PROPNEX COMMISSION GUIDE

INTRODUCTION

  • The remuneration system for Agents is based on the provision of service and / or upon successful transaction.
  • The PropNex commission guideline is taking reference from the Government Gazette dated 22 February 1974 and the current market practice established over the last decade.
  • This document stipulates the professional fee / commission for Agents based on standard services rendered on property transactions.
  • This scale of professional fee / commission is not intended to restrict or interfere with any private arrangements which Agents may have with their clients.
  • Agreements and undertakings in all transactions shall be made between clients and PropNex and not with the individual Agent.
  • Payment for commission shall be made payable to PropNex Realty Pte Ltd or PN Realty Pte Ltd and not the individual Agents;
  • PropNex 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;
  • Agents shall conduct themselves at all times in a professional manner that would not prejudice the standards and reputation of PropNex or the real estate industry.

INTERPRETATION

In this document,

“Agents” mean individual real estate agents who represent the PropNex as the agency;

“Clients”means all those who engage, use or retain the services of an Agency;

“Professional fee / commission” means all forms of remuneration including commission, Brokerage fee, finder’s fee, service fee, disbursements or any other sum payable by clients to The Agency;

“Gross rental” means total monthly rental (including rental of furniture, maintenance charge and sinking fund, where applicable);

“HDB” means the Housing and Development Board constituted under the Housing and Development Act (Cap 129);

“HUDC flats” means flats in the housing estates known as HUDC housing estates which maintenance and management are not under the Housing and Development Board (HUDC Housing Estates Act – Cap 131);

PROFESSIONAL FEE / COMMISSION

  • Sale by Private Treaty, Auction or Tender (All types of properties except HDB Resale Flats and Non-Privatized HUDC Flats)
  • Sale of HDB Resale Flats and Non-Privatized HUDC Flats
  • Rental (All types of properties except HDB Flats and Rooms)
  • Rental of HDB Flats and Rooms
  • Assignment (All types of properties)
  • Management (All types of properties)

Sale by Private Treaty, Auction or Tender (All types of properties except HDB Resale Flats and Non-Privatized HUDC Flats)
PartyProfessional Fee Commission Payable to Agency
VendorMinimum two percent (2%) of contracted price as sales commission.
PurchaserOne percent (1%) of contracted price as finder's fee (if the agency is the appointed representative).

An Agent 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.

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

Sale of HDB Resale Flats and Non-Privatized HUDC Flats
PartyProfessional Fee Commission Payable to Agency
VendorMinimum two percent (2%) of contracted price as sales commission.
PurchaserOne percent (1%) of contracted price as service fee

An Agent 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.

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

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.

Rental (Private and HDB Properties)
PartyProfessional Fee Commission Payable to Agency
LandlordOne (1) month's gross rental for lease of first twelve (12) months or up to twenty four (24) months, and an additional one half (1/2) a month's gross rental for every subsequent twelve (12) months' lease or less.
Tenant

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

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

The professional fee is chargeable regardless of the rental amount.

An Agent 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.

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

An Agent 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.

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

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

Assignment (All types of properties)
PartyProfessional Fee Commission Payable to Agency
Assignor (party giving up)Ten percent (10%) of assignment consideration or one (1) month's gross rental - whichever is higher.
Assignee (party taking over)Five percent (5%) of assignment consideration or one half (1/2) of a month's gross rental - whichever is higher.

An Agent 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.

Commission shall become due immediately upon completion of the assignment.

Management (All types of properties)
Basis of ManagementProfessional Fee Commission Payable to Agency
For Individual UnitTen 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

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.

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

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

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

Goods & Services Tax (GST) PropNex shall charge their clients and co-brokers the prevailing GST even if the other party / Agency are not GST-registered.


PROPNEX PROFESSIONAL SERVICES FOR CUSTOMERS

All PropNex customers are offered with a full range of services to ensure that their experience with us is a pleasant one. We are striving towards customer satisfaction and a company that consumers can trust. We provide:

  • Home Warranty Plan
  • HDB Deposit Guarantee Programme
  • Home Sellers’ Guide
  • Service Excellence Report
  • Customer Feedback Survey
  • Customer support centre
  • In house legal support
  • In house disciplinary board
  • In house mediation board
  • Professional Indemnity insurance for agents to protect the customers
  • Our agents are issued with Professional Practitioner Certificate and Professional Proficiency Certificate and must fulfill Continuous Professional Development (CPD) points.



 

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Veron Leo
Division Director
PROPNEX REALTY PTE LTD
veron.leo82@gmail.com
CEA Licence No.:
L3008022J / R014348D
(+65) 9386 9116
(+65) 9336 7767