To prevent property agents from committing unscrupulous practices, the Institute of Estate Agents (IEA) wants them to be certified. The certificates issued will show that the agents have signed up to a code of conduct and ethics.
Applying for the certificates is voluntary but is largely seen as another step towards industry self-regulation.
For some one looking for a place to buy or rent, having a good property agent is crucial.
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Property agents to be certified in move to regulate industry
This is why the IEA wants its members to be bound by a code of conduct.
It requires its agents to attend professional development courses and be subject to a mediation board looking after complaints, as well as a disciplinary board.
Low Swee Kim, Second Vice President, IEA, says: "The whole process will be more transparent and they can be held accountable because the institute will look into any complaint about malpractice by the agents."
So the IEA is issuing the certificate to all its 800 odd members and wants to attract new members to sign up.
Associate Director of Coldwell Banker, Santa Ashok, who has been in the business for more than 14 years, clearly sees the benefits of the new certificate.
He says: "It's good (that) there is a body coming into regulate all these errant agents who are tarnishing our industry."
And certification can only be positive for property hunters.
The idea is that certification can help stamp out bad practice that can lead to complaints like charging twice for commission and taking advantage of inexperienced and illiterate customers.
According to the Consumers Association of Singapore, complaints against property agents have gone up.
For the first nine months of last year, it received 543 complaints and this year, the number rose to 557.
The IEA hopes that the Inland Revenue Authority will endorse its effort for industry self-regulation. - CNA/ch
Unfortunately, I believe it will not do anything to improve things. What has the Financial Advisory Act done with unscrupulous so-called financial advisors? Just a few days ago, my friend and her mother walked into UOB with the intention to open a gold saving a/c & to invest in it. I had advised them (I am not a FA but hold a CFP & provide free advice to friends). UOB, by the way, is the only bank which has such a facility. Guess what the financial advisor said? "Err..madam, why do you want to invest in gold which gives you such low returns? As you can see UOB is the only bank having such accounts because other banks do not think its worth while. Why dont you in invest in this unit trust instead which gives a much better return..blah blah". While my friend kept to opening the account, her mom was swayed by the sweet talk and opened up a unit trust instead.
ReplyDeleteClearly the UOB financial advisor was after the commission tied to selling unit trust vs the gold savings which carries no commission. Clearly the UOB advisor hadnt done a risk profiling as the two ladies were looking to diversify their risks by investing part of their investments into commodities. And best of all, gold hit a 27 year high soon after & would have provided a 4% gain on their 3-week old investment.
I've bought a new apartment and sold my old one in the past 6 months - both agents tried to rip me off with the usual tactics i.e. I can get you a higher price if you pay me a higher commission; the owner doesnt want to sell but if you pay me a higher commission i can work harder to get him to agree etc.
As I see it, as long as you tie the remuneration with the selling price of the property, in the same way you tie commissions to the number of policies a FA sells..the only thing that will motivate these guys is to sell more in the fastest time, regardless of the needs and wants of the individual or client.
In due course I will start a company to offer owners and buyers a flat fee to do their documentation + a variable rate depending on how long it takes to market their property. Everythign will be above board and fair unlike now which is just a sham. I may not make tons of money but I will feel satisfied just to have created an alternative to the present system.