What are the types of agency arrangements?

There are 3 main types of agency arrangements:
Sole agency
Exclusive agency
Multiple agency

What does it mean to appoint an agent under sole agency and exclusive agency?

In both cases, it means that you have appointed only one agent to sell your property. Only he/she can act for you; no other agent can do so. However, if you (the owner) manage to find your own buyer, you do not need to pay any commission to the agent under the sole agency terms.
Whereas in the exclusive agency, you will have to pay the agent his commission even if you sell the property yourself. However, you will need to reimburse the agent for marketing expenses under the sole agency arrangement.

What is a Multiple Agency?

A multiple agency is where more than one agent is appointed to market your property independently, and only the agent that sells the property gets the commission.

What are some advantages of employing an agent under sole agency/exclusive agency as opposed to multiple agency?

Firstly, because only one agent is marketing your property, it reduces the possibility for potential buyers to be quoted different prices/information from different agents quoting different prices for the same property.
Secondly, because the agent would not have to fear that another agent would be ahead of him to sell your property, he would tend to be more committed to sell your property at the highest possible price.

What are the possible disadvantages in engaging a sole agency when selling my property?

Some owners believe that sole agency arrangement would tend to limit the pool of potential buyers, hence resulting to a longer marketing period, or a lower price fetched. Generally, there are no hard and fast rules as to the best agency arrangement.
You can always adopt for a sole/exclusive agency method of selling for 3 months and see how you feel about the arrangement. If you are not comfortable about the arrangement, you can always terminate the agency arrangement in writing.

What is the "standard" amount of commission that I should pay my agent?

The Institute of Estate Agents (IEA) recommended 2% of the sale price for private properties. The actual amount is usually negotiated between the agent and the seller.

Am I solely responsible for the payment of the agent's commission or does the purchaser also pay for his commission?

The Institute of Estate Agents (IEA) guide states that an agent's commission is usually only payable by the seller for private properties. However, some agents may ask for commission from both the buyer and the seller, though such practices are discouraged.
Find out more about commission guidelines by IEALet EastLiving help you market your property