Quick answer: There is no fixed or prescribed property-agent commission rate in Singapore. CEA states that commission is negotiable. The amount, scope of work and whether GST applies should be agreed before work starts and documented in an estate agency agreement.
Key takeaways
- CEA does not set a standard commission rate, minimum rate or maximum rate.
- You are free to negotiate the commission and the services included.
- The agreed commission should be documented in CEA's Prescribed Estate Agency Agreement.
- Commission is paid to the property agency, not directly to the salesperson, after the transaction is completed.
- Only a GST-registered property agency may charge GST.
- A property agent cannot represent and collect commission from both sides of the same transaction.
So what is the “market rate”?
Consumers often hear informal percentages quoted as though they are official. They are not. CEA's current consumer guidance is explicit: there are no fixed commission rates or prescribed commission guidelines.
That means the correct question is not “What percentage am I legally required to pay?” There is no such standard percentage. The better question is: What service am I getting, what amount have we agreed, and what happens if the transaction succeeds?
What should be written down before marketing starts?
CEA encourages consumers to use its Prescribed Estate Agency Agreements for residential sale and purchase transactions. The agreement records the scope of services and agreed commission and requires conflicts of interest to be declared.
Before signing, clarify:
- the exact commission amount or percentage;
- whether GST is included or added on top;
- whether the appointment is exclusive or non-exclusive;
- what marketing work is included;
- how viewings, offers and negotiations will be handled; and
- when commission becomes payable.
Exclusive vs non-exclusive agreements
Under CEA's prescribed framework, an exclusive agreement appoints one property agency for a validity period of up to three months. During that period, commission may still be payable to the appointed agency even if the owner completes the transaction through another agency or independently, subject to the agreement's terms.
A non-exclusive agreement allows more than one agency to be appointed, and commission is generally payable to the agency that successfully helps complete the transaction.
This is one reason sellers should read the actual agreement instead of relying on a verbal understanding.
Can the same agent collect from buyer and seller?
No. CEA states that a property agent can only represent one party in a property transaction. Dual representation — acting for and collecting commission from both buyer and seller, or both landlord and tenant — is an offence.
Co-broking is different. A seller's agent and a buyer's agent may work together while each represents their own client. Any sharing of commission between property agents is an arrangement between the agents; it should not be confused with one salesperson representing both clients.
What about GST?
Only GST-registered property agencies may charge GST on commission. CEA advises consumers to clarify whether GST is included or excluded in the commission amount stated in the agreement.
The invoice and payment should be made to the property agency, not directly to the individual salesperson.
NexDoor's view: compare net outcome, not percentage alone
Commission is a cost, so it is reasonable to negotiate it. But a seller should also ask what a cheaper or more expensive service changes in the actual sale process.
If one strategy generates more qualified enquiries, better offer management, stronger negotiation and a cleaner transaction, the difference in commission can be smaller than the difference in final net proceeds. Conversely, a higher fee is not justified merely because it is higher.
Ask each agent to explain the plan in concrete terms:
- How will you price the property using comparable evidence?
- Where and how will you market it?
- How will you qualify buyers and manage viewings?
- How will you report offers and buyer feedback?
- How will you protect my timeline for the next property?
What commission should actually be compared against
A fee makes sense only in the context of the service and the result. For a seller, the meaningful comparison is not simply one agency quoting a lower percentage than another. Compare the expected net outcome after the fee, the quality of the sale process and the amount of work the seller will need to handle personally.
For example, if two agencies propose different fees, ask both to show how they would:
- set the launch price using actual comparable transactions;
- position the property against competing listings;
- generate and qualify enquiries;
- manage viewing access and buyer feedback;
- handle multiple offers without creating false urgency;
- coordinate HDB, lawyer, banker and next-home timing where needed; and
- report progress so the seller knows when strategy should change.
Five questions to ask before signing an exclusive appointment
- What exactly is included? Photography, portal marketing, floor plans, copywriting and viewing management should not be assumed if they have not been discussed.
- How long is the appointment? Read the validity period and termination terms in the prescribed agreement.
- What happens if I find the buyer myself? The answer can differ between exclusive and non-exclusive arrangements, so rely on the written terms.
- Is GST on top? Confirm whether the quoted commission is inclusive or exclusive of GST where the agency is GST-registered.
- What creates payment entitlement? Understand when the agreed commission becomes payable under the appointment and completed transaction.
Cheap can be expensive, but expensive can also be poor value
A low fee is not automatically a bad deal, and a high fee does not prove better service. The seller should demand a coherent plan either way. NexDoor's view is that an agent should be able to explain the pricing strategy, likely buyer objections, communication process and transaction risks before asking for an appointment.
That conversation is also a useful test of fit. If an agent can only sell the commission rate but cannot explain how the property will be sold, the fee is not yet the most important problem.
FAQ
Is 2% the official seller commission in Singapore?
No. CEA does not prescribe an official commission percentage. Any percentage you hear is a commercial practice, not a regulator-set rate.
Can I negotiate commission?
Yes. CEA specifically states that commission is negotiable.
Should I pay the salesperson personally?
No. CEA says the agreed commission should be paid to the property agency after the transaction is completed.
Thinking of selling?
Ask NexDoor for the proposed marketing and negotiation strategy first. We are happy to explain what the fee covers before you decide whether to appoint us.
Accuracy note: Checked against Council for Estate Agencies consumer guidance last updated in May/August 2026. Commission remains a matter for agreement between the consumer and property agency.
Official references
Material rules and dates in this article were checked against the following primary sources on 26 August 2026: