No agent for 1 in 10 HDB resale deals


Khaw says CEA will help DIY owners better understand their rights


By Shuli Sudderuddin

ONE in 10 Housing Board (HDB) resale transactions last year was done without
the involvement of property agents, National Development Minister Khaw Boon
Wan revealed in his blog yesterday.

He added that the Council for Estate Agencies (CEA), as part of its ongoing
consumer education efforts, would help home owners better understand their
rights if they opted to act without agents.

He noted that while there had been suggestions to prohibit real estate
agents from handling HDB resale transactions as well as ban do-it-yourself
(DIY) resale deals, he did not think it was appropriate to do either.

The HDB already provides DIY resale checklists of requirements such as
eligibility to buy or sell and financing.

Industry experts said that while they had not observed a discernible DIY
trend, it was not uncommon for a buyer or seller to want to complete at
least part of the transaction without an agent.

Buyers and sellers said they chose to go agent-free to avoid paying the
agent's commission - usually about 1 per cent of the transaction price for
buyers and 2 per cent for sellers.

Mr Nicholas Mak, head of research at SLP International, said going DIY was
not as easy as it seemed because there is a lot of unfamiliar paperwork. For
example, sellers have to submit a financial plan for the purchase of their
next flat.

He said it was more common for people to find a buyer or seller and then ask
an agent to do the paperwork.

An example is Mr Kumar Suresh, 39, who is helping his sister to sell her
Jurong West three-room flat. Though he plans to seal the deal by himself, he
intends to get his agent to go through the paperwork as the agent would be
more familiar with it.

'Even with him doing the paperwork, I can save up to $5,000. By dealing with
the buyer myself, I can also decide what is a reasonable price rather than
having an agent who might coax me into accepting a figure,' said the youth
worker.

Ms Vera Chua, a business owner in her 30s, is selling her four-room flat in
Tiong Bahru without an agent. 'I'm doing it to save on the agent's
commission and learn how the process works so I can use the skills in
future. And because I conceptualised the flat's decor myself, I think I'm
the best person to present it and match it to the new owner,' she said.

She would get a lawyer's help with the paperwork.

In his blog post, Mr Khaw also thanked members of the public for their
feedback on what they wanted the CEA to do and revealed suggestions such as
improving the quality of training and raising the minimum education
qualification of agents.

Since January last year, all property agents must register with the CEA,
which can investigate complaints and impose penalties. The council said
areas for development in its training courses included professional ethics
as well as business leadership and management.

Mr Khaw said the council is looking into shortening the time for resolving
disputes between buyers/sellers and agents.

Currently, parties with disputes over the Estate Agency Agreement, which
puts on record the commission amount agreed on by both parties, can make use
of the council's resolution scheme, which involves mediation and
arbitration.

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pg>
http://www.straitstimes.com/STI/STIMEDIA/image/20120213/ST_IMAGES_SSKHAW.jpg

Ms Vera Chua is selling her Tiong Bahru flat without an agent and is doing
it to save on the agent's commission. She intends to get a lawyer's help
with the paperwork. -- ST PHOTO: NURIA LING

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