IEA Council President Mr Jeffhery Foo

Members of the Institute of Estate Agents

Ladies and gentlemen

I am pleased to join you this evening at the Institute’s 8th Dinner & Dance and the Realtor’s Awards presentation ceremony.

Role of IEA and Estate Agents

2 Estate agents play a key role in the buying, selling and renting of homes. Buyers and sellers value the advice of estate agents because they are experts in their fields, and are able to provide useful insight into the common pitfalls to avoid in property transactions. Agents are also in a position to advise their clients based on their experience and professional knowledge of the property market.

3 It is therefore important that estate agents are knowledgeable about various aspects of real estate law, as well as the latest rules and regulations governing real estate transactions. Being professional, responsible and responsive to your clients’ needs will also distinguish you from others in the highly competitive real estate industry.

4 I am heartened to note that one of the IEA’s top-most objectives (alongside protecting the interests of estate agents) is to protect the interests of members of the public who engage the services of estate agents. The importance of the estate agent in protecting the interests of their clients cannot be overstated, as property transactions easily constitute the single highest value transaction that the average person undertakes in his or her lifetime. Indeed, buying a property is a long-term financial commitment, and it may take some flat buyers their entire working lives to pay off their mortgage loans.

5 To this end, it is commendable that the IEA took the initiative to organise Public Education forums last year on “Tips on buying & selling of Properties” and the “Duties of real estate agents”. These forums were jointly organised with CASE, the Small Claim Tribunal and the Subordinate Courts. I understand that the forums were well-received by those who attended, and it is my hope that the IEA will continue with such efforts to reach out to the public so that they can make more informed decisions when it comes to buying and selling their properties.

Singapore Accredited Estate Agents (SAEA) Scheme

6 I would also like to take the opportunity this evening to commend the Institute on its efforts in industry self-regulation. Together with the Singapore Institute of Surveyors and Valuers (SISV), the IEA has been administering the Singapore Accredited Estate Agents (SAEA) Scheme since its launch on 11 Nov 05.

7 The accreditation scheme is an excellent example of how the industry has sought to raise its level of professionalism. Under the scheme, estate agents will be required to be suitably qualified in order to undertake agency work. They will also need to comply with prescribed codes of conduct, ethics and practice.

8 I am encouraged that since its inception about a year ago, about 6,000 agents from close to 300 agencies have been accredited under the scheme. This constitutes about a third of the 15,000-20,000 agents in the industry. Given the benefits of the quality assurance provided by the system, it is my hope that more agents and agencies will sign up to join the accreditation scheme going ahead, in recognition of its value in enhancing the professionalism and reputation of the industry.

Central Registration Scheme

9 More recently in Sep last year, the IEA launched its Central Registration Scheme (CRS) which aims to establish a central database of real estate agents, so that agencies and consumers can verify the status and identity of the estate agent they are dealing with. I am informed that over 16,000 agent names have been registered in the database over just about half a year. Under the scheme, participating agencies are also required to inform the IEA within 72 hours when it terminates the employment of agents for unethical conduct. This is so that other agencies would be made aware of such an agent if he should attempt to join them.

10 The scheme is another positive step in raising the professional standards of the industry, as it makes it easier for agencies and consumers to identity unscrupulous agents. I believe that this database would very useful for both the industry and consumers.

Conclusion

11 Over the past 8 years, the IEA has made commendable effort to enhance the professionalism of the real estate industry. Through its public education efforts, it has also worked to help consumers better understand industry practices.

12 I would like to urge all IEA members to keep up such efforts and uphold public confidence in the industry.

13 On this note, let me wish you a pleasant evening.

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