Property agencies dragging feet on regulating agents

I ALWAYS suspect that property agencies are reluctant to regulate real estate agents. My suspicion was confirmed by the report, ‘Estate agents’ group objects to new regulatory scheme’, (ST, Nov 10).

The report highlighted that a group of agencies is against a move by the Institute of Estate Agents (IEA) to launch a ‘practising certificate’ for its members. The group argued that an accreditation scheme is already in place and that the certificate authorising an agent ‘to practise as a real estate agent in Singapore’ would give it some form of legal status.

Although members of the Singapore Accredited Estate Agencies (SAEA) have been advocating for professionalism in the real estate industry they are now objecting to the initiative by the IEA for the mere reason that they do not like the wordings in the ‘practising certificate’.

There have been numerous reports and debates on the need to regulate property agents. These came about from the presence of unscrupulous agents in the industry. The general view is that accreditation is not sufficient to rid the industry of bad hats as any errant agent could simply ignore the rules and continue with business as usual. Moreover, he is not obliged to accredit himself with any association and can act independently.

With only some 7,000 out of about 30,000 agents being accredited under SAEA, as mentioned in same report, there is an urgent need for the industry to get its act together. Promising the public that professionalism is on the cards is getting stale. The industry must stop dragging its feet.

If the industry is serious about improving professionalism, it should work with the authorities to exercise greater control over agents, including the use of legislation. My personal view is that industry associations simply do not have the ‘teeth’ to regulate agents. Only punitive action by the authorities can deter them from going astray and acting against the interest of buyers and sellers.

The current hot property market would have attracted many to join the industry; surely, we should not wait for more innocent buyers and sellers to fall prey to unscrupulous agents before stepping in.

Teo Cheng Peow

Source : Straits Times - 16 Nov 2007