PropNex introduces commission sharing standard for grievance handling, co-broking
CO-BROKING PropNex Realty agents may now refer to a set of rental commission sharing recommendations set out by the company’s new tripartite standard on grievance handling and co-broking.
Announced on Monday (Nov 28), the tripartite standard is headed by PropNex’s Real Estate Salesperson (RES) Chapter committee. PropNex said this committee will ensure disputes by salespersons are “looked into impartially”.
All feedback must contain facts, information and evidence related to the transaction – and “not mere bare assertion not supported by any evidence” – before being looked into by the RES Chapter, said the company.
Under the minimum rental commission sharing standard, tenant agents will be entitled to 50 per cent of the commission collected by landlord agents in a co-broking transaction should the rental amount exceed S$4,000 monthly for a term of more than 24 months. Any amount above the market rate commission need not be shared with tenant agents.
Should the rental duration be 24 months or less, tenant agents will still be entitled to 50 per cent of the commission collected by landlord agents – but not exceeding half a month’s worth of rental.
Both landlords and agent tenants are recommended to collect commission from their respective clients should the rental amount be under S$4,000. No sharing will be required unless both parties have agreed upfront, and in writing, for the amount to be shared.
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PropNex said it reserves the full right and discretion to determine the amount of commission to be shared, or enforce disciplinary action, in events where agents block or deny co-broking a transaction.
Desmond Tan, Minister of State in the Prime Minister’s Office, said the new guidelines on co-broking commissions will “help create a better working environment” for PropNex agents. Tan attended the agency’s event on Monday as guest of honour.
“One of the key concerns that has been significantly raised by salespersons on the ground is the need for fair practice for co-broking in the market. Salespersons, especially those who serve in the rental market, shared how challenging it is to co-broke with fellow salespersons to secure the listings for their clients,” said PropNex chief executive Ismail Gafoor.
“Hence, to protect our salespersons and consumers in the long run, it is important that we set the standards at a company level, to ensure co-broking standards are established.”
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