Nov 28, 2009
Rules should cover concerted action by agents
I REFER to Thursday’s report, ‘Thumbs up for ending estate agents’ dual
role’.
The Ministry of National Development’s (MND) proposal to ban agents from
representing both seller and buyer in the same property transaction is a
step in the right direction. However, the proposal is silent on agents who
may act in concert in the same transaction, such as agents from the same
team of the same agency.
Under the proposed framework, teams could continue to represent both seller
and buyer in property transactions. Agents may continue to profit handsomely
by attaining exclusivity from sellers and dealing only with associated
agents, to the exclusion of all others. Such uncompetitive market structures
would give agents strong pricing power when negotiating fees as well.
Agents operating in teams are a common feature of Singapore’s property
market and so the proposals by MND should extend beyond the regulation of
single agents to include that of teams as well.
Otherwise, agents may continue to follow only the letter of the law with
regard to safeguarding both buyers’ and sellers’ interests, disregarding its
intent.
Ho Kah Chuen