HOME-BUYERS are being overcharged on commission payable to property agents under the present practice of letting agents fix the commission rate, claims the Consumer Council.
It describes the practice as ''depriving home-buyers of their negotiation rights'' and also calls for a cut in the one per cent commission rate charged on transactions.
But property agents argue it is a ''market rate'' and say so far there have been no complaints about over-charging.
Under the present practice, some agents may require both vendors and buyers to pay commission of one per cent of the purchase price.
For a unit valued at $2 million, an agent can collect a total of $40,000 commission from both parties.
But some agents claim the amount is insignificant when compared to stamp duties, which can cost the buyer up to $55,000 for a $2 million unit.
The watchdog's chief executive, Mrs Pamela Chan Wong Shui, said: ''The council is opposed to any practice of setting charges.
