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Letter from Loh Swee Heng, Deputy Director (Resale), Housing & Development Board

I REFER to the letter by Mr Alex Lim Kwang Hai, “Struggle for a room at the inn” (May 29).

Resale flat transactions are conducted on a “willing buyer, willing seller” basis, and prices may vary from the market valuation as a result of negotiations between the transacting parties.

The Housing and Development Board (HDB) does not provide mortgage loans above valuation, or allow the use of the CPF housing grant to pay for cash over valuation, as it would not be in the long-term interest of flat buyers to do so. It is important for flat buyers to exercise financial prudence in their purchase of flats.

In so doing, the HDB is following a common market practice for the mortgage loan to be secured against the market value of the property. This reduces the risk to the lender who is then able to charge a lower interest rate on the mortgage loan compared to other forms of unsecured debt.

Source : Today - 19 Jun 2007

I REFER to the letter, ‘Property agent did not follow standard guideline when requesting commission’ by Mr Stephen Neo Poh Chuan (ST Online Forum, June 14).

We have in fact responded twice to Mr Neo to clarify that Institute of Estate Agents (IEA) guidelines are recommended and not mandatory on matters of commission, which Mr Neo also learnt from IEA.

It was thus a matter of negotiation between the agent and the client for which the client has absolute sovereignty in deciding whether to accept and pay for the services of the agent.

If for competitive reasons another agent chose not to accept commission from Mr Neo, we do not think an adverse conclusion should be drawn against the one who wanted to charge him for services rendered. Hence, our professional conduct is not in question here.

Finally, we would like to assure?our clients that we remain diligent in presenting?our commitment, dedication and focus towards serving them in their real-estate needs.

Dr Tan Tee Khoon
Director
Associates Division
KF Property Network

Source : Straits Times - 16 Jun 2007

I REFER to the article, ‘Minimum professional competence and standards must be maintained in real-estate industry’ (ST, June 9).

The report highlights that due to the rapid rising property market, buyers and sellers are encouraged to engage the services of property agents from accredited agencies.

However, in a recent incident, I was looking around to lease a condo unit and happened to meet an agent from Knight Frank.

I was told that I could rent the unit for $2,800 and I was appalled when the agent wanted me to give her commission of one month for signing a two-year tenancy agreement.

I questioned her whether it is IEA’s standard guideline to do that as, from my understanding, for any rental above $2,500 a month, I as a tenant do not need to pay any commission to the agent.

I refused to rent the unit from the agent and went on to rent another house from another agent from ERA at $2,600 a month.

This agent told me that I do not need to pay commission as the rental is above $2,500 a month and the agent will just need to collect commission from the landlord.

Why is there a difference in commission standards?

I sent a letter to IEA, and I was told that the Professional Fee Standard Guideline is a ‘Recommended’ Guideline but not mandatory,

I called Knight Frank and was told that for rentals above $2,500 a month, I as a tenant do not need to pay commission. However, when I sent a letter to its manager, I was given the impression that it does not restrict its agents in negotiating commission with clients.

My burning question is this: Can agents opt not to follow IEA’s Standard Guideline?

What kind of protection is there in place for buyers, sellers, landlords and tenants if agents do not have to follow the guidelines?

Source : Straits Times - 14 Jun 2007

PLEASE refer to the report, ‘More sign on as property agents to cash in on boom’ (ST, June 1).

The report highlights the increased number of unqualified agents in recent months because of the rapidly rising property market. While we welcome the growth in the industry and improved earnings of agents, we need to maintain a minimum level of professional competence and standards in the real-estate industry. To this end, we strongly advocate agents and agencies to seek accreditation under the Singapore Accredited Estate Agencies (SAEA) scheme. The scheme has the participation of major industry players as well as government agencies involved in the real-estate industry. All our accredited agencies have been told that their agents will need to pass the Common Examination for House Agents (CEHA) by Dec 31, 2008 before they are accredited.

Discerning buyers and sellers will recognise that agents from SAEA-accredited agencies can provide better and more reliable service as they need to comply with the code of conduct and practice required under the accreditation scheme. We encourage consumers to engage the services of agents from accredited estate agencies for greater certainty.

More information is available on our website at www.saea.org.sg.

Manisah Jalil (Ms)
Secretariat
Singapore Accredited Estate Agencies

Source : Straits Times - 9 Jun 2007

I REFER to the letter, ‘No business space? Try HDB void-deck office’ (ST, May 26). Mr Mak Seck Hong suggested that void-deck space near town centres be converted for use as office space.

Void decks in HDB estates are usually reserved for social interactions among residents and for holding functions. Part of this limited space is needed to provide social and community facilities, such as Residents’ Committee centres and childcare and education centres, which benefit residents directly.

HDB has vacant office units immediately available for rent in its various estates. Those interested can bid for them at the website www.place2lease.com.

Those who wish to conduct small-scale businesses from HDB housing estates can also consider doing so in their homes under the Home Office Scheme. Details on the scheme are available at our website www.hdb.gov.sg.

We thank Mr Mak for his suggestion.

Ng Leong Keng Deputy Director (Policy & Planning) For Director(Properties & Land) Housing & Development Board

Source : Straits Times - 8 Jun 2007