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Agent Agreements and DIY Guide
CEA agreements, commission, and thinking about DIY resale
The short version
- The CEA estate agency agreement is good practice for everyone. It clarifies scope, duration and commission upfront.
- Commission is negotiable. It’s not fixed by law or by CEA.
- A quoted rate like
1% + GSTis just one common practice, not a universal rule. - Exclusive and non-exclusive agreements work very differently. Know the liability difference before you sign.
- DIY can work if you’re disciplined, but you’ll need to learn the process and manage every deadline yourself.
Why the agreement matters
The estate agency agreement is the cleanest way to document:
- Who your agent is acting for
- Whether it’s exclusive or non-exclusive
- What work is included
- How commission is computed
- Whether GST is included or excluded
- Any extra agreed terms
It protects both you and the agent.
Exclusive vs non-exclusive
| Topic | Exclusive | Non-exclusive |
|---|---|---|
| Agencies appointed | One only | More than one |
| Typical validity | Up to 3 months | Depends on agreed terms |
| You transact through someone else during validity | You may still owe commission to the appointed agency | Commission usually goes to the agency that closed the deal |
| Tail period after expiry | You may still owe commission if transacting with a party introduced during validity | Usually less restrictive, but read the terms carefully |
Commission: what you need to know
What’s true
- There are no fixed commission rates set by CEA
- Commission should be discussed and agreed before work starts
- GST should be clarified upfront
- Commission is payable to the property agency, not to the salesperson personally
What’s not safe to say
buyer side is always 1%seller side is always 2%this is market standard so no need to discuss
These may be common market practices in some segments, but they’re not hard rules.
Important conduct rule
If your agent collects commission from you, the same agent should not also collect commission or a co-broking fee from the other party in the same transaction.
Good agent practice before the client signs
Go through these with your client:
- Scope of work
- Validity period
- Commission and GST basis
- Conflict of interest disclosure
- Co-broking permission or limitation
- What happens if the client finds the other party independently
- What happens if the deal falls through
DIY: when it can make sense
DIY works when you:
- Are willing to read the official guides carefully
- Can handle deadlines calmly
- Have time to prepare documents and follow up
- Are comfortable negotiating and documenting terms
- Have a straightforward household structure and financing plan
DIY gets riskier when the case involves:
- Divorce, probate, or power of attorney issues
- Linked sale and purchase with a tight timeline
- Bank loan and lawyer coordination under pressure
- Extension of stay or special possession terms
- Lease, CPF or grant complications
How agents actually add value
The strongest value proposition isn’t “I can list your flat.”
It’s:
- I can price it correctly
- I can protect your timeline
- I can structure the OTP terms properly
- I can coordinate the application and completion steps
- I can reduce preventable mistakes in a high-value transaction
DIY users: what you should still do without an agent
- Use the HDB and CPF dashboards, not memory
- Use the official CEA DIY pages
- Use the HDB / IRAS / CPF calculators
- Keep written records for OTP, fittings, extension and reimbursement items
- Appoint your law firm early if you’re on a bank loan