Have To Pay Commission If Flat Sold Within 90 After Exclusive Agreement Ends?

[keropok 0]

Hi all sellers,

Have anyone ever had this experience when dealing with your property agency? They claim that if you sell your flat on your own within 90 days after your exclusive agreement ends, you are still liable to pay them 2% commission? The same goes if I terminate them before my agreement ends.

I wasn't showed any of these clause when I signed the exclusive agreement so I am shocked to hear this from the agency now that my agreement is expiring and I am thinking of marketing my own unit. I personally feel this is not fair to the seller. Would appreciate if anyone here has such experience to share or any experts here know if the agency can make such claims on the sellers, please do advise. Thanks!!

[jeddie 0]

Which agency is that? I have also signed a exclusive agreement recently to sell my flat...and I din read abt this clause as well.

U have already talked to the agent and told them that you wish to market your own flat after the agreement ends?

Hi all sellers,

Have anyone ever had this experience when dealing with your property agency? They claim that if you sell your flat on your own within 90 days after your exclusive agreement ends, you are still liable to pay them 2% commission? The same goes if I terminate them before my agreement ends.

I wasn't showed any of these clause when I signed the exclusive agreement so I am shocked to hear this from the agency now that my agreement is expiring and I am thinking of marketing my own unit. I personally feel this is not fair to the seller. Would appreciate if anyone here has such experience to share or any experts here know if the agency can make such claims on the sellers, please do advise. Thanks!!

[waileong 0]

You have a copy of the agreement, you should check it.

[keropok 0]

You have a copy of the agreement, you should check it.

thats the thing you see, it wasn't stated on the contract, the agent didn't tell me, only when i enquired with the agency about termination, then they flash this T&C to me which I have never signed at all! How can they just slap something new into my face like that? goodness..wonder what kind of fair business conduct and ethics this is..and it is not even some small agency, it is one of the biggest one around.. sigh.. anyone else has some experience to share?

Which agency is that? I have also signed a exclusive agreement recently to sell my flat...and I din read abt this clause as well.

U have already talked to the agent and told them that you wish to market your own flat after the agreement ends?

I checked with the agency on how to terminate after the agreement expires in 3 months, sellers do beware, some agencies have clauses that say that if you do not write in even after your agreement expires, they still have the right to market for you and you are still binded to them. That's when the agency flash me this T&C which I didn't sign. I didn't have the time to read through thoroughly and they refuse to give me a copy.

[jeddie 0]

hi keropok

sent u a PM....please check..thanks!

[raincole 0]

If it is the same group of potential buyer that eventually enter into the sale with you, you have to pay. But if it is someone who is completely new, which you source out yourself, then no need cos there is nothing which the agent did for you.

This clause is to prevent buyer from waiting till end of agreement, then seek the seller out or the other way round to avoid the comission part.

[zirhk3355 1]

thats the thing you see, it wasn't stated on the contract, the agent didn't tell me, only when i enquired with the agency about termination, then they flash this T&C to me which I have never signed at all! How can they just slap something new into my face like that? goodness..wonder what kind of fair business conduct and ethics this is..and it is not even some small agency, it is one of the biggest one around.. sigh.. anyone else has some experience to share?

I checked with the agency on how to terminate after the agreement expires in 3 months, sellers do beware, some agencies have clauses that say that if you do not write in even after your agreement expires, they still have the right to market for you and you are still binded to them. That's when the agency flash me this T&C which I didn't sign. I didn't have the time to read through thoroughly and they refuse to give me a copy.

If its wasn't stated in the contract that you signed and you had never seen it before, then tell them go fly kite. Usually from what I know is that the T&C are all within the same sheet of exclusive agreement that you sign.

The onus is on them to prove the case to small claims tribunal, ie you are aware of and had agreed to the T&C. Dun worry yourself over this.

If it is the same group of potential buyer that eventually enter into the sale with you, you have to pay. But if it is someone who is completely new, which you source out yourself, then no need cos there is nothing which the agent did for you.

This clause is to prevent buyer from waiting till end of agreement, then seek the seller out or the other way round to avoid the comission part.

This is very true. Even if the exclusive agreement had ended, but the seller/buyer approaches each other and close under similiar conditions (eg price, move-in date, etc) as per negotiated together with the agent, then they still have to pay comm.

The objective is to prove that the agent is the effective cause for the transaction to go thru, ie bringing the seller/buyer together.

[jackbatok 0]

Hi all sellers,

Have anyone ever had this experience when dealing with your property agency? They claim that if you sell your flat on your own within 90 days after your exclusive agreement ends, you are still liable to pay them 2% commission? The same goes if I terminate them before my agreement ends.

I wasn't showed any of these clause when I signed the exclusive agreement so I am shocked to hear this from the agency now that my agreement is expiring and I am thinking of marketing my own unit. I personally feel this is not fair to the seller. Would appreciate if anyone here has such experience to share or any experts here know if the agency can make such claims on the sellers, please do advise. Thanks!!

Hi, Keropok

If it is not on your signed agreement then after 90 days, you will be free to market. Agent did not sell your flat within agreed period so there was no commission.

Seller is better DO NOT SIGN exclusive agreement with any agent, because market so good now. Seller can simply put one advertisement on Saturdays Straits Time(abt $60) ONCE only, then a lot of agents will call seller and someone even offer no commission from seller. Seller and agents can negotiate commission 1% or 2%. Still DO NOT sign any exclusive agreement, it waste time.

I have sold my flat in one week and paid 1% comm to agent because agent marked up 1% for selling price

[keropok 0]

If its wasn't stated in the contract that you signed and you had never seen it before, then tell them go fly kite. Usually from what I know is that the T&C are all within the same sheet of exclusive agreement that you sign.

The onus is on them to prove the case to small claims tribunal, ie you are aware of and had agreed to the T&C. Dun worry yourself over this.

This is very true. Even if the exclusive agreement had ended, but the seller/buyer approaches each other and close under similiar conditions (eg price, move-in date, etc) as per negotiated together with the agent, then they still have to pay comm.

The objective is to prove that the agent is the effective cause for the transaction to go thru, ie bringing the seller/buyer together.

You mean they can track and find out who the unit has been sold to after the agreement ends? I thought only can check on HDB resale transaction website but it doesn't state which unit and definitely not who it has been sold to. Unless they have other database to track such information then I am not too sure.

Say for eg, if it is a buyer whom the co-broke agent has brought, came to view the house, but did not make any offer. After 3 months, the same buyer happens to see my ad which I post since now I am selling it myself, come and view the house, then decided to offer me, I accept, I believe this does not consitute to "closing under similar conditions as per negotiated together with the agent" since nothing was negotiated previously together with the agent?

[waileong 0]

You don't get the point. If it's not in the contract, it's not binding on you.

This is one reason why, for important agreements, they want both parties to initial EVERY page, in addition to signing the contract on the last page, along with witnesses. Very simply, the initial is to ensure that both sides can't claim they haven't seen every page of the contract. And if necessary, the witness will testify that you indeed went through every page of the contract, so you can't deny anything.

thats the thing you see, it wasn't stated on the contract, the agent didn't tell me, only when i enquired with the agency about termination, then they flash this T&C to me which I have never signed at all! How can they just slap something new into my face like that? goodness..wonder what kind of fair business conduct and ethics this is..and it is not even some small agency, it is one of the biggest one around.. sigh.. anyone else has some experience to share?

I checked with the agency on how to terminate after the agreement expires in 3 months, sellers do beware, some agencies have clauses that say that if you do not write in even after your agreement expires, they still have the right to market for you and you are still binded to them. That's when the agency flash me this T&C which I didn't sign. I didn't have the time to read through thoroughly and they refuse to give me a copy.

Edited January 11, 2008 by waileong

[raincole 0]

You mean they can track and find out who the unit has been sold to after the agreement ends? I thought only can check on HDB resale transaction website but it doesn't state which unit and definitely not who it has been sold to. Unless they have other database to track such information then I am not too sure.

Say for eg, if it is a buyer whom the co-broke agent has brought, came to view the house, but did not make any offer. After 3 months, the same buyer happens to see my ad which I post since now I am selling it myself, come and view the house, then decided to offer me, I accept, I believe this does not consitute to "closing under similar conditions as per negotiated together with the agent" since nothing was negotiated previously together with the agent?

I only know if same person came during the first 90 days that buy your flat eventually, you have to pay commission. This same person was first arranged by your agent to view the flat, thus service has been used and an arrangement to view the flat has been done. So eventually if the same person decided to buy your flat, it can't be said it is solely because of you since it is your agent that did the inital work.

Of course, if never find out, anything also can.

[zirhk3355 1]

You mean they can track and find out who the unit has been sold to after the agreement ends? I thought only can check on HDB resale transaction website but it doesn't state which unit and definitely not who it has been sold to. Unless they have other database to track such information then I am not too sure.

Let me put this very bluntly for you: Nobody will know, only your consicence knows.

Like I mentioned in the above post, is the agent the effective cause for this transaction? If he is, then pay him. If he is not, then don't pay. Effective cause simply means he is instrumental for the transaction to take place.

Say for eg, if it is a buyer whom the co-broke agent has brought, came to view the house, but did not make any offer. After 3 months, the same buyer happens to see my ad which I post since now I am selling it myself, come and view the house, then decided to offer me, I accept, I believe this does not consitute to "closing under similar conditions as per negotiated together with the agent" since nothing was negotiated previously together with the agent?

You are correct here, but remember we are talking about the buyer disappearing after first viewing, do not have your contact and came back to find you via your personal ad.

However, there are alot of cases where both seller and buyer are not in a hurry, they decide to wait until the exclusive agreement is over so that they both do not have to pay any comm.

[jackbatok 0]

Let me put this very bluntly for you: Nobody will know, only your consicence knows.

Like I mentioned in the above post, is the agent the effective cause for this transaction? If he is, then pay him. If he is not, then don't pay. Effective cause simply means he is instrumental for the transaction to take place.

You are correct here, but remember we are talking about the buyer disappearing after first viewing, do not have your contact and came back to find you via your personal ad.

However, there are alot of cases where both seller and buyer are not in a hurry, they decide to wait until the exclusive agreement is over so that they both do not have to pay any comm.

This is good idea, just wait a while.

[zirhk3355 1]

This is good idea, just wait a while.

Yeah, anything goes, man.

Its just your conscience that you have to answer to...

[jackbatok 0]

Yeah, anything goes, man.

Its just your conscience that you have to answer to...

I mean is that if Keropok do not want to get any disburse from agent and he can wait some time after exclusive expired. Because now HDB market trend is upward so Keropok can wait sometime without any lost.

If agent can help Keropok to get highest offer then Keropok may want to pay commission and both party are happy. My Friend just sold his 4Rm flat in Bt Batok with S$353K(Valuation 318K) by ERA.

At end, seller get highest offer should be the goal.