CEA’s New Rules

excerpt from channelnewsasia.com – 29 Oct 2010

SINGAPORE: The Council for Estate Agencies (CEA) released new rules on Friday that will set standards and regulate the conduct of estate agency work.

From 15 November, salespersons cannot represent both buyers and sellers in a property transaction under the Estate Agents (Estate Agency Work) Regulations.

It will also prohibit estate agents and salespersons from handling cash in certain transactions or referring their clients to any moneylender.

Other provisions will kick in on 1 January.

They include prescribed estate agency agreements that estate agents will use with their clients for the sale, purchase or lease of residential property in Singapore.

Individuals who undertake estate agency work will also be required to take part in continuing professional development programmes for a minimum of 6 hours per year from 2011.

From March next year, the regulations will require salespersons to display their estate agent’s card, when doing estate agency work. This is to allow the industry sufficient time to comply with the estate agent’s card requirement.

Separately, the Estate Agents (Licensing and Registration) Regulations and the Estate Agents (Fees) Regulations will take effect on 1 November.

Application for estate agent’s license and salesperson’s registration will start from that date and those who successfully register with CEA will have their names published on its website from 1 January.

Those who do not meet the licensing or registration criteria will not be granted a license or registration. This includes those with criminal records, especially for fraud and dishonesty.

Also from January next year, it will be an offence for sales persons who are not registered with CEA to handle estate agency work.

They must also have written agreements with estate agents before they can practise.

My opinion on the whole matter: It’s wonderful.

For years there was no actual set of standards or rules governing us agents when we practise estate agency work. All we had was our own professionalism and ethics, and if some of us don’t have moral values, it will look bad on agents as a whole.

I’ve personally had problems convincing a client to trust me in handling her lease for her, all because she had a bad experience with her previous agent. Good thing I managed to convince her, and I’m pretty sure she feels that I’ve maintained my duty of care to her and her property.

The thing is, previously, joining an estate agency seemed so easy. People just attended basic courses on marketing properties, learning the various clauses in a standard agreement etc. and they’re good to go. What’s next is they will learn the ropes from their manager and hopefully they’ll practise properly.

And then there’s always the success stories of real estate agents who make it big and live in big houses! And since it’s so easy,  most people will think that there is no harm giving it a try.

And then there are some black sheep among the agents felt that there is ‘no harm’ trying out, also felt that they needed to cheat and lie to make money in this line of work. And in this case, the victims are the clients, and sometimes other agents as well. But in general, all agents are affected eventually as these agents make the rest of us look like money-leeching bloodsuckers with no care for our clients at all.

Good thing I’m an honest person and have a set of moral code to live by!

It also depends a lot on ‘work culture’, so good thing  I learned from the right person, and everyone I’m currently working with are generally ethical.

So, what I’m saying is, soon every agent has to go through an almost ridiculously difficult exam (believe me, I know), submit their certificate for accreditation with the governing body and apply for a license before they can practise.

So you can be pretty sure that these accredited agents know what they are doing. And with a governing body around, not happy, complain, lah!  Because like most other licenses issued in Singapore, I’m pretty sure these can be revoked too.

P.S: Please take note that there are many good agents around in Singapore. The new rules will rid off the most of the bad eggs, you are only left with good eggs now.