When you deal with estate agencies and real estate matters, you might find yourself in disputes arising from the following issues:
- the amount of commission payable
- the work spectrum of the salesperson/ meeting of expectation/ service delivery (e.g. is the salesperson responsible for the turning on of the utilities when it is clearly stated on the public utilities application form that no one but the tenant or the owner of the premises should do so?)
- price expectation (e.g. the rental amount / sale price achieved)
- failure to deliver promises
- advertising without the owner’s consent (or failing to obey specific instructions)
- miscommunication/ misrepresentation (by salespersons / owners)
In the event of disputes, consumers are encouraged to approach the estate agent to resolve the dispute or the Council of Estate Agencies who will approach the estate agent for a resolution.
The least expensive and most private dispute resolution is when both parties are still willing to negotiate. However, due to a general state of hostility and distrust, both parties might find it difficult to compromise leading to the necessary introduction of a third party.
Mediation involves a third (neutral) party who assists the disputing parties to negotiate their own settlement. As mediators have the experience of seeing similar disputes resolved, they may express views on what might be considered a fair or reasonable settlement. The final resolution still remains on the ability of the two parties to settle for an agreement.
To understand the difference between arbitration and mediation, we can look at the end result of an arbitration and mediation. In mediation, there is no binding decision – parties are usually free to agree on both legal or non-legal solutions suited to their interests and needs.
In arbitration, the arbitrator looks into the legal rights and wrongs of a dispute and makes a decision. Once the arbitrator has arrived at a decision, it is binding on parties whether they agree with it or not. It is very much like the way a court case is decided by a judge, except that the process does not take place in a courtroom, and it is not open to the public. As in a court case, there is usually a winning and a losing party in arbitration.
The Singapore International Arbitration Centre handles arbitration cases in Singapore. The Singapore International Mediation Centre manages international mediation cases in Singapore.
If you have a preferred mode of dispute resolution, it is best to keep it in mind when you are drafting your contracts. You will note that in all standard forms provided by the CEA that the Prescribed Estate Agency Agreements have stated the applicable law and dispute resolution such that all parties are required to proceed to mediation under mediation scheme prescribed by the CEA. It is only when the other party has elected not to, in writing that the matter may proceed to the Court.
A quick look at the fees for CEA Approved Mediation & Arbitration Centres (please refer to
- Consumers Association of Singapore (CASE) Mediation Fees
| Claim Range | Member (CASE) | Non-Member | Business |
| Below $5,000 | $37.45 | $85.60 | $85.60 |
| $5,000 – $10,000 | $37.45 | $85.60 | $85.60 |
| $10,001 – $20,000 | $53.50 | $128.40 | $128.40 |
| $20,001 – $30,000 | $133.75 | $214.00 | $214.00 |
| $30,001 – $40,000 | $240.75 | $321.00 | $321.00 |
| Above $40,000 | $347.75 | $428.00 | $428.00 |
- Singapore Institute of Surveyors & Valuers (SISV) Mediation Fees
$107 per party (including GST) Fee includes complimentary use of the SISV Dispute Resolution Centre facilities for up to 2 hours, and cost for additional mediation sessions required as decided by the Parties shall be payable as follows:
- Mediator’s fees: $70 (including 7% GST) per party for a subsequent 2-hour session
- Room Charges: $50 per hour (including 7% GST)
All other costs incurred for the conduct of the mediation shall be reimbursed by the Parties on 50:50 basis
- Singapore Mediation Centre (SMC) Mediation Fees
| Quantum of Claim | Mediation Fees |
| Below $30,000 | $600 |
| $30,001 to $100,000 | $2,300 |
| Above $100k up to $250k | $1,200 per party per day |
| Above $250k up to $500k | $1,800 per party per day |
| Above $500k up to $1mil | $2,200 per party per day |
| Above $1mil up to $2.5mil | $2,600 per party per day |
| Above $2.5mil up to $5mil | $2,800 per party per day |
| Above $5mil | $2,900 per party per day plus pro-rated portion of 0.05% of the quantum above $5mil |
- Singapore Institute of Arbitrators Arbitration Fees
| Disputed Sum** | Arbitration Fees |
| Up to $60k
(Documents-only) |
Admin fee of $750 + arbitrator’s fees of 20% of the sum in dispute, subject to a minimum of $1,000 and a maximum of $2,500 |
| Above $60k
(Documents-only) |
Admin fee of $2,000 + arbitrator’s fees of 10% of the sum in dispute, subject to maximum of $25,000 |
| Above $1,000,000
(Documents-only) |
Admin fee of $3,000 + arbitrator’s fees of $25,000 plus 0.5% of the sum in dispute above $1,000,000, subject to a fee cap of $50,000 |
| Up to $60k
(where hearing is conducted) |
Admin fee of $750 + arbitrator’s fees of 40% of the sum in dispute, subject to a minimum of $2,000 and a maximum of $5,000 |
| Above $60k
(where hearing is conducted) |
Admin fee of $2,000 + arbitrator’s fees of 20% of the sum in dispute, subject to maximum of $50,000 |
| Above $1,000,000
(where hearing is conducted) |
Admin fee of $3,000 + arbitrator’s fees of $50,000 plus 0.5% of the sum in dispute above $1,000,000, subject to a fee cap of $100,000. |
General Note to SIArb’s Scheduled Fees
Note that there would be an increase of 20% where a full reasoned award is required. The above proceeds on the basis of awards with summary reasons only. There would only be summary reasons for a claim up to $60,000. Disputed sum** shall be the aggregate of the maximum amounts of both the Claim and the Counterclaim, if any. Where the amount of the sum in dispute is not quantifiable, the minimum amount of fees shall be paid as an initial deposit. The Arbitrator shall from time to time be entitled to estimate or attribute a value to the matters in dispute and where this is done, the amounts of deposits and fees payable shall be adjusted accordingly.
- Singapore Institute of Surveyors & Valuers (SISV) Arbitration Fees
| Disputed Amount*** | Arbitration Fees |
| Up to $60k
(Documents-only) |
Admin fee of $500 + arbitrator’s fees of $1,000 |
| $60,001 to $80,000
(Documents-only) |
Admin fee of $500 + arbitrator’s fees of $3,000 |
| $80,001 to $150,000
(Documents-only) |
Admin fee of $500 + arbitrator’s fees of $5,000 |
| $150,001 to $200,000
(Documents-only) |
Admin fee of $500 + arbitrator’s fees of $6,500 |
| Above $200k
(Documents-only) |
Admin fee of $500 + arbitrator’s fees of $6,500 plus [5%] of the amount above $200,000, subject to cap of $23,000 |
| Up to $60k
(where hearing is conducted) |
Admin fee of $500 + arbitrator’s fees of $3,500 |
| $60,001 to $80,000
(where hearing is conducted) |
Admin fee of $500 + arbitrator’s fees of $5,000 |
| $80,001 to $150,000
(where hearing is conducted) |
Admin fee of $500 + arbitrator’s fees of $7,500 |
| $150,001 to $200,000
(where hearing is conducted) |
Admin fee of $500 + arbitrator’s fees of $8,500 |
| Above $200,000 (where hearing is conducted) | Admin fee of $500 + arbitrator’s fees of $8,500 plus [5%] of the amount above $200,000, subject to cap of $25,000 |
Other charges being the support services for and in connection with the hearing
(i) Hearing room (SISV Dispute Resolution Centre) at $50 per hour
(ii) Transcription services
(iii) Translation and interpretation services
(iv) Out-of-pocket expenses
General Note to SISV’s Scheduled Fees
Admin fee includes the services provided in respect of the appointment of a sole arbitrator, decisions on challenge of an arbitrator and general administration of the arbitration file.
***Disputed Amount for this purpose shall be the sum claimed in the Request or any Counterclaim, whichever is higher or, where no specified sum is claimed, the maximum value of the disputed amount of the subject matter shall be $60,000.
In Singapore, the Small Claims Tribunal (SCT) was established to provide an informal, easy and inexpensive solution to resolving claims not exceeding $10,000 between consumers and suppliers. The amount can also be raised to $ 20,000 when the claimant (person claiming) and the respondent (person being claimed against) consent in writing. However, there is a limitation of a year and the SCT is good for matters such as claims arising from contracts for the sale of goods, contracts for a provision of services (including skill and labour), persons causing damage to properties and contracts for leases of residential premises which does not exceed 2 years. It does not involve itself with legal fees or co-broking fees, so it may not always serve the purpose of the complainant.
CEA looks into complaints involving estate agency work, estate agents and salespersons. However, CEA will not be able to take action on disputes between landlord and tenant, or buyer and seller (including buyer and property developer), which do not involve an estate agent or a salesperson. Disputes involving agents in marketing land banking products are not within the scope of CEA. For allegations of criminal wrongdoing such as fraud and cheating, CEA will refer such complaints to the Police.
Finally, while it may be difficult to avoid disputes, it is always prudent to consult a lawyer in the drafting of agreements while keeping a desired manner of dispute resolution in mind, so that both parties are aware of the importance of compromise and negotiation before spending more money and time in mediation, arbitration and the courts.
This article is written by Adrian Mah from Asia Law Network.
This article does not constitute legal advice or a legal opinion on any matter discussed and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and practice in this area. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. No individual who is a member, partner, shareholder or consultant of, in or to any constituent part of Interstellar Group Pte. Ltd. accepts or assumes responsibility, or has any liability, to any person in respect of this article.
