An agent who represents both the buyer and the seller in a transaction is known as a
Learn the “Nos” for agents Do you know that there are some strict no-nos that your property agent should not be doing when he represents you in your property transaction? Show
#1: Agents cannot dual representIf you are buying a property, your agent should not be representing the seller at the same time. Imagine, you hope to pay the lowest possible price while the seller wants the highest possible price. Whose interests should the agent be safeguarding? Similarly, if you are paying your agent a commission e.g. to help sell or rent a property, it is an offence for him to collect commission from the buyer or tenant in the same transaction. If he does so, it will be considered as dual representation under the Estate Agent Act. However, your agent can help the other party with the paperwork as long as he has obtained your consent and it is clear to all parties that he is not acting for the other party. Similarly, he cannot collect a fee from the other party. #2: Agents should not advertise without your consentYou intend to sell your home and you posted an advertisement online. Soon after, you discover an online advertisement on your property quoting a lower asking price. An agent whom you did not know had posted the advertisement on your property without your consent, and had gotten the price wrong. Agents must seek the property owner(s)’ consent before advertising their property. Agents are also not allowed to copy an advertisement and claim it as their own. Here’s what your agent should do, besides getting your permission to advertise your property:
#3: Agents should not handle monies relating to certain types of transactionsWhen it comes to property transactions, there’s definitely money involved, be it sales proceeds, monthly rental payments, or others. The amount could vary from a few hundreds to tens of thousands of dollars. Remember, it is best to handle the money yourself than to ask your agent for a favour. In fact, it is illegal for agents to handle certain monies related to property transactions. The ban applies to property agents who are representing their clients to buy or sell properties situated in Singapore, and leasing of HDB properties. Find out more about the monies property agents can handle in our earlier CEAnergy article. Also note that you should use verifiable payment modes such as crossed cheques and bank transfers when making payments. #4: Agents should not refer you to a moneylenderIf you’re in a bit of a tight spot for funds to renovate your newly-purchased home, forget about asking your agent to refer you to a moneylender for some quick cash. He is not supposed to! Under the Estate Agents Act, property agencies and agents are not allowed to refer a client to any moneylender, licensed or otherwise, or receive any commission or other benefit from any moneylender relating to moneylending transactions. The agent is also not supposed to
If you discover any property agencies or agents who work in collusion with a moneylender, do report them to CEA. #5: Agents should not hide any conflict of interestIf you are buying a property, and your agent is related to the seller in any way, he should declare this conflict of interest to you. For example, if your agent brings you to view a property that belongs to her husband and parents-in-law, she should declare their relationship upfront. This should be done before the viewing. If the agent does not disclose their relationship, she has failed to declare the conflict of interest. This is against CEA’s regulations. Other than that, your agent should also declare all external sources of income or referral fees that he receives, for example referral fees for recommending you to a certain bank for mortgage loans. Read on to find out what else your agent should not be doing. Selected graphics created by Freepik Can a person act as an agent for both the seller and the buyer?Yes, that's allowed. The situation you're referring to is called transaction brokerage. Transaction brokerage is a service option when your real estate professional represents a buyer client interested in purchasing the property in which you are the seller client.
What is a double commission?According to legislation, any exclusive agency agreement is required to include a double commission warning which states that if another agent introduces a buyer who purchases the property while the agreement is in place, the sole agent will be paid commission, as well as the agent who introduced the buyer.
What is the definition of a single agent?A Single Agent is defined by Florida Statutes Chapter 475, Part I as a broker who represents either the buyer or seller of real estate, but not both in the same transaction. It is the highest form, providing the most confidence to the customer that the Realtor represents only the customer's interest.
What agent acts as a link between buyer and seller?Broker- An agent whose job is to create a contractual relationship between two parties. Auctioneer- An agent who acts a seller for the Principal in an auction. Del Credere- An agent who acts as a salesperson, broker and guarantor for the Principal. He guarantees the credit extended to the buyer.
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