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.
How Developer Panel and Co-Broking Work
New launch residential projects in Singapore are typically sold through a developer's appointed marketing agents (the "project marketing team"). These are agencies that have a formal appointment from the developer to market the project. Agents from other agencies ("co-broking agents") can bring buyers to the project and earn a referral fee from the developer — split from the marketing agent's overall commission.
There are typically three arrangements:
- Direct appointment: The agent's agency is appointed by the developer as a project marketing agent. Commission is paid directly by the developer to the agency upon successful sale.
- Co-broking (outside agent): An agent from a non-appointed agency brings a buyer to the sales gallery. The project marketing agent splits a portion of the developer commission with the co-broking agent's agency.
- Referral to project team: An agent introduces a buyer to the project marketing team but does not accompany the buyer through the sale — a flat referral fee is paid.
Who Pays the Agent in a New Launch Transaction?
In a new launch purchase, the developer pays the agent's commission — the buyer does not pay a separate agent fee. The developer's commission cost is effectively built into the unit pricing, but it is not charged as a separate line item to the buyer.
Typical new launch agent commissions range from 1% to 3% of the purchase price, depending on the project, developer, and marketing terms. Co-broking splits vary — common arrangements are 50/50 or 60/40 between the project marketing agent and the co-broking agent.
CEA Disclosure Obligation: Referral Fees Must Be Declared
Under CEA's Code of Ethics and Professional Client Care, agents must disclose to their clients any referral fees, commissions, or other financial benefits received from third parties (including developers) in connection with the transaction. This disclosure must be:
- Made in writing before the transaction is completed
- Clear about the nature and approximate amount of the referral fee
- Acknowledged by the client
Failure to disclose a developer referral fee to a buyer client is a breach of CEA conduct rules and can result in disciplinary action. The disclosure requirement exists because the buyer has a right to know that their agent has a financial interest that could potentially influence the advice given.
Is the Agent's Advice Compromised by Developer Commission?
The concern underlying the disclosure rule is that an agent earning commission from the developer might recommend a particular development — or discourage a client from withdrawing — because of the commission rather than the client's best interest. Disclosure does not eliminate this concern, but it allows the client to make an informed decision knowing the agent's financial interests.
Agents acting as buyer's representatives for new launch clients should be able to demonstrate that their recommendations are based on the client's needs — not on which developments pay higher commissions. Maintaining a comparison analysis of alternative projects (including those where the agent earns lower or no commission) is good practice and defensible if questioned.
The Co-Broking Agent's Obligations at the Sales Gallery
When a co-broking agent accompanies a buyer to a developer's sales gallery, the agent should:
- Register the buyer with the sales gallery on arrival — most developers require co-broking agents to register to be credited for the referral
- Remain present during the sales presentation — "drive-by" referrals without proper client service are unprofessional and may not qualify for co-broking commission
- Review the project's key documents with the client: the HDA-prescribed brochure, floor plans, and the draft S&P Agreement (if available)
- Advise the client on the unit selection, stack considerations, and pricing relative to comparables
- Disclose the developer referral fee in writing before the booking fee is paid
Conflict of Interest: When the Agent Represents Both Buyer and Developer
If an agent from a project marketing agency accompanies a buyer to their own project (i.e., they are simultaneously the developer's marketing agent and the buyer's agent), this is a dual representation situation. CEA rules require:
- Written disclosure to the buyer that the agent is also the developer's marketing agent
- Informed written consent from the buyer to proceed with dual representation
- The agent must still exercise duty of care to the buyer — not just advance the developer's interest in closing the sale
Q: Does a buyer pay anything extra if they use an agent at a new launch?
A: No. The buyer's purchase price is the same whether they use their own agent, go through the developer's sales team directly, or walk in unrepresented. Developer commissions are built into project pricing for all buyers. Using an agent to accompany them costs the buyer nothing extra and gives them a professional who owes them a duty of care.
Q: Can a buyer negotiate a lower price if they come without an agent?
A: Developers rarely discount for unrepresented buyers in Singapore. The developer's pricing is typically fixed by launch pricing grids. Buyers who walk in unrepresented generally pay the same price as those with agents — but without independent advisory. Some buyers attempt to negotiate that the commission savings be passed to them; this is uncommon and developers are under no obligation to do so.
Q: What should agents do if a developer pays significantly higher commission for a project?
A: Agents must ensure their recommendations to clients are based on the client's needs, not on commission rates. If an agent is considering recommending a higher-commission project over a better-suited one, they are in conflict. The appropriate response is to present all suitable options to the client with an objective comparison — and let the client decide. The referral fee must be disclosed regardless.
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.