Landlord’s Interest to be Guarded when Tenant Agent is Collecting Commission from Landlord Side

In Singapore property transactions, there are situations where a landlord or seller may agree to pay the commission of the tenant’s or buyer’s agent. While this can help facilitate a transaction, it is important that the landlord’s or seller’s interests continue to be properly protected.

Whether it is a rental or sale transaction, clear professional boundaries and cooperation between the respective agents are essential.

1. Tenant or Buyer Agent to Sign an Undertaking Letter

One practical proposal is for the tenant’s or buyer’s agent to sign an Undertaking Letter where their commission is being paid by the landlord or seller.

The undertaking can provide assurance that the landlord’s or seller’s interests will be respected throughout the transaction, while recognising that the tenant or buyer’s agent continues to represent their own client.

It can cover matters such as professional cooperation, transparent communication, respect for the appointed landlord’s or seller’s agent, and avoiding any attempt to undermine the established agency relationship.

2. Properly Advise and Manage the Tenant or Buyer

The tenant’s or buyer’s agent should continue to represent their client professionally, while ensuring that the client understands and complies with the agreed terms.

For a rental, this includes helping the tenant understand and observe the Tenancy Agreement.

For a sale, it means ensuring that the buyer understands the agreed terms of the transaction and proceeds in accordance with the negotiated arrangements.

The objective is not to favour one party, but to ensure that the transaction is handled professionally and fairly.

3. No Undercutting of the Landlord’s or Seller’s Agent

Where a landlord or seller has appointed an agent, that established agency relationship should be respected.

A tenant’s or buyer’s agent should not deliberately create an uncooperative relationship, withhold necessary communication or create friction that makes it difficult for the landlord’s or seller’s agent to carry out their role.

Good co-broking should be based on cooperation rather than competition.

4. No Direct Bypassing or Circumvention

An established agency relationship should not be bypassed after a property has been introduced.

For example, where the landlord’s or seller’s agent has marketed a property, arranged viewings or introduced the property to a tenant or buyer, the parties should not subsequently attempt to cut that agent out of the transaction or agreed commission arrangement.

This applies to both rental and sale transactions.

Respecting the established agency relationship helps ensure that agents who have contributed to bringing the transaction together are treated fairly.

5. Duty of Cooperation

All agents involved should communicate openly and cooperate throughout the transaction.

Relevant deal terms, requirements and information should be communicated transparently rather than withheld in a way that creates unnecessary friction.

Whether it is negotiating a Tenancy Agreement, Option to Purchase or Sale and Purchase Agreement, cooperation between the respective agents helps the transaction proceed smoothly.

6. Ethical and Professional Standards

Ultimately, this is about more than commission.

Real estate professionals are expected to maintain ethical standards, deal fairly with other agents and avoid conflicts of interest, commission poaching or bad-faith negotiations.

CEA's professional guidelines emphasise ethical, honest, fair and reasonable dealings between agents, including in co-broking situations.

Protecting the Landlord or Seller While Respecting All Parties

When a landlord or seller pays the tenant’s or buyer’s agent, there should be clarity, transparency and mutual respect from the beginning.

An undertaking letter can be one practical safeguard, while professional cooperation ensures that the respective agents can represent their clients without undermining one another.

At Oriental Realty Pte Ltd, we believe that successful property transactions — whether rental or sale — are built on trust, clear communication and respect for established professional relationships.

Protecting the landlord’s or seller’s interests does not mean compromising the tenant’s or buyer’s representation. It means ensuring that everyone involved understands their role and conducts the transaction professionally.