Two-tier test system raises standards of estate agency industry

Aug 22, 2008
Two-tier test system raises standards of estate agency industry

WE REFER to the letter 'HDB resale net services open to abuse' by Mr
Steven Lau last Saturday. We would like to take this opportunity to
clarify the misconceptions about the SAEA (Singapore Accredited
Estate Agencies) accreditation schemes.

The SAEA scheme was launched in November 2005 with the objective of
raising the level of professionalism in the estate agency industry by
getting agencies and agents to be accredited.

A time frame of three years was proposed so that agents would have
the opportunity to upgrade themselves during that period. The
accreditation requires agencies to have a certain percentage of their
agents pass the Common Examination for House Agents (Ceha), starting
with 40 per cent in 2006, 60 per cent last year, 80 per cent this
year and 100 per cent next year.

To support the SAEA accreditation scheme, the HDB has kindly provided
the use of the HDB resale net services to accredited agencies,
bearing in mind that there are agents with the accredited agencies
who do not possess the Ceha.

During the implementation of the scheme, feedback from the industry
and agency bosses was obtained. One of the feedback given was to
introduce a two-tiered accreditation scheme, one for agents who
intend to practise as a principal licensee, and another for
salespersons on the ground, who deal with the buyer and seller.

This two-tiered scheme is not uncommon in other countries. Hence, the
SAEA salespersons accreditation was announced in April this year.
Under the two-tiered scheme, agents can either take the Ceha or the
CES (Common Examination for Salespersons) to be accredited as an
accredited agent or salesperson.

The syllabi for the CES examination are as extensive as the Ceha
except topics like those that deal with the management of the agency,
such as business operations and human resources management, are
excluded. Those taking the CES, for instance, are required to
understand the procedures to carry out HDB resale transactions, to be
aware of the HDB policies and familiar with the resale checklist,
various upgrading programmes and so on in order to pass.

The possession of Ceha or CES is only one of the requirements for
accreditation. All accredited agents or salespersons are required to
comply with a code of ethics and conduct, and will be subject to
disciplinary action if they misconduct themselves.

We urge Mr Lau or the public who is aware of any abuse of the HDB
resale net services to inform us so that appropriate disciplinary
action can be taken against our accredited agencies.

The two-tier system is a good system to exercise control on the
estate agency industry where there are close to 20,000 agents who do
not even have a basic qualification and understanding of real estate
and property transactions.

We urge the general public to deal with accredited agents or
salespersons in order to protect their own interests.

Wilson Lim
Executive Director
Singapore Accredited Estate Agencies (SAEA)