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Guide to Commission and Compensation for Damages
Real Estate Sales Agent Appointment Agreement — Explained in simple terms with numerical examples
Normal Commission
1
Agent Service Fee (Commission)
Upon successful sale of the property, the owner pays the agent a service fee according to the agreed rate in the contract.
3%
Basic service fee
of net sale price (Clause 4.1)
of net sale price (Clause 4.1)
+1%
Bonus for sale within 90 days
totaling 4% (Clause 4.2)
totaling 4% (Clause 4.2)
Net Sale Price refers to the actual price received by the owner or the appraised value by the Department of Lands on the transfer date, whichever is higher — for properties priced under 1 million baht, the minimum service fee is 30,000 baht.
Payment in 2 Installments
Installment 1: 50% of the deposit/booking fee received by the owner (but not exceeding 50% of the total service fee)
Installment 2: The remaining balance, paid on the transfer date at the Land Department office
Example: Normal Sale
Property price 5,000,000 baht — Sold within 90 days
| Basic service fee 3% | 150,000 ฿ |
| Bonus 1% (sold within 90 days) | 50,000 ฿ |
| Total service fee | 200,000 ฿ |
Installment 1: Buyer places 500,000 deposit → Pay agent 50% = 250,000 but not exceeding 50% of service fee = 100,000 baht
Installment 2: Remaining balance = 100,000 baht paid on transfer date
Conversion from Purchase to Lease
2
Conversion from Purchase to Lease (Clause 4.6)
If an interested buyer changes their mind to lease, the agent is still entitled to remuneration.
1 Month
Rent per 1-year lease agreement
2-year lease = 2 months' rent
2-year lease = 2 months' rent
Minimum 1 Month
If lease is less than 1 year
still receive minimum 1 month
still receive minimum 1 month
Example: Conversion from Purchase to Lease
Property listed for sale at 5,000,000 baht — Interested party changes mind to lease at 25,000/month for a 2-year contract
| Rent/month | 25,000 ฿ |
| 2-year lease contract → 2 months' remuneration | 2 x 25,000 |
| Total remuneration | 50,000 ฿ |
Agent Right Protection
3
Repeat Purchase (Clause 9.5)
If a buyer found by the agent returns to make an additional purchase within 3 years after the contract ends, the owner must still pay the full service fee as per Clause 4.
Example: Repeat Purchase
Agent found buyer A for plot 1 — Contract ended — 2 years later, A returns to buy plot 2 from the same owner for 3,000,000 baht
| Still within 3 years after contract end | Yes |
| Service fee 3% x 3,000,000 | 90,000 ฿ |
| Owner must pay | 90,000 ฿ |
Compensation for Damages
4
Price Misrepresentation (Clause 4.5)
The contract prohibits 3 cases and specifies clear compensation for damages to protect the rights of both parties.
Case 1: False Price Reporting (Clause 4.5.1)
Prohibition: Reporting a net sale price lower than the actual sale price or concealing other benefits from the buyer.
Compensation: Pay the difference in the service fee + double the difference within 15 days.
Compensation: Pay the difference in the service fee + double the difference within 15 days.
Example: False Price Reporting
Listed for 5,000,000 — Owner claims it sold for 5,000,000 but actually sold for 6,000,000 baht
| Service fee that should have been received (3% x 6 million) | 180,000 ฿ |
| Service fee actually received (3% x 5 million) | 150,000 ฿ |
| Missing difference | 30,000 ฿ |
| Double the difference in compensation | 60,000 ฿ |
| Owner must pay extra | 90,000 ฿ |
If price reported truthfully
180,000 ฿
Only pay normal service fee
If price reported falsely
240,000 ฿
150,000 + 90,000 compensation
Pays 60,000 baht more than normal unnecessarily
Case 2: Selling at a lower price through other channels (Clause 4.5.2)
Prohibition: Allowing other agents to offer the property at a price lower than the agreed-upon price for the agent's marketing.
Compensation: Pay the full service fee, calculated from the lowest price offered through any channel + the agent can terminate the contract immediately.
Compensation: Pay the full service fee, calculated from the lowest price offered through any channel + the agent can terminate the contract immediately.
Example: Selling at a lower price
Proview markets at 5,000,000 — but owner allows Agent B to sell at 4,500,000
| Lowest price offered through any channel | 4,500,000 ฿ |
| Full service fee 3% | 135,000 ฿ |
| Owner must pay | 135,000 ฿ |
Consequences: The owner must pay a service fee of 135,000 baht without the property being sold yet + the agent has the right to terminate the contract immediately + if Agent B successfully sells, the owner must also pay Agent B's service fee = duplicate payment
Case 3: Speculative Overpricing (Clause 4.5.3)
Prohibition: Setting an unreasonably high price above market value, affecting the agent's reputation.
Compensation: Actual marketing expenses + 3% of the listed price within 15 days.
Compensation: Actual marketing expenses + 3% of the listed price within 15 days.
Example: Speculative Overpricing
Market price ~5,000,000 — Owner insists on selling for 8,000,000 baht
Agent has already invested in marketing: photos, videos, online ads, etc., totaling 50,000 baht
| Actual marketing expenses | 50,000 ฿ |
| Compensation 3% x 8,000,000 (listed price) | 240,000 ฿ |
| Total owner must pay | 290,000 ฿ |
If price is reasonable and sold for 5 million
150,000 ฿
Normal service fee 3%
If speculative overpricing at 8 million
290,000 ฿
Marketing expenses + 3% compensation
Pays almost double the normal service fee, without even selling the property
In addition to compensation: The agent has the right to refuse marketing at that price. If an agreement on the price cannot be reached within 30 days, the agent can terminate the contract, but the owner remains bound by Clause 3.7 (agent right protection) and Clause 12 (early contract termination) in all respects.
Contract Termination
5
Early Contract Termination (Clause 12)
The property owner has no right to terminate the contract before its expiry, unless the agent is in material breach of contract (must give 15 days prior notice).
If the owner terminates without reason, they must pay:
Example: Early Contract Termination
Property listed for sale at 5,000,000 — Agent has started marketing — Owner requests termination
| 12.2.1 Lump sum compensation (2% of listed price) | 100,000 ฿ |
| 12.2.2 Marketing compensation (1.5% — if marketing has commenced) | 75,000 ฿ |
| Total owner must pay | 175,000 ฿ |
If waiting for successful sale
150,000 ฿
Normal service fee 3%
+ receives 5 million from sale
+ receives 5 million from sale
If terminating early
175,000 ฿
2% compensation + 1.5% marketing fee
+ does not receive money from sale
+ does not receive money from sale
Pays more than the service fee and doesn't even sell the property
Summary Comparison
6
Summary Comparison — Property Price 5,000,000 Baht
All scenarios compared to the normal service fee of 150,000 baht
| Situation | Owner Pays |
|---|---|
| Normal successful sale (3%) | 150,000 ฿ |
| Sold within 90 days (3%+1%) | 200,000 ฿ |
| False price reporting (actual sale 6 million) | 240,000 ฿ |
| Lower price offered through other agents (4.5 million) | 135,000 ฿ * |
| Speculative overpricing (8 million) | 290,000 ฿ ** |
| Contract termination (marketing commenced) | 175,000 ฿ |
* Paid without selling + agent terminates contract immediately + may have to pay service fees to other agents in duplicate
** Paid without selling + actual marketing expenses of 50,000 already included
In summary: The best and most economical path for property owners is to set a reasonable price, provide accurate information, and allow the agent to work diligently. The result is a quick sale, paying only the normal service fee, a Win-Win for everyone.
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