Professional Fees & Commission Guidelines
1. SALE AND PURCHASE OF PROPERTIES
- Private Residential
- HDB Resale Flats
- Non-Privatised HUDC Flats
- Commercial Properties
- Industrial Properties
- Vacant Land
Vendor
(i.e. where ERA is the Vendor’s Agent)
Basic Sales Commission (“BSC”):
Minimum TWO percent (2%) or up to a maximum of FIVE percent (5%) of the listed and/or target price as agreed between the Vendor and ERA.
The BSC is subjected to Goods and Service Tax (GST) at the prevailing rate.
Example:
- Listed/Target Price = $500,000
- Minimum Sales Commission Payable = 2% x $500,000 + 9% GST = $10,900/-
- Maximum Sales Commission Payable = 5% x $500,000 + 9% GST = $27,250/-
Incentive Commission:
The difference between the contracted price and the listed and/or target price is deemed as the “bonus sum”. This “bonus sum” shall be divided equally between the Vendor and ERA. ERA’s share of the “bonus sum” is inclusive of GST at the prevailing rate.
Example:
- Contracted Price = $520,000
- Listed/Target Price = $500,000
- Bonus Sum = $20,000/-
- Vendor’s Share = $10,000/-
- ERA’s Share = $10,000/- (inclusive of GST)
Reimbursement of Marketing Costs on Termination of Exclusive Estate Agency Agreement during the Validity period:
In the event the Vendor terminates the Exclusive Estate Agency Agreement during the Validity period (defined as the period from the Commencement Date to the Expiry Date of the said agreement), the Vendor shall pay a fixed sum of $3,000/- to ERA as reimbursement of marketing costs.
Purchaser
(where ERA is the Purchaser’s Agent)
Basic Sales Commission (“BSC”):
Minimum ONE percent (1%) or up to a maximum of THREE percent (3%) of the contracted price.
The BSC is subjected to GST at the prevailing rate.
Example:
- Contracted = $500,000
- Minimum Sales Commission Payable = 1% x $500,000 + 9% GST = $5,450/-
- Maximum Sales Commission Payable = 3% x $500,000 + 9% GST = $16,350/-
Reimbursement of Marketing Costs on Termination of Exclusive Estate Agency Agreement during the Validity period:
In the event the Vendor terminates the Exclusive Estate Agency Agreement during the Validity period (defined as the period from the Commencement Date to the Expiry Date of the said agreement), the Vendor shall pay a fixed sum of $3,000/- to ERA as reimbursement of marketing costs.
In accordance with guidelines issued by the Council for Estate Agencies (“CEA”), all Commissions payable to ERA SHALL be made UPON the COMPLETION of the sale and purchase transaction.
2. LEASING OF PROPERTIES
- Private Residential
- HDB Flats
- Non-Privatised HUDC Flats
- Commercial Properties
- Industrial Properties
| Party | Type | Duration of Lease | Amounts Payable to ERA (subjected to GST at the prevailing rate) |
|---|---|---|---|
| Landlord (where ERA is the Landlord’s Agent) | Room | >12 months to 24 months | $600/- OR ONE (1) month’s gross rent; whichever is HIGHER |
| Every ADDITIONAL 12 months OR less | ADDITIONAL $300/- OR HALF(1/2) month’s gross rent, whichever is HIGHER | ||
| 12 months OR less | $300/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| Renewal of Lease: Every 12 months OR less | $300/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| Whole Unit | >12 months to 24 months | $1,500/- OR ONE (1) month’s gross rent; whichever is HIGHER | |
| Every ADDITIONAL 12 months OR less | ADDITIONAL $1,000/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| 12 months OR less | $1,000/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| Renewal of Lease: Every 12 months OR less | $1,000/- OR HALF (1/2) month’s gross rent, whichever is HIGHER |
| Party | Type | Duration of Lease | Amounts Payable to ERA (subjected to GST at the prevailing rate) |
|---|---|---|---|
| Tenant (where ERA is the Tenant’s Agent) | Room | >12 months to 24 months | $600/- OR ONE (1) month’s gross rent; whichever is HIGHER |
| Every ADDITIONAL 12 months OR less | ADDITIONAL $300/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| 12 months OR less | $300/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| Renewal of Lease: Every 12 months OR less | $300/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| Whole Unit | >12 months to 24 months | $1,500/- OR ONE (1) month’s gross rent; whichever is HIGHER | |
| Every ADDITIONAL 12 months OR less | ADDITIONAL $1,000/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| 12 months OR less | $1,000/- OR HALF (1/2) month’s gross rent, whichever is HIGHER | ||
| Renewal of Lease: Every 12 months OR less | $1,000/- OR HALF (1/2) month’s gross rent, whichever is HIGHER |
In accordance with guidelines issued by the Council for Estate Agencies (“CEA”), all Commissions payable to ERA SHALL be made UPON the EXECUTION of the TENANCY AGREEMENT by the Landlord and Tenant AND the HANDOVER of PREMISES to the Tenant.
3. ASSIGNMENT OF PREMISES (ALL TYPES OF PROPERTIES)
| Party | Amounts Payable to ERA (subjected to GST at the prevailing rate) |
|---|---|
| Assignor (where ERA is the agent for the party giving up the premises) | TEN percent (10%) of the Assignment Fee OR ONE (1) month’s gross rent; whichever is HIGHER |
| Assignee (where ERA is the agent for the party taking over the premises) | TEN percent (10%) of the Assignment Fee OR ONE (1) month’s gross rent; whichever is HIGHER |
In accordance with guidelines issued by the Council for Estate Agencies (“CEA”), all Commissions payable to ERA SHALL be made UPON the EXECUTION of the ASSIGNMENT AGREEMENT by the Assignor and Assignee AND the HANDOVER of PREMISES to the Assignee.
4. PROPERTY MANAGEMENT (ALL TYPES OF PROPERTIES)
Based on scope of works to be agreed between the CLIENT and AGENT, the MINIMUM MONTHLY PROPERTY MANAGEMENT FEE shall be at a rate of SIX percent (6%) of the gross monthly rent.
5. NO DUAL REPRESENTATION / CONFLICT OF INTEREST
Under the Estate Agents (Estate Agency Work) Regulations 2010:
- Salesperson (A) SHALL NOT REPRESENT both the Vendor/Landlord and the Purchaser/Tenant in the SAME transaction.
- Salesperson (A) SHALL NOT COLLECT commission from both the Vendor/Landlord and the Purchaser/Tenant in the SAME transaction.
- It is NOT DEEMED to be dual representation where in the SAME transaction, the Vendor/Landlord is represented by ERA Salesperson (A) and the Purchaser/Tenant is represented by ERA Salesperson (B).
- Salespersons SHALL disclose to their respective 5CLIENTS in writing (e.g. text message) IF the other party to the SAME transaction OR the other party’s Salesperson is from the SAME estate agency.
- ANY relationships that Salespersons have with ANY other persons or organisations which MAY have an IMPACT on the property transaction SHALL BE DISCLOSED by the respective Salespersons to their respective Clients IN ADVANCE in order to AVOID any CONFLICT of INTEREST.
6. CO-BROKING
ANY co-brokerage fee (internal OR external) SHALL be mutually agreed upfront.
Salespersons SHALL read the contents of ALL co-broke agreements (internal OR external) carefully BEFORE signing.
7. PAYMENT OF COMMISSION
ANY Commissions or Fees collected from Customers by Salespersons SHALL be submitted to the Company within 3 working days.
Commission SHALL be made payable to ERA Realty Network Pte Ltd via cheque or in one of the following modes:
| Fund Transfer | Corporate PayNow |
|---|---|
|
Step 1: Log into your Online/ Mobile Banking (Participating banks: Citibank, DBS Bank/POSB, HSBC, Maybank, OCBC Bank, Standard Chartered Bank, UOB, Bank of China and ICBC) Step 2: Go to Transfer Funds – PayNow Step 3: Simply enter:
Step 4: Submit Payment |
*Please email [email protected] the “proof of payment and property address/invoice no.” once payment is made.