| Q1: |
Who
can be a developer? |
Any
individual, group of persons, society, or company can be a housing developer
if they engages in or undertakes housing development.
However, a bank or an insurance company is not included if it only lends
or provides money for housing development. |
| Q2: |
Do
I need a license to become an estate agent? |
|
In time to come, all estate agents must
pass the Common Examination for House Agents (CEHA). Until then, you
do not need to have a license to practice as an estate agent. However,
it would be advisable to join a reputable estate agency to learn the
rules and regulations in property transactions. You may also contact
the Institute of Estate Agents for further information on the frequent
courses and seminars for estate agents.
|
| Q3: |
According
to the law, when is a commission payable to me? |
|
A commission is payable to you upon the
successful completion of the sale. This implies that the Seller has
received the money from the Buyer, and the Buyer has become the legal
owner of the property.
In the case of a tenancy situation, your
commission is payable when the parties involved have signed the Tenancy
Agreement, and when the Landlord has received the security deposit and
one month advance rental.
|
| Q4: |
Can
I recover any expenses which I have incurred in bringing in a Buyer or
Tenant? |
|
No, unless there was an agreement with
the owner, you have no right to ask the owner to compensate his efforts
or reimburse his expenditure. These expenses are considered to be risks
that all agents take in this business.
|
| Q5: |
Am
I entitled to any commission if the buyer fails to exercise the Option
to Purchase? |
|
Strictly speaking, you are not entitled
to any commission. However, most agents would ensure that the option
contract also specifies that he/she is entitled to share the forfeited
deposit with the owner, should such a situation occur.
|
| Q6:
|
Am
I entitled to my commission if the Seller (my client) defaults in carrying
out the Option to Purchase? |
|
Yes, you are entitled to
your commission because the Seller is liable for wrongful default.
|
| Q7: |
Am
I entitled to a commission if the Tenant whom I introduced to the Owner,
later decides to buy the property instead? |
|
No, because in such a case, you are not
considered the "effective cause" of the sale.
|
| Q8: |
If
a Tenant introduced by me renews his tenancy, am I entitled to a further
commission? |
|
No, since you are not regarded by law
as the "effective cause" of the renewed tenancy. However, you are entitled
to a further commission if there was a special agreement between you
and the Owner from the start of the tenancy. You should make sure that
such an agreement is made in writing to prevent the owner from denying
his liability.
|
| Q9: |
If
the Tenant whom I introduced to the Owner terminates his lease, am I then
liable to repay the owner part of the commission? |
|
No. You are not liable to repay the Owner
any portion of the commission which you have earned. However, some agents
would repay the Owner the commission on a pro-rata basis. Sometimes,
the Tenant also pays the owner for the commission paid to you.
|
| Q10: |
Is
it legal for me to sign an Option to Purchase or sale contract or Tenancy
Agreement for my client (the Owner)? |
|
No. Unless the Owner has assigned the
Power of Attorney to you in writing, you do not have the authority to
sign any Agreement for the Owner.
|
