Complaints against unethical housing agents on the rise

AN OFFER of $438,000 for his HDB maisonette looked like a pretty good deal to Mr Simon Huin – until he found out his property agent had pulled a fast one.

The agent had kept a higher offer from Mr Huin – one that would have given him $7,000 more for his Geylang East home.

That offer had come from another agent but doing this deal – it is called co-broking – would have required Mr Huin’s agent to share the 3 per cent commission.

Mr Huin, a 55-year-old project coordinator, was furious and reported the agent to the Consumers Association of Singapore (Case).

It is becoming a familiar story with the number of complaints against errant agents shooting up amid a hot property market. Case received 57 complaints from January to July this year, compared with 32 in the same period last year.

The Singapore Accredited Estate Agencies (SAEA), received 46 complaints against agents in the same period this year, up from 31 cases last year.

Most gripes are about agents offering poor service or misrepresenting facts.

‘These unethical agents who work for their own interests shouldn’t be tolerated,’ said Mr Huin, whose case is being investigated by Case and the Institute of Estate Agents (IEA).

If the IEA finds that the agent had behaved unethically, it will strengthen Mr Huin’s case should he decide to sue for damages.

Agents who want to pocket both the seller’s commission and the buyer’s fee may refuse to co-broke but that usually greatly reduces the number of buyers viewing a home.

It also goes against industry guidelines, which state that agents should always co-broke to safeguard a client’s interest.

But when The Sunday Times – posing as a buyer – called 10 agents listed in the Classifieds, four flatly refused to co-broke.

There are 18,500 agents in Singapore registered with the IEA. Between April and June this year, 12,897 transactions were made in the private residential market – more than double the 5,767 in the same period last year.

Experts believe some agents are rushing to seal deals and cutting corners.

Tenants face the same problems. Expatriate Laura Thornton-Olivry, in her 30s, has thrice failed to get a rental home because agents upped the price even after she had signed letters of intent and handed over cheques.

The housewife is one of 13 frustrated people who have written to The Straits Times’ Forum page in the past eight months, calling for agents to be licensed, to curb unethical practices.

Property agencies agree. Although anyone can become an agent now by completing an agency’s in-house training, the SAEA aims to have all agents accredited by 2009. Those found to be unethical can then be expelled or suspended.

But there is no regulatory body to enforce accreditation. As PropNex’s chief executive Mohamed Ismail pointed out: ‘As long as there’s no central regulatory body, there will be unethical agents who simply move on to another agency when fired.’ Like most estate agencies, he wants the Government to step in.

The SAEA advises people to use only the 6,000 accredited agents listed on its website. At least they can be held accountable.

Source : Sunday Times – 26 Aug 2007

Ample number of accredited estate agents

I REFER to the letter by Mr Low Swee Kim, ‘How is public protected if agents are not accredited?’ (ST, Aug 7).

The Government encourages and helps to improve the professional standards in the real-estate agency industry through efforts such as the Singapore Accredited Estate Agencies (SAEA) scheme. Consumers have to exercise care and make informed choices when engaging the services of real-estate agents. Discerning consumers would want to engage only suitably qualified estate agents, including those accredited under the SAEA scheme, to be assured of the quality of their services.

The Inland Revenue Authority of Singapore (Iras) understands from SAEA that there are about 300 accredited agencies, with more than 6,000 agents registered with them. There is an ample number of agents from accredited agencies to serve consumers.

Consumers may check whether an agency or agent is accredited by referring to the ‘Accredited Agents Directory’ on www.saea.org.sg.

Chin Li Fen (Ms)
Assistant Commissioner
(Corporate Services Division)
Inland Revenue Authority of Singapore
 
Source : Straits Times – 11 Aug 2007

How to choose a reliable realtor

I REFER to Mr Low Swee Kim’s letter, ‘How is public protected if agents are not accredited?’ (ST, 7 Aug).

While I agree that compulsory accreditation is the major step forward in the betterment of realtors, we have to stride the delicate balance of dependence on legislative backing to do this and for the industry’s representatives to rise to the occasion and self-regulate.

I personally applaud SAEA in its initiative to accredit both agency and realtors since 2006 in this regard. Yet we must also not think that accreditation or certification is the panacea to the problems of unethical, unprofessional and, at times, even fraudulent conduct that we encounter with realtors today.

Of course, the present real estate market hype could have seen more ‘fly by night’ realtors interested only in the short-term gains and their unprofessional acts have thus tarnished the image of the occupation as a whole. The comfort is, in the long haul, these opportunist realtors would not be around.

In the meantime, I have some suggestions for the public in their choice of realtors:

(a) Engage a realtor who is personally accredited by SAEA and/or whose firm he or she works for is an accredited agency of SAEA. Alternatively, engage a realtor who is a member of IEA or SISV;

(b) Engage a realtor who has passed CEHA (Common Examination For Housing Agents). Though not necessarily an indicator of professionalism, a CEHA-qualified realtor does provide a certified level of real estate knowledge and competence which the public can rely on;

(c) Engage a realtor from a reputable firm. Established firms have recruitment policies benchmarked on industry values and sound practices.

(d) Request the realtor to show a copy of his Professional Indemnity (PI) Insurance. This demonstrates that the realtor is serious about his profession as a career;

(e) Perform a verification and reference check on the realtor to confirm his active status in the firm he or she claims he or she works in; and

(f) Use a realtor referred by word of mouth from reliable sources such as friends, family members or colleagues.

Engaging a realtor is a choice to be made by sellers and buyers. Again, it is not compulsory to engage a realtor but it does provide convenience and brings the relevant competence of the field to a property transaction involving substantive sums of money.

Hence, I believe that the public must exercise diligence and care in choosing the services of a realtor regardless of accreditation or certification. The responsibility belongs to the sellers and buyers who are also paying for the realtor’s services.

Dr Tan Tee Khoon
 
Source : Straits Times – 11 Aug 2007

Scheme sees agents passing common exams

I REFER to the letter, ‘Time to regulate property agents’ (ST, July 11), by Mr Teo Cheng Peow.

We understand the writer’s concern, which is shared by other members of the public who have expressed similar views.

The approach we have taken to assist in resolving many of the problems involving unprofessional real-estate agent conduct is through the Singapore Accredited Estate Agencies (SAEA) Scheme. The SAEA was formed by a group of industry professionals with support from relevant government agencies in November 2005 to accredit both property agents and agencies with the view to raising professionalism and competence in the industry.

The SAEA seeks to ensure that by the end of next year, all agents under the scheme would pass the Common Examinations for House Agents (CEHA) and become accredited agents. However, the scheme may take some time to be accepted by the industry.

Accredited agencies and their respective agents adhere to a Code of Practice and Code of Conduct & Ethics. Disciplinary action will be taken against the agencies and their agents for any breach or non-compliance with the code of ethics. The Code of Practice, Code of Conduct & Ethics and a list of accredited agencies are on our website (www.saea.org.sg). A search can be made on the website to find out whether an agency or agent is accredited.

SAEA does not condone the practice of agents avoiding co-broking in order to secure the full fees from a buyer or seller.

We strongly urge potential buyers/sellers, and land-lords/tenants to support the SAEA Scheme. We provide consumers with objective guidance, and will act in the best interests of both the industry and the public.

Manisah Jalil (Ms)
Secretariat
Singapore Accredited Estate Agencies
 
Source : Straits Times – 31 Jul 2007

Upmarket property agent Sotheby’s sets up shop here

UNITED States-based luxury property agent Sotheby’s International Realty has set up a franchise in Singapore, attracted by the growing stream of foreign buyers seeking a home in the red-hot property market.

The high-end property broker offers services to help its rich global clientele find a dream home here. Clients are invited to preview sought-after properties, even before they are soft- launched.

Sotheby’s has just started in Singapore but is already handling more than 20 deals and expects to be busy.

Developers have lapped up a record amount of prime collective sale sites, so there should be no lack of new and exciting posh projects.

Property consultancy Savills Singapore announced last week that it had formed a business unit to work with private banks in advising the banks’ growing number of high net worth individuals.

Even PropNex, a property agent that started out in the HDB market – and is still strong in that segment – has jumped onto the bandwagon. PropNex Grandeur Homes was set up in March, headed by Mr Douglas Wong, who was previously associate director of Knight Frank’s Regal Homes, which deals with good class bungalows (GCBs).

Mr David Wong, chief executive of the Sotheby’s franchise in Singapore, said a typical day could involve picking a client up from the airport and driving him to the latest developments to help him select a unit or two.

The tour is complete with expert advice and could end with lunch at a top-end restaurant.

Sotheby’s clients get chauffeured around in a car they like. ‘We have a fleet of cars, including a Bentley, at our disposal,’ said Mr Wong.

Its clients have previewed Scotts Square, Wheelock Properties’ luxury condominium in Scotts Road, and the posh 8 Napier on the former Eng Lok Mansion site. Neither project has been launched. Sales at Scotts Square have not even started, though indicative prices hover around an average of $4,500 per sq ft (psf).

As for 8 Napier, developer Napier Properties, controlled in part by former Parkway Holdings boss Tony Tan, has released just 10 out of 46 units for sale at between $4,000 psf and $4,500 psf.

Sotheby’s clients were the first group to view the homes over a week ago. They have also seen other posh projects – mostly in districts 9, 10 and 11, including GCBs.

Mr Wong said the high-end properties they help clients – either wealthy individuals or institutional investors – find are typically priced from $3,500 psf. To him, luxury properties are those priced from $5,000 psf.

Sotheby’s International Realty is owned by the world’s leading franchisor of real estate brokerages, US-based Realogy. The brand is offered via an exclusive 25-year master franchise. It was recently secured by JVC Capital, a firm controlled by investors including seasoned property investor, Dr Goh Seng Heng.

Prior to joining Sotheby’s, Mr Wong, 42, spent nearly four years as director of sales and marketing for SC Global Developments, which specialises in building luxury homes. Before that, he headed the Prestige Homes division of Savills Singapore.

He said his firm can also help developer clients package their products to appeal to ’sophisticated international buyers’.

‘You basically create a product that can command a certain price,’ he said.

Sotheby’s will even conduct auctions in cases where a need arises, such as when there is strong demand for a project, Mr Wong said. Those auctions will be conducted by a Sotheby’s auctioneer from New York, he added.

So far, the real estate arm of British-based Christie’s has helped raise the upmarket appeal of some properties, the first of which were the Sentosa Cove land parcels.

The exclusive affiliate of Christie’s Great Estates, Mr Ken Jacobs, has conducted auctions jointly with Colliers International in Singapore and could continue to do so, depending on the available luxury projects in Singapore.

For now, Mr Wong said his firm is focusing on helping its global network of clients buy homes here, although in future, it will look into assisting Singaporeans in buying homes worldwide.

Source : Straits Times – 16 Jul 2007

Minimum professional competence and standards must be maintained in real-estate industry

PLEASE refer to the report, ‘More sign on as property agents to cash in on boom’ (ST, June 1).

The report highlights the increased number of unqualified agents in recent months because of the rapidly rising property market. While we welcome the growth in the industry and improved earnings of agents, we need to maintain a minimum level of professional competence and standards in the real-estate industry. To this end, we strongly advocate agents and agencies to seek accreditation under the Singapore Accredited Estate Agencies (SAEA) scheme. The scheme has the participation of major industry players as well as government agencies involved in the real-estate industry. All our accredited agencies have been told that their agents will need to pass the Common Examination for House Agents (CEHA) by Dec 31, 2008 before they are accredited.

Discerning buyers and sellers will recognise that agents from SAEA-accredited agencies can provide better and more reliable service as they need to comply with the code of conduct and practice required under the accreditation scheme. We encourage consumers to engage the services of agents from accredited estate agencies for greater certainty.

More information is available on our website at www.saea.org.sg.

Manisah Jalil (Ms)
Secretariat
Singapore Accredited Estate Agencies

Source : Straits Times – 9 Jun 2007

Tussle over ‘largest real estate agency’ title

Which is the biggest of them all?

Property agencies, that is. The honour of being able to claim the title of Singapore’s No. 1 agency has sparked a bizarre battle between two heavyweights.

In one corner is HSR International Realtors, which was named the largest real estate agency in Singapore by the Singapore Book of Records (SBOR) last month. The 27-year-old firm and its 5,136 agents, says chief executive (CEO) Patrick Liew, have since used ‘the largest real estate agency’ as a tagline for advertisements.

On Wednesday, however, a challenger emerged from the opposite corner.

PropNex, now in its seventh year of business, sent out a statement claiming that its 5,686 agents make it ‘truly Singapore’s largest real estate company’ – a slogan it said has always been used on its website and has even been quoted in the media.

‘We have been advertised, quoted and accepted as the largest real estate agency in Singapore since 2003,’ CEO Mohamed Ismail told The Straits Times yesterday. ‘It is not official, but nobody disputed it until last month.’

He said that ‘he knew from the beginning that HSR’s claim had no merits’ because its office and staff sizes were lower than those of PropNex. HSR hit back by saying its claim was based on PropNex’s published figure of 3,800 agents.

But PropNex said the figure referred to only ‘active agents’ – those who have closed a deal within the last year – while it has many more registered agents.

At the heart of this tussle is an issue more weighty than simply the flexing of mathematical muscle.

Mr Mohamed said the conflicting claims have affected credibility and caused confusion among clients. ‘We were giving a pitch for a project in Malaysia when the developer asked us if it was true that PropNex had the largest agency, because they had seen HSR’s ad.’

He has since taken up the issue with Mr Ong Eng Huat, the SBOR’s president, and expects a response by next week.

Mr Ong said that ‘while at the time we were quite satisfied that HSR has the largest number of agents, the figure is always changing’. The SBOR is ‘reviewing the method of measuring’, and it is not prepared to do further audits until it comes up with ‘a better form of measurement’.

Meanwhile, it is understood that HSR has been told not to attribute the claim of being the largest agency to the SBOR in its ads.

HSR’s Mr Liew told ST yesterday that size does not matter: ‘If we really wanted to play the numbers game, it’s not difficult. I can also produce 10,000 names, but where does it end?’

For him, ‘the important thing is not to be the largest, but to be the best’. ‘I lay claim to having the highest-paid agents. This month, my top agent is making at least $1.7 million. I throw my last dollar down that my top 30 agents will outdo their top 30. They cannot beat me.’

Another big gun, ERA, has refrained from jumping into the fray, even though it boasts more than 5,000 agents. ‘We are not interested in being the biggest,’ said assistant vice-president Eugene Lim. ‘(Being a) big agency doesn’t mean big market share. It’s about productivity; it’s the number of transactions you do.’

Does size matter?

In one corner is HSR International Realtors, which was named the largest real estate agency here by the Singapore Book of Records last month. In the other corner is PropNex, which sent out a statement claiming that its 5,686 agents make it ‘truly Singapore’s largest real estate company’. ‘We have been advertised, quoted and accepted as the largest real estate agency in Singapore since 2003.’ MR MOHAMED ISMAIL, the CEO of PropNex, who says conflicting claims have affected credibility and caused confusion among clients

‘If we really wanted to play the numbers game, it’s not difficult. I can also produce 10,000 names, but where does it end?’ MR PATRICK LIEW, the CEO of HSR International Realtors, which has been using ‘the largest real estate agency’ as a tagline for its advertisements

Source : Straits Times – 2 Jun 2007

More sign on as property agents to cash in on boom

The continuing boom in home prices is proving profitable not only for property sellers and speculators, but also for property agents.

Many brand-new recruits with no previous experience are now jumping into the market in the hope of making a quick buck from the current boom.

This has led to property agencies around the island beefing up their army of agents, with some doubling the number of recruits from a year ago.

DTZ Debenham Tie Leung, for instance, has signed up nearly 500 new agents since January – twice that in the same period last year.

It now has 2,500 agents in its resale division, said Mr Thomas Lee, the unit’s executive vice-president.

Another agency, OrangeTee, said agent numbers have gone up by a third to about 1,200 now.

‘Today, we average 50 or 60 new agents a month, compared with 30 or 40 last year,’ said Mr Steven Tan, the executive director of OrangeTee’s residential division.

Knight Frank, on the other hand, has almost doubled its entire agent force.

It took on 300 agents over the last year, bringing its total team to slightly over 650, said Dr Tan Tee Khoon, the director of Knight Frank’s associates division.

Not all of the firm’s recent hires are new to the industry.

Many are former agents who eased out of home sales during the property downturn, but who are now back in business as active agents – which often means closing at least one deal a year.

With the property market going at full steam, it has become a lot easier to broker a deal now than two or three years ago, said Mr Marcus Chu, senior vice-president of ERA Singapore, who oversees the firm’s agent recruitment.

‘Right now, properties are easier and cheaper to sell,’ he said.

Growing buyer demand means that agents now take a shorter time to sell a property, so they can spend less on marketing it.

ERA’s agent numbers have grown by about 20 per cent over the last year, Mr Chu added.

They now weigh in at more than 5,000 registered agents and more than 2,000 active ones.

Its new hires come from diverse and sometimes unexpected backgrounds.

Apart from the usual retirees, salespeople and administrative staff, ERA counts among its new agents a former hairstylist and a former civil servant.

An increasing number of white-collar professionals are also taking to real estate, said Dr Tan of Knight Frank.

‘We have a good number of mid-career professionals joining us from IT, marketing, insurance and even a couple of former lawyers.’

Another agency, PropNex, has taken on teachers, accountants, and even an actor, said Mr Eric Cheng, its senior division director.

The firm, which added more than 1,000 new agents in the last five months, recorded a 40 per cent jump in sign-ups compared with the same period last year.

PropNex is also recruiting more staff with university degrees. The number of agents with a degree has risen 15 per cent in the first four months of this year over last year, it said.

The agency also said its agents’ success rate has increased. One out of every three new agents can close a deal in their first month on the job, compared with one out of every six previously.

Mr Cheng recounted the story of a 23-year-old polytechnic graduate who earned a $137,000 commission on a single sale in her second month. He has also seen agents make more than $1 million in commission a year.

But most agencies warned that new agents should not expect to make huge profits immediately.

‘We tell totally brand-new agents with no experience that from six months to a year, they may have to live off their savings,’ said Dr Tan. ‘This is to caution them against this lofty, illusory idea that because they are in real estate, they make big money straight away.’

Added Mr Cheng: ‘I always say that if you want to be serious in real estate, you must have $10,000 in your bank to fuel the first three to six months.’

Source :  Straits Times – 1 Jun 2007

Estate agent’s fee depends on market

I REFER to the letter, ‘Free up commissions in housing market’ by Mr Lee Chong Kai (April 20).

The Singapore Accredited Estate Agencies (SAEA) does not stipulate any guidelines concerning agents’ commission rates. The actual commission is a matter to be negotiated privately between the parties, and will depend on market forces.

The SAEA’s main role is to elevate the standard of practice and conduct in the real estate agency industry. All SAEA agencies and any individuals associated with the SAEA have to abide by the Code of Conduct and Ethics set by the SAEA. We will hear complaints concerning the conduct of any individuals associated with accredited estate agencies, and if necessary, take action against those found guilty of such misconduct.

We thank Mr Lee for his feedback and suggest he approach the SAEA should he find any allegation of misconduct of our accredited agents. Check www.saea.org.sg for further details and a list of accredited agencies and agents.

Manisah Jalil (Ms)Secretariat Singapore Accredited Estate Agencies

Source : Straits Times – 9 May 2007

Housing agents go through pain for good cause

A TOTAL of 183 real estate agents braved injury to raise money for charity – walking barefoot on a 1.8m-long bed of broken glass.

Their efforts paid off – the event raised $50,000 for PromiseWorks, which guides youth through their developing years.

The agents – from HSR International Realtors – entered the Singapore Book of Records record too for the most number of people to walk on broken glass.

The ‘Glass-a-thon’ was held on Tuesday in conjunction with HSR’s 27th anniversary celebrations.

Although some of the agents suffered minor cuts, there were no serious injuries.

Source : Straits Times – 28 Apr 2007