WHAT TO EXPECT FROM YOUR AGENT?

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Knowing what to ask and what to expect from your agent is the first step in protecting yourself against illegal and misleading practices. Here are some tips on asking your agent the right questions.

DETERMINE WHETHER THEY ARE LEGAL AND REGISTERED AGENTS

If they have been authorized to sell property, find out if they are legitimate agents or negotiators. Ask for their name, agent/negotiator registration number and their company.

Ask for their Real Estate Negotiator (REN) number if they are negotiator and E number if they are an agent. The company they are attached with would have an E number as well.

Negotiators are only allowed to work for one agency at any point of time. Beware of those who claim otherwise. Some negotiators work for different firms which is illegal.

Property agents are only allowed to work on behalf of one party in the same property transaction. This ensures that they are acting in best interests of their client. Consequently, they are not allowed to accept a fee from both the buyer and seller in a property deal.

ARE THEY QUALIFIED TO REPRESENT THE OWNER?

Once you have determined that he is legitimate, the next step is to find out how qualified he is to represent the seller. Ask whether the agent has been appointed by the owner to sell and whether he has met the owner himself. If he has, you have the right to ask if he can bring the letter of authorization with him, which he will need to have regardless of whether it is an exclusive listing. If he says he has not met the owner, then be careful when dealing with him.

A good agent should have basic knowledge of the property he is putting up for sales, such as the size, the developer, whether it is a bumiputera or non-bumiputera unit, and whether it is on freehold or leasehold land. Good agents should be able to tell you everything you need to know, including the date of the last renovation and whether the assessment and quit rent are up to date. They should also be able to tell you the good things from the bad.

However, if the agent is reluctant to provide these details, don’t write him off just yet. Sometimes even an ethical agent may be unwilling to provide such details over the phone as they are wary of unscrupulous agents posing as potential buyers. Arrange for a viewing of the property to assess both the property and the agent further. When you call an agent, they could be worried that you are another agent attempting to fish for information in order to list the property as their own, so sometimes they can’t give you full disclosure on the phone.

CO-AGENCY AGREEMENTS ARE ENCOURAGED

In order to obtain the best possible price for the seller and the buyer, it is common practice for your agent to arrange viewings of the property with other agents from the same company or from different companies.

It is the agent’s duty to get the best price possible. Some are reluctant to do co-agency because they want to get the full commission. That is unethical because your duty is to get the best price or the best property possible for your client.

ANY MONEY COLLECTED MUST NOT BE IN THE AGENT’S NAME

The purchaser should always write out the cheque in the name of the agency rather than the negotiator. When the purchaser buys something, the money should go into a client’s account at the agency. This account is audited every year. It is best to pay the companies as they are stakeholders. Also, allow your lawyers to do necessary checks on the title of the property.

The seller’s agent will keep the cheque and hold it in trust for the parties while they prepare the necessary documentation needed. Don’t pay directly to the seller. In case you have problems with your property, you may not able to get your deposit back.

DO YOUR OWN RESEARCH

Knowledge is power, and this especially applies when dealing with agents whom you do not know. Do you own homework to find out the value of the properties around the areas and developments that you are interested in. This will provide a gauge of what the market rate is and the issues that surround the area. If get a rough guideline of how much certain sizes of units who want to go the extra mile can enlist the services of a valuer.

It’s good to engage a property valuer to check the true value of the home so that you know the price you are paying is fair. If you taking a bank loan, bear in mind that you can only obtain the loan amount based on the valuation report.

source from personal money magazine, september 2014 edition