What is an estate agency agreement?
An estate agency agreement refers to any agreement between a property agency, also known as an estate agency, and a client concerning the management of a property listing for purposes such as sale, purchase, letting, leasing, renting or tenancy administration.
The agreement protects both parties involved in the property transaction by clarifying the details, such as:
- Defining the responsibilities of the property agency and agents
- Mandating disclosure of any potential conflicts of interest
- Specifying that commission is only payable to the property agency once the transaction is completed
- Noting whether the commission amount includes GST
When you decide to use the services of a property agent, it is recommended that you sign an agreement with them. You should receive a copy of the signed agreement immediately, but if your agent does not give you one, you should request it from them.
Exclusive vs non-exclusive estate agency agreement: What’s the difference?
When engaging a property agent in Singapore, there are typically two arrangements: exclusive and non-exclusive.
An exclusive arrangement means that your agent will be your sole representative for a defined period, and even if you find a buyer on your own during that time, you still have to pay the agent’s commission fee. If you close the transaction with a party introduced by the agent within three months after the agreement expires, you still have to pay the commission fee.
A non-exclusive arrangement means that while the agent represents you, you can also work with other agents and only pay the agent who completes the transaction.
What is CEA’s prescribed estate agency agreement?
The CEA has created 8 standard estate agency agreements for estate agencies that cover the buying, selling, and leasing of residential properties.
You have the option of selecting either an exclusive or non-exclusive agreement based on your needs. You may download the necessary forms from the CEA website and fill them out with your agent.
Your property agent will request you to complete a Customer’s Particulars Form, which is mandatory for property agents to prevent money laundering and counter-terrorist financing.
By completing the form, your agent can verify your identity, record your essential information, and establish true property ownership.
For more information on CEA’s prescribed estate agency agreement, read here.
Do I need to use CEA’s prescribed estate agency agreement?
No, however, by signing these agreements, you safeguard the interests of all parties involved in the property transaction and gain access to CEA’s Dispute Resolution Scheme.
This would be helpful in any contractual disputes with your property agent. The scheme provides the option of mediation or arbitration through CEA-approved centres.
