New rules for property agents likely to weed out inactive ones, help consumers make better decisions
From next year, property agents will have to complete at least three transactions over three years or pass a refresher examination to remain in the industry. The Council for Estate Agencies will also start collecting agents' commission data monthly and may publish aggrega…
Intelligence analysis by Llama
New rules for property agents will require them to complete at least three transactions over three years or pass a refresher examination to remain in the industry. The Council for Estate Agencies will also start collecting agents' commission data monthly and may publish aggregated industry figures.
Imagine you're buying a house, and you need a property agent to help you. But what if the agent isn't very good at their job? Or what if they're not even doing their job at all? To fix this problem, the government is making new rules for property agents. They have to do at least three deals in three years, or pass a test to stay in the business. This way, consumers can trust that their agent is good at their job and will help them make a good decision.
Analysis
New Requirements for Property Agents
From the start of next year, property agents will have to complete at least three transactions over three years or pass a refresher examination to remain in the industry. This move is part of an industry review to raise professional standards and improve transparency. The Council for Estate Agencies (CEA) will also start collecting agents' commission data monthly, and may publish aggregated industry figures to help prospective agents decide whether or not to join the industry.
The changes will kick in from Jan 1, 2027, and are aimed at giving consumers greater clarity and choice when making property transactions. Among other things, keeping agents active and up to date reduces the risk of financial losses from misleading advice or procedural lapses. But such measures are also likely to weed out some inactive agents and give prospective entrants a more realistic picture of the profession.
Over the longer term, the authorities are considering making the Housing Board's Resale Flat Listing service the default platform for HDB resale advertisements. They are also studying whether property owners should be allowed to advertise directly on commercial portals. This could give homeowners more ways to transact independently, reducing the need for agents to be involved.
Enforcement and Attrition
But for this to be effective at weeding out agents who are truly inactive, some enforcement is needed. CEA's position is that it recognises one agent for each side - one for the buyer or tenant, and one for the seller or landlord. It is an offence to submit false or misleading information.
Transparency and Commission Data
The move to publish commission data could also make joining the industry a less attractive option. The ranks of property agents have swelled in recent years. Newcomers are often drawn by the potential for high earnings, with market watchers saying that a buoyant property market may add to that appeal. A commission tied to a million-dollar transaction can appear substantial, especially when social media posts often highlight successful agents and their earnings.
CEA's move to collect and potentially publish commission figures will help give potential entrants a more complete picture. But agencies also noted that gross commission figures are not the same as agents' take-home income, as they do not account for expenses like marketing, portal subscriptions, transport, professional development and operating costs.
Key points
- New rules for property agents require them to complete at least three transactions over three years or pass a refresher examination to remain in the industry.
- The Council for Estate Agencies will start collecting agents' commission data monthly and may publish aggregated industry figures.
- The new rules aim to raise professional standards and improve transparency in the property industry.
- The changes will kick in from Jan 1, 2027, and are aimed at giving consumers greater clarity and choice when making property transactions.
- The authorities are considering making the Housing Board's Resale Flat Listing service the default platform for HDB resale advertisements.
The new rules are likely to improve the overall quality of property agents, giving consumers greater confidence in the industry. This could lead to increased transparency and better decision-making, ultimately benefiting both buyers and sellers.
However, the new rules may also lead to some property agents leaving the industry, potentially reducing the number of agents available to consumers. This could create a shortage of agents, making it harder for people to buy or sell properties.
