While the Institute of Estate Agents (IEA) Conference is generally regarded as an industry-specific event for those in the property field, this year’s conference, attended by over 300 real estate agents, covered valuable insider tips which consumers can use to grab the advantage when negotiating with their property agents.  

Read on for the key topics discussed behind closed-doors to understand the advantages that the new Estate Agents Act provides to the consumer, and how you can use these tips to gain an upper hand in your real estate transactions.

No Dual Representation of Buyer & Seller

In order to prevent conflict of interest, the new CEA (Council for Estate Agents) regulations stipulate that the same agent is not allowed to represent both the buyer and seller, or receive commission from both parties. Previously, agents could collude with each other in a co-broking arrangement by picking only specific agents who were their friends or spouse to work with, in order to share commission under such an arrangement. 

With the new regulations, buyers and sellers now enjoy a greater level of protection in knowing that their agents are legally obligated to disclose all offers, so the seller has the choice of can pick the best offer price and each prospective buyer has an equal chance of winning the bid. 

No Holding of Funds by the Agent: Using Conveyancy Accounts

Although property buyers may find it more convenient to hand over a check for the deposit directly to their agent, they should bear in mind that the CEA bans agents from handling cash when carrying out their work of buying and selling of properties in Singapore. The correct procedure is for buyers to insist on a separate account for the handling of their money to safeguard their deposits. 

While clients may have complete trust in the integrity of their real estate agents and lawyers, they should bear in mind there have been as many as 4 reported cases of rogue lawyers running away with their client’s funds in the last 6 years. Hence, buyers should take advantage of the new measures to safeguard buyer’s deposits that require that deposits have to be held in a newly-formed bank account, called a Conveyancing Account, where the withdrawal of funds will require authorization from lawyers from both the buyer and seller’s side. Should buyers prefer to have their funds held by a third party, they also have the option of hiring the Singapore Academy of Law (SAL) to hold the conveyancing money if they prefer.

The CEA: An Advocate for Consumer Rights

While property agents should and very often, do work in the best interests of their clients, it can only be to the buyer or seller’s advantage to educate himself on what their rights are as consumers. Should the consumer believe their property agent has failed in his professional duties, the CEA is a resource available to consumers as an avenue for dispute resolution. Consumers may file their complaints in writing, in person at the CEA office at HDB Hub, or by phone or email. 

The Complaint Form is also available for download on the CEA website. To date, the CEA has received about 1200 complaints since its formation as a statutory board under the Ministry of National Development in October 2010.