PROPERTY AGENTS' COMMISSION RATES

PROPERTY AGENTS' COMMISSION RATES

2.

Mdm Ho Geok Choo asked the Minister for National Development where consumers (sellers and buyers) have to negotiate with the property agents for an agreed commission rate, whether there will be any avenue for dispute resolution when the consumers or property agents do not honour the agreed commission rates.

Mr Mah Bow Tan: With the formation of the Council for Estate Agencies (CEA), a new regulatory framework will be introduced for the real estate agent industry. Under this framework, CEA will prescribe a dispute resolution scheme to help property agents and consumers with contractual disputes, such as those involving payment of commission. The parties will be asked to go for mediation to resolve disputes amicably. For disputes which cannot be settled through mediation, the parties can choose to resolve it through arbitration. This dispute resolution scheme will be put in place in early 2011.

CEA's prescribed dispute resolution process involving mediation and arbitration provides a cost-efficient and convenient avenue for resolving disputes between property agents and consumers. Nevertheless, those who do not wish to make use of the prescribed scheme are free to consult their own solicitors on other recourses that they can take.

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