Standard 7 2014

7.1.0 INTRODUCTION

7.1.1 Co-agency is co-operative agreement between a listing agency firm and a co-agency firm who introduces a prospective purchaser/tenant in the sale/rental or leasing of a property.

7.1.2 The terms and conditions of the working relationship between both parties are specified clearly. Similarly the fees chargeable by each party are also pre-agreed upon.

7.2.0 STATEMENTS OF STANDARD

7.2.1 Both the co-operating firms have to agree in writing on the terms of the co-agency arrangement before the commencement of any work.

7.2.2 The co-agency agreement will terminate at the expiry of the co-agency period or on the expiry of the listing or on mutual agreement between the co-operating firms.

7.2.3 The co-agency firm is not permitted to solicit for the same agency appointment that is the subject of the co-agency agreement during the period of the co-agency arrangement.

7.2.4 After the expiry of a co-agency agreement the co-agent shall be at liberty to accept the listing directly from the vendor/landlord or approach the vendor/landlord without having to inform or share his fees with the listing agent.

7.2.5 In a co-agency arrangement, the earnest deposit paid by the purchaser to the co-operating agent may be held by either the listing agent or the co-operating agent.

7.2.6 The standard fee sharing between the listing firm and the co-agency firm shall be in the ratio of 50:50 percent unless otherwise agreed between both the co-operating agencies.

7.2.7 Where there is a variation from the standard fee sharing aggregate then that variation should be agreed upon in writing. Similarly, where a transaction is aborted, a 50:50 percent split of the abortive fee or forfeited amount applies i.e 50% to the vendor/landlord, 25% to the listing agent and 25% to the co-operating agent.

7.2.8 All co-agency agreement can be initiated by either party and shall be signed by the respective firms.

7.2.9 All details pertaining to the property, the fees and the mode of payment by the client shall be disclosed to the co-agency firm upon entering into a co-agency arrangement.

7.3.0 EXPLANATION TO THE STANDARDS

7.3.1 The listing firm shall:-

• 7.3.1.1 ensure that any viewings, correspondences or dealing with the property has to be through the listing firm;

• 7.3.1.2 ensure that the co-agency firm is paid the agreed fees promptly when due;

• 7.3.1.3 not contact the prospective purchaser/tenant without the co-agent's consent and knowledge;

• 7.3.1.4 keep the co-agency firm informed of the progress of the negotiation/transaction; and

• 7.3.1.5 endeavour to take all necessary steps to collect outstanding fees as soon as possible.

7.3.2 The co-agency firm shall:-

7.3.2.1 ensure that any viewings, correspondences or dealings on the property shall go through the listing agent;

7.3.2.2 keep that listing firm informed on the progress of the transaction;

7.3.2.3 not advertise or promote the property under the co-agency agreement unless otherwise agreed upon by the listing firm;

7.3.2.4 not contact the vendor/landlord directly whilst the co-agency arrangement is still in force;

7.3.2.5 not put up its own signboard on the property which is under the co-agency agreement unless otherwise agreed upon by the listing firm; and

7.3.2.6 if the listing firm has already shown the property to the spouse, employee, proxy, nominee or any representative of the prospective buyer/tenant, procured by the co-agency firm, the co-agency firm shall not be entitled to the agreed fee, unless the identity or name of the spouse, employee, proxy, nominee or any representative of the prospect has been disclosed to the listing firm in the first instance.

7.3.3 For the purpose of the treatment of the earnest deposit under clause 7.2.5 the following shall apply:-

• 7.3.3.1 the earnest deposit shall be transmitted to the vendor or shall be treated as part of the professional fee payable to the estate agent upon the successful conclusion of the transaction;

• 7.3.3.2 the letter of offer shall clearly identify the agent who shall hold the earnest deposit ie. either the listing agent or the co-operating agent.

Ref:

Verbatim from Standard 7, MEAS 2014.