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TSredeu3
post Jul 2 2020, 10:09 AM, updated 4y ago

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Hi guys,
I am selling a property and I was told the agent fee has to be paid upon the signing of S&P, is this correct? This does not sounds logical to me, because if the buyer did not manage to finalise and complete the purchase, why does the agent eligible for the full fees? This means the buyer has paid 10% of the agreed price, will be forfeited, and now the seller has to pay 20 or 30% (if the fee is 2% or 3% of the agreed selling price) basically for the agent fees if it is based on agreed selling price. This is logical? The sales is not complete until the full payment has been made right?
CRaider2
post Jul 2 2020, 10:14 AM

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QUOTE(redeu3 @ Jul 2 2020, 10:09 AM)
Hi guys,
I am selling a property and I was told the agent fee has to be paid upon the signing of S&P, is this correct? This does not sounds logical to me, because if the buyer did not manage to finalise and complete the purchase, why does the agent eligible for the full fees? This means the buyer has paid 10% of the agreed price, will be forfeited, and now the seller has to pay 20 or 30% (if the fee is 2% or 3% of the agreed selling price) basically for the agent fees if it is based on agreed selling price. This is logical? The sales is not complete until the full payment has been made right?
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Progress payment not in full. Also only registered agents are protected. If unregistered can dont pay. check out real estate agent professional body for info
mini orchard
post Jul 2 2020, 11:32 AM

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QUOTE(redeu3 @ Jul 2 2020, 10:09 AM)
Hi guys,
I am selling a property and I was told the agent fee has to be paid upon the signing of S&P, is this correct? This does not sounds logical to me, because if the buyer did not manage to finalise and complete the purchase, why does the agent eligible for the full fees? This means the buyer has paid 10% of the agreed price, will be forfeited, and now the seller has to pay 20 or 30% (if the fee is 2% or 3% of the agreed selling price) basically for the agent fees if it is based on agreed selling price. This is logical? The sales is not complete until the full payment has been made right?
*
All agency work have guidelines provided by LPPEH, which is under the MOF.

The contract between an agent and the seller is to secured a buyer. Upon signing of SnP, his contract is over and his fee is due, except where transfer need State consent, then it will be date of the approval.

Agency cannot guarantee completion of purchase which is beyond his control.

Agency also cannot guarantee a good tenant.

Once the seller or landlord accepts the offer, he is deemed to have taken over the risk.

You should have read and understand what you have signed with the agency. No point complaining after signing as I am sure the agency didnt forced you to agreed.

No agency will market your property with your terrms and FSBO is your only option.

Hospital bills are paid upon discharged. Drs cannot guarantee patient wont readmit.

This post has been edited by mini orchard: Jul 2 2020, 12:03 PM
mini orchard
post Jul 2 2020, 02:07 PM

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QUOTE(CRaider2 @ Jul 2 2020, 10:14 AM)
Progress payment not in full. Also only registered agents are protected. If unregistered can dont pay. check out real estate agent professional body for info
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If someone can do illegal things, chopping off a hand cannot be ruled out.
CRaider2
post Jul 2 2020, 02:18 PM

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QUOTE(mini orchard @ Jul 2 2020, 02:07 PM)
If someone can do illegal things, chopping off a hand cannot be ruled out.
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TS never said he sign any agreement. I am unsure if the agent is a professional registered agent or agreement in verbal. By your logic anything can happen
TSredeu3
post Jul 2 2020, 02:21 PM

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QUOTE(mini orchard @ Jul 2 2020, 11:32 AM)
All agency work have guidelines provided by LPPEH, which is under the MOF.

The contract between an agent and the seller is to secured a buyer. Upon signing of SnP, his contract is over and his fee is due, except where transfer need State consent, then it will be date of the approval.

Agency cannot guarantee completion of purchase which is beyond his control.

Agency also cannot guarantee a good tenant.

Once the seller or landlord accepts the offer, he is deemed to have taken over the risk.

You should have read and understand what you have signed with the agency. No point complaining after signing as I am sure the agency didnt forced you to agreed.

No agency will market your property with your terrms and FSBO is your only option.

Hospital bills are paid upon discharged. Drs cannot guarantee patient wont readmit.
*
I brought this up because I cannot find much has been said about this so maybe this will serve as info for others, I am not familiar with how it is in Malaysia, I believe in Australia the agent only receive the full commission after settlement.
mini orchard
post Jul 2 2020, 02:26 PM

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QUOTE(CRaider2 @ Jul 2 2020, 02:18 PM)
TS never said he sign any agreement. I am unsure if the agent is a professional registered agent or agreement in verbal. By your logic anything can happen
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When you engage a registered agency, there is definite an agreement under LPPEH guideline.

The agency also wants to protect their interest in terms of agreed fees and payment date just like ts case.

Nothing to say about illegal.

This post has been edited by mini orchard: Jul 2 2020, 02:36 PM
mini orchard
post Jul 2 2020, 02:32 PM

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QUOTE(redeu3 @ Jul 2 2020, 02:21 PM)
I brought this up because I cannot find much has been said about this so maybe this will serve as info for others, I am not familiar with how it is in Malaysia, I believe in Australia the agent only receive the full commission after settlement.
*
Every country have their own guidelines on how real estates transaction works.

Australia not equal to msia.

Should have ask all faqs before proceeding esp involving money.

This post has been edited by mini orchard: Jul 2 2020, 05:40 PM
SKPI90 P
post Jul 2 2020, 04:57 PM

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Hi! An agent here. Yes, the commission is paid upon signing of SPA. This is what I was taught when I attended the course.
Samuel.Realtor P
post Jul 2 2020, 10:31 PM

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In Malaysia, all registered real estate negotiator must follow guideline stated in the Malaysian Estate Agency Standard (MEAS).

First, let me share the general practice of selling/buying a secondary market property with you.

Step 1: Once the buyer and the seller had agreed all the terms and conditions (price, property condition, and etc) and enter into legal document - Offer to Purchase. Meanwhile, the Buyer request to make an earnest deposit (says, 3% of the agreed price) to Real Estate Agency which will be the stakeholder.

Step 2: Within 14 working days, the Buyer shall execute the SPA and pay the balance 10% to Lawyer or the Seller. And the Buyer needs to settle the balance 90% of the agreed price to the Seller in 90 days from the date of SPA**

** Freehold and without consent property, the Buyer needs to settle balance 90% of the agreed price from the date of SPA
** Leasehold and Freehold with consent property, the buyer needs to settle the balance 90% of the agreed price from the date of consent approval.

So, when the agent commission will payout?
For Freehold and without consent - SPA signed and stamped
For Leasehold and Freehold with consent property - after Consent approved.

I hope this help. biggrin.gif

Lescotesco
post Jul 3 2020, 03:12 PM

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QUOTE(redeu3 @ Jul 2 2020, 10:09 AM)
Hi guys,
I am selling a property and I was told the agent fee has to be paid upon the signing of S&P, is this correct? This does not sounds logical to me, because if the buyer did not manage to finalise and complete the purchase, why does the agent eligible for the full fees? This means the buyer has paid 10% of the agreed price, will be forfeited, and now the seller has to pay 20 or 30% (if the fee is 2% or 3% of the agreed selling price) basically for the agent fees if it is based on agreed selling price. This is logical? The sales is not complete until the full payment has been made right?
*
i don get it, if this agent managed to find u a deal with 10% deposit forfeited, why wont u give the 3% commission to him? u still get 7% for free anyway and he already performed his service.
mini orchard
post Jul 3 2020, 04:58 PM

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QUOTE(Lescotesco @ Jul 3 2020, 03:12 PM)
i don get it, if this agent managed to find u a deal with 10% deposit forfeited, why wont u give the 3% commission to him? u still get 7% for free anyway and he already performed his service.
*
500,000 snp x 10% = 50,000

2% x 50,000 = 10,000

50,000 - 10,000 =:40,000

I dont mind having few aborted sale

40,000 x 3 cases = 120,000.

Wonder who can give such easy money.

This type of worry is like putting cart before the horse.

This post has been edited by mini orchard: Jul 3 2020, 05:13 PM
Lescotesco
post Jul 3 2020, 05:17 PM

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QUOTE(mini orchard @ Jul 3 2020, 04:58 PM)
500,000 snp x 10% = 50,000

2% x 50,000 = 10,000

50,000 - 10,000 =:40,000

I dont mind having few aborted sale

40,000 x 3 cases = 120,000.

Wonder who can give such easy money.
*
exactly, it is free money and yet still think it is not logical to give 20/30% to the agent who find u such favorable deal.

i can only say... greedy thinking...

 

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