3 claims and 3 scams

Source : Sunday Times - 5 Apr 2009

Three claims renters should not believe:

‘I will report you to the police and HDB’

Agents sometimes try to scare foreign clients by claiming that they have special ties to law enforcement agencies or legislators. This is not true.

‘I will sue you and take you to court tomorrow’

Keep clear documentation of every transaction you have made with your agent. Renters should not give deposits without asking for a proper receipt.

Make copies of cheques you have issued to the agent and get them to note on the back that the sum was paid as a housing deposit.

‘I am representing the landlord’

If the agent says he is acting on behalf of the landlord, get a copy of the agreement authorising this. As an added precaution, call the landlord, or make sure the landlord is present when you sign the tenancy agreement.

Three common scams:

One unit, many tenants

In this popular scam, the scammer is usually the landlord, who collects deposits from many prospective tenants, usually through various agents. The landlord then refuses to hand over keys, or lets out the unit to someone else instead.

‘I lost the money’

In this scam, the agent collects the deposit from the prospective tenant, does not pass it on to the landlord, but makes a police report claiming to have lost it. The landlord, having not received any deposit, is not bound to let out the unit. And the tenant is unlikely to get any money back from the agent.

Disappearing act

The agent operates under a bogus name or company, even using old name cards from former companies. After pocketing the deposit, he absconds with the money and becomes uncontactable. The only remedial action is to make a police report.

To be safe, work with real estate agents registered with the Institute of Estate Agents (IEA), where member agents are bound to operate by a set of regulations and standards. To check if the agent you are working with is registered, go to www.iea.org.sg

* Tips from PropNex Realty, ERA Realty associate director Eugene Lim, as well as the Institute of Estate Agents’ website