IT IS heartening to learn that the court dispute between PropNex and Mr and Mrs Loh Yi Min has been settled amicably.
We can learn something from this incident. When a property agent undertakes work for either the seller or the buyer or both, he does it for a remuneration. It is therefore only correct that the type of work to be carried out by the property agent be properly described in the document most property agents require their clients to sign before he starts work. The document is often called the commission agreement and it records how the property agent is to be remunerated.
The Housing Board conducts public briefings on:
Policies and procedures relating to buying and selling of flats;
Financial planning for buyers and procedure for HDB and bank loan; and
According to the HDB, it invites a guest speaker from the CPF Board to talk about use of CPF funds to buy resale flats. The next talk for which seats are still available is on July 5.
For more information, visit www.hdb.gov.sg, Home Owners, Selling Your Flat, HDB Resale Seminar.
Given that the HDB makes public the requirements in the resale process, the role of the property agent can be limited to connecting the seller and the buyer if the two parties handle the documentation themselves.
Perhaps the remuneration, often fixed at 2 per cent of the agreed price for the seller and 1 per cent for the buyer, can be broken into two distinct components:
The first, which can be percentage-based, is for connecting the parties and arranging the best price for either party; and
The second is for handling documentation, attending appointments and reminding parties of their obligations.
In that way, even if the buyer has to pay the property agent, he is clear that he is paying for services that are not related to getting him the best price, if the property agent also represents the seller in the same transaction.
Patrick Sio
This letter was first published in The Straits Times on May 10, 2008.
