"We have our own agency commission payment forms," said the Secretary of an investment company when the Asia USA Realtor gave her the Asia USA's written agreement to pay the standard agency commission.

She was only interested in the Letter of Intent and the tenancy agreement. There was no such form and therefore no written contract in case of dispute.

After closing, she said her company's practice is to pay 2/3, not 100% agency commission! If the case goes to court, it will be much harder to win the case since there is NO written contract. It will be one party's word against another and the litigation expenses exceed the agency commission unless it is a Small Claims Tribunal case. The judge of the Small Claims Tribunal may or may not rule in the agent's favour.

There are many Owners who stray from payment of agency commission but it is up to the Realtors to confirm verbally and in writing as to the payment of the industry's standard. The best time is to include the agency commission payment clause in the Letter of Intent.

Common practices of such Owners, including private investment companies, managing agents for developers and developers are:

• Commission less the maintenance fees for condos. Many investment companies and some private owners adopt this practice but will not inform you.
• Postponing payment of 50% of the payment in year 2 but not informing you till the tenancy agreement is signed. However, the Landlord has had accepted the agreement to pay agency commission upon signing of the tenancy agreement.
• 50% - 80% of commission justifying that he/she has had spent money on Straits Times advertisements or had given an exclusive marketing right to another realtor. Do ask the prospective Landlord before you refer cases.
• no payment of commission to agents by one government-owned company. Sorry you didn't ask the telephone operator earlier!
• payment of 80% or 90% by managing agents for developers. These managing agents are realtors but do not mention the commission structure since you don't enquire.
• payment of half of 80% payable by the managing agent who gets 80% of the rental commission by the Owner Developer. However, if you don't listen carefully, you think you get 80% of the commission.
• staff of Landlords who do not reveal to you that the commission payable is not the industry's practice. The staff says "standard commission payable" but the standard is the company's usual practice of payment which is below the industry's standard.
• payment for 2-year lease only even though you get a 3-year lease. To save on payment, the Landlord prefers a 2-year lease with option of renewal for one year or just simply tell you that you get only 2-year commission payment, take it or leave it, after your client has shown interest in the unit.
  
  It is best for the letting agent to be aware of the various intentions of the Landlord to pay less than the standard agency commissions so that there will not be disappointments or misunderstandings.  The letting agent will then not be surprised after closure of the case to find that his earnings are much reduced. 

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