Just as you begin to wonder what has happened to the once blooming service industry, the Ministry of National Development (MND) has decided to take a closer look at the service standard in the real estate industry.

Prior to recent spate of unethical practices and deteriorating services standard in the real estate industry, MND has announced its plans to re-examine the existing framework that property agents currently work under. Indeed, this is the first time the government has hinted the possibility of mandatory regulations for the real estate industry given its current service situation.

Back in February this year, the highly publicized case of ERA Realty Network’s lawsuit with a couple brought the industry under much limelight. This couple took ERA to court after realizing that their supposedly $688, 000 worth downtown apartment was bought and resold by the wife’s of their agent’s boss at a much higher price of $945,000. However, as the saying goes, one can never escape from the long arms of Justice. Eventually, the couple won the case and has since received the difference of $257,000 from ERA.

At the same time, coupled with statistics revealed by the Consumer Association of Singapore (Case), real estate-related complaints received over the years have indicated an upward escalating trend from 1,100 cases last year, 1,133 cases in 2007 and 991 cases in 2006.

Hence in its efforts to take strong preventive measures to curb notorious cases such as the above-mentioned, the government has proposed a series of regulation measures for the industry:

(1)    The formation of a recognized Accreditation Body for agents

• Expected to set up next year, the formation of this body will:
  • Create and maintain a public central registry listing of all accredited agents,
  • Solve problems of errant agents who switches from one agency to another undetected or those attached to multiple agencies, and
  • Reassure consumers’ confidence by allowing them to ascertain the true qualifications of their agents.
     

• As such, agents will have to sit through and pass an industry examination to be accredited by the body before they are allowed to practice the trade. 
   

(2)    Establishment of a Disciplinary Framework

• This is a collaboration between the regulatory authority and the accreditation body.
   
• This framework aims to enforce the right directives and regulations against non-compliance or infringement of accreditation requirements
   
• Once found guilty, violaters will have to face disciplinary action in the form of demerit points, possible warnings, fines, suspension and explusion.
   

(3)    A Tribunal

• To resolve disputes over residential real estate transactions.
   

With 2 main objectives, this new regulatory framework seeks to enable consumers to better safeguard their interests through public education and robust regulations, and to increase the professionalism of the real estate industry.

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