/2) of a months gross rental for less than twelve (12) months lease.

One (1) months gross rental for lease of first twelve (12) months or up to twenty four (24) months.

2.4.1 An Agency shall not accept any commission from both the Landlord and Tenant in the same transaction without the prior knowledge or consent of the Landlord and Tenant of the transaction.

2.4.2 Commission shall become due immediately upon execution of the tenancy agreement by Landlord and Tenant.

2.4.3 In a co-brokerage, the co-broking agents shall collect the commission from their respective clients as in the above or as othewise agreed between the parties.

2.5 Assignment (All types of properties)

Party Professional Fee / Commission payable to Agency
Assignor

(party giving up)

Ten percent (10%) of assignment consideration or one (1) months gross rental-whichever is higher.
Assignee

(party taking over)

Five percent (5%) of assignment consideration or one half (1/2) months gross rental-whichever is higher.

2.5.1 An Agency shall not accept any commission from both the Assignor and Assignee in the same transaction without the prior knowledge or consent of the Assignor and Assignee of the transaction.

2.5.2 Commission shall become due immediately upon completion of the assignment.

2.6 Management (All types of properties)

 

Basis of Management Professional Fee/Commission Payable to Agency
For individual units Ten percent (10%) of gross monthly rental or $100.00 per month-whichever is higher.
For Management Corporations under the Land Title (Strata) Act (Cap 158) By negotiation

2.6.1 Commission is due to Agency monthly in advance upon receipt of rental from Tenant. For Management Corporations, commission payable would generally be on an accrued basis.

2.6.2 The Agency may, by prior agreement with client, claim disbursements for expenses such as long distance phone calls (in the case of overseas client), postage and stationery, transport costs, etc.

Other Charges

3.1 Agencies may also impose charges other than the agreed commission, provided that such charges are agreed to between the parties.

3.1 .I Forfeited Deposit In the case of an aborted sale or tenancy, the recommended commission shall be one half (1/2) of the amount of the deposit forfeited by the party plus GST (if applicable) subject to a maximum sum equivalent to the agreed commission plus GST (i applicable).

3.1 -2 Goods & Services Tax (GSI) All GST-registered Agencies shall charge their clients and co-brokers the prevailing GST even if the other party I Agency are not GST-registered.

4. International Property

Basis of Management Professional Fee/Commission Payable to Agency
For International Properties 2 to 10% commission depending on the countries selling practice. Any Further Marketing Strategies can be discussed.

Latest News

Upcoming Events

Previous Events

Useful Links

Address

14-A Greenwood Avenue
Singapore 289207
Phone: (65) 6466-2311
Fax: (65) 6466-2310
Website: http://premiererealty.com.sg
Email: pr328.office@gmail.com, premiere328@yahoo.com.sg