Public welcomes move to regulate property agents

http://www.businesstimes.com.sg/sub/...61201,00.html?

Published November 26, 2009

Public welcomes move to regulate property agents

By UMA SHANKARI


THE Ministry of National Development (MND) has received more than 200 independent comments and suggestions on its proposed regulatory framework for property agents.

The vast majority of respondents in a recent public consultation exercise welcomed stronger regulation of the real estate industry, MND said yesterday.

The suggestions were generally supportive of key features proposed under the new regulatory framework - such as mandatory accreditation for property agencies and agents; setting up a public central registry for agents, and an independent tribunal to deal with disputes; and introducing a demerit points system.

Public consultation took place from Oct 13 to Nov 17.

MND said that because complaints often arose from alleged unethical practices or misconduct, respondents felt it was important that agents pass a standard industry entrance examination covering not only practical knowledge but also ethics, before they are allowed to practise.

They also agreed with a proposal that an agent should represent only one party in a transaction to avoid conflict of interest.

MND said: 'These views were generally consistent with feedback gathered during industry consultations conducted from Sept 10 to Oct 1, when MND consulted stakeholders including industry associations, real estate agency directors, individual agents, Case (the Consumers Association of Singapore) and Redas (the Real Estate Developers' Association of Singapore).'

Views received from various parties will be consolidated and taken into consideration for refining the new regulatory framework, MND said.

Key elements are expected to be ready for announcement by early 2010.

http://www.straitstimes.com/Money/St...ry_459217.html

Nov 26, 2009

Thumbs up for ending estate agents' dual role

Respondents in public consultation exercise also want an entrance exam

By Joyce Teo


A PROPOSAL to ban property agents from representing both the seller and buyer in the same transaction has generated strong public interest - with many giving the idea the thumbs up.

This practice, widespread in the HDB resale market, leaves the agent with a clear conflict of interest.

But there is likely to be resistance from some agents who stand to lose commissions if it is implemented.

The proposed ban is one of a series of possible changes in a planned industry overhaul after years of complaints about questionable practices by some agents.

A public consultation exercise on a planned real estate regulatory framework drew more than 200 comments and suggestions, said the Ministry of National Development (MND) yesterday.

The proposal most commented upon was the ban on dual representation.

Many respondents also backed a plan to ensure agents have a minimum entry qualification - probably an entrance exam. They felt it was important for the exam to cover ethics, given that complaints often stem from unethical practices.

Most respondents were 'generally supportive' of the key proposals, MND said. These also include mandatory accreditation of agencies and agents, keeping a public central registry for accredited agents, setting up an independent tribunal to resolve real estate disputes, and introducing a demerit points system.

The views received during the exercise - conducted from Oct 13 to Nov 17 - were generally consistent with feedback gathered during industry consultations a month earlier, MND said. The respondents included property agents and clients who had been caught in unpleasant encounters with agents, said a spokesman.

The Government aims to better safeguard consumers' interests and raise the level of professionalism in the industry.

Some of the key proposals are long overdue, some industry players said.

Most would be welcomed by the industry, but some agents may not be happy if dual representation is disallowed.

An agent representing both sides in an HDB deal can get two commissions, even though there is clear conflict as sellers would want the highest price for their property while buyers want the lowest.

'This practice has been around since the first day HDB flats were traded. Obviously, there will be some resistance from property agents,' said C&H Realty managing director Albert Lu.

As HDB flat transactions can be complex, it is useful for buyers and sellers to have their own agents, to ensure that an unrepresented party does not delay or mess up the transaction, he said.

Some respondents suggested disallowing dual representation for rental deals.

There were suggestions to mandate co-broking, to stipulate that all buyers are to engage an agent and to require agents to inform sellers of all offers, regardless of the offer price or agent fees.

There were also calls for a standard commission guideline to curb undercutting among agents and to protect less educated consumers, for instance.

Respondents had also called for the licensing of individual agents. While the Government had called for industry-led accreditation, some respondents wanted the Government to handle this.

Some also wanted to see minimum educational qualifications. Mr Lu felt this was unnecessary. Having paper qualifications does not guarantee an agent will act ethically, he said. Passing an entrance exam is enough, even though it does not ensure ethical behaviour. A Government accreditation board could suspend errant agents, he added.

Mr Lu felt that the entrance exam should also be conducted in Chinese, for the benefit of a group of older, experienced agents who are Chinese-educated.

PropNex chief executive Mohamed Ismail expects a central registry to come in to help control rogue agents, who are now able to switch agencies unchecked. Some respondents suggested posting the names of blacklisted agents online to warn the public.

Suggestions from the public include the use of standard forms and contracts as well as disallowing agencies and agents from buying new properties from developers with a view to selling them.

MND expects to announce key elements of the framework early next year.

[email protected]

It's about time. :cheers4:

http://business.asiaone.com/Business...30-183059.html

Mon, Nov 30, 2009

The Straits Times

Rules should cover concerted action by agents


I REFER to Thursday's report, 'Thumbs up for ending estate agents' dual role'.

The Ministry of National Development's (MND) proposal to ban agents from representing both seller and buyer in the same property transaction is a step in the right direction. However, the proposal is silent on agents who may act in concert in the same transaction, such as agents from the same team of the same agency.

Under the proposed framework, teams could continue to represent both seller and buyer in property transactions. Agents may continue to profit handsomely by attaining exclusivity from sellers and dealing only with associated agents, to the exclusion of all others. Such uncompetitive market structures would give agents strong pricing power when negotiating fees as well.

Agents operating in teams are a common feature of Singapore's property market and so the proposals by MND should extend beyond the regulation of single agents to include that of teams as well.

Otherwise, agents may continue to follow only the letter of the law with regard to safeguarding both buyers' and sellers' interests, disregarding its intent.

Ho Kah Chuen

My concern is, not all agents working in pairs are in the same agency. So there's still no 100 per cent solution at all :rolleyes:

Quote:

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Originally Posted by mr funny

http://business.asiaone.com/Business...30-183059.html

Mon, Nov 30, 2009

The Straits Times

Rules should cover concerted action by agents


I REFER to Thursday's report, 'Thumbs up for ending estate agents' dual role'.

The Ministry of National Development's (MND) proposal to ban agents from representing both seller and buyer in the same property transaction is a step in the right direction. However, the proposal is silent on agents who may act in concert in the same transaction, such as agents from the same team of the same agency.

Under the proposed framework, teams could continue to represent both seller and buyer in property transactions. Agents may continue to profit handsomely by attaining exclusivity from sellers and dealing only with associated agents, to the exclusion of all others. Such uncompetitive market structures would give agents strong pricing power when negotiating fees as well.

Agents operating in teams are a common feature of Singapore's property market and so the proposals by MND should extend beyond the regulation of single agents to include that of teams as well.

Otherwise, agents may continue to follow only the letter of the law with regard to safeguarding both buyers' and sellers' interests, disregarding its intent.

Ho Kah Chuen

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