Mutually agree on the terms and conditions and co-brokerage fee prior to entering into a property transaction
Any agreement on the terms and conditions for co-broking shall be confirmed in writing between the listing estate agent/ salesperson and the co-broking estate agent/ salesperson prior to negotiating and entering into a property transaction. CPD courses.
The sharing of the commission or fee for a completed transaction, if any, is strictly an agreement between the estate agents/ salespersons. To prevent occurrence of disputes, the co-brokerage fee between two or more estate agents/ salespersons should be mutually agreed upfront. The parties and terms relating to the co-brokerage fee should be made known to all parties to the transaction by their respective salespersons upon the agreement to enter into the co-broking arrangement. There should be no additions of new parties to the agreement after it is made. In addition, salespersons should avoid negotiating their co-brokerage fee in front of their clients. CPD courses.
Salesperson A brought a buyer to view a property marketed by Salesperson B. Salesperson B discussed with Salesperson A during the viewing on how the commission should be split between them. The sharing of the commission should be mutually agreed upfront. Discussing the commission in front of the clients may give the clients a bad impression of the industry.
Work with the listing salesperson to close the transaction – CPD courses
An estate agent or salesperson shall not request the contact details of, a co-broker’s client, or approach such client to speak about or communicate any matter relating to the potential property transaction, except with the consent of the co-broker. CPD courses.
Salesperson A represents the seller of a private property and advertised for the seller. Salesperson B responded to the advertisement and a viewing was arranged for a prospective buyer brought by Salesperson B Subsequently Salesperson A contacted the buyer directly with the intention of not sharing commission with Salesperson B. Salesperson A should have liaised directly with Salesperson B to close the transaction as the latter was already appointed as the buyer’s salesperson.
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