The Institute of Estate Agents (IEA) has created a set of professional fee standard guidelines which it says are recommended but not mandatory.

Dr Tan makes a valid point that for competitive reasons, an agent may choose not to collect commission from a tenant, and this is acceptable to me. But the point here is that under the its guidelines, the IEA recommends that property agents collect commission from both landlord and tenant if the tenancy is below $2,500 a month.

However, why is it that at both houses I went to, one at $2,800 and the other at $2,600, the agent from Knight Frank wanted me to pay an additional commission when it is not stated in the IEA guidelines that I have to pay her?

And since the IEA says it recommends that property agents follow its guidelines but it is not mandatory, it goes to show that what the Knight Frank agent did is not in accordance with industry standards.

From my understanding, the IEA guidelines are just a recommendation, so anything outside their scope is considered not recommended. And since the IEA does not recommend it, why does an accredited agency like Knight Frank still want to 'protect' its agent by saying it gives its agents free rein in negotiating commission?

Does this mean that in future, if I want to rent, lease, buy or sell, I am at the mercy of property agents who do not follow the IEA professional fee standard guidelines?

Stephen Neo Poh Chua