This is a discussion on Agent Fees, experts pls help within the HDB, DBSS, Executive Condominium Discussion forum, part of the Home Planning Forum category; Hi all, wanna ask. Besides the 1% commision additional 7% GST added to it? Is there any blck and white ...
Hi all, wanna ask.
Besides the 1% commision additional 7% GST added to it?
Is there any blck and white eg guidelines?
another question do we have to pay them tru hdb, during 1st appt/ 2nd appt or anytime hhehehe
Oh tinkerbell you r my helpdesk support..
this agent of mine.. indicates 7% of GST.. and demands me to settle in full cash after 1st appt. aiyohhh who can I seek help ek? Can I just say to them agent normally charge 1% only how come the addittional 7% GST is imposed by them..
Thanks tinkerbell for highlighting
We paid 1% commission + 7% gst (only on commission part) to the company where the agent is from (which is GST registered). We paid in full after the completion of 1st appt, that time kind of worried that the agent will switch attitude, but lucky he still volunteer to negotiate with the seller's agent to get us the keys before the completion of 2nd appt so that we can start renovation.
I would presume if the company is not GST registered, then you dont't need to pay the 7% gst.
Last edited by sufeit0115; 26-02-2010 at 02:21 PM.
Thanks Tinkerbell, guess you r lucky.. your agent company doesnt charge you.
My house is $277,000, if im not mistaken the total cost he charge was $3,600+ if I calculate its should be around $2963.90 I dont understand the difference..
I think our agent must be in the same company then.. sighzzzz what to do, I already signed the papers and paid deposit.. even before the HDB appt. First timers mah.. so what agent ask to do follow loh.. Anyway I did ask around and some told me that its true depends on the agent company...
Last edited by tinkerball; 26-02-2010 at 06:24 PM.
Yes you are supposed to pay 7% GST. Do remember the GST goes to the government.
BUT. The agent can choose whether to absorb the GST for you or not. For example, if the commission is $2,000, GST will be $140, so total you should be paying $2140. But, the agent can say, okay you give $2,000. The $140 GST, he will let it be deducted from his own comission.
Usually agents will ask you pay a deposit, like an option fee. This is to ensure that you stay true to the deal.
Also note that when you pay, the commission doesn't go directly into the agent's pocket. It is paid to the company, which will then give him his share of commission months later.
1k for the option fee, and 1k for the other fee.. compulsory...even before the 1st appt.
tinkerbell, I hvnt paid agent fees yet.. will try to do yr method 50% hopefuly they r ok with that.i tnk you just stick with yr agent .. no gst hehe
Pink Diamonds, thanks im very clear now... btw congrats another baby is coming!!!
Last edited by aIDa81; 27-02-2010 at 02:11 PM.
As I've mentioned before, it is up to the AGENT whether you have to pay the extra 7% GST on top of his/her commission, OR the agent absorb it for you in his commission. Whether or not it's 7% GST of the commission or not, you are STILL paying GST.
Of course, if you are only paying like $1000 commission, dont't expect the agent to absorb it for you. They will most definitely ask you to pay the 7% GST.
On a sidenote, if you pay the agent $2000, not all the money goes into their pocket. It is also deducted for the company and the manager as "commission" to them.
Tinkerbell.. ITS ERAAAAAAAAAAAAAAAAAAAA
Hi Pink Diamonds
I have new stuff to ask. To be honest this agent did not source me the house, he is the seller’s agent. I responded to him after seeing his ad.
He did not bring me around to view hses, I even submitted my HLE’s and AHG on my own.. do you think it is stil wise for me to pay 1% +7% GST?
I asked him recently, I thought rules now “One agent cannot represent both buyers and sellers to avoid conflict of interest”, he replied saying that
The rules is announced but not effective yet. I dont’t remember signing the commission part.. haizz, if I know I wld have done a bit of research rgding property agents LOL!
Another thing HDB registration for buying resale flat is $80,??this is applicable to buyers and sellers?? Wow then HDB must have make a lot of money!!!
Singapore everything is money!!!
Actually I think you can refuse to pay the commission to him. Ask him to take the commission from the seller. Since you say he never do much things for you, I dont't think he should even ask commission from you!
Im just afraid he will sue us in court.. he just showed us around the house.,, + submitting the submission haizz my fault for not making it clear before anything..to all homeseekers pls take note !! dont get trapped!!
Thanks Pink Diamonds!
I dont't think there is any reason for him to sue you guys in court, unless there is some written official agreement. Also, for a few k of commission, doubt it'll be worthwhile for him to get a lawyer and everything.
I just emailed him to negotiate the price.. well hope he give me his best price
Oh my another resale $50 then this one he had not billed me yet.
Pink D, well hope so... thanks to both of you!!
We've responded to a couple of ads in the paper. Some agts just let us view the flats that they are marketing but there was one very nice agt [Agt 1] who took it upon himself and once he has any flats on offer, he will contact us to see if we wanted to view.
We did not sign any agreement with him [Agt 1] etc, but viewed a couple of the flats that he asked us to. In the end, we purchased our flat from another agt [Agt 2].
This agt [Agt 2] is the seller's agt and he did not show us around his other properties etc coz we like the flat so much that after 1~2 viewings, we confirmed on the purchase, he then followed up accordingly with the subm of docs to HDB (we had done up the HLE on our own prior to the flat search)..
So, in the end, we paid comm to Agt 2 and did not pay anything to Agt 1. Both were really nice agents. =)
Btw, just like to ask, for the 1% comm, it is only a guideline and not a definite quantum to be paid right?
i think its just a guideline but the agent might not be earning much from it.
They advertise on the papers, online, flyers etc to look for buyers/sellers for you...
then the company also take a portion of the money.
The moral of the story esp the first time buyer, pls remember to negotiate the comm first and read first before signing. I didnt realise that I signed the comm agreement coz I just signed blindly. they made me sign together with OTP. wrote to legal dept, they refuse to reducethe COM, am still waiting for their reply. if no reply by next mon then I proceed to write in to the VP. I know its of no use since Ive signed the COMM, just trying my luck.
I will represent myself to hdb for my 1st and 2nd appt, do you guys think I can manage without them?
Thanks in advance!
I just dont want them to represent me, .... even tho I know i am still liable to pay them,.. i will just pay for my careless mistake. and at the same time i still wanna see how thick their skin is to earn easy money.. and i know what to say when i last see them.