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What to Expect in an Exclusive Estate Agency Agreement

Published 29 July 2025

Selling or renting out your property can be daunting, especially if you’re doing it for the first time. With many “Property For Sale!” ads out there, you may wonder how your property would stand out. By engaging a trusted property agent or agency and signing an Exclusive Estate Agency Agreement (Exclusive Agreement), you won’t have to worry.

An Estate Agency Agreement is a binding contract between you and your clients for the performance of estate agency work on their behalf, from real estate valuation to closing. The Council for Estate Agencies (CEA) has eight Prescribed Estate Agency Agreements for the sale, purchase, and lease of residential property transactions.

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What Is an Exclusive Estate Agency Agreement?

When you sign an exclusive agreement, you are appointing one agent or agency to perform estate agency work for you, including, but not limited to, promoting and marketing your property at the agent’s cost.

The roles and responsibilities of an exclusive agent are essentially the same as those of a non-exclusive agent in the sense that you are also authorising the exclusive agent to do viewings, negotiations, and paperwork for you. The main difference is that you will only deal with one party instead of multiple ones.

What Can I Gain From Signing an Exclusive Agreement?

Property Agents Are Even More Dedicated to Promoting Your Unit

Exclusive agreements stipulate that the appointed agent should advance your interests, unaffected by any other person. Since the exclusive agent knows their efforts will not go to waste, they will devote more resources to promoting and marketing your unit.

Easier Coordination

Having one point of contact means that one agent is now fully responsible for your property. You can be assured that reasonable instructions and requests regarding the sale or lease of your unit will be carried out by your agent diligently. You won’t have to repeat yourself multiple times to different agents, and you reduce the possibility of the same prospect viewing your unit twice by mistake.

Better Results in Achieving Your Desired Price

Usually, if prospects see duplicate listings of your unit, they will often choose to contact the agent offering the lowest price. When you engage multiple agents, the agents will often lower the asking price to lure more enquiries, resulting in a price war for your unit.

However, if you have a trusted exclusive agent marketing your unit, they will not fear losing out to other agents advertising the same unit. The exclusive agent can then concentrate on pushing your property at your desired price by focusing on the merits of the home rather than just the price.

What Are the Terms and Validity of an Exclusive Estate Agency Agreement?

When entering into an exclusive estate agency agreement in Singapore, you should thoroughly understand its key clauses to protect your interests and ensure a smooth transaction. Here’s a look at the details you should pay close attention to:

Validity Period

This clause defines the duration of the exclusive agreement and represents everyone’s commitment to a specific timeframe.

Standard Duration: Exclusive agreements are typically valid for 3 months from the agreed-upon commencement date, which reflects the CEA’s prescribed forms. Be wary of any pressure to sign an agreement with an unusually long validity period, as 3 months is generally sufficient for a committed agent to complete their job.
Commencement and Expiry Dates: The agreement should clearly state the start and end dates before you sign.
Renewal: To prevent you from being locked into a contract unintentionally, an exclusive agreement does not automatically renew. If you wish to continue with the same agent after the expiry date, a Renewal of Agreement using the prescribed form must be signed.
Termination: While the agreement has a fixed duration, it can be terminated early under certain conditions or within a notice period, such as if the agent fails to meet their obligations. Consider a “Commitment to Service” addendum to make the agent’s responsibilities explicit, stipulating that failure to perform the duties listed could be grounds for agreement termination.

Commission Payable

This clause dictates the financial terms of the arrangement, outlining not just the commission rate but also when and to whom it is payable.

Commission Rate: While a common rate for selling a private property is around 2%, you should negotiate and agree on a rate with your agent before signing. That agreed-upon rate should be clearly stated in the contract.
Goods and Services Tax (GST): Be clear on whether the agent commission for selling the property is inclusive or exclusive of GST.
When Commission is Due: The commission is typically payable upon the successful completion of the sale, with the following crucial stipulations:
- Sale During Validity Period: During the 3-month exclusivity period, as long as your unit is being transacted (whether through your agent’s introduction or by others), you may be liable to pay agent fees to the real estate agent or agency you engaged.
- Post-Validity Period Sale: After the expiry date, you may only be liable to pay the fixed rate fees if the deal was concluded through your agent’s efforts. This clause protects the agent from losing their commission if a buyer they found waits for the agreement to expire before making an offer.
- Co-Broking: If there is co-broking, the exclusive agent and the co-broke agent can agree on the share in commission, but you are not liable to pay any additional fees for the co-broke agent.

Agent’s Duties and Responsibilities

This clause outlines the level of service and professionalism you can expect from your agent and sets the standard for their performance.

Fiduciary Duty: Your agent has a fiduciary duty to act in your best interest, prioritising your needs above their own or anyone else’s.
Marketing and Promotion: The agreement should detail the agent’s responsibility to market your property. While the prescribed forms are general, you should discuss a specific marketing plan with your agent, which could include:
- Listing the property on property portals.
- Enlisting professional photography and videography services.
- Arranging and conducting viewings.
- Advertising in print or on social media.
Communication and Advice: Your agent is obligated to:
- Inform you of all offers, counter-offers, and expressions of interest promptly and objectively.
- Give professional advice on pricing, negotiations, and transactions.
- Clearly explain all documents and procedures.
Compliance with Laws: The agent must comply with all relevant laws and regulations, including the CEA Code of Ethics and Professional Client Care, which requires them to act honestly and ethically in all dealings.

Sell Your Home Fast and at the Best Price with an Exclusive Agent

The key factor in deciding whether you should enter into an exclusive agreement is to first find an agent or agency you can trust. Professionalism and quality customer service are the things that you should look for, as these will not only show their commitment to finding solutions to market your HDB flat but will also ensure that your 3-month validity period is maximised towards achieving your goal.