Jan 2021 - 3 min read
What should I take note of when co-broking with another salesperson?
Co-broking refers to a situation when two or more salespersons, representing different parties in a
transaction, work together to complete the property transaction to the benefit of their respective
clients. The commission is then shared between the salespersons.
This is a common practice in the estate agency industry and here are some things to note to ensure a
smooth co-broking process:
There was a recent case of a salesperson who attempted to cover up receiving both a commission from his tenant-client and a co-broking fee from the landlord’s salesperson by falsely declaring the commission from his tenant-client as a ‘property management fee’. The salesperson was sentenced to a financial penalty of $27,000 and received a 10-month suspension for breaches to the Code of Ethics and Professional Client Care (CEPCC).
Remember to conduct yourself professionally in your estate agency work. If you run into any issues with co-broking arrangements, approach your KEO for assistance in resolving the matter. Disputes regarding co-broking fees should be handled by your KEO and legal department.
Information accurate as at 18 January 2021