all u need to know about estate agents

yesterday, the cea (council for estate agencies) rolled out a brochure which gives tips on all a consumer need to know about estate agents such as:

a. how to identify a registered property agent
b. how such agents should handle transaction monies
c. a listing of the responsibilities of the property agent or salesperson in
explaining to consumers all the relevant forms and documents in a binding
agreement
d. a list of what consumers need to be aware of on their part,
such as providing one's terms and requirements clearly to the agent
e. what to do when a dispute arises.

the brochure also highlights that dual representation, where a property agent represents both the buyer and the seller and collects commission from both parties is an offence.

and it is also an offence for a property agent or agency to introduce or refer a buyer to any moneylender.

property agents and agencies are also prohibited from handling money on behalf of any party in the sale or purchase of any property here.

and last but not least, the brochure also advised consumers not to respond to flyers where the property agent or salesperson has not provided a registration or licence number.

the consumer guide can be viewed (and downloaded) at the cea website:

http://www.cea.gov.sg

my comments:

our parliament passed the estate agent's bill on september 01, 2010, and the new measures will be overseen by the cea (council for estate agencies).

since january 01, 2011, all property agents and property agencies besides other enhanced licensing rules, have to be registered with the cea and aspiring property agents will require a minimum of four GCE 0-Level passes and are also required to take a mandatory industry examination.

on the recent rules and regulations governing the real estate indutry, i see many parallels in the licensing of financial advisors in the financial industry.

but i view the real estate industry to be homogeneous in nature but not so with the financial industry.

what do u mean?

if we look at the distribution of new life business through the lia (http://www.lia.org.sg), the tied channel accounts for 48%, the bancassurance channel with 35%, the fa and other channels, 13% and 4% respectively.

this should be simple enough, right?

but till today, when i mention the word, independent as in my company's name, promiseland independent and my independent standing, the person/s sitting with me is rather clueless about my company and my standing as a financial advisor.

the authorities would be well advised to similarly educate the general public on the differences between the 3 main channels of the distribution of life insurance products, be it from the tied agency, the bancassurance and fa channels.

an example is in the number of companies being holders of a financial adviser's licence at the mas website (http://www.mas.gov.sg/fi_directory/index.html), and we can see a total of 66 companies here which is truly mind-boggling.

and one question immediately surfaces, are all these 66 companies similar?

therefore, just like what the cea has done, the consumer should have a guide on the different entities in the financial industry.