Property Agents Can No Longer Act For Buyer And Seller

[therat 18]

http://business.asiaone.com/Business/My%2B...029-244809.html

New rules by the Council for Estate Agents (CEA) will prohibit dual representation by salespersons, otherwise known as property agents.

This means that from November 15 this year, they will no longer be allowed to represent both the buyer and seller or landlord and tenant in any property transaction.

Estate agents, also known as estate agencies, along with salespersons will also be prohibited from handling cash in certain transactions or referring their clients to any moneylender.

These are among the rules specified by the The Estate Agents (Estate Agency Work) Regulations 2010 (EAW), which contains two codes in its schedules: (i) the Code of Ethics and Professional Client Care, applicable to estate agents and salespersons; and (ii) the Code of Practice applicable to estate agents. These will guide estate agents and salespersons and help to enhance professionalism in the industry and encourage ethical behaviour and good service to consumers.

Other new rules

The EAW stipulates guidelines regarding advertisements and requires estate agents to have systems and processes for the management and supervision of their business and salespersons. Estates agents are also required to have a proper complaints handling system. These will also take effect from November 15.

Meanwhile, from January 1 next year, estate agents will need to use prescribed estate agency agreements with their clients for the sale, purchase or lease of residential property in Singapore.

Persons doing estate agency work will also be required to have professional indemnity insurance coverage, as well as take part in continuing professional development programmes for a minimum of 6 hours per year from 2011.

From March 1, 2011, salespersons will be required to display their estate agent's card when doing estate agency work.

Registration and other requirements

Application for the estate agent's license and salesperson's registration will commence on November 1, at the same time as the implementation of some of the new rules.

Application forms can be downloaded from CEA's website at www.cea.gov.sg, and submitted through their respective estate agencies by November 30, 2010.

Successful registrations will be published on the CEA website on January 1 next year.

From this date, all persons performing estate agency work must be registered with CEA as salespersons via their estate agents and it will be an offence if they operate without registration. They must also have written agreements with estate agents before they can practise.

The CEA will not grant a license or registration to those who do not meet the licensing or registration criteria. This includes those with criminal records, especially for fraud and dishonesty. Applications for individuals with such records will be assessed on a case-by-case basis, taking into account factors such as the severity of the offence and time lapsed.

Council president Mr Greg Seow stressed that CEA would not hesitate to take firm action against estate agents and salespersons for non-compliance.

[bepgof 20]

Unemployment rate down, serveice & finance sector booms, property agents eat grass liao.

Edited October 30, 2010 by bepgof

[matrix0405 0]

The new requirements are quite fierce. Need to display card, need to go for 6 hr training, need to buy insurance ... many part time agents likely to quit from this industry.

with this new rule where they cannot rep both party, if the owner market his own house (rent or sell), how can the agent who bring the client make money? Start to collect from the buyer/tenant?

[bepgof 20]

The new requirements are quite fierce. Need to display card, need to go for 6 hr training, need to buy insurance ... many part time agents likely to quit from this industry.

with this new rule where they cannot rep both party, if the owner market his own house (rent or sell), how can the agent who bring the client make money? Start to collect from the buyer/tenant?

Right, course + insurance cost $600+, those part time without transaction opted out.

Edited October 31, 2010 by bepgof

[muffin 2]

i think this is to filter off those not committed. This will in term protect the consumer.

[Xanana 0]

agent eat grass ? yes you are correct if buyer and seller go to ONE / SAME agent.

But there is no law saying it can not be from same company

Agent A represents Seller

Agent B (buddy of agent A) represents Buyer (you)

tada ! loop hole ....

[vw7983 0]

agent eat grass ? yes you are correct if buyer and seller go to ONE / SAME agent.

But there is no law saying it can not be from same company

Agent A represents Seller

Agent B (buddy of agent A) represents Buyer (you)

tada ! loop hole ....

exactly. i am in such situation now. the so called buyer agent who is representing me only appear once, which was during signing of OTP. other events like viewing, passing of cheques etc, all done through the seller's agent.

even worse when negotiating extension etc he keeps siding the seller.

we are ok if you want to represent both side, who doesnt want to earn more money right??

but if you cant be neutral, then i think i need to do something about it...

Edited January 18, 2013 by vw7983

[desenseart 0]

exactly. i am in such situation now. the so called buyer agent who is representing me only appear once, which was during signing of OTP. other events like viewing, passing of cheques etc, all done through the seller's agent.

even worse when negotiating extension etc he keeps siding the seller.

we are ok if you want to represent both side, who doesnt want to earn more money right??

but if you cant be neutral, then i think i need to do something about it...

be careful of agents antics, they are too eager to close sales that many times they divulge your baseline price to buyers or persuade you hard to accept a buyer's low offer.

[therat 18]

Basically depend where u stand.

Buyer or seller.

When I look for HDB, the seller agent also block other buyer agent , not even let them view the unit.

B'coz we are direct buyer, the seller agent can earn 2 side. That's why we get to view.

There are another group also get to view but the buyer too ya ya, said .. I had money, any price also can.. (base on what seller agent told us). The seller agent kind of block his offer b'coz he said he don't like the buyer behavior. like using money to thrown at your face.

But I guess.. mostly b'coz of the seller condition. As the seller is sell first then buy. he will need more time to move out from his existing unit.

While that ya ya buyer, sold his condo. Now need to get a place to STAY FAST.

While we has a place to stay.. got time.

Our timing more match with the seller.

Less problem .. my guess.

[bragpig 0]

Currently in a similar situation.

Last year searched for propertyguru to rent a place. Answered an ad and was told that the agent will be representing me. The landlord's agent is in the same agency-he asked me if I have any problem with it. I said no as I liked the place that I have viewed. After signing the lease, I have not heard from him until the lease is due for renewal.

Now currently in negotiation for renewal of tenancy and the landlord wanted to increase by 12%! Looking at the current market, the increase is not in tandem. My agent urged me to go along with the increase, without any specific reasons or objections with the landlord's agent. This made me very suspicious that he's in cahoots with the landlord's agent.

I told him that as my representing agent, he should at least speak up for me, and not to follow blindly.

Just be aware that there are lots of such agents who just want to make a fast buck from these transactions and will exploit all loopholes. Terribly disappointed in these practices.

Edited April 17, 2013 by bragpig

[salavanun 0]

This rule is actually not worthy. Trick I saw they represent buyer and tell me owner selling themselves. By rgt they still collecting both side. But they tend to side seller. Price cnt bargain saying seller firm. My sister have to forked out extra cash 35k ontop cov after this type of rogue agent never do proper financial planning for her. So please beware.

[therat 18]

U can complain to CEA and it respective property company.

[salavanun 0]

yes therat . definetly will do that. regards.

[AmirNity 1]

There are plenty ways of going around. We have seen a lot of husband and wife team, husband helping seller, wife helping buyer, so they do not do co-broking. Some get their colleague as a stand-in to help buyers to complete transaction. In the end they still gets to keep double commission.

[leehongzhao 1]

Unemployment rate down, service & finance sector booms, property agents eat grass liao.