CEA FAQ on Dual Representation
Q1: If one of our salespersons act and collect a fee from the tenant/buyer, can another one of our salespersons act and collect a fee from the landlord/seller?
If the salesperson collects a fee from the tenant/buyer and also collects part of the fee from the landlord/seller, it will be a case of dual representation and is an offence under the Act.
However, if the landlord/seller is represented by another salesperson, it will not be considered dual representation if neither of the two salespersons collect/share commission from both landlord/seller as well as tenant/buyer, even if the two salespersons are from the same estate agent.
If the tenant’s/buyer’s salesperson and the landlord’s/seller’s salesperson are from the same estate agent, they are required to declare this fact in writing to their respective clients and obtain their client’s consent to continue to act for the client. Further, if either salesperson is collecting an overriding fee from the other salesperson’s commission, this must also be disclosed in writing by the receiving salesperson to his client as a potential conflict of interest.
Q2. If a salesperson introduces his buyer/tenant to a developer, can he collect a fee from the developer?
(a) If a salesperson is not representing the buyer/tenant whom he introduced to the developer, he may represent and collect a fee from the developer.
(b) If a salesperson represents the buyer / tenant, he can collect a fee from the developer via a commercial agreement if he is not representing the developer. The salesperson cannot represent both the buyer/tenant and developer. He also cannot collect fees/commissions from both buyer/tenant and developer.
Q3. Will an agent acting for an absentee landlord be dual representing if both the tenant and landlord use him to renew the lease?
Yes. It will be a case of dual representation. The salespersons will have to choose whether to act for either landlord or tenant in the renewal of the lease. He cannot act for both.
Q4.If the buyer and seller knows each other and appoint me as the salesperson to handle the paperwork for them, is that considered as dual representation?
The salesperson cannot be appointed by both buyer and seller for the same transaction. He can only act for one party. However, he may still help the other party do the paperwork as long as it is clear to all parties that he is not acting for the other party and has obtained the consent of his client. Also, he cannot collect a fee from the other party for the paperwork rendered.
Q5. Will it contravene dual representation policy if an agent collects a management fee from the landlord while having the tenant as his client?
Banning of dual representation is in respect of estate agency work only. Management of a property is not considered as estate agency work. The salesperson may act for the tenant but continue to manage the property for the landlord as long as he declares the conflict of interest to the tenant, and the tenant consents for the salesperson to continue acting.
Q6. If I am marketing the property of a seller and a direct buyer comes along to make an offer. Will I be allowed to do the paperwork for the direct buyer if I am not collecting any commission from him?
You may do the paperwork for the buyer as long as you do not collect a fee from him and obtain the prior consent of your client. If you are assisting a buyer with the paperwork in a HDB transaction, you must ensure that the correct forms are used (e.g. the correct Resale Checklist for buyers who do not engage salespersons)
Q7. If the client insist on giving a salesperson an 'ang bao' out of goodwill, will it be considered as dual representation?
A salesperson is allowed to act for only one party in a property transaction. If the salesperson collects commission from his client and intends to collect any other payment, such as "ang bao", depending on the actual circumstances, he may violate the ban on dual representation.
Q8. Can a salesperson collect commission from his client and collect a co-broke fee from the other salesperson representing the other party?
No. A salesperson may not collect commission from his client and collect a co-broke fee from the other salesperson representing the other party for the same transaction.
Q9. Is dual representation allowed for commercial and industrial property transactions?
No. The ban on dual representation applies to all property transactions.
If the salesperson collects a fee from the tenant/buyer and also collects part of the fee from the landlord/seller, it will be a case of dual representation and is an offence under the Act.
However, if the landlord/seller is represented by another salesperson, it will not be considered dual representation if neither of the two salespersons collect/share commission from both landlord/seller as well as tenant/buyer, even if the two salespersons are from the same estate agent.
If the tenant’s/buyer’s salesperson and the landlord’s/seller’s salesperson are from the same estate agent, they are required to declare this fact in writing to their respective clients and obtain their client’s consent to continue to act for the client. Further, if either salesperson is collecting an overriding fee from the other salesperson’s commission, this must also be disclosed in writing by the receiving salesperson to his client as a potential conflict of interest.
Q2. If a salesperson introduces his buyer/tenant to a developer, can he collect a fee from the developer?
(a) If a salesperson is not representing the buyer/tenant whom he introduced to the developer, he may represent and collect a fee from the developer.
(b) If a salesperson represents the buyer / tenant, he can collect a fee from the developer via a commercial agreement if he is not representing the developer. The salesperson cannot represent both the buyer/tenant and developer. He also cannot collect fees/commissions from both buyer/tenant and developer.
Q3. Will an agent acting for an absentee landlord be dual representing if both the tenant and landlord use him to renew the lease?
Yes. It will be a case of dual representation. The salespersons will have to choose whether to act for either landlord or tenant in the renewal of the lease. He cannot act for both.
Q4.If the buyer and seller knows each other and appoint me as the salesperson to handle the paperwork for them, is that considered as dual representation?
The salesperson cannot be appointed by both buyer and seller for the same transaction. He can only act for one party. However, he may still help the other party do the paperwork as long as it is clear to all parties that he is not acting for the other party and has obtained the consent of his client. Also, he cannot collect a fee from the other party for the paperwork rendered.
Q5. Will it contravene dual representation policy if an agent collects a management fee from the landlord while having the tenant as his client?
Banning of dual representation is in respect of estate agency work only. Management of a property is not considered as estate agency work. The salesperson may act for the tenant but continue to manage the property for the landlord as long as he declares the conflict of interest to the tenant, and the tenant consents for the salesperson to continue acting.
Q6. If I am marketing the property of a seller and a direct buyer comes along to make an offer. Will I be allowed to do the paperwork for the direct buyer if I am not collecting any commission from him?
You may do the paperwork for the buyer as long as you do not collect a fee from him and obtain the prior consent of your client. If you are assisting a buyer with the paperwork in a HDB transaction, you must ensure that the correct forms are used (e.g. the correct Resale Checklist for buyers who do not engage salespersons)
Q7. If the client insist on giving a salesperson an 'ang bao' out of goodwill, will it be considered as dual representation?
A salesperson is allowed to act for only one party in a property transaction. If the salesperson collects commission from his client and intends to collect any other payment, such as "ang bao", depending on the actual circumstances, he may violate the ban on dual representation.
Q8. Can a salesperson collect commission from his client and collect a co-broke fee from the other salesperson representing the other party?
No. A salesperson may not collect commission from his client and collect a co-broke fee from the other salesperson representing the other party for the same transaction.
Q9. Is dual representation allowed for commercial and industrial property transactions?
No. The ban on dual representation applies to all property transactions.
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