Salespersons must not represent both the seller and the buyer – CPD courses
Example: CPD courses
Salespersons must ensure that they do not represent both the seller and the buyer, or the landlord and the tenant in the same property transaction. This is an offence as specified in Regulation 5 of the Estate Agents (Estate Agency Work) Regulations 2010 – No dual representation. A salesperson must not collect a fee or commission, including a co-broke commission, from more than one person in a property transaction. CPD courses.
Example 1:
In a private residential property transaction, if the seller is paying a commission to the salesperson he has engaged for the sale of the property, the seller’s salesperson may (if the seller agrees) render basic assistance to the buyer such as explain policies/procedures
which in so doing would help ensure a smooth transaction for the seller. The seller’s salesperson however is not allowed to represent the buyer in doing estate agency work such as price negotiation on behalf of the buyer, or collect a dual commission. If a different salesperson has facilitated the transaction for the buyer, co-sharing of commission between the two salespersons normally does take place. CPD courses.
Example 2:
In the case of a resale HDB flat transaction where the buyer and seller each decided to engage the services of their respective salespersons and they had agreed to pay commission, the salespersons can only collect commission from their respective clients. Either salesperson cannot further collect a co-broke commission from the other salesperson. CPD courses.
Example 3:
In a private property transaction, a salesperson may represent the buyer/tenant with the commission to be paid by the seller/landlord, if this is agreed amongst the parties. The salesperson can only represent one party to the transaction. As the salesperson is not
representing the seller/landlord in this case, an estate agency agreement cannot be signed between them. However, a commercial contract or other form of agreement could be entered into between them by mutual agreement. Such contract should make clear who is the salesperson’s client and the agreement of the landlord/seller to pay the salesperson (on behalf of his estate agent) a sum for introducing the salesperson’s client to him. Even though the seller/landlord is not the salesperson’s client, the salesperson owes him the same duties, as are owed to other third parties, under and in accordance with the CEPCC. As the seller/landlord paid the salesperson, the latter cannot collect another commission, fee or payment from the buyer/tenant for the same transaction. CPD courses.
Source: Professional Service Manual – PSM
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