Property Views

[starlight1968sg]

Appreciate advice, pls.

A buyer has to pay 1k of booking fee to the seller for a resale hdb flat.
If the buyer were to back out, the 1k would be forfeited.
How much to pay to the housing agent who has gotten this "buyer"?
Thank you.

[Estéema]

starlight1968sg\" post_id=\"1996071\" time=\"1600846220\" user_id=\"14025:

Appreciate advice, pls.
A buyer has to pay 1k of booking fee to the seller for a resale hdb flat.
If the buyer were to back out, the 1k would be forfeited.
How much to pay to the housing agent who has gotten this \"buyer\"?
Thank you.

Haha... was thinking of you.

The buyer backs out. Option to Purchase consideration is forfeited. There is no contract secured. Agent hv no claim to that portion of the fee u’ve forfeited. Tell yr agent, u’ve plans & the buyer thwarted that plan. The amt u forfeited is not enuf to get yr original plan materialized. He/she shld collect commission only upon a closed deal with purchase approved by HDB. Along the process, any uneventful renders no service delivered. Real estate not so easy to earn money here & there. Just be firm, commission is only for successful close sale. That’s commission for good advice, proper paperwork, see through entire process. Not paid for aborted case.

[starlight1968sg]

Esteema

Thanks for your advice. I tried to google for this part (ie need to compensate agent for her work … if the buyer were to back out) but found nothing and hence decided to ask here.
Am still praying …

[doodbug]

It depends on the contract which you had signed with your agent/agent’s company.


I am in the middle of a HDB sale now. I have had two buyers who forfeited the $1k. The agent did not get any commission from the two instances of buyers who did not exercise the option.

f you signed the clause that requests a 50% share in the event the Option Fee is refunded, then you will have to make the necessary payment as the agency will have the right to make a claim.

[Estéema]

doodbug\" post_id=\"1996087\" time=\"1600849532\" user_id=\"13281:

It depends on the contract which you had signed with your agent/agent's company.

I am in the middle of a HDB sale now. I have had two buyers who forfeited the $1k. The agent did not get any commission from the two instances of buyers who did not exercise the option.

f you signed the clause that requests a 50% share in the event the Option Fee is refunded, then you will have to make the necessary payment as the agency will have the right to make a claim.

Agree, if there is a contract alr signed with agent. Mkt practice has been that agents do not sign any document, unless they’re asking for exclusive, then there’ll be a signed doc btwn agent & owner.

The fact that Star is searching for an answer, shows the agent left it w/o any contract btwn them to clearly guide Star. In this event, agent will not be entitled as per Mkt practice. Not many agents go high handed to claim credit coz Owner have a lot more to loose in an aborted deal. It is their responsibility to deliver - close deal on signed sale & purchase & collect commission only after relevant authorities approved (in this case HDB).

[doodbug]

I’ve had experiences both ways.


The current place I am staying in (pte property)… my hubby was so called, the ‘third buyer’. On the agreement, we saw clearly that the agent would be awarded 0% commission for the sale. We asked why. He replied that the 1st and 2nd buyer had paid option fee, and did not exercise option. Each time, he received 50% of the Option Fee. Hence, he already pocketed 1% commission, which is not trivial for a fairly large private property. This is why he agreed on a 0% commission by the time it came to the third buyer.

For the HDB flat that I am currently selling, I collected the $1k twice. Mine is an exclusive agreement with an agent, but I have not been asked to share the option fee. (I cannot recall the details of my contract, though). And sian, I am at the third buyer now. The process is a lot slower for HDB sales than pte property sales.

[zac's mum]

Times must be very hard if buyers are giving up their deposits & agents are clamoring to scavenge whatever tiny commissions from non-sales.


I don’t recall my contract having to pay the (exclusive) HDB agent any commission if the sale doesn’t go through.

[starlight1968sg]

Thanks for all the advice given.


I totally agreed on Esteema’s "Owner have a lot more to loose in an aborted deal".

[starlight1968sg]

doodbug\" post_id=\"1996091\" time=\"1600850435\" user_id=\"13281:

And sian, I am at the third buyer now. The process is a lot slower for HDB sales than pte property sales.

May I ask if u can share the reasons why buyers backed out?
The selling price is above COV?
They hv agreed on the selling price before paying 1k Option fee.

[zac's mum]

My guess: pay cut or retrenchment. May not be themselves. Sometimes their buyer backed out. Then it affects the whole chain.


I know there is a grace period to buy first & to sell later (within 6 months)? But not everybody likes to do it this way. Some prefer to sell first then buy. Safer.