What Is A Commission ?

You may be asking “Exactly what IS a Commission?” The simplest answer to and the definition (as it relates to real estate) of this is: A commission is a set amount, generally a percentage of the selling price, paid to each agent for his or her services.

Your next question would be “Can you tell me exactly what that percentage is?” That is never set in stone. The exact amount is agreed upon between the agent and the client. I have seen commission rates that are four percent, five percent or six percent. However, this is not the set rate. The true amount that a commission is set at really depends upon what the selling price is, what your company chooses to charge it’s clients for services and what you and your agent agree upon.

Figuring out exactly how much money you will earn from the sale of the property depends upon two things: the agreed upon selling price and the percentage that you and the client agreed on. Is there any such thing as a fixed monetary amount of commission relating to the sale of a commercial property? Again, this actually depends upon what the property owner and the real estate agent and their Broker agree to. Some of the time the commission will be set at a specific percentage (ten percent is a general amount); yet there have been times when the owner states that he or she a set amount. A good example of this would be that the owner, your client, has a small commercial property and has stated that he will pay your agency a set commission amount that would range from S$5,000.00.

Would I, the seller’s agent get the entire amount?
The simplest answer is that you will be given a portion of the total amount; no matter whether another agent in your company has a buyer or another agent for another company has the buyer. If you are the Seller’s Agent and the Buyer is working with you or another agent in your company then the commission amount will be split between yourself, the buyer’s agent and the Broker of your agency. If the buyer is working with another agency, then the total amount will be split in several ways to pay the agents. The first split will be a 50-50 split… half to the Selling Agency and half to the Buyer’s agency. The next commission split will be between the Seller’s Agent and his or her Broker; and the Buyer’s Agent and their Broker. In essence you will only get a portion of the total commission.

Will any agent ever not be paid the commission due to them?
I have not heard of any cases where an agent has not being paid the commission that he or she has earned. If such cases exist, it is not something that I am aware of. There may be some very specific reasons for this (an agent not being paid), but this is not really a very common occurrence.

Buy, Sell, Rent, Invest, In Singapore

MINDY YONG

( +65 ) 91002985

Fax: (+65) 64021826

mindy@mindyyong.com