More controls to keep real estate agents in line

Real estate agents may be accredited under a new scheme, if the Ministry of Finance (MOF) gives the go-ahead.

Two industry watchdogs - the Institute of Estate Agents (IEA) and Consumers Association of Singapore (CASE) - are joining hands to start a new accreditation scheme and they plan to submit a proposal to MOF in the middle of the year.

They believe compulsory guidelines will help improve the professionalism of the real estate industry.

James Chua had planned to buy a 4-room HDB flat, in the Admiralty area, valued at about S$260,000. He was willing to pay only S$12,000 in cash over valuation (COV).

But he was told that another buyer had already made a similar offer, and that was when his agent came up with a "suggestion".

"She (property agent) said if (I am) willing to pay S$10,000 COV and S$2,000 commission to the selling agent, then (I) can still buy the flat. I was taken a back. Isn't that not representing the best interests of the seller? I find that highly unethical and lacking integrity. I said I won't do it but my buying agent said if you are still paying S$12,000, then what's the big deal. That was when I started to suspect that they are in this deal together," said Chua.

Chua had since bought another flat through a new agent. But he had reported the incident to the Inland Revenue Authority, which is the licensing body for real estate agencies. Chua hopes more can be done to better regulate the industry.

Last year, over 1,000 complaints were filed against property agents.

The IEA said this is about 40 percent more than 2006, partly due to the property boom.

Said Jeff Foo, president of the Institute of Estate Agents: "All these years, we hear consumers complaining about unethical agents, agents not knowing their job. And at the end of the day, nothing is done about it. The agents get away with it scot-free, because they are not regulated.

"The best thing is to legislate. If taxi drivers and security guards are all licensed, why not real estate agents? Real estate agents deal with about the largest investment of some consumers."

IEA said it can only take disciplinary action against agents who are its members. If found guilty, rogue agents will be blacklisted and will not be able to work for another real estate agency.

It estimated that there are some 30,000 real estate agents in Singapore, and only 1,500 of them are IEA members.

Under the new proposed accreditation scheme, new agents must be trained under the National Skills Recognition System (NSRS).

NSRS is a national framework for establishing work performance standards and certifying skills acquisition, implemented by the Singapore Workforce Development Agency.

Existing agents are expected to upgrade themselves and pass the Common Examination of House Agents. There will also be provisions to punish errant property agents.

For now, the onus is on consumers to do their homework. They can run a check on their agents on IEA's Central Registry System, or ask to see the agent's Practicing Certificate.

From May, agents will have to submit the checklist to HDB, together with the resale application. This is to ensure all procedures are transparent. - CNA /ls

Source : Channel NewsAsia - 15 Apr 2008

Hersing full-year net income doubles

It does not expect the record real estate activity of ‘07 to be repeated.

HERSING Corporation, which owns the ERA real estate marketing franchise here, the StorHub self-storage business and a 51 per cent stake in the Singapore network of US remittance giant Western Union, yesterday reported a doubling of full-year net income and revenue to $38.8 million and $197.2 million respectively.

But the group said it does not expect the record real estate activity of 2007 to be repeated this year.

It also said profit attributable from its financial services business will be diluted as Western Union has a 49 per cent share of after-tax profit from the remittance network in Singapore from Jan 1, 2008.

ERA brokered about 30,000 property deals in Singapore last year, more than double the number in 2006, said Hersing Corporation president Jack Chua.

Private property deals accounted for more than 70 per cent of Hersing’s $169.5 million real estate brokerage and related services turnover.

ERA had about a 40 per cent market share of total HDB resale and private residential property sales in Singapore last year, Mr Chua said.

Shareholders will receive a three cents per share special interim dividend payable on March 25 and a one cent per share final dividend payable on May 11.

Hersing’s $38.8 million net earnings for the year ended Dec 31, 2007 equates to roughly a quarter of the group’s $151.1 million market cap based on its closing price of 51.5 cents yesterday.

Hersing owns the master franchise for the ERA brand in the Asia-Pacific and operates the ERA business directly in Singapore and China. Mr Chua said the group is now pursuing the appointment of an ERA franchisee for China.

If that happens, the franchisee will pay Hersing a one-time lump sum and a monthly royalty fee.

Hersing will also start operating two new StorHub facilities in Singapore this year.

Source : Business Times - 27 Feb 2008

No need to form new estate agents’ group

I REFER to the article, ‘Plans for new group to lift standards of housing agents’ (ST, Feb 4).

Legislation for individual estate agents is already in place in many neighbouring places, for example, Malaysia, Hong Kong, Macau and Australia. Why not a First World country like Singapore?

In 1998, three organisations amalgamated to form the Institute of Estate Agents (IEA). Setting up another association is a pure waste of resources - and gives the impression of a divided and fragmented industry. The best solution is for all to get involved, resolve problems and evolve. Unity, a standard set of self-regulation and self-policing measures are the only way to move forward with IEA.

An accreditation scheme was launched in 2005 to raise industry standards. Clearly, three years on, standards have not improved. Statistics provided by the Consumers Association of Singapore (Case) show complaints against agents continue to rise. The scheme has not solved problems, raised industry standards or injected more confidence among consumers.

If parties are serious about the state of affairs and cleaning up the industry, be it raising standards or information sharing, IEA’s doors are always open. It is more sensible to work together to address and resolve industry problems quickly and resolutely, working on an ability to recommend solutions to meet future challenges. Practitioners should decide what is best for the industry.

Make estate agents responsible and accountable for their actions, especially when they are dealing with consumers’ biggest asset. Over time, with tighter control it will raise industry standards and lead to better service, more discipline and higher professionalism. Eventually, there will be fewer complaints about estate agents.

IEA plays an active role in promoting public awareness and keeping estate agents abreast of the latest housing policies. The IEA Central Registration Scheme is supported by more than 354 licensed real estate agencies with well over 21,000 real estate agents’ names. It also acts as a platform for IEA to disseminate information and exchange programmes with agency bosses.

IEA and Case are presently working closely to provide solutions towards self-regulation of estate agents and setting up self-policing measures. It is time we stood together and united as one body that truly looks after the interests of all estate agents and that of consumers who engage the services of estate agents in Singapore.

Jeff Foo President, Institute of Estate Agents

Source : Straits Times - 15 Feb 2008

Why confuse people with a new association for real estate agents?

I REFER to the article, ‘Plans for new group to raise standards of housing agents’ by Ms Tan Hui Yee (ST, Feb 4).

Being the founding member and council member of the former Association of Singapore Realtor (ASR), now known as IEA (Institute of Estate Agents), I am surprised to see my former council member of ASR and past president of the IEA wanting to set up another association with the reasons of raising standards or covering more grounds.

If this new group has the interest of the realtors and the real estate industry at heart, then it would make more sense to work with the IEA. Why waste resources, time and personal commitment which, I doubt, many can give to form this new association. And would the new association be more effective or is it a clash of personalities?

From my understanding from the realtors, I believe the present IEA has done a fairly good job for realtors in Singapore. They have the Central Register Scheme (CRS) which is already well supported by the majority of the larger agencies. Be it raising standards, sharing of information or conducting courses, I believe these are being done by the IEA. As reported in the newspaper, the IEA has captured more than 354 licensed agencies and about 21,000 agents’ names. The bulk of the industry’s players have been supporting it since 2006. Why confuse people with another register or association now?

More importantly, now, for the IEA is to work harder for the day when we can see the association governing realtors in Singapore, like the Singapore Institute of Architect or the Singapore Medical Council.

As the saying goes: Rivalry will surface when there is more than one tiger in the hills. Work together in unity for the betterment of the industry and not oneself.

Khoo See Pheng

Source : Straits Times - 14 Feb 2008

Why confuse people with a new association for real estate agents?

I REFER to the article, ‘Plans for new group to raise standards of housing agents’ by Ms Tan Hui Yee (ST, Feb 4).

Being the founding member and council member of the former Association of Singapore Realtor (ASR), now known as IEA (Institute of Estate Agents), I am surprised to see my former council member of ASR and past president of the IEA wanting to set up another association with the reasons of raising standards or covering more grounds.

If this new group has the interest of the realtors and the real estate industry at heart, then it would make more sense to work with the IEA. Why waste resources, time and personal commitment which, I doubt, many can give to form this new association. And would the new association be more effective or is it a clash of personalities?

From my understanding from the realtors, I believe the present IEA has done a fairly good job for realtors in Singapore. They have the Central Register Scheme (CRS) which is already well supported by the majority of the larger agencies. Be it raising standards, sharing of information or conducting courses, I believe these are being done by the IEA. As reported in the newspaper, the IEA has captured more than 354 licensed agencies and about 21,000 agents’ names. The bulk of the industry’s players have been supporting it since 2006. Why confuse people with another register or association now?

More importantly, now, for the IEA is to work harder for the day when we can see the association governing realtors in Singapore, like the Singapore Institute of Architect or the Singapore Medical Council.

As the saying goes: Rivalry will surface when there is more than one tiger in the hills. Work together in unity for the betterment of the industry and not oneself.

Khoo See Pheng

Source : Straits Times - 14 Feb 2008

More should be done to prevent rogue property agents from fleecing the public

I REFER to the report, ‘Plans for new group to lift standards of housing agents’ (ST, Feb 4), in the face of rising complaints against rogue agents.

Recently, I encountered an agent from a top agency who tried to reduce the sale price of my flat and pressure me into quickly closing the sale.

I made a complaint to the agency. But it replaced the agent only after he had filed successfully, against my wishes, with the HDB for the first appointment.

Many people are using a large portion of their CPF money to buy a roof over their heads. Hence, I urge government agencies to do more to protect HDB flat owners from rogue agents. It should not be left to the industry to self-regulate as this has been unsatisfactory so far.

I suggest the following:

That agents representing sellers cannot represent buyers for the same property , that is, buyers’ agents must be independent of sellers’ agents because of conflict of interest.

That a list of registered agents be maintained as well as a list of barred agents and that no agency is allowed to employ agents who have been debarred to practise under its umbrella.

That HDB conduct workshops to educate flat owners on all the procedures, legal forms and declarations, etc, involved in the sale and purchase of HDB flats.

I hope the relevant authorities can look into these suggestions.

Goh Hock Tee

Source : Straits Times - 6 Feb 2008

Plans for new group to lift standards of housing agents

A GROUP of property agencies plans to form a new association to raise standards in response to growing complaints about estate agents.

The group, which will be separate from the Institute of Estate Agents (IEA), will work closely with an ongoing accreditation scheme to lift the industry’s game.

Complaints about agents have shot up in the past two years amid a property boom, prompting disquiet among some about the sector, which remains largely self-regulated.

Unlike the IEA, which has individual agents as members, the new body will involve estate agencies, said the chairman of its interim committee, property consultant David Ong.

The new body is likely to be linked to the Singapore Accredited Estate Agencies Scheme (SAEA), which last year was reported to have vetted more than 7,000 agents out of the 30,000 or so working in the industry.

It is understood that more than 10 agencies - including HSR Property Group and KF Property Network - will be joining the group. KF Property is the agency division of Knight Frank.

More details are expected soon, but the director of KF Property , Dr Tan Tee Khoon, told The Straits Times that the new body would allow the agency heads to share information about rogue agents as well as host seminars and conferences to raise standards.

A register of agents from member agencies could also be set up.

The group could rival the efforts of the IEA, which introduced a registry in 2006. That registry lists about 350 agencies with almost 21,000 agents.

Dr Tan denied that the new group would rival IEA, saying rather that it would help curb the problem of errant agents. ‘We are really trying to cover more ground. Members of the public are free to choose whether they want to use an IEA agent or an agent with the new association,’ he said.

His firm was among a group of agencies that raised concerns about IEA’s practising certificate scheme when it was launched last year.

The certificate was given to IEA members - which number about 1,400 now - who pledged to abide by its code of conduct. The dissenting group, which included HSR, DTZ Debenham Tie Leung and Global Real Estate, felt the certificate could confuse the public and called instead for the industry to support the SAEA.

One agency chief, Mr Chris Koh from Dennis Wee Properties , said the new group could work if it united all the industry’s head honchos. But IEA’s first vice-president and the chief executive of Propnex, Mr Mohamed Ismail, felt it would divide the industry instead and spread resources too thinly.

There were 1,717 housing agencies in Singapore as at the end of last year. The largely unregulated property sector has had a bad reputation over the years. The Consumers Association of Singapore (Case) received 1,113 complaints last year, up from 991 in 2006.

Case said the complaints involved agents misrepresenting facts, failing to honour promised terms and providing unsatisfactory services, among other things.

Industry veterans say the problem lies in the fact that only agencies are licensed, so agents sacked for unethical conduct can simply practise in another firm.

The Government, however, has consistently shied away from regulating agents.

Case is working with IEA to look into setting up another accreditation system for housing agencies.

Source : Straits Times - 4 Feb 2008

Bad experiences with unprofessional housing agents

I WOULD like to highlight some unpleasant experiences with housing agents in Singapore and, hopefully, I might find someone who shares the same problem as I do.

These happened while I was looking for an apartment to rent.

One housing agent advertise an apartment as renovated, but when we reached the apartment, we found that renovation had not been done, and that it would depend how much we had to offer.

Last week, an agent from PropNex advertised an apartment for rent. The ad stated the size of the flat and I even called to confirm the size and was also told that there was a maid room. But when we arrived, there was no maid room and the size of the flat was about 300 sq ft smaller.

I have written to PropNex about this incident, but have yet to get a reply.

Is there any real estate association in Singapore that governs these agents?

Melvenie Rasmussen (Mrs)

Source : Straits Times - 4 Feb 2008

He’s property agent to the Hong Kong stars

Singaporean’s celebrity clients include Andy Lau and Jackie Chan. He brokered latter’s $11m purchase of Jinriksha Station last month

MOVIE stars do it differently. After just 10 minutes of talking in a piano lounge in Taiwan, Jackie Chan agreed to buy an $8.8 million piece of property in Singapore.

Two days later, the cheque arrived at Mr Simon Kwan’s office in International Plaza here. This was in 1996 when Chan bought The 50s entertainment complex in Tanjong Pagar.

The Hong Kong movie star had not set eyes on his buy. Not even its floor plan.

That is how he usually buys places, said Mr Kwan, who has been handling the actor’s property deals here since 1994.

Jackie Chan’s latest acquisition is the three-storey former Jinriksha Station at 1 Neil Road last month, for which he paid $11 million.

While he has been on the ground floor of the former depot for rickshaw pullers, he has no clue what the upper two floors look like.

Mr Kwan said Chan likes small but beautifully designed buildings because they are like ‘pieces of art’.

Both the 105-year-old Jinriksha Station and the four-storey The 50s complex Chan bought are historic buildings within the Neil Road conservation area.

The movie star also owns a few condominium units in the Orchard Road area, including a three-bedroom unit in The Grangeford condo which will reap $3.4 million in a coming collective sale.

Last October, he opened a 1,500 sq ft cafe at 1 Nassim Road, called Jackie Chan’s Cafe, Coffee And Tea.

Mr Kwan was once an unknown player who joined his family’s small property business, Heng Fatt Properties. His fortunes changed when he was introduced to Chan at a New Year’s Day party in 1994 by the movie star’s manager at the now defunct Studebakers discotheque here.

Since then, he has been included on the social circuit of Hong Kong stars. doing business with the likes of Emil Chau and Andy Lau, as well as with the late Anita Mui and Teresa Teng.

The Hong Kongers have bought more than 10 properties (he says he cannot remember the exact number) from him, the biggest purchase being Chan’s $11 million Jinriksha Station.

Said Mr Kwan: ‘Hong Kong stars have always been interested in buying Singapore property. But they don’t know much about property. So they need someone here whom they can trust to handle their businesses.’

He gets the usual 1 per cent cut from each transaction, he said. During good times, his income can hit $1 million in a month.

Not only does he choose and buy properties for the stars, but he also calls the shots on how much rent the purchased properties should fetch and whether or not renovations are required. On their part, the stars send him their cheques.

He now manages 10 properties for them.

Said Mr Kwan: ‘I treat their properties as though they are my own. So I’m very careful when I make decisions for them.’

His business dealings with them have blossomed into friendship.

Twice, singer Emil Chau flew to Singapore specially to sing at The 50s pub gratis. Mr Kwan owns the pub, located within The 50s entertainment complex, and the space it occupies, which he leased from Chan.

And when Mr Kwan ran into some financial trouble in 2003, Chan waived a month’s rent of $30,000 owed to him.

Said Mr Kwan: ‘Before I knew them, they were my idols. Over the years, I realise that they are down-to-earth and humble people. Now, they have become my close friends.’

Source : Sunday Times - 6 Jan 2008

Commissions earned by real estate agencies up sharply in 2007

Commissions earned by real estate agencies have gone up sharply, by as much as 80 percent, according to one agency.

Market watchers said that is not surprising, given the hike in property prices and number of transactions.

As a result, the industry is also attracting more agents.

Three days into the new year and real estate agency Propnex is already training 200 agents who have entered its fold. About half are new to the industry, but some are returnees.

Industry players said the renewed interest is not surprising. Some real estate agents have seen their income double in the last year.

At Propnex, about 100 agents earned more than S$200,000 each in commission.

Jenny Lee, real estate agent, Propnex, said: "Last year was one of the best years that I had in my nine years in this industry. Generally, all my clients whom I met along the way for the past 12 months, they are in fact very different from those many years ago.

"They are more informed, updated and intelligent. That's why it actually makes selling and buying easier and faster compared to many years ago."

More sophisticated clients are one reason why Propnex believes in training its people at an intensive weekend bootcamp.

Agents said last year was a good year because prices rose to healthy levels. Sellers stand to profit, and buyers believe there is further upside.

For HDB resale flats, more are willing to pay cash above valuation for good units.

Terence Low, real estate agent, Propnex, said: "Nowadays, if it's HDB properties near to the MRT station or major amenities, people could be asking as high as S$50,000 or S$60,000 on average.

"Of course, we're seeing people asking for S$120,000 above valuation; for the buyers to come along to pay this price, I think we have to really wait for somebody cash rich."

However, as another agent would testify, that wait may be much shorter than expected.

Ms Lee said: "One of the deals that I closed in the month of October... it was a 28-year-old HDB jumbo (flat) in Ang Mo Kio, and the price that I transacted was actually S$140,000 above valuation.

"It was closed within 30 minutes during my open house. And these are actually HDB dwellers who want to upgrade. They want the space, but they don't want to pay so much for a condo."

A jumbo flat refers to two adjoining three-room flats converted into a single unit.

Over at another leading real estate agency, ERA, commissions as a whole more than doubled in 2007. - CNA/ms

Source : Channel NewsAsia - 4 Jan 2008

Two years on, and property fliers still sent to old address

I SOLD off my previous property about two years ago and bought a new one in one of the prime estates.

Since then, there have been countless fliers sent to my previous residence address from different property agents asking if I am interested to sell my new property.

The fliers were sent in sealed envelopes attentioned to me and the current owner has been nice enough to keep them for me to collect on a periodic basis. However, it is long enough to cause him great annoyance and inconvenience.

I tried calling the property companies to remove me from their central mailing list but all mentioned that the individual agents keep their own database. Each of them has more than 700 agents and there is no way for them to reach out to all.

The only way for me to prevent the current owner from receiving any more of my mail is to subscribe to a ‘redirect mail’ service from SingPost. However, it is rather costly and not a long-term solution.

I am sure the property agents obtained the information of buyers from an authority in Singapore that governs the transaction. Can that authority stop providing such private information to third parties?

I would appreciate it if anyone could share with me a long-term solution as I believe I am not the only one suffering from this.

Cheah Chi Choy

Source : Straits Times - 28 Dec 2007

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

Case seeks greater regulation of real estate agents

THE Consumers Association of Singapore (Case) has issued a fresh call for greater regulation of property agents plying Singapore’s red-hot property market.

The call comes amid a rising number of complaints against agents in a market where fast money can be made.

Case president Yeo Guat Kwang told The Straits Times on Thursday that talks with relevant government agencies were held last month to discuss mandatory licensing for housing agents.

‘There is very little control at the moment on the behaviour of estate agents, and many users have suffered as a result,’ said Mr Yeo, an MP for Aljunied GRC, addressing property agency PropNex’s quarterly convention.

Case’s renewed calls for intervention from the authorities follow a recent media report on a property agent who allegedly tried to sell the same flat twice to different buyers.

Mr Yeo said industry regulation could involve some form of compulsory standardised tests and training before any agent is allowed to operate.

Currently, there is no compulsory qualification or licence requirement for housing agents. To operate, an agent only has to join a licensed property agency, whose licence is issued by the Inland Revenue Authority of Singapore (Iras).

At last month’s talks, Iras, the Housing Board, Case and the Institute of Estate Agents (IEA) met to discuss the need for more industry regulation.

Iras is ‘currently reviewing’ the situation, and more meetings will be held’, said Mr Yeo.

The IEA represents about 1,000 agents and aims to act for the entire industry eventually.

Two months ago, it launched a new ‘practising certificate’ for its members, aimed at boosting their credibility and giving homebuyers and sellers more confidence in the professionalism of these agents.

In a show of support for greater industry regulation, PropNex on Thursday held a ceremony in which 100 of its members pledged to abide by the IEA’s code of conduct.

‘We need to show that agents will take responsibility for their actions,’ said PropNex chief executive Mohamed Ismail.

Although becoming an IEA member is not compulsory for agents, Mr Ismail said at least 1,000 of PropNex’s 6,000-strong team will be IEA members by year-end.

Mr Yeo added: ‘For extra protection, consumers should look for agents who have practising certificates.’

The IEA has a disciplinary and mediation board that deals with disputes and can take actions like suspending or expelling a member. Such records are also sent to Iras, which issues licences, said IEA president Jeff Foo.

Complaints lodged against estate agents have almost doubled in the last two years.

Case said it received 991 complaints last year, up from 672 in 2005 and 469 in 2004.

Source : Straits Times - 3 Nov 2007

Get tough with rogue property agents

IT IS stated on the website of the Institute of Estate Agents (IEA) that an agent should not accept any commission from both vendor/seller and purchaser/buyer in the same transaction … (Section 2.2.1 on page 3 on website). It is also stated that the professional fee is 2 per cent from the seller and 1 per cent from the purchaser if each of them is represented by the agent.

I would like to highlight a few points:

1) What is the recourse to the buyer without an agent if the seller’s agent insists that the potential buyer pay a 1 per cent commission, failing which the agent won’t go through with the transaction to sell the HDB flat to the buyer? The buyer is pressured by the agent because if he/she doesn’t pay the 1 per cent commission, the seller’s agent will not entertain the buyer upon signing the Option to Purchase. If the buyer decides to use legal recourse (which would take months), the property will be bought by other buyers who are willing to pay the 1 per cent commission. How does this benefit the seller as the agent is acting on his/her own interests rather than the seller’s? How is the buyer’s interest protected in this case? Is there any way to report the rogue agent to the authorities?

2. Are professional fees highlighted on the IEA website regulated or enforced? I am asking this because an agent can flout the rules by not letting any potential buyer view the property if he/she insists on not paying the 1 per cent commission to the agent although the agent is already paid 2 per cent by the seller. Any buyer who insists on not paying the 1 per cent commission will have considerably fewer chances to view flats. And the seller will, in turn, get fewer sales opportunities because his/her agent wants to pocket commissions from both the buyer and the seller.

3. Agents who flout the rules are punished lightly. If fired, they will simply join rival agencies. Because of the light punishment, agents are not afraid of breaking the rules. Lawsuits are out of reach for the common people, and rouge agents are using this knowledge to their advantage. How are property buyers/sellers protected from rouge agents?

4. The regulating authority should use ‘mystery shoppers’ (or ‘buyers’ in this case) to make spot checks on agents. Those found guilty should be banned or punished severely. This is to protect genuine agents who play by the rules.

Sentosa Gani

Source : Straits Times - 31 Oct 2007

Group’s former stalwart joins rival firm

HE WAS a rising star at PropNex, helming 1,400 agents at the agency and running a stable of firms offering car grooming and more.

A month ago, however, PropNex ended Mr Eric Cheng’s employment, saying he was ‘not aligned’ with its ‘core values’.

The former PropNex stalwart yesterday joined rival firm HSR Property Group.

HSR has crossed swords with PropNex over which of them is No. 1.

PropNex chief executive Mohamed Ismail said Mr Cheng’s team of 1,400 agents was getting more prominence than PropNex itself. The team was one of more than 50 teams under PropNex.

Mr Cheng countered that other PropNex teams were doing the same.

Mr Mohamed feels damage from Mr Cheng’s exit is limited, as only 95 members of his team have resigned as at yesterday.

HSR chief executive Patrick Liew said 350 PropNex agents have crossed over so far.

Source : Straits Times - 26 Oct 2007

PropNex plans to be listed before 2010

REAL estate group PropNex is eyeing a listing on the Singapore Exchange (SGX) before 2010.

To prepare for the initial public offering (IPO), the firm is diversifying its sources of income by developing homes and providing financial and information technology services.

The seven-year-old real estate group, which touts itself as the largest agency in Singapore in terms of number of agents, aims to lift the proportion of its revenue from non-real estate sources to at least 50 per cent before its planned listing. That is double the proportion now.

This would strengthen its position and make it less dependent on the cyclical real estate sector, PropNex chief executive Mohamed Ismail told The Straits Times yesterday.

He said getting the company listed would allow the firm to reward its senior staff with preferential shares. And it would also help put in place a better corporate structure for PropNex, he added.

The company said it has about 7,000 agents on its roll, of which more than 4,000 actively broker property sales.

PropNex recently terminated the contract of one its top division directors, Mr Eric Cheng, as he was ‘not aligned’ with the firm’s values.

This arose out of a disagreement over what Mr Mohamed said is Mr Cheng’s group of companies, ECG, getting more prominence than PropNex in its group’s publicity material.

Mr Cheng’s team of 1,400 agents was one of more than 50 teams under the PropNex banner before his departure.

Mr Mohamed said PropNex’s move was not directly linked to its IPO plans, but added: ‘If the company’s desire is to go for IPO, why do I want to confuse consumers?’

Meanwhile, PropNex has set up SingBuilders, which focuses on small-scale developments. It is building three terrace houses in the Kovan area as well as a bungalow in Sentosa. It also bought a plot of freehold land near Paya Lebar MRT Station for 28 freehold apartments.

Another PropNex venture, SingCapital, was set up in May to provide financial advice to homebuyers. That has generated a net profit of $500,000 since it started operations in May.

PropNex generates an average turnover of $10 million a month. In the first nine months of this year, its turnover hit $90 million.

Within the real estate sector, Hersing - which owns the franchise for brands such as ERA and Coldwell Banker - is also listed on the SGX.

Source : Straits Times - 26 Oct 2007

Real estate scheme helps youth to build solid job foundation

THE property boom is offering disadvantaged youth a new lease on life.

Under a programme called Project Youth Regeneration, seven young people who are at risk or physically disabled are soon to become real estate agents.

Among them is Miss Zaina Tahir, whose life was tumultuous for several years before she turned 21. At 16, she had been sent to a girls’ home for drug abuse and truancy.

But finally deciding she did not want her life ‘to be corrupted like this’, she approached Mr Adrian Lim of ERA for help in March.

He oversees training, and says that while the money is good, learning the ropes is, in fact, ‘extremely difficult’.

‘It is a long process to teach many of these youth to understand what integrity, responsibility and honesty is,’ said the 43-year-old.

‘We started off with 60 youth, only seven have pulled through.’

But the apprentices who have made it are reaping rewards already.

They handle telemarketing to source for sellers and buyers, then arrange for viewings and, with an agent-mentor, learn to close deals.

Of a real estate agent’s commission of 2 per cent for each sale or tenancy deal, these recruits then get a 15 per cent cut - or about $900 and up.

That, as well as renewed confidence and direction.

Institute of Technical Education graduate Ivan Lin’s severe limp due to cerebral palsy has become less of an issue for him in the months since he joined the programme in January.

The 20-year-old said: ‘Sometimes when I meet a client face-to-face I can tell they are shocked to see I am disabled… but I can overcome my disabilities.’

Joanne Tan, 17, whose left spastic hemiparesis condition weakened her left arm and made it difficult for her to focus, is enthusiastic, too.

‘I am willing to learn. I am so glad I got this chance and started early,’ said the N-level holder. ‘I used to be scared to take phone calls, and now I am not. That’s progress!’

After they prove themselves, ERA will then register them as full-fledged agents who are entitled to their full commission, said Mr Lim.

He was so convinced about the project, he even quit his five-figure-salary job to work on it. He and his partner, 77th Street retail chain owner Elim Chew, even put in about $150,000 of their own money to the cause.

‘Real estate is perfect for those who are not highly qualified but have great interpersonal skills,’ he said.

Pundits agree. The project won a non-profit organisation contest, The Pitch, by the National Volunteer & Philanthropy Centre in June last year, which came with an award of $50,000 from UBS bank.

The President of the Institute of Estate Agents (IEA), Mr Jeff Foo, also believes the industry is a level playing field for those who do not have paper qualifications.

‘There are no entrance requirements apart from age,’ he pointed out.

In fact, IEA’s estimates are that 60 per cent of Singapore’s 19,500 agents hold O-level or lower qualifications.

‘That means almost anybody can be a real estate agent if the person has the aptitude. With proper training and mentorship, they have an equal shot at success.’

For Miss Zaina, an N-level holder who just two years ago thought she was a no-hoper, it means a second chance.

She currently works part-time at a factory while she understudies ERA agents, and boards with a friend’s family for $150 a month.

But not for long, she hopes.

‘I know I can do it this time. Now I really want to. I want to have a good life and earn a decent salary.’

Source : Straits Times - 8 Oct 2007

Industry regulation of estate agents overdue

I REFER to the article, ‘Case, property body seek licensing of housing agents’ (ST, Sept 26).

I fully support the move towards industry self-regulation of real-estate agents by the Institute of Estate Agents (IEA). It is long overdue.

The launch of a ‘practising certificate’ for all its members is a step forward. It is not surprising that the IEA is doing so as, for years, it had sought to regulate estate agents.

With IEA as the national regulatory body, consumers can be sure of better control over housing agents.

Perhaps the relevant government body can recognise, endorse and support IEA’s new initiative at self-regulation.

The Consumers Association of Singapore (Case), HDB, the Small Claims Tribunal, Immigration and Checkpoints Authority and now NTUC have been working closely with IEA because they recognised it as the proactive body representing real-estate agents. Over the last year or so, IEA has also been more proactive in organising public forums and educational talks for both agents and consumers.

Both Mr Yeo Guat Kwang, president of Case, and Mr Lim Swee Say, Minister, Prime Minister’s Office, have voiced their support for the IEA initiative to promote high standards of professionalism and integrity in real-estate agents. Self-regulation will boost the image of agents as well as the interests of consumers. The latter will now have a body that they can turn to for redress.

It is timely that real-estate agents be regulated because of the rise in complaints, as reported by Case.

Dave Lau
Executive Director, Roof Real Estate Group

Source : Straits Times - 3 Oct 2007

Property agents should go through a course on ‘code of conduct and ethics’ before they are given their practising certificate

I REFER to the article, ‘Case, property body seek licensing of housing agents” (ST, Sept 26).

I fully endorse the positive move as we are behind many developed countries which already have this in practice.

I was at the public forum on Sept 25 organised by the Institute of Estate Agents (IEA) with speakers from HDB, Case, the Immigration and Checkpoints Authority, the Small Claims Tribunal and NTUC. NTUC secretary-general Lim Swee Say and Case president Yeo Guat Kwang were there to grace the event.

Firstly, let me applaud IEA for initiating the launch of its ‘Practising Certificate’ for its members. By taking this first step, IEA shows that it is seriously concerned with the regulation of estate agents in Singapore.

However, it needs the support of the various government bodies to recognise and endorse its intention so that complaints lodged with Case can be reduced.

Mr Yeo’s remarks that complaints lodged against real estate agents have almost doubled in the last two years (991 last year) makes one ponder how many of these complaints are from agents who have passed the Common Exam for Housing Agents (Ceha).

Most of its complaints can be avoided if agents were more ethical in their business transactions. I suggest that besides the ‘paper qualification’ of Ceha, agents should also go through a course on ‘code of conduct and ethics’ before they are given their practising certificate.

To eliminate ‘rogue agents’, there must be a system. If agents breach any code of conduct and ethics during their course of duty, they should be given a firm warning. If they continue to practise in an unethical manner, they should be barred from practice. In this way, we can be sure of high standards of professionalism and integrity.

During the forum, Mr Lim and Mr Yeo voiced their support of IEA in promoting real estate professionalism. Mr Lim also mentioned that the Government is looking into various categories of workers, comprising Blue, White, Silver, Gold and No collar workers. Real estate agents should be categorised as Gold collar workers as they are professionals. They should be regulated, go through a comprehensive course on ethical behaviour and pass Ceha to qualify them as full-fledged professionals.

Dennis Wee Chuan Peng
CEO, Dennis Wee Group

Source : Straits Times - 3 Oct 2007

Case, property body seek licensing of housing agents

A SHARPLY rising tide of consumer complaints against property agents has emerged in recent data, amid a spike in property sales in the current market boom.

Complaints include claims of misrepresentation and a failure to explain contract terms and conditions fully, the consumer watchdog, the Consumers Association of Singapore (Case), said.

This has led to renewed calls by Case for a stronger industry watchdog to regulate the sector.

Case, together with the Institute of Estate Agents (IEA), is seeking the mandatory licensing of property agents in Singapore.

In the interim, IEA yesterday launched a new ‘practising certificate’ to all its members, aimed at boosting their credibility and giving homebuyers and sellers more confidence in agents’ professionalism.

The IEA represents about 900 property agents in Singapore. Its president, Mr Jeff Foo, said mandatory regulation for estate agents was overdue, especially given the current property market’s bullishness.

The IEA practising certificate will have the identification number of the agent who, as a member, is bound to adhere to the organisation’s strict guidelines and code of conduct.

Case president Yeo Guat Kwang said yesterday at a public forum held by the IEA, that agents should be licensed individually. He said Case and IEA will ‘push the message to the relevant authorities’.

Complaints lodged against estate agents have almost doubled in the last two years. Case received 991 complaints last year, up from 672 in 2005, and 469 in 2004.

So far this year, 557 complaints have been made.

Mr Yeo said some complainants claimed that unexplained contract clauses were added by the agents, such as changing the level of commission that had been agreed upon.

Mr Yeo, an MP for Aljunied GRC, also said that Case and IEA are already in talks to introduce more regulatory measures.

This could be in the form of a standardised proficiency test that every agent has to pass before being allowed to operate, he said.

Currently, there is no mandatory qualification or licence requirement for housing agents. To operate, an agent has to join a licensed property agency, whose licence is issued by the Inland Revenue Authority of Singapore.

Mr Yeo told The Straits Times: ‘Even taxi drivers have to fulfil certain criteria before they can operate. What more for property agents, who deal with the hard-earned life savings of Singaporeans.’

Even if rogue agents were sacked, they could join another agency because of the lack of a central body to regulate these agents, he added.

Mr Yeo said IEA’s new initiative was a good way to encourage self-regulation, and encouraged consumers to choose agents with such recognition.

To boost membership numbers, the IEA also announced a new tie-up with NTUC yesterday, which enables IEA members to enjoy social benefits under the NTUC.

NTUC’s secretary-general, Mr Lim Swee Say, who was at the signing of the memorandum of understanding yesterday, said that through IEA, NTUC can now extend its membership to agents.

He said this was another step closer towards the labour movement’s 2011 vision of an all-inclusive membership for workers of all backgrounds.

Source : Straits Times - 26 Sep 2007