Category Archives: CEA

Barring same-agent property brokerage not practical

Posted on 29 Oct 2009 | Comments Off on Barring same-agent property brokerage not practical

I REFER to last Saturday’s editorial, ‘The problem in same-agent property brokerage’.

While I welcome and support the Ministry of National Development’s draft plan to regulate real estate brokerage, including a radical suggestion to prohibit an agent from acting for both seller and buyer in HDB resale transactions, I doubt its effectiveness in practice.

It may delay resale transactions and result in lost opportunities. Besides, there is no guarantee that co-broking or unethical practice will be completely wiped out.

The trade rigidity will inconvenience both parties – the genuine sellers and buyers – as both sides will have to wait for suitable buyers and sellers to seal a transaction.

However, if win-win solutions can be found to expedite genuine transactions, there is no dispute that the public will favour a separation of agent functions. Continue reading →

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How new rules can protect property agents

Posted on 29 Oct 2009 | Comments Off on How new rules can protect property agents

I REFER to the letter by Mr Chua Khim Leng, ‘New rules should protect property agents’ (Oct 19).

As a real estate consultant for the past 20 years and running my agency in a niche market, I fully understand the plight of many real estate agents, who are disadvantaged because of the lack of rules that clients should abide by when they engage agents to handle their properties.

Many clients do not give exclusivity, as by appointing agents without signing a contract, they can take advantage of the agents’ advertisements and feedback, and then leverage on the prices received to sell direct to friends or neighbours and so avoid paying commission. These clients will also cut commission at the crucial moment of signing the option, say they will not sell or give the sale to another agent who charges lower commission.

An agent who had refrained from closing a sale quickly as the market was improving rapidly, waited and worked to achieve better offers, but was later disadvantaged because the client paid nothing if the sale was not concluded by that agent.

Other agents and buyers are allowed to cut in at the 11th hour. This undesirable situation does not support agents who work professionally and diligently in the interest of their clients. Continue reading →

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