ST : Better service expected

Aug 22, 2010

Better service expected

Service levels in the fragmented and unregulated industry are set to improve once the Estate Agents Bill is passed. This is likely to happen later this year.

Consultations began last year but some details have already been made clear.

There will be higher entry requirements, such as a minimum of four GCE O-level passes and the need to take a mandatory industry examination.

All agencies will have to be licensed and all agents registered.

'Everyone will be responsible for their own actions knowing that they may end up losing their licence and registration number to practise,' said Dennis Wee Group director Chris Koh.

Here are some other changes to expect:

· Code of ethics

The proposed changes also include a code of ethics and professional conduct for agencies as well as property agents, said the Ministry of National Development.

'A failure to observe provisions in the code may render the estate agents and/or the salesman to disciplinary actions under the Bill,' said Mr Norman Ho, a partner at law firm Rodyk & Davidson. 'As such, this code would serve as a means to directly establish and enforce service standards in the industry.'

· No dual representation

The Consumers Association of Singapore has long maintained that agents should not take commissions from both the buyer and the seller as there is a potential conflict of interest.

This notion will largely be met under the new Bill: Agents will not be able to collect commissions from both the buyer and the seller.

In a private home transaction, the buyer's agent will continue the current practice in which he takes a cut of the seller's commission from the seller's agent.

Still, in future, the buyer may want to consider paying his own agent a commission to ensure his interests are best protected, said C&H Realty managing director Albert Lu.

· Standard agreements

Exclusive sale agreements between clients and agents differ from agency to agency, but this will change under the new Bill.

There will be standard agency agreements between clients and agents.

If estate agency services are carried out without this required agreement, the agent will not be able to recover any fees or seek any legal remedy, the Government has said.

Details of this standard form contract have yet to be provided.

But Mr Ho expects that the agreement will greatly standardise the market practice among estate agencies and agents with regard to the scope and standard of services.