End to guidelines a double-edged sword

Source : Straits Times - 16 Aug 2008

I REFER to the article, ‘Property fee guidelines must go, says watchdog’ (Aug 6). As the first chairman of the legislation committee of the Institute of Estate Agents (IEA) that was responsible for the IEA code of ethics and conduct, and commission guidelines, I would like to clarify that the guidelines were not mandatory. They were crafted as a basis for consumers and agents to collaborate and achieve win-win results.

The removal of guidelines will provide consumers with choices. However, with choices come great responsibilities to choose the right professional agent who will represent the consumer’s best interests and not one who quotes a lower commission.

Ultimately, it is not the commission but profit that counts. The commission is a small percentage compared with the potential gain or loss as a result of appointing the right or wrong agent.

Consumers need to work with established, reputable and successful real estate companies. These organisations should subscribe to a published code of ethics and conduct.

In addition, as reputable companies need to protect their image, they are more inclined to train their agents vigorously, empower them with better technologies and equip them with a more comprehensive range of marketing tools.

If they are worth their salt, they should also be able to provide consumers with unconditional guarantees to assure them of a high standard of performance, service and results. If agents can do all of these things, they will have justifiably earned their commission.

Patrick Liew

‘Is the procedure for an HDB resale so much more complex than a private property deal?’

MR TAI MENG KIAN: ‘The recent move by the Competition Commission of Singapore to scrap the property fee guidelines did not address the issue of collecting commissions from HDB flat buyers. The guideline stipulates a 1per cent commission to be paid by the buyer. Shouldn’t the commission paid by the flat seller encompass all the necessary paperwork, as in private property deals? Is the procedure for an HDB resale so much more complex than a private property deal?