Real estate companies terminate thousands of housing agents

Thousands of housing agents have been axed by real estate companies ahead of the improved regulations intended to enhance the industry’s professionalism.

A statutory board known as the Council for Estate Agencies will be established under a new regulatory framework to be enforced by the Ministry of National Development (MND).

MND said a Bill will be presented later this year, and the council will be operational by end-2010. The new framework will require every agent to register with the council before they can practice their profession.  Meanwhile, MND had called for estate agencies to submit the particulars and qualifications of their agents.

Some companies have already taken action. Earlier in July, Dennis Wee Group (DWG) updated the particulars of its 5,000 agents, who were also briefed of the new requirements.

The exercise has resulted in the termination of about 1,500 agents, who are mostly part-time or inactive, said Chris Koh, director of DWG.

“With the new central registry, where a member of public can turn to the registry and see if you are an agent, it's going to be difficult for those with a full-time job to moonlight as an agent,” said Mr. Koh.

The new guidelines will also require agents to pass a compulsory industry exam except those who have industry certification.

DWG has also asked its agents to take either the Common Examination for Salespersons or the Certified Estate Agent Course.

Meanwhile, PropNex has terminated about 1,200 agents, either because they are inactive or do not want to adopt personal indemnity insurance which covers any financial liabilities that arise from housing transactions, said Mohamed Ismail, chief executive of the company.

Agents associated with moneylending have also been axed. “We have made it a policy that any PropNex agent, who has a moneylending licence, will not be allowed to practice because we do see a conflict of interest,” said Mr. Ismail.