RES exam question on Marketing & Advertising: In an HDB resale, the seller has engaged salesperson Mei of Agency A and the buyer has…
In an HDB resale, the seller has engaged salesperson Mei of Agency A and the buyer has engaged salesperson Raj of Agency B, and each client has agreed to pay commission. Raj's team leader suggests that Mei and Raj also agree a co-broke fee between themselves. Which of the following statements is/are correct? (i) Since each client is paying its own salesperson, no further co-broke fee may pass between Mei and Raj. (ii) Since Mei and Raj are from different agencies acting for opposite sides, this is co-broking, not dual representation. (iii) Since Raj acts only for the buyer, he may take a share of Mei's commission as well if he discloses it. (iv) Where a co-broke fee is payable in a transaction, the two agents should agree it upfront between themselves.
- A(i), (ii) and (iv) only
- B(i) and (ii) only
- C(ii), (iii) and (iv) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
A. (i), (ii) and (iv) only
Explanation
Answer: (i), (ii) and (iv) only. Each client already pays its own salesperson, so no further co-broke fee passes, and no one may take a fee from two persons.(i) True. Where buyer and seller have each engaged a salesperson and agreed to pay commission, as in an HDB transaction, there is no further co-brokerage fee over and above the commission paid.(ii) True. Co-broking is where two or more agents or salespersons are involved in the same transaction, as Mei and Raj are.(iv) True. Sharing of a commission is an agreement between the agents and should be agreed upfront.Rule: Agents who share a commission agree the split upfront between themselves. Where each client pays its own salesperson, no further co-broke fee is due, and no salesperson may be paid by more than one person.Source: CEA Professional Service Manual (version 1.0, 1 Jan 2014, current on cea.gov.sg at 1 Oct 2026), paras 1.3.6 and 1.8.3
Why the other options are wrong
- (iii) False. Raj does act only for the buyer, but a share of Mei's commission is a second payment. A salesperson must not collect a fee or commission, including a co-broke commission, from more than one person, and disclosure does not permit it.
Study the concept behind this question: CEA Ethical Advertising Guidelines: What Every Property Ad Must Show
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