Published April 1, 2006


CHANGING LABOUR MARKET
Agent accreditation scheme in place

By ARTHUR SIM


ANYONE house-hunting this weekend may want to ask whether the real estate agent showing them around is accredited.



New channel: Anyone employing the services of an accredited agent can make use of mediation and other dispute resolution services at the SISV Mediation Centre

Since Nov 11 last year, the Singapore Accredited Estate Agencies (SAEA) Scheme has been in place to ensure standards of practice are maintained in the industry. It is being implemented by the SAEA Accreditation Board, which comprises members of the Singapore Institute of Surveyors and Valuers (SISV), the Institute of Estate Agents (IEA) and other professional bodies.

Anyone employing the services of an accredited agent can avail themselves of mediation and other dispute resolution services at the SISV Mediation Centre should the need arise. But SISV chairman Lim Lan Yuan says that so far 'there have been no complaints'.

The SAEA Scheme was initiated by the Ministry of Finance, Inland Revenue Authority of Singapore (Iras), Housing and Development Board, SISV and the Institute of Estate Agents (IEA). It requires that all real estate agencies have their agents accredited by Jan 1, 2009.

The agencies themselves will also have to be accredited and hold a valid house agent's licence issued by Iras. Dr Lim says that so far, 161 agencies have been accredited. Of these, 79 per cent are small firms (with fewer than 10 agents), 15 per cent are medium firms (11-50 agents) and 6 per cent are large firms (over 50 agents). These firms represent a total of 4,500 agents, although not all have been accredited yet.

Dr Lim envisages that accreditation will possibly replace Iras licencing in the future. 'The industry should self-regulate,' he added.

Still, getting accreditation is not easy for agents. They have to pass the Common Examination for House Agents (Ceha) - and Dr Lim says the pass rate is 40-50 per cent. About 800 people registered to sit the exam last year.

The availability of the SISV Mediation Centre should be welcome news. Last year the Consumers Association of Singapore (Case) received 595 complaints against the real estate industry, up from the 469 the year before. This was, however, for the period between January and October - before the SAEA Scheme was implemented.