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 Co-Broking?
Co-broking (also called co-agency) occurs when a property transaction involves two agents from different estate agencies — typically one representing the seller (or landlord) and one representing the buyer (or tenant). The two agents collaborate to facilitate the transaction, and the commission earned is split between them (or their respective agencies) according to an agreed arrangement.
Co-broking is distinct from dual representation, where one agent from one agency represents both parties. In co-broking, each party has their own agent acting exclusively in their interest.
Commission Structure in Co-Broking
Who Pays Commission?
In Singapore, commission conventions differ by transaction type:
- HDB resale: By convention, the seller pays commission to the seller’s agent, and the buyer pays commission to the buyer’s agent. The CEA has published indicative commission guidelines — currently 1% of the transaction price for each side, though this is not a fixed statutory rate and parties may negotiate.
- Private resale: The seller typically pays commission to both the seller’s and buyer’s agent (i.e., the seller bears the full commission). However, this is a market convention, not a statutory requirement, and arrangements vary.
- New launch (developer sales): The developer pays the selling commission to the agent. Buyer’s agents typically receive a co-broke share from the developer’s appointed marketing agency or from the project commission pool.
- Rental: For residential leases of 12 months or more, the landlord typically pays one month’s rent as commission to the landlord’s agent, and the tenant pays one month’s rent to the tenant’s agent (for a 2-year lease). For shorter leases, half a month’s rent is the common convention. Again, these are conventions — not fixed statutory rates.
Commission Splits in Co-Broking
When a buyer’s agent co-brokes with a listing agent on a private property transaction where the seller pays both commissions, the commission split must be agreed between the two agents (or their agencies) before the transaction proceeds. Common split arrangements include:
- Equal split (50/50) — each agent’s agency receives half of the total commission
- Unequal split — e.g., 60% to the listing agent and 40% to the co-broker, or vice versa, depending on the respective agencies’ agreements
- Fixed referral fee — a flat fee paid to the co-broker rather than a percentage split
There is no CEA-prescribed split ratio — this is a commercial arrangement between the agencies. However, once agreed, the split must be honoured.
Disclosure Obligations in Co-Broking
Under the CEA’s Code of Ethics and Professional Client Care (CEACC), agents must disclose their co-broking arrangement to their respective clients. Specifically:
- The buyer’s agent must disclose to the buyer that they are co-broking with the seller’s agent, and must clarify who is paying the buyer’s agent’s commission
- If the buyer’s agent is receiving commission from the seller (rather than from the buyer), this is a potential conflict of interest and must be disclosed in writing
- Agents must not misrepresent the commission arrangements to either party — concealing that a co-broking arrangement exists, or that commission flows from an unexpected source, is a disciplinary risk
Agent note: Many disputes arise when clients later discover that the agent they believed was acting exclusively in their interest was actually being paid by the other party. Document all commission arrangements clearly in the Estate Agency Agreement and disclose them to your client before the transaction proceeds.
Co-Broking and the Estate Agency Agreement
Each agent in a co-broking arrangement should have a signed Estate Agency Agreement (EAA) with their respective client. The EAA must clearly state:
- The commission rate or amount payable
- Whether the commission is payable by the client directly or by the other party (and the source of the payment)
- Whether the appointment is exclusive or non-exclusive
- Duration of the appointment
A buyer’s agent who proceeds without a signed EAA may not be entitled to claim commission if a dispute arises — even if the transaction completes successfully.
New Launch Co-Broking
In new launch (developer) projects, the developer appoints a marketing agency (or a panel of marketing agencies) to manage sales. Buyer’s agents who bring purchasers to the project receive a co-broke commission from the developer’s commission pool. Key points:
- The buyer does not pay commission in a new launch transaction — all commission is paid by the developer
- The co-broke rate is set by the developer or marketing agency and is not negotiable by the buyer’s agent
- Agents must register their buyer’s interest with the developer or marketing agency before the sale — failing to register may forfeit the co-broke entitlement
- Some developers have “no co-broke” policies on certain projects or phases — agents should confirm co-broke terms before bringing buyers to a project
Professional Obligations Between Co-Broking Agents
The CEACC applies not only to agent-client relationships but also to conduct between agents. In co-broking arrangements, agents must:
- Deal honestly and professionally with the co-broking agent — not withhold material transaction information that the other agent needs to advise their client
- Not attempt to “cut out” the co-broking agent after they have introduced a buyer — misappropriating a co-broker’s client is an ethical violation
- Not communicate directly with the other agent’s client without that agent’s knowledge or consent
- Honour agreed commission splits — attempting to reduce or withhold the co-broker’s commission after completion is a dispute that can be brought to the CEA
Resolving Co-Broking Commission Disputes
Commission disputes between agents (or between an agent and client) can be brought to the CEA for mediation. The CEA operates a dispute resolution process that is faster and lower-cost than civil litigation. Agents who cannot resolve disputes informally should document all communications and refer to the CEA.
To minimise disputes: confirm co-broking terms in writing before the transaction, ensure both agents have signed EAAs with their respective clients, and issue a written co-broke confirmation letter between the two agencies once the commission arrangement is agreed.
Supporting Professional Practice with LEVR
Regardless of whether you are the buyer’s or seller’s agent in a co-broking arrangement, providing accurate financial calculations to your client is a core professional obligation. LEVR’s ABSD Calculator, Stamp Duty Calculator, and Home Loan Calculator give agents accurate, defensible figures — reducing the risk of misrepresentation complaints and demonstrating professional competence to clients.
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.