Very Urgent Advice Required.

[Zc31 0]

As some would know, i aborted the sale of a flat before 2nd appt due to loanshark activities.

Now agent (who is not licensed) uses company name to send a lawyer letter to demand 2% + 1% as compensation. Is this normal?

Should'nt the max be 1%, but even then i thought it's upon completion of transaction.

I need advice. Can someone help me.

[waileong 0]

Obviously it depends on what you signed with the agent. He is claiming for damages, which should be equal to what would have been paid to him if the sale had gone through.

[waileong 0]

He's claiming both seller side and buyer side, which is 2 + 1% standard rate. He's claiming all from you since you aborted the sale.

As some would know, i aborted the sale of a flat before 2nd appt due to loanshark activities.

Now agent (who is not licensed) uses company name to send a lawyer letter to demand 2% + 1% as compensation. Is this normal?

Should'nt the max be 1%, but even then i thought it's upon completion of transaction.

I need advice. Can someone help me.

[Zc31 0]

Tks for the replies and pm's.

Well, i aborted but it was mutually agreed and inked between both buyer and seller, at the HDB office. Surely tt mux hold some weight.

There were lots of questionable points and i've typed out a letter of summary for easier explaination.

Meeting the chairman of CASE on monday, who's a good friend's colleague or boss, not too sure.

Wish me luck.

[yokine9a 1]

Good luck to you

[donut88 1]

As some would know, i aborted the sale of a flat before 2nd appt due to loanshark activities.

Now agent (who is not licensed) uses company name to send a lawyer letter to demand 2% + 1% as compensation. Is this normal?

Should'nt the max be 1%, but even then i thought it's upon completion of transaction.

I need advice. Can someone help me.

dun worry a thing abt this.

1st point: this agent is not even licensed. he's not authorised to sell or buy on clients' behalf. he got no licence, he's operating illegally as a agent. he got no power to demand anything.

2nd point: you and seller already mutually agreed not to proceed with the sale on black and white at HDB office. So there is no back-fire of any kind.

In fact, you and seller can counter sue this agent for operating as an agent without licence and he's conning you into believing that he's a licenced agent.

you and seller got upper hand on this case.

F**K this non-licenced agent up.

[BlueFly 0]

yes i agree with donut8. you don't hv to worry as agent is not authorised to transact property.

however the best defence is offense -- threaten to make a written complaint to IRAS, ROC, HDB, etc and see what happens. if he does not back down then take action. if he threatens bodily harm file a police report. ppl who are shady n out to make a fast buck are cowards and don't like publicity... sometimes u need to hit back -- hard.

i also assume u didn't sign any agreement with the agent on his commission, since u said he is not licensed.

probably the agent's company is misrepresenting the facts to the lawyer, a serious offence too.

suggest u get prospective seller to give u a letter saying the transaction was aborted mutually and not initiated by you -- to safeguard yr interest, in case you omitted to share other facts which may be relevant to the issue.

good u hv decided to approach CASE. pl share what CASE thinks after u hv seen them.

[zirhk3355 1]

Erm, if the agent is under a licenced real estate agency, he is considered to be a contract staff of that agency and thus it is legal for him/her to demand for payment in accordance to the signed commission agreement.

If a commission agreement was signed, then all you have to fall back on are the terms stated therein. Usually there is a clause stating that in the event of a voluntarily aborted transaction, a partial payment is warranted. You need to take out the agreement and read the small prints carefuly...

[BlueFly 0]

Erm, if the agent is under a licenced real estate agency, he is considered to be a contract staff of that agency and thus it is legal for him/her to demand for payment in accordance to the signed commission agreement.

If a commission agreement was signed, then all you have to fall back on are the terms stated therein. Usually there is a clause stating that in the event of a voluntarily aborted transaction, a partial payment is warranted. You need to take out the agreement and read the small prints carefuly...

If that is right then there is no need to license real estate agents and they don't need to sit for exams lah. Anybody can simply represent a real estate agency and close deals to earn the commission, and (alas) many do that in this hot market. It is hard to control, even harder to police...

But that does not make it right as innocent ppl (sellers & buyers) get slaughtered.

By your reasoning, any office boy working in a law firm should be able to practice law and advise clients, isn't it? [ Hey, don't laugh, that has happened, you know ! ]

BTW, licensing does not weed out the black sheep. I had wanted to report my seller's agent (licensed) who had wanted to under-declare the transacted price. When I wanted to walk away from the purchase after I had signed the option (he said he wld under-declare after I had signed) the seller pleaded with me to close the deal when I wanted my cheque deposit back. I then asked my agent to deal directly with the seller and ignored the seller's agent.

My impression was that the agent was trying to cheat the seller who was ignorant of the procedure, altho given the seller's ignorance it wld be difficult to get proof. But the bad taste still lingers, because the agent had picked on a seller who was in bad financial shape already. Don't they have any shred of decency in them?

BTW, any agreement can be voided if it was made under duress or misrepresentation. There are loopholes in any agreement and a good lawyer can find enough to get the agreement voided.

My 2 cents.

Edited May 5, 2008 by BlueFly

[donut88 1]

Erm, if the agent is under a licenced real estate agency, he is considered to be a contract staff of that agency and thus it is legal for him/her to demand for payment in accordance to the signed commission agreement.

If a commission agreement was signed, then all you have to fall back on are the terms stated therein. Usually there is a clause stating that in the event of a voluntarily aborted transaction, a partial payment is warranted. You need to take out the agreement and read the small prints carefuly...

no such thing as non licensed agent acting under company to transact buying/selling of flats.

this applies to insurance agents and financial planners as well.

no licence, cannot represent anyone to buy/sell houses. simple as that.

looks like this company is a hooligan company also. how can they allow someone no licence to buy/sell houses?

lucky they never meet me yet.... i sure make them drop pants with legal issues....

to get licence, agents must go thru tests and knowing propery laws and transactions. no way a non-licence guy is allowed to represent clients.

[zirhk3355 1]

I think you duo got to calm down and do more research; its an sad fact of our real estate industry and I am not surprised that few people knows about it.

Unfortunate but true, just try call up an agency and ask how to become an agent. You will be surprised. Even for big names like ERA, Propnex, DTZ, etc - you just pay for their in-house course with no tests/exams, not certified by any govt bodies; just pay and go thru the course. You dun even have to attend it fully, attendance is not strictly enforced. Next, print your namecards and you are an agent already.

You can start closing deals for private properties, sales and rental, on behalf of the agency, using their forms and template agreements, and and you will be paid your due commissions.

For HDB transactions, only agents with Certificate of Estate Housing Agents (CEHA) are allowed to use ResaleNet to register a resale transaction. But agents without CEHA can simply ask their colleagues to register for them, or submit hardcopy by dropping into the box at HDB hub. HDB does not regulate the appointment of agents and they deem it as a private agreement between the sellers/buyers and agents.

There are associations formed to try and regulate agents, but just like CASE, they are merely toothless tigers. The onus of regulating agents, for now, still lies on the agencies themselves, but sadly, they too are more concerned about their bottomline than having a good reputation.

Edited May 5, 2008 by zirhk3355

[zirhk3355 1]

About representing clients with or without licence, the agents simply work as an employee of a licensed agency. BTW there is no such thing as a "licence" for an individual agent in the context of our law; there is only licence for housing agency.

Further, the agreement between the agent and the agency is that of a "contract" basis, and carefully worded such that it minimise any implications to the agency should the agent get him/her into a lawsuit.

As for registering an agency, the regulations are so surprisingly lax that anyone with CEHA (non-bankrupt) can register an agency by paying a minimal fee. As for CEHA, IMO its quite a joke. All it takes is three papers, with MCQs and short essays, to pass.

[BlueFly 0]

About representing clients with or without licence, the agents simply work as an employee of a licensed agency. BTW there is no such thing as a "licence" for an individual agent in the context of our law; there is only licence for housing agency.

Further, the agreement between the agent and the agency is that of a "contract" basis, and carefully worded such that it minimise any implications to the agency should the agent get him/her into a lawsuit.

As for registering an agency, the regulations are so surprisingly lax that anyone with CEHA (non-bankrupt) can register an agency by paying a minimal fee. As for CEHA, IMO its quite a joke. All it takes is three papers, with MCQs and short essays, to pass.

I think forumers would like to know, as I am, whether you are a real estate agent or have anything to do with property transactions?

TIA your reply.

[zirhk3355 1]

I think forumers would like to know, as I am, whether you are a real estate agent or have anything to do with property transactions?

TIA your reply.

Hehe, I sense that question coming up. I am not a property agent, but I was one sometime ago. I got so disgusted with the industry, so I quit and with my knowledge, now I am sort of like a nemesis, esp to those "chao agents" who try to 'snook' innocent people (read my other posts). Let's just put it that I am still in the real estate industry but definitely not in an agency or commission-based.

I must qualify, I do believe in the existence of property agents, and I still believe, if done the right way, an agent is very important in any property transaction. Just like lawyers, you can go to court and defend yourself without a lawyer, but everyone would agree that it would be better to have a lawyer to represent you. Which is why sometimes I would defend the agents, esp if they are in the right.

But I must agree, the real estate agents' industry is now in a complete mess; totally unregulated, so many "chao agents" running around, ill-trained and there are complaints everyday. They still have a VERY long way to go to consider themselves as a professional middleman like lawyers.