3 Answers

Payment of commission is upon completion of the property transaction. In this case, your agent is deem to have fulfilled his or her fiduciary duty. I understand your concerns that what if you are unable to takeover the property after 3 months extension, but this part of the problem is not due to agent but the seller.

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  • r***@singnet.com.sg
    Hi Geryl, Happy Lunar Chinese New Year Greeting. Gong Xi Fa Cai. I have a agent (recommended by seller's agent) and I am 100% fine with it. The gap i see in my situation is definition of "Completion of Sales". To a layman completion of sales means he had gotten the physical property not just the completion of the sales paper work with HDB. HDB is not aware about the 3 months extension and its private agreement between us. He should make sure seller hand over property as per agreement before asking for sales commission. He yet to complete the service and asking for the commission. At professional level is it right ? Tks.
  • Geryl Lim
    Thanks for your response. So do you have your own agent or you are paying seller's agent? I am quite confused here. Regardless, as I have shared, commission is deemed applicable upon completion of the sales transaction as what happens if seller refuse to move out upon the 3 months is totally outside the control of the agent. As far as possible, if I am in the agent's position, I will do my best to support in the event seller refuse to move but it will also be outside my capacity as an agent to enforce this aspect. If you have concerns over this, you may actually let the agent know about this and see how it can be managed.
  • r***@singnet.com.sg
    Geryl, Agent requested the 3 months extension on the behalf of seller and should he not complete the physical transfer of resale property to buyer before requesting for commission ? Tks.
My Answer with regards to your Question:

In Singapore, the payment of the real estate agent's commission is typically based on the fulfillment of certain conditions outlined in the Option to Purchase (OTP) and Sales and Purchase Agreement (SPA). The completion of the sales transaction is a crucial event that triggers the commission payment.

However, it's important to consider the specific terms and conditions agreed upon in your OTP and SPA. ***If the completion has occurred, and the commission is due as per the terms of the agreement, the agent may request payment accordingly. ***

Given your situation where there was a 3-month extension granted, and you haven't taken official possession of the physical property yet, it's reasonable to seek clarification on the timing of the commission payment. Here are some steps you may consider:

Review the OTP and SPA:

Check the terms of the OTP and SPA to understand the conditions under which the agent's commission is payable.

Communicate with the Agent:

Engage in open communication with the real estate agent. Seek clarification on the timing of the commission payment and whether it is based on the completion date or the actual physical possession date.

Consult Legal Advice:

If there is ambiguity or disagreement, consider seeking legal advice to understand your rights and obligations under the agreement.

Negotiate a Fair Timeline:

If there is room for negotiation, discuss with the agent about a fair timeline for commission payment that aligns with your comfort level and the actual transfer of possession.

Document Agreements:

Any agreements or adjustments to the commission payment timeline should be documented in writing to avoid misunderstandings in the future.

It's advisable to handle such matters through clear and open communication, ensuring that both parties are on the same page regarding the commission payment and its timing. If there are concerns or disputes, seeking legal advice can provide clarity on the best course of action based on the specifics of your agreement.

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  • r***@singnet.com.sg
    Tks Able. Happy Lunar Chinese New Year. Gong Xi Fa Cai. I did express and propose to pay after the transfer but he is still insist and i must pay him the commission since the completion of sales is over. The gap i see in my situation is definition of "Completion of Sales". If he continue to insist, i will just pay his commission for his incomplete service and I will directly deal with seller and seek HDB guidance.
Robbie Chen Chee Howe

You may wish to highlight your concerns to your agent, and see how you can work things out.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.

Should you need require further assistance in matters relating to property, please contact me at my mobile +65 97 48 63 05. I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
+65 97 48 63 05
PropNex Realty Read More
  • r***@singnet.com.sg
    Tks Robbie. Happy Lunar Chinese New Year. Gong Xi Fa Cai. I did express and propose to pay after the transfer but he is still insist and i must pay him the commission since the completion of sales is over. The gap i see in my situation is definition "Completion of Sales". To a layman i believe means transfer of physical property. If he continue to insist (Bo Pian), i will just pay his commission for his incomplete service and I will directly deal with seller and seek HDB guidance.