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14-02-12, 18:17
http://www.straitstimes.com/PrimeNews/Story/STIStory_766362.html
No agent for 1 in 10 HDB resale deals
Khaw says CEA will help DIY owners better understand their rights
Published on Feb 14, 2012
By Shuli Sudderuddin
ONE in 10 Housing Board (HDB) resale transactions last year was done without the involvement of property agents, National Development Minister Khaw Boon Wan revealed in his blog yesterday.
He added that the Council for Estate Agencies (CEA), as part of its ongoing consumer education efforts, would help home owners better understand their rights if they opted to act without agents.
He noted that while there had been suggestions to prohibit real estate agents from handling HDB resale transactions as well as ban do-it-yourself (DIY) resale deals, he did not think it was appropriate to do either.
The HDB already provides DIY resale checklists of requirements such as eligibility to buy or sell and financing.
Industry experts said that while they had not observed a discernible DIY trend, it was not uncommon for a buyer or seller to want to complete at least part of the transaction without an agent.
Buyers and sellers said they chose to go agent-free to avoid paying the agent's commission - usually about 1 per cent of the transaction price for buyers and 2 per cent for sellers.
Mr Nicholas Mak, head of research at SLP International, said going DIY was not as easy as it seemed because there is a lot of unfamiliar paperwork. For example, sellers have to submit a financial plan for the purchase of their next flat.
He said it was more common for people to find a buyer or seller and then ask an agent to do the paperwork.
An example is Mr Kumar Suresh, 39, who is helping his sister to sell her Jurong West three-room flat. Though he plans to seal the deal by himself, he intends to get his agent to go through the paperwork as the agent would be more familiar with it.
'Even with him doing the paperwork, I can save up to $5,000. By dealing with the buyer myself, I can also decide what is a reasonable price rather than having an agent who might coax me into accepting a figure,' said the youth worker.
Ms Vera Chua, a business owner in her 30s, is selling her four-room flat in Tiong Bahru without an agent. 'I'm doing it to save on the agent's commission and learn how the process works so I can use the skills in future. And because I conceptualised the flat's decor myself, I think I'm the best person to present it and match it to the new owner,' she said.
She would get a lawyer's help with the paperwork.
In his blog post, Mr Khaw also thanked members of the public for their feedback on what they wanted the CEA to do and revealed suggestions such as improving the quality of training and raising the minimum education qualification of agents.
Since January last year, all property agents must register with the CEA, which can investigate complaints and impose penalties. The council said areas for development in its training courses included professional ethics as well as business leadership and management.
Mr Khaw said the council is looking into shortening the time for resolving disputes between buyers/sellers and agents.
Currently, parties with disputes over the Estate Agency Agreement, which puts on record the commission amount agreed on by both parties, can make use of the council's resolution scheme, which involves mediation and arbitration.
[email protected]
No agent for 1 in 10 HDB resale deals
Khaw says CEA will help DIY owners better understand their rights
Published on Feb 14, 2012
By Shuli Sudderuddin
ONE in 10 Housing Board (HDB) resale transactions last year was done without the involvement of property agents, National Development Minister Khaw Boon Wan revealed in his blog yesterday.
He added that the Council for Estate Agencies (CEA), as part of its ongoing consumer education efforts, would help home owners better understand their rights if they opted to act without agents.
He noted that while there had been suggestions to prohibit real estate agents from handling HDB resale transactions as well as ban do-it-yourself (DIY) resale deals, he did not think it was appropriate to do either.
The HDB already provides DIY resale checklists of requirements such as eligibility to buy or sell and financing.
Industry experts said that while they had not observed a discernible DIY trend, it was not uncommon for a buyer or seller to want to complete at least part of the transaction without an agent.
Buyers and sellers said they chose to go agent-free to avoid paying the agent's commission - usually about 1 per cent of the transaction price for buyers and 2 per cent for sellers.
Mr Nicholas Mak, head of research at SLP International, said going DIY was not as easy as it seemed because there is a lot of unfamiliar paperwork. For example, sellers have to submit a financial plan for the purchase of their next flat.
He said it was more common for people to find a buyer or seller and then ask an agent to do the paperwork.
An example is Mr Kumar Suresh, 39, who is helping his sister to sell her Jurong West three-room flat. Though he plans to seal the deal by himself, he intends to get his agent to go through the paperwork as the agent would be more familiar with it.
'Even with him doing the paperwork, I can save up to $5,000. By dealing with the buyer myself, I can also decide what is a reasonable price rather than having an agent who might coax me into accepting a figure,' said the youth worker.
Ms Vera Chua, a business owner in her 30s, is selling her four-room flat in Tiong Bahru without an agent. 'I'm doing it to save on the agent's commission and learn how the process works so I can use the skills in future. And because I conceptualised the flat's decor myself, I think I'm the best person to present it and match it to the new owner,' she said.
She would get a lawyer's help with the paperwork.
In his blog post, Mr Khaw also thanked members of the public for their feedback on what they wanted the CEA to do and revealed suggestions such as improving the quality of training and raising the minimum education qualification of agents.
Since January last year, all property agents must register with the CEA, which can investigate complaints and impose penalties. The council said areas for development in its training courses included professional ethics as well as business leadership and management.
Mr Khaw said the council is looking into shortening the time for resolving disputes between buyers/sellers and agents.
Currently, parties with disputes over the Estate Agency Agreement, which puts on record the commission amount agreed on by both parties, can make use of the council's resolution scheme, which involves mediation and arbitration.
[email protected]