Thursday, September 23, 2010

ST Forum : Confused over stand on fixed commission rates

Sep 18, 2010

Confused over stand on fixed commission rates

ACCORDING to Minister for National Development Mah Bow Tan, the Council for Estate Agencies cannot fix commission rates as such a measure is anti-competitive; and it is better for such rates to be influenced by market forces ('Oct 22 start for real estate stat board'; Thursday).

If it is possible to fix commission rates for the insurance industry without such fixing being viewed as anti-competitive, why can't the same apply to property brokers?

By adopting fixed commission rates as a rule, a chunk of current issues, such as the complaints about unethical agents, will be resolved.

The insurance industry penalises an agent who is caught under-cutting commissions by revoking his licence.

The same deterrent can be applied with equal effectiveness to real estate agents.

Koh Wee Leng (Miss)

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