ST Forum : Agents shouldn't refer sellers to moneylenders

Jan 18, 2010
Agents shouldn't refer sellers to moneylenders

I REFER to last Monday's report, 'Moneylenders target HDB sellers', which mentioned that 'agents...introduce desperate sellers to moneylenders, and may get a fee for the referral, usually about $500 a customer'.

The Singapore Accredited Estate Agencies does not support the practice of estate agents obtaining referral fees from moneylenders for introducing their clients to them.

Estate agents should not introduce HDB sellers to moneylenders for a referral fee as this is not within the ambit of their job and the real estate brokerage service rendered. Estate agents who do so may also breach ethical obligations to their clients.

Instead, according to the HDB resale checklist for sellers, estate agents should, among other duties, help HDB sellers work out their estimated sales proceeds before selling, and upon resale, sellers have to discharge their outstanding mortgage loan and refund the Central Provident Fund monies used to buy the flat with interest to their CPF accounts.

Estate agents should also advise sellers to plan for their next home before they sell their flat, and should the sellers wish to buy another HDB flat, they will need to know if they are eligible for an HDB or bank loan.

Consumers are encouraged to report estate agents who may, for their personal benefit, use pressure tactics to induce them to take up loans with moneylenders.