Paying Agent Fees

[santa007 1]

Hi guys,

Just need a piece of advice here. I recently had to prematurely terminate my 2 year HDB rental lease as I am moving my whole family to our completed renovated place. I managed to find a replacement tenant for my landlord, and he was agreeable to allow us to terminate our lease, and to let the new tenants take over our remaining term.

My question is: I paid my own agent to look for a replacement tenant, arranged all the viewings and did all the negotiations on my side. However, when it came to signing of the new contract between the new tenant and the landlord, the landlord's agent (Mr A) suddenly came into picture, and insisted that he is acting for the owner, and I have to pay him agent fee as well if i wanted to complete this deal. I refused initially, but had no choice in the end as Mr A claimed that the landlord had appointed him to act on his behalf, and if I didn't pay his agent fee, there will be no deal.

Is this now the standard practice or Mr A is just taking advantage of us? Thanks in advance for any advice.

Regards,

KL

[samuel333 0]

i suppose you are the moving out tenant from the way you described.

but you said the landlord's agent is collecting a fee from you which doesn't make sense since he is not acting for you.

hence, it's absolutely alright to challenge the agent what fee he/she is collecting from you.

unless there is some form of agreement beforehand between landlord tenants and agent.

[therat 18]

landlord agent cannot collect commission from tenant.

Mr A claimed that the landlord had appointed him to act on his behalf, and if I didn't pay his agent fee, there will be no deal.

U can challenge him on this. Feedback to CEA

[Melodysoul 0]

Hi guys,

Just need a piece of advice here. I recently had to prematurely terminate my 2 year HDB rental lease as I am moving my whole family to our completed renovated place. I managed to find a replacement tenant for my landlord, and he was agreeable to allow us to terminate our lease, and to let the new tenants take over our remaining term.

My question is: I paid my own agent to look for a replacement tenant, arranged all the viewings and did all the negotiations on my side. However, when it came to signing of the new contract between the new tenant and the landlord, the landlord's agent (Mr A) suddenly came into picture, and insisted that he is acting for the owner, and I have to pay him agent fee as well if i wanted to complete this deal. I refused initially, but had no choice in the end as Mr A claimed that the landlord had appointed him to act on his behalf, and if I didn't pay his agent fee, there will be no deal.

Is this now the standard practice or Mr A is just taking advantage of us? Thanks in advance for any advice.

Regards,

KL

I do not think you need to pay the landlord agent commission as he is not representing you nor the tenants. He is representing the landlord all the while I reckon. If he really wants commission, shouldn't he ask from the landlord if he is helping to negotiate? Which agency is this agent from?

Maybe you could have notify him from the beginning that you have intention to find your own tenants?

[delphinenghs 0]

Hi,

if im not wrong, the landlord is not paying the agent, his agent fee. that's why he ask you for the agent fee instead.

however, you do not have to pay him! because he is not acting for you and you had already paid your own agent. you should ask your agent

to talk to him instead.

[santa007 1]

Thanks everyone for the advice. I had no choice but to pay the landlord agent's fee as the agent threatened not to complete the deal if i don't pay him. I was pushed to the corner as I wanted the replacement tenant to take up my remaining 1 year lease, and ended up paying both my agent and landlord agent. Felt so cheated.

[akxe 0]

Hi,

I have seen a similar situation with my friend. He (tenant) had to pay the agent fee of landlord side on tenancy break lease (premature termination of tenancy). The reason I understand is because the landlord has to pay agent fee again to secure a new tenant which is unexpected in this case , if there was no break lease. That is the reason why the tenant need to rectify the landlord's loss as I understand. But the fee to be paid has to be pro-rated , not the full fee to be fair for the tenant.

[santa007 1]

Hi akxe,

Yes, I did have a premature termination of tenancy, but I actually paid my own agent to get a replacement tenant for the landlord, and reimbursing the landlord on the loss of rental income due to the slight difference of monthly rental of the new tenant. However, when the day came to sign the contract with the landlord, the landlord agent suddenly appeared out of nowhere and insisted that I pay him the agent fee to act on behalf of the landlord... really doesn't make sense to me, but I had to pay as I really wanted to secure the new tenant to take over my lease... ;-(

[akxe 0]

Hi,

you only have to pay for one agent. not for both sides. paying for both sides is against the law. you can report this to CEA with agent details and they will take action and possibly help to get this refund.

only this can help to prevent such rogue agents from repeating this again to other people

[santa007 1]

ok thanks akxe...will do that.

[helpseeker13 0]

Thanks everyone for the advice. I had no choice but to pay the landlord agent's fee as the agent threatened not to complete the deal if i don't pay him. I was pushed to the corner as I wanted the replacement tenant to take up my remaining 1 year lease, and ended up paying both my agent and landlord agent. Felt so cheated.

You should not pay both, otherwise the agent is violating CEA's dual representation code. Please check CEA website if you want to find out more. http://www.cea.gov.sg/cea/content/resources_faq/faqInfo.html#lnkG

[piaget 0]

You should file a complain with CEA.

[darylslp 0]

Wow. I'm a new agent. Just entered the industry. And when I read your post,it really seems that you had been ripped off. I would also suggest to report to cea regarding this matter. cea is very strict on serving it's punishments.

[rogerperry 0]

You should file a complain with CEA.

[jamescoane 2]

However, you do not have to pay him! because he is not acting for you and you had already paid your own agent. you should ask your agent