Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
What Is the Estate Agent Agreement?
The Estate Agent Agreement (EAA) is a written contract between the estate agent (EA) and the client that must be executed before any estate agency work is carried out. Under the Estate Agents Act and CEA regulations, no salesperson may commence estate agency work without a signed EAA in place.
The CEA prescribes mandatory EAA forms for different transaction types. Agents may not substitute their own custom contract or omit required terms — the CEA prescribed form must be used as the base document.
CEA Prescribed EAA Forms
| Transaction Type | EAA Form | Notes |
|---|---|---|
| Sale of residential property (seller) | Form 1 or Form 3 | Form 1 = exclusive; Form 3 = non-exclusive |
| Purchase of residential property (buyer) | Form 2 or Form 4 | Form 2 = exclusive; Form 4 = non-exclusive |
| Rental — landlord | Form 5 or Form 7 | Form 5 = exclusive; Form 7 = non-exclusive |
| Rental — tenant | Form 6 or Form 8 | Form 6 = exclusive; Form 8 = non-exclusive |
The CEA publishes the current versions of all prescribed forms on its website. Agents should always download the latest version before each transaction — outdated forms do not comply with current regulations.
Mandatory Terms in Every EAA
Regardless of form number or exclusivity arrangement, every EAA must contain the following mandatory terms:
| Mandatory Term | What It Must State |
|---|---|
| Parties | Full name and licence/registration number of the EA; full name and NRIC/passport of the client |
| Scope of work | Description of the estate agency work to be performed (sell, buy, let, or rent a specific property or type of property) |
| Duration | Commencement date and expiry date of the agreement — open-ended EAAs are not permitted |
| Commission | Rate or quantum of commission payable, when it becomes due, and whether it is inclusive or exclusive of GST |
| Marketing expenses | Any expenses (photography, advertising, portals) that will be charged to the client separately from commission — must be agreed upfront |
| Salesperson details | Name, CEA registration number, and contact of the salesperson(s) who will perform the work |
| Client cooling-off right | Statement that the client has a 5-business-day cooling-off period after signing (applies to exclusive EAAs for residential property only) |
Exclusive vs Non-Exclusive EAA
The choice between exclusive and non-exclusive determines whether the client may engage other agents concurrently and under what circumstances commission is payable.
| Feature | Exclusive EAA | Non-Exclusive EAA |
|---|---|---|
| Other agents permitted? | No | Yes |
| Commission trigger | Commission payable even if deal done by another party during exclusivity period | Commission only payable if this agent procured the transaction |
| Cooling-off period | 5 business days (residential only) | Not applicable |
| Client self-introduces buyer/tenant | Commission still payable unless EAA specifically carves out self-introduced parties | No commission payable if client closes deal directly |
| Maximum duration | No prescribed maximum, but must have a fixed end date | No prescribed maximum, but must have a fixed end date |
Commission Disclosure Requirements
Commission must be disclosed in the EAA in sufficient detail for the client to understand exactly what they will pay and when. CEA enforcement actions frequently cite inadequate commission disclosure as a contributing factor.
- Rate or quantum: State either a percentage of transaction price or a fixed dollar amount — not a vague description like "market rate"
- GST treatment: State whether commission is inclusive or exclusive of 9% GST
- When payable: Typically on exchange of OTP, on exercise of OTP, or on completion — the trigger must be specified
- Co-broking commission: If the agent intends to co-broke with another agent and share commission, this should be disclosed in the EAA or at the point co-broking is arranged
- Commission from both parties: If the agent is acting for both buyer and seller (dual representation), the commission from both parties must be disclosed and written consent obtained from both
Dual Representation and the EAA
When a salesperson acts for both the buyer and the seller in the same transaction (dual representation), this creates a conflict of interest. CEA regulations require:
- Written disclosure to both parties that the agent is acting for both
- Written consent from both parties to the dual representation arrangement
- Disclosure of the commission to be received from each party in the respective EAA
Signing and Record Retention
The EAA must be signed by all parties before estate agency work commences. Electronic signatures are acceptable under the Electronic Transactions Act provided both parties consent to electronic execution.
- Original copy: Client must receive a copy of the signed EAA at the time of signing
- Retention period: EAs must retain EAA records for at least 5 years from the date the agreement ends
- Amendments: Any amendments to commission, scope, or duration after signing must be documented in writing and signed by both parties
Common EAA Compliance Failures
| Compliance Failure | Consequence |
|---|---|
| No EAA signed before work commences | Commission not legally recoverable; CEA disciplinary action |
| Using outdated CEA form | EAA may not include currently required terms; compliance gap |
| Commission stated as "to be agreed" or left blank | Inadequate disclosure; commission dispute likely; CEA investigation risk |
| Dual representation without written consent from both parties | Regulatory breach; commission from either party may be clawable |
| Cooling-off right not explained before exclusive EAA signed | Regulatory breach; client may later void the EAA |
| EAA signed after deal is already agreed in principle | Backdating is a serious regulatory offence; commission also unrecoverable if EAA genuinely post-dates commencement of work |
Agent Checklist: EAA Compliance
- Download the current CEA prescribed form for the transaction type before every deal
- Execute the EAA before viewing appointments, marketing, or any estate agency work commences
- State commission as a specific percentage or dollar amount — never as "market rate" or TBD
- Specify the exact trigger event for commission payment in the EAA
- For exclusive EAAs on residential property, explain the 5-business-day cooling-off right verbally and in writing before signing
- For dual representation, obtain written consent from both parties and disclose commission from each in the respective EAA
- Provide the client with a signed copy at the time of execution
- Retain EAA records for at least 5 years
- Document any post-signing amendments in writing with both parties' signatures
Q: Can an agent use their own EAA template instead of the CEA prescribed form?
A: No. CEA regulations require the use of the prescribed form as the base document. Agents may add supplementary terms (e.g., specific property details, additional services) but may not substitute a custom template for the prescribed form or omit required terms. Using a non-compliant EAA is a disciplinary offence.
Q: What happens if the client refuses to sign an EAA before viewing a property?
A: The agent should not proceed with estate agency work — including property viewings — without a signed EAA. If the client is unwilling to sign, the agent can explain that it is a regulatory requirement, not an agent preference. Proceeding without an EAA exposes the agent to both commission loss and disciplinary action.
Q: If a client signs a non-exclusive EAA and then buys through another agent, does the original agent get paid?
A: No. Under a non-exclusive EAA, commission is only payable if the agent who signed the EAA procured the transaction — meaning they were the effective cause of the buyer and seller coming together. If the buyer purchased through a different agent who introduced the property, the original non-exclusive agent has no claim to commission.
Q: Does the EAA need to be witnessed or notarised?
A: No witnessing or notarisation is required for a standard EAA. The agreement is valid when signed by both the EA (or authorised representative) and the client. Electronic signatures are acceptable under the Electronic Transactions Act if both parties consent.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.