Table of contents

• What’s the mandated commission?
• Is the house and land commission the same?
• When to pay commission?

What’s the mandated commission?

Commission is the compensation paid by the principal to the agent or intermediary who assists in finding a buyer or seller for various transactions.

The commission rate is typically determined by the agreement between the principal and the agent.

In cases where the commission is not explicitly specified, the customary market rate for such work will apply.

This customary rate can vary depending on the type and complexity of the work.

Here are some general guidelines for commission rates

• Selling a House

The commission is generally around 3-5% of the sale price.

• Selling Land

The commission is typically around 2-3% of the sale price.

Is the house and land commission the same?

Selling a house and selling land involve different scales and values of property, leading to different commission rates:

• Selling a House

Generally, the commission for selling a house is around 3% of the sale price.

However, this rate can vary based on the complexity of the transaction and the mutual agreement between both parties.

• Selling Land

The commission for selling land typically ranges from 2% to 3% of the sale price, depending on the size of the land and the complexity of the transaction.

However, the commission rates are not fixed and can be negotiated between the principal and the agent.

When to pay commission?

The payment of commission is usually governed by the agreement between the principal and the agent.

However, here are some basic guidelines for commission payment

1. Payment Upon Completion

Typically, the commission is paid when the transaction is completed, meaning the buyer and seller have reached an agreement and the property ownership has been transferred.

2. Specific Agreements

Sometimes, the commission may be agreed to be paid in installments or partially at key stages of the process, such as when the sale and purchase agreement is signed or when the ownership is transferred.

3. Documentation

Commission payments should be documented, such as with a receipt or a contract specifying the commission payment, to prevent future disputes.

So, paying commission according to clear and proper guidelines helps ensure that transactions proceed smoothly without issues later on.

Content by Kroekkiat