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 Agent Commission, Selling Property

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TSredeu3
post Jul 2 2020, 10:09 AM, updated 6y 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?
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.
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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.

 

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