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.
Commission Is Not Fixed: Market Practice vs CEA Rules
In Singapore, property agent commission rates are not fixed by law or regulation. The Council for Estate Agencies (CEA) does not prescribe specific commission rates. Commission is a commercial arrangement between the agent (or agency) and the client, agreed before services are rendered.
However, the CEA’s Practice Guidelines set clear rules on disclosure, representation, and co-broking that govern how commission is handled. Non-compliance with CEA guidelines — even on commission-related matters — can result in disciplinary action.
Market commission conventions in Singapore as at 2026:
| Transaction Type | Typical Commission Convention | Who Typically Pays |
|---|---|---|
| HDB resale (seller’s agent) | 1% of sale price | Seller |
| HDB resale (buyer’s agent) | 1% of sale price | Buyer (or co-brokered from seller’s commission) |
| Private resale (seller’s agent) | 1%–2% of sale price | Seller |
| Private resale (buyer’s agent) | Varies; sometimes co-brokered | Buyer or co-brokered from seller’s commission |
| New launch (developer sale) | Typically 3%–5% of sale price | Developer (not buyer) |
| Rental (landlord’s agent) | Typically 1 month’s rent | Landlord |
| Rental (tenant’s agent) | Typically 1 month’s rent (for leases ≥2 years) | Tenant |
These are market conventions, not fixed rates. Actual commission is subject to negotiation. Always issue a Client Authorisation Form (or equivalent) documenting the agreed commission before commencing work.
CEA Disclosure Requirements on Commission
The CEA Practice Guidelines require agents to disclose all sources of commission to clients. Specific disclosure obligations include:
- Commission from multiple parties: If an agent receives commission from both the buyer and the seller in the same transaction, this must be disclosed in writing to both parties before any commission is accepted from either side
- Developer commission in new launches: Agents representing a buyer for a new launch are remunerated by the developer (not the buyer). The buyer is entitled to know that the agent receives developer commission; agents should disclose this where relevant to the advisory relationship
- Referral fees: Any referral fee received from a third party (e.g., a mortgage broker, lawyer, or contractor) in connection with the transaction must be disclosed to the client
Agent note: The disclosure requirement on multiple commission sources is one of the most frequently misunderstood CEA obligations. Receiving commission from the developer in a new launch transaction while also acting for the buyer does not automatically constitute a conflict of interest — but it must be disclosed. An agent who receives undisclosed commission from both parties risks a CEA complaint and disciplinary action.
Co-Broking: How It Works in Singapore
Co-broking occurs when the seller’s agent and the buyer’s agent are from different agencies (or are different salespersons within the same agency) and share the commission from a transaction. The seller’s agent typically receives commission from the seller and agrees to split a portion with the buyer’s agent (co-broking fee).
Key co-broking principles under CEA guidelines:
- Co-broking must be disclosed: Both agents must disclose their respective roles and the co-broking arrangement to their respective clients
- Each agent owes a duty to their own client: In a co-brokered transaction, the seller’s agent acts for the seller and the buyer’s agent acts for the buyer. Each agent must put their own client’s interest first — even if this means the deal falls through
- Co-broking fee disputes: Disputes between co-broking agents over the commission split are a civil matter between the agencies. CEA does not adjudicate commission splits between agents
Dual Representation: The CEA’s Position
Dual representation occurs when a single agent (or salesperson) acts for both the buyer and the seller in the same transaction. Under CEA guidelines, dual representation is permitted only with the informed written consent of both parties, and only where there is no conflict of interest.
In practice, dual representation is strongly discouraged because:
- The agent owes a duty to each party — a duty to get the highest price for the seller and the lowest price for the buyer — which creates an inherent conflict
- Any information obtained from one party (e.g., the seller’s minimum acceptable price) cannot be disclosed to the other party without the first party’s consent, but withholding such information may disadvantage the client to whom the agent also owes a duty
- CEA takes a strict view of dual representation complaints and agents who face complaints arising from dual representation situations carry significant disciplinary risk
Critical agent note: If a buyer client approaches you about a property where you are already acting as the seller’s agent, the safest approach is to refer the buyer to another agent for independent representation rather than proceed with dual representation. The commission from both sides rarely compensates for the complaint and reputational risk.
Estate Agents Act: Key Agent Obligations on Commission
The Estate Agents Act (EAA) and the Housing Agents (Prevention of Unlicensed Practice) Act set out the legal framework for property agency in Singapore. Key provisions relevant to commission:
- Only registered salespersons can receive commission: Commission for property transactions in Singapore can only be received by CEA-registered salespersons (not unlicensed individuals or companies that are not licensed estate agents)
- Client Authorisation Form (CAF): CEA requires agents to issue a CAF to clients before undertaking any estate agency work. The CAF documents the scope of services, the commission agreed, and the party responsible for payment
- No upfront fees before services are rendered: Agents are not permitted to collect upfront fees or deposits from clients as a condition of providing estate agency services, unless this is expressly agreed in writing and forms part of the commission arrangement
New Launch Commission: Developer Fees
For new launch (developer sale) transactions, commission is paid by the developer to the agent’s agency. The commission rates vary by developer and project but typically range from 3% to 5% of the purchase price for residential units.
Agents acting for a buyer in a new launch (helping the buyer assess which unit to purchase, advising on the SPA terms, and accompanying the buyer to the developer’s showflat) are remunerated from this developer commission — the buyer does not pay a separate commission.
This structure means that buyer representation in new launches is effectively free for the buyer. However, the agent’s duty to the buyer (to advise objectively) must be maintained regardless of the commission source. An agent who steers a buyer toward a higher-priced unit solely to increase their commission — at the expense of the buyer’s interests — risks a CEA complaint for breach of duty.
Demonstrating Value Through Cost Transparency
One of the most effective ways CEA agents build client trust is through transparent, quantified cost breakdowns. Before any OTP is issued, run LEVR’s Stamp Duty Calculator to confirm:
- The exact BSD and ABSD payable at the agreed purchase price
- The total cash requirement (downpayment + stamp duty + legal fees) — so the client knows their full cash outlay before signing
- For sellers: the net proceeds after agent commission, legal fees, and any SSD — so they can confirm the sale meets their financial objectives
Clients who receive this level of upfront cost clarity are less likely to be surprised at completion — and less likely to file complaints when transaction costs are as expected.
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.