When to pay the Agent's commission? | ExpatWoman.com
 

When to pay the Agent's commission?

1029
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EW OLDHAND
Latest post on 08 August 2011 - 07:33

We are due to move into a villa on 15th August (1 week from now). We are being pestered by the Agent for his commission but I feel a bit uneasy about handing it over before we move in.
My husband thinks it is fine as we already have the keys, he has given the owner the post-dated cheques and we have paid a small deposit. What do you think Ladies?
TIA

2
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EW NEWBIE
Latest post on 10 August 2011 - 19:18
I have a question. If there is no contract in place between the tenant and the agent, then why should the tenant be liable for the fees. It is the landlord that had requested the services of the agent not the tenant.
713
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EW GURU
Latest post on 10 August 2011 - 15:21
Derien, Fairycakeyumm: I am not arguing the rights or wrongs of this system (as to who is paying what) that is different from other countries; fact is, it is different. And, whilst I agree with your last sentence, Derien, I cannot see a change being implemented in the near future. There are, however, a number of new regulations (by Rera) that prohibit a landlord to kick a tenant out willy-nilly, especially if you worked with a reputable agent/agency that cares enough to insert appropriate safeguards into the agreement for [i'>both [/i'>tenant and landlord. As FFK1978 in an earlier post points out, an agent's job is finished with the rental documentation and handover, and I would reiterate my earlier argument (i.e. answer to OP's query) that he/she needs to be paid his/her fee at that time, by the party that is legally liable for that payment - under this country's rules, like it or not. <em>edited by crystalsindubai on 10/08/2011</em>
2239
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EW EXPERT
Latest post on 10 August 2011 - 14:02
Crystal, It's not just the UK, Australia, US etc... It's the rest of the world that operates this way. The Landlord pays an agency to rent out his property. The deposit is held by a notary rather than the landlord and it is all above board, fair and legal for all involved. Quite frankly, I am ****** sick to death of paying an agent to "find me a property" only to be kicked out the year after. I have been in Dubai for 4 years and have moved three times! Three sets of fees! If the landlord paid the fees, he would think twice about kicking people out. Totally agree ;)
1575
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EW EXPERT
Latest post on 10 August 2011 - 14:01
Crystal, It's not just the UK, Australia, US etc... It's the rest of the world that operates this way. The Landlord pays an agency to rent out his property. The deposit is held by a notary rather than the landlord and it is all above board, fair and legal for all involved. Quite frankly, I am ****** sick to death of paying an agent to "find me a property" only to be kicked out the year after. I have been in Dubai for 4 years and have moved three times! Three sets of fees! If the landlord paid the fees, he would think twice about kicking people out.
713
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EW GURU
Latest post on 10 August 2011 - 12:36
Lynn, No condescending attitude here, just brutal reality... Referring to part of your first post: [i'>"This is all well and good crystal but unfortunately the good and honest agents may not have the house that is within your budget or that you want on their listings so you're left with no choice but to deal with the shady ones.[/i'>" Most agents will have many more properties on their books than advertised, and have access to others' listings through a professional network. Work with a chosen agent, tell him/her what you are looking for - they will actually do the running for you if you give them a realistic chance - and not play them against each other (which is counterproductive anyhow as you end up bidding against yourself). How many potentital tenants actually look at any agent and see a person who is between a rock and a hard place? Or the atrocious attitudes he or she has to put up with on many occasions? How many times his/her timing is being messed up with? How surprisingly much administrative work is involved. How many kms he/she drives for an appointment where the interested party does not show up - and upon reconfirmation/inquiry is advised that the party has committed to another property, without appropriate feedback, of course! The shoe also fits the other foot, you know... But, really, we are digressing here because the OP just queried as to when the agent needs to paid! Said all I am going to say, no further comments. edited by crystalsindubai on 10/08/2011 <em>edited by crystalsindubai on 10/08/2011</em>
163
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EW NEWBIE
Latest post on 10 August 2011 - 11:36
Crystal - Please don't give me the condescending "its how things are done here" I completely understand how its done in this part of the world and have done so for the many years I've lived here. I'm not saying your fees weren't earned by you, if you've and your colleagues do your duty well, then of course you are due your money - not many people work for nothing - my bug bear is who actually pays you (by you I mean agents) your salary. In MY experience, I found the houses, I chased the agents, I chased for the contract etc etc. and again I add, nothing personal.
713
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EW GURU
Latest post on 10 August 2011 - 11:02
Hi Lynn66, Perhaps very simplistic, the tenant pays the fees in this country because it is done so here. If in the UK, US, Australia (or whatever is your home country) it is handled differently you may think this is right - but you are here, not there! And what is "right" after all? It is just different. That's the reality - one that many new expats have difficulty to accept. As a property consultant, I and my colleagues have NOT messed around with clients - more often it happened the other way around. And boy, could I tell you some stories. Just my personal experience, Lynn. All I can say - these fees were hard earned!
163
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EW NEWBIE
Latest post on 10 August 2011 - 08:54
Perhaps, as an honest (ex)-consultant I should take exception to that statement. There are many reputable companies in town that frown upon shady deals. Work with them, you will not regret and you can look for the biggest risks of your life somewhere else. This is all well and good crystal but unfortunately the good and honest agents may not have the house that is within your budget or that you want on their listings so you're left with no choice but to deal with the shady ones. Another reason I think that the Landlord should pay for the agents fees - the tenant pays the deposit and the rent so why on earth should they have to pay the agent as well. The landlord wants a tenant he should pay for the service - what service does an agent offer - .sod all in my experience other than to not call me back and mess me around for viewings. Ok perhaps collect the rent. Well if the landlord wants the rent collecting - he should pay for that service. This is nothing personal to you Crystil but just purely personal experience.
78
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EW NEWBIE
Latest post on 10 August 2011 - 00:23
payment is made when you submit the post-dated cheques to the landlord, and have received your lease. No reason to delay. The agent's work was to ensure you get the appt/villa, get the keys, get the lease. Your job is to pay the person for his/her services. Simple.
713
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EW GURU
Latest post on 09 August 2011 - 20:52
Perhaps, as an honest (ex)-consultant I should take exception to that statement. There are many reputable companies in town that frown upon shady deals. Work with them, you will not regret and you can look for the biggest risks of your life somewhere else.
1575
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EW EXPERT
Latest post on 09 August 2011 - 20:43
Put yourself for a moment in the shoes of the agent, please. All documents are signed, the keys are handed over - where does he/she stand? In my "other life" as an agent I have been in this situation - once, never to let it happen again! - where the new tenant intended to back out of paying the fees, then startet negotiating. A thoroughly unpleasant situation, I recall. The agency fees should fairly be paid at the document signing, together with the cheques for the landlord. If you have gone through all the right sources (i.e. registered agents, etc.) you have nothing to fear. edited by crystalsindubai on 09/08/2011 And in all other countries, there is protection for the tenant and the LL pays the fees. Here, you are taking the biggest risk of your life
713
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EW GURU
Latest post on 09 August 2011 - 20:41
Put yourself for a moment in the shoes of the agent, please. All documents are signed, the keys are handed over - where does he/she stand? In my "other life" as an agent I have been in this situation - once, never to let it happen again! - where the new tenant intended to back out of paying the fees, then startet negotiating. A thoroughly unpleasant situation, I recall. The agency fees should fairly be paid at the document signing, together with the cheques for the landlord. If you have gone through all the right sources (i.e. registered agents, etc.) you have nothing to fear. <em>edited by crystalsindubai on 09/08/2011</em>
1100
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EW OLDHAND
Latest post on 08 August 2011 - 21:38
You could just give the agent a post dated cheque dated the same as start of contract, although we have handed over commission as soon as contract is signed by both parties and keys are in hand.
1029
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EW OLDHAND
Latest post on 08 August 2011 - 20:31
Thanks. SuzyDuzy, I feel the same way, but I think DH is handing the cash over a week early. Oh well, if it all goes pear shaped he will NEVER hear the end of it!!!!
498
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EW EXPLORER
Latest post on 08 August 2011 - 15:35
I would pay the day the contract starts.... not before....
176
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EW NEWBIE
Latest post on 08 August 2011 - 15:31
i paid mine after signing the contract and handing over the cheques.
1029
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EW OLDHAND
Latest post on 08 August 2011 - 12:09
Okay, thanks. I will check about Rera.
2239
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EW EXPERT
Latest post on 08 August 2011 - 08:14
We ve always pays ours once we have signed contracts keys handed over etc as long as contracts all signed, LL registered with Rera? Everything should be ok... Or be cheeky and tell him you'll hand it to him the day you move inn:)
 
 

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