Letter from RAYMOND NG
COMPLAINTS against real estate agents are rising. According to the latest statistics, more than 1,000 reports have been lodged with the Consumers Association of Singapore and the Inland Revenue Authority.
I am puzzled why little has been done to eradicate the presence of unethical agents who offer wrong advice and short-change buyers and sellers in a booming sector.It is time the industry is revamped.
Real estate licences are issued to applicants meeting minimum standards. While it is good to allow many to own and operate real estate agencies, there are few criteria to ascertain their “quality”.
For example, there is no control in the number of agents each agency is allowed to recruit. Size does not always equate with excellence.
Furthermore, real estate agents are not considered employees but associates of the respective agencies. This creates even more weakness from the point of performance standards and control.
In developed economies such as the United States, Canada and Australia, real estate agencies must treat all agents as employees instead of associates.
From the legal perspective, this means that if agents commit any malpractice, the agency will be penalised as well.
Agencies in Canada, for example, even blacklist and post offenders’ names on the Board of Real Estate websites and bulletin boards to alert consumers.
Perhaps, we should adopt this practice.
I would also like to propose that the size of each agency be restricted to a ratio of one manager to, say, seven Ceha-certified (Common Examination for House
Agents) agents.
In essence, the authority should be empowered to implement stricter penalties, such as revocation or suspension of real estate licences and a longer jail term for those guilty of real estate crimes.
We need to act now to rebuild the spirit of and trust in the real estate industry.
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