CONGRATULATIONS to Mr and Mrs Yuen Chow Hin for taking ERA to court over the sale of their apartment. This case is significant and is an eye-opener to all those who want to sell their property through a real estate agent.

In my career spanning more than 20 years as a manager responsible for home financing with a local bank, I have come across several cases similar to this one.

And it was always the client who lost out. In 1995, during an earlier property bull market, my neighbours, an old couple, sold their two-storey terrace house through an agent for $600,000onthe same day that it was advertised. It was later discovered that the property was sold to someone close to the agent, who in turn sold it for $750,000 within two weeks.

When it came to my knowledge, it was too late for me to do anything to save the old couple from being victims of such a deceptive scheme. I am of the opinion that in a bullish market, unethical practices like this are more likely to take place.

Agents who indulge in such profitable deals have often told me that they are doing nothing wrong as long as there is a 'willing buyer, willing seller'. That, to me, is a simplistic view, justifying one's wrongdoing.

Before this case surfaced, I guess many agents out there would have found nothing wrong in doing what Mr Jeremy Ang of ERA did.

Investigate past cases

If not for this case, Mr Ang could still be held as a role model in this fraternity, a hero who makes a huge sum of money within a month. Perhaps the authorities should investigate past cases of this sort as many are likely to have gone unnoticed as a result of the victims' reluctance to take their agents to court. That will benefit the public.

I have often advised friends and clients who intend to sell their property to use the following guidelines:

1. Never trust an agent's proposed offer price without finding out for yourself what the prevailing market prices are and what a similar property fetched in a recent transaction in your area. If you don't want to be deceived, you must know the market yourself or seek a second or third opinion from those who do.

Also, do not take the valuation price blindly. If the valuer is appointed by the agent, all the more reason to be cautious.

2. If you have the time, advertise and sell the property yourself. I managed the sale of all my last four properties, starting with a five-room HDB flat in Marine Parade in 1983. It was easy, smooth and hassle-free. And it is satisfying as you learn something valuable and get to keep the commission yourself.

3. If you must have an agent, find one you can really trust. This will involve close interaction and self-verification. The agent must put in the time and effort to get you the best price, not put undue pressure on you to sell and allow you to cross-check and sell at a price you are happy with.

This article was first published in The New Paper on February 10, 2009.