Tuesday, August 12, 2008

Property fee guidelines: Praise for Competition Commission

Source : Straits Times - 11 Aug 2008

I READ with gladness that at last the Competition Commission of Singapore has decided that the guidelines adopted by the Institute of Estate Agents are uncompetitive and must go (’Property fee guidelines must go, ways watchdog’).

For too long, estate agents acting in Housing Board sale and purchase transactions have called the shots and demanded that sellers pay a 2 per cent commission and buyers a 1 per cent commission, even though the buyers do not appoint the agent in the purchase, nor do the buyers agree to pay them any commission.

There have been cases in the past where agents sued buyers for their commission because they thought they were ‘entitled’ to it, citing the guidelines and ‘market practice’ and because they have the upper hand and the means to start legal proceedings.

With the clear stand taken by the Competition Commission, I have no doubt that sellers and buyers will now be in a better position to weed out agents who are unprofessional, unscrupulous and arrogant, thinking they can bull doze their way through without conducting themselves properly.

To be fair, there are agents who are well trained, professional and act in the interests of their clients, be they sellers or buyers, and they would be more than willing to pay them the commission agreed in writing before they accept the agents’ services.

I hope all sellers and buyers will now be more aware of their rights when dealing with housing agents and not allow agents to control them in the area of their commission.

Tan Swee Hong (Mdm)


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