The clause you mentioned is a standard inclusion in many real estate agency agreements in Singapore. It's designed to protect the agent's interests in case a sale happens shortly after their contract expires, but with a buyer they introduced. Here's how it could play out and how you can navigate potential issues:
**How it Works:**
1. **Validity Period:** The agency agreement typically has a set duration (e.g., 3 months). During this time, the agent actively markets your property and introduces potential buyers.
2. **Expiry Date:** If the property doesn't sell within the validity period, the contract expires.
3. **Extended Commission Period:** However, this clause extends the agent's potential claim for commission for another 3 months after expiry. If, during this period, you sell to a buyer the agent introduced, you'd owe them a commission.
**Concerns for Sellers:**
* **Multiple Agents:** If you engage multiple agents with similar clauses, and each introduces a different buyer who later makes an offer after expiry, you could theoretically owe commissions to several agents. This is financially undesirable.
* **Identifying the Buyer:** Disputes can arise if it's unclear which agent was the effective cause of the sale, especially if a buyer was introduced by multiple agents or independently discovered the property.
**How to Resolve Potential Issues:**
1. **Exclusive Agency Agreement:** Consider an exclusive agreement with one agent. This eliminates the risk of multiple commissions. However, ensure the agent is reputable and actively working to sell your property.
2. **Non-Exclusive Agreement with Indemnity Clause:** If you prefer multiple agents, include an indemnity clause in each contract. This clause states that the agent will indemnify you (protect you from financial loss) if you're liable to pay commission to another agent due to their introduction.
3. **Clear Buyer Identification:** Make sure each agent documents their buyer introductions clearly. This could be through written records, emails, or even a formal introduction form. This helps establish who brought the buyer to the table.
4. **Negotiation:** If a sale happens after expiry and multiple agents claim commission, negotiation is key. Try to reach an amicable agreement with the agents involved, perhaps splitting the commission or paying a reduced amount.
5. **Mediation or Legal Action:** If negotiation fails, mediation by the Council for Estate Agencies (CEA) or legal action might be necessary to resolve the dispute.
**Additional Tips:**
* **Read Contracts Carefully:** Thoroughly review agency agreements before signing. Understand the commission terms, validity period, and any clauses related to post-expiry commissions.
* **Communicate Clearly:** Clearly inform all agents if you're working with multiple parties. This transparency helps avoid misunderstandings later.
* **Consult a Lawyer:** If you're unsure about any legal terms or potential conflicts, seek legal advice to protect your interests.
Remember, these clauses are negotiable. Don't hesitate to discuss them with the agents and tailor the agreement to your needs.
WhatsApp me at: ABLE Toh (65) 98 56 92 55 or through this link.:https://wa.me/6598569255
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