Wednesday, September 20, 2006
[RealEdge] TodayOnline Forum : Hidden commission is unfair
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| Hidden commission is unfair Rules should apply equally to HDB and private deals; buyers should have choice Wednesday ? September 20, 2006 Letter from Yeo Guat Kwang President Consumers Association of Singapore (Case) I refer to the recent letters on real estate agents collecting commissions from buyers and sellers. The Institute of Estate Agents (IEA) has the guideline that an agent shall not accept commission from both the seller and buyer in the same transaction without their prior knowledge. Yet in practice, agents handling HDB transactions collect commissions from both buyers and sellers, citing it as market practice. This is the bone of contention. Mr Low Swee Kim from the IEA ("Dual commission does not mean conflict of interest", Sept 13) pointed out that many deals have been successfully and smoothly transacted by agents acting for both parties and there have hardly been any complaints regarding conflict of interest or unethical practice arising from such a scheme of commission payment. While his assurance is welcomed, if the IEA feels that the guideline is necessary to safeguard against any conflict of interest or unethical practice, then the same considerations should also compel the guideline to be applied for HDB transactions. There is no necessity for two different commission payment structures for HDB and private property transactions. From the consumers' perspective, the key issue is the extent to which they have a choice. For example, how is it reasonable for an agent to collect commission if he is not specifically appointed by the consumer and services are not rendered? Property buyers should not have to pay a hidden cost in the form of added commission that they were previously unaware of. Case will be happy to help consumers if they wish to seek our advice or assistance in disputes. We can be contacted at 6463 1811. | |
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// posted by Shajahan @ 10:12 AM 