Category Archives: CEA

Real estate sellers must meet criteria

Posted on 12 Jun 2012 | Comments Off on Real estate sellers must meet criteria

From Yeap Soon Teck Deputy Director (Licensing), Council for Estate Agencies

We refer to the letter “No principle in CEA fee policy” (May 31).

Under the Estate Agents Act, all real estate salespersons are required to register with the Council for Estate Agencies (CEA) through an estate agent, which is responsible for paying a registration fee when it makes the application. The fee is charged as resources are involved to process each application and ensure that the salesperson’s credentials comply with the standards required in the Act.

For a salesperson who switches agents, the receiving agent has to apply to the CEA and pay the fee. This application is subject to another round of assessment to ascertain that the salesperson continues to meet the necessary criteria for registration.

The CEA has briefed agents on the process during industry dialogue sessions and through circulars.

When a salesperson is registered, the agent that supports and submits the application is responsible for ensuring that the salesperson is fit to practise and will comply with the Estate Agents Act and Regulations.

The CEA works closely with agents on this, too.

Apart from licensing, the CEA does regular enforcement work and compliance checks, investigates consumer complaints about estate agency services and implements industry development initiatives.

These will help enhance the level of services rendered and better protect consumers. The CEA also engages in public education to help consumers make informed decisions in their property transactions.

The resources and costs involved are supported by the registration and licensing fees, supplemented by government funding. The CEA is mindful of the costs. Through regular dialogue sessions with industry stakeholders, we will continue to ensure that registration fees remain reasonable.

Consumers are already paying commissions for the services of agents and salespersons. They should not be expected to pay the CEA for initiatives to raise the level of professional service of the real estate industry.

No principle in CEA fee policy

From Henry Tay
May 31, 2012
Property agents can perform estate agency work only if they have a valid registration. But why are registration fees subjected to repayment when an agent, registered for a valid period, switches agencies?

When a property agent recently asked the Council for Estate Agencies about this, it said that estate agencies and not the agent are responsible for paying the fee, be it whether the individual is new to the industry or an existing agent making a switch.

The CEA appears nonchalant to the principle behind its policy. And estate agencies continue to pay without knowing why.

With 30,600 registered property agents here, annual registration fees of S$230 and application fees of S$53.50, the CEA would be collecting a hearty S$8.68 million and more each year.

Ironically, the CEA was formed for the benefit of consumers in their property transactions, but does not collect any money from them.

Source : Today – 2012 Jun 12

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Agents and developers preying on elderly residents for control of their voting rights

Posted on 11 Jun 2012 | Comments Off on Agents and developers preying on elderly residents for control of their voting rights

At one condominium in Ang Mo Kio, the developer, which also owned units in the property, seized control of the management council and tried – albeit unsuccessfully – to push through a collective sale as well as a proposal to build a covered car park using the maintenance and sinking funds.

At another development in Simei, property agents infiltrated its management council and then transacted several units, with residents suspecting they did so by accessing their personal data or leasing information.

Such “proxy wars” have been waged for years at condos across the island: Home owners who are also property agents or developers allegedly coerce or harass other residents for proxies in a bid to seize majority voting power, get themselves elected into the management council and ultimately make decisions to their benefit.

Association of Management Corporations chief executive Francis Zhan told TODAY: “The whole idea is to get into the management office, copy down residents’ information and contacts, which will help (property agents) in their daily work of selling property. It’s a simple opportunity for those without many contacts.”

He added: “The agents target seniors who are … not so well-educated. They coerce them, harass them … to get them to sign the (proxy) forms.”

Mr Zhan noted there is also the risk of property agents sitting on management councils appointing either themselves or their affiliates as managing agents for the developments.

Last month, condo resident Tan Chuan Poh wrote in to this newspaper to voice his concern at such tactics. He described how a property agent who lived at his condo collected more than 50 proxy votes from owners who could not attend the AGM and voted in three property agent associates and a client, before making himself the chairman of the management council.

The Building and Construction Authority (BCA) is reviewing the Building Maintenance and Strata Management Act, including the use of proxies at annual general meetings, its spokesperson said in response to TODAY’s queries. The review is undergoing public consultation till the end of this month. It is expected to be completed by the end of the year.

Mr Zhan and property agents TODAY spoke to suggested that the authorities disallow the use of proxies for the election of council members.

Mr Tan also proposed banning property agents from holding key appointments on a management council. However, property agent Daniel Ong pointed out: “If it’s a lawyer, insurance agent or a salesman, do you stop them? It does not matter who the person is, we all do what is necessary to survive as long as it does not break the law.”

Ms J Lim is a property agent who also chairs the management council of her condo in the Novena area.

She makes it a point to stay out of matters involving sales of units at her condo. She also tells her husband, who is an engineer, not to get involved or to provide quotations for building inspections.

She noted that the impending introduction of the Personal Data Protection Act will address concerns about potential misuse of personal information.

Ms Lim told TODAY: “It is not all bad, as the experience I have comes in useful at times. The other members will ask me for my advice when it comes to doing things that may affect the valuation of the building … it is about how open you are.”

The BCA spokesperson reiterated that all condo management council members who have direct or indirect interests in any matters or contracts should declare the nature of this interest and abstain from any discussion or voting.

On the issue, Council for Estate Agencies (CEA) Deputy Director (licensing) Yeap Soon Teck warned that property agents “should not take advantage of their position and influence (in the management council) to benefit their estate agency work.”

Also, under CEA’s Code of Ethics and Professional Client Care, salespersons “must not use threatening or harassing tactics or apply unreasonable pressure on any person to get themselves elected (to the management council), and bring discredit or disrepute to the real estate agency industry.” The CEA will look into complaints and property agents who are found guilty of breaching the code could be fined, or have their licences revoked or suspended, Mr Yeap said.

Source : Today – 2012 Jun 11

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