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How new rules can protect property agents

Posted on 29 Oct 2009 | Comments Off

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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Posted in CEA

Tagged Institute of Estate Agents (IEA), Property Agency, Property Agents

Real estate agencies all for clarity and transparency

Posted on 26 Oct 2009 | Comments Off

I COMMEND last Saturday’s helpful Forum Online letter by Mr Ng Kwong Yee, ‘Crux of property brokering that needs clarity’.

We agree with Mr Ng that most complaints about estate agents arise from a lack of mutual understanding, specificity and even transparency in the relationship between the consumer and the realtor.

We further concur with his suggestion to make it mandatory for the estate agent to explain the transaction process, the scope of estate agency services, commission payable and thereafter secure the consumer’s written agreement. This will surely reduce the number of complaints and disputes between consumers and estate agents acting for them.

For example, Britain’s Royal Institution of Chartered Surveyors (RICS) has published the Blue Book, which is essentially an estate agency guide for realtors and consumers to raise professional service standards and improve consumer experience in home buying and selling. Estate agents who are members of RICS are required to provide prospective clients with a copy of the Blue Book which, among other things, details the sale and purchase process as well as the role of the estate agent. Prospective sellers and buyers familiarise themselves with the Blue Book so the duties of the agent and expectations of the consumer are adequately matched. Continue reading →