Agent says illegal to rent HDB directly with owner

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Agent says illegal to rent HDB directly with owner

Postby bluespymaster » Mon May 09, 2011 10:46 pm

I just renewed my contract directly with owner (to save on agent fees). Agent found out and warned that the transaction is illegal. Said CEA regulations as of Jan. 1, 2011 forbids this kind of agreement. Is this true? Need your advise. Thanks!

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Re: Agent says illegal to rent HDB directly with owner

Postby verykiasu2010 » Mon May 09, 2011 10:54 pm

bluespymaster wrote:I just renewed my contract directly with owner (to save on agent fees). Agent found out and warned that the transaction is illegal. Said CEA regulations as of Jan. 1, 2011 forbids this kind of agreement. Is this true? Need your advise. Thanks!


ask agent to show you the black and white
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Re: Agent says illegal to rent HDB directly with owner

Postby tamarind » Mon May 09, 2011 10:58 pm

It is best to read the HDB webpage :

http://www.hdb.gov.sg/fi10/fi10323p.nsf ... enDocument

or call HDB directly to ask them. Do not believe in what agents or other people say.

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Re: Agent says illegal to rent HDB directly with owner

Postby tankee » Mon May 09, 2011 11:02 pm

bluespymaster wrote:I just renewed my contract directly with owner (to save on agent fees). Agent found out and warned that the transaction is illegal. Said CEA regulations as of Jan. 1, 2011 forbids this kind of agreement. Is this true? Need your advise. Thanks!


CEA Regulation governs Estate Agents & Agencies, not their customers. It meant to protect their customers.

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Re: Agent says illegal to rent HDB directly with owner

Postby hquek » Mon May 09, 2011 11:05 pm

Depends in the original agreement you signed. If there is nothing that you can only renew using the same agent, then you are stuck. Else I do not know of any regulations that require agent to be used in rental contract.

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Re: Agent says illegal to rent HDB directly with owner

Postby 30plus » Tue May 10, 2011 12:42 pm

Apparently you can do that without an agent. However, you need to read your agent's agreement for your current lease. There may be a clause saying you need to pay agent fee when you renew.

So, even you do not involve them, you have to pay. What you can do is to work out an agreement with the owner, pay the agent. At least next time you want to renew again, you do not need to pay.

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Re: Agent says illegal to rent HDB directly with owner

Postby pecalis » Thu May 12, 2011 1:51 pm

My tenant also wanted to bypass agent when we next renew our contract but I don't mind paying agent fee. In addition, I also know tt the contract we signed indicated that when we renew, need to pay agent fee. However, some time this yr, read in the forum of Straights Times that agent is not supposed (illegal, can report them) to collect fees from BOTH owner and tenant, as he can't possibly act in the interest of both parties at the same time. I forwarded my agent the article to check if that's true but he didn't reply me. So I'm also a little confused.

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Re: Agent says illegal to rent HDB directly with owner

Postby pecalis » Thu May 12, 2011 1:58 pm

Ok, found this article that I sent to my agent:

Reminder on dual rental commissions
WE THANK Mr Sim Ghee Choon for his feedback ('Tackle agents seeking dual rental
commissions'; Forum Online, last Wednesday).
Under the Estate Agents Act, the prohibition against dual representation
applies to both sale/purchase and leasing transactions. A salesman cannot
represent and collect commission from both the seller and buyer, or both the
landlord and tenant. The penalty for dual representation is a fine of up to
$25,000, or imprisonment of up to 12 months or both.
The Council for Estate Agencies (CEA) takes a serious view on salesmen
contravening the prohibition against dual representation. Should consumers come
across any salesmen doing so, they can report the matter to CEA.
Yeap Soon Teck
Deputy Director (Licensing)
Council for Estate Agencies

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Re: Agent says illegal to rent HDB directly with owner

Postby 30plus » Thu May 12, 2011 2:01 pm

If your old contract is entered before the ruling, it is not governed by the new rules. The renewal term, i.e. pay money, is part of the old contract. However, the new contract will be governed by the rule because it is a new contract. Your agent can always find his friend to represent the tenant.

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Re: Agent says illegal to rent HDB directly with owner

Postby Eddow » Wed May 18, 2011 9:26 pm

Some agents out there are going by the loop hole. I've just had a bad experienced.

I wanted to rent out a room, so got to know an agent (A) thru word of mouth, that I've an empty rm. She said she has tenant for my rm. So I arrange for her to come down to view. On the viewing day itself, she called to say she can't make it, so she'll get another agent (B) to come down with her(A) tenant. To me, they are the tenant's agent, so I didn't really bother. Upon viewing, B said that I need to pay him half a mth of rental as comm. I ask why... as he is NOT my representing agent. He say that's the rule.
I know abt the dual representation, I called up A. She insist that B is my agent and she (A) is the tenant's agent. I got angry, asking why out of a sudden I've B as my agent, without me even knowing it !!?? I tell straight that I'm not paying the fee, as B , firstly is not my representing agent, secondly, he didn't source for tenant for me. So I insisted. Guess what ? Know what she(A) say ? "If you are not paying comm, we'll not get tenant for you" I feel sorry for the tenant, as agent(A) didn't do her best for her tenant interest, but she do her best for her comm interest.

So ppl, be aware of those agents out there. As for documentation, you can easily download from website. Fill it in and submit to the town council at your area. Just that simple. Don't be fool by them saying how difficult it can be...It's only rental, not selling. (I remember my dad sold his unit himself long time back! Just buyer and seller meet at HDB)

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