Singapore PropNex takes new measures to raise benchmark for agents
By Jessica Cheam
PROPERTY agency PropNex has unveiled a range of initiatives aimed at improving the quality of its agents.
The measures range from ensuring that agents are properly insured to proficiency tests covering subject like ethics and HDB regulations.
PropNex chief executive Mohamed Ismail said the new benchmark could result in 500 below-par agents being sacked by the end of the year.
This will be in addition to its drastic axing of 2,800 inactive agents last week.
‘It’s no longer a numbers game,’ said Mr Ismail yesterday. ‘We’re focusing on quality rather than quantity. We want to help move the industry towards professionalism.’
PropNex’s actions follow a spike in consumer complaints about estate agents which has resulted in the profession being labelled a ‘cowboy industry’.
Consumers lodged 1,113 complaints about the property industry last year, up from 991 in 2006 and 672 the year before.
The PropNex measures include a new in-house practising certificate, compulsory for all agents operating under the firm’s name.
Agents must also take out professional indemnity insurance that protects them against the cost of lawsuits and offers consumers compensation when agents mess up. New entrants and inactive agents must also pass a new proficiency test - in the form of a multiple-choice exam - that will cover subjects like code of conduct and ethics, the HDB and private property markets.
PropNex’s move is the latest in a series of industry initiatives aimed at raising the bar for agents.
The Institute of Estate Agents (IEA) launched a new practising certificate for members last year. The IEA represents about 1,600 agents and aims to act for the entire industry eventually.
There is also a three-year-old Singapore Accredited Estate Agencies scheme, which conducts the original Common Examination for House Agents (Ceha).
A scaled-down version of the Ceha was launched recently, backed by the newly formed Association of Singapore Estate Agencies. This aims to rally bosses to raise standards.
Industry players say there are just too many schemes and none is compulsory.
Agency boss Albert Lu of C&H Realty said the certificates ‘won’t make a difference if an agent is intent on illegal activities’.
The solution is to have a central body that functions like the Law Society with the power to discipline members. ‘Rogue agents can then be fined or suspended; it solves a lot of problems in the industry,’ said Mr Lu.
ERA Realty and HSR Property Group say they already have in place high standards for their agents.
ERA has about 2,800 agents, all of whom must go through a training regime. It also terminates about 500 inactive agents a year.
Neither ERA nor HSR requires agents to have indemnity insurance.
There are an estimated 30,000 agents in the market - all unregulated. The Inland Revenue Authority of Singapore vets only estate agencies, but not individual agents
Source : Straits Times - 01 Aug 2008
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