Buying, selling, or renting a property is complicated enough; engaging a property agent shouldn’t be. Here are six steps you should take when engaging a property agent:

1. Decide if you need a property agent
   
   It is not compulsory to engage a property agent for your property transactions. If you are familiar with property transactions, you may choose to handle it on your own. However, if you are unsure about the procedures and regulations, you may wish to engage a registered property agent to help you.


2. Check that the agent is registered with the Council for Estate Agencies (CEA) via its Public Register
   
   It is an offence for any individual to carry out estate agency work without a valid registration. CEA’s Public Register allows you to search for the particulars of registered property agents or licensed property agencies.
   
   If you are unable to find an agent or agency in the Public Register, they could be unlicensed or unregistered, or they could have been suspended or have had their licenses or registrations revoked.
   


3. Negotiate your agent’s commission before he starts work
   
   Commission rates are not fixed, nor are there “standard market rates”. You are free to negotiate the amount and components of the fees and expenses as well as the terms with the agent before your agent starts work. After your transaction has been completed, you should pay the commission to the property agency, not directly to the agent.


4. Use CEA’s prescribed estate agency agreements
   
   An estate agency agreement is a binding contract between you and the property agency to protect the interests of both parties. It covers the agent’s duties, the agreed commission rate, and any conflict of interest the agent might have.


5. There should be no dual representation
   
   Your agent can represent you only in a property transaction. He also cannot collect commission from you and a co-broke fee from the other party’s property agent in a co-broke transaction.


6. Handle your own money
   
   It is best to handle the money related to your property transaction yourself, as it is illegal for your agent to handle certain monies. Don’t pass any cash through your agent to the payee; use verifiable payment modes such as crossed cheques and bank transfers to pay the payee directly.

For more information about engaging a property agent, visit https://www.cea.gov.sg/happyconsumer/.