Ads must not refer to HDB flats valuation, agents reminded Property agents have been issued a reminder about proper marketing procedures for Housing Board resale flats, after new rules were introduced in March. The Council for Estate Agencies (CEA) recently advised the heads of property firms here that advertising efforts must not refer to the actual valuation of the flat. Only references to the sellers asking price should be mentioned. The CEA said in a licensing circular on April 23: As a salesperson would not know the valuation of an HDB flat when he is marketing it for the seller, he is not allowed to use phrases such as $0 COV, $0 Cash, Low COV, Low Cash, Below Valuation, and any other phrases with similar effect in advertisements. This comes after the Government said on March 10 that HDB will accept valuation requests for a flat only after the buyer and seller have agreed on a price. Previously, sellers first obtained an official valuation for their flat and used it as a basis for negotiation. This led to a focus on cash-over-valuation (COV) amounts: the cash a buyer has to pay above the flats valuation. The CEA told The Straits Times that its licensing circular was not a new rule. Its existing guidelines on ethical advertising already disallow claims by agents that guarantee a COV or a selling price above a flats market value. But this guideline has become more pertinent in the light of the new rules for selling flats. Agents said they have changed the way they market units, but many buyers and sellers are still unaware of the new rules. Source: The Straits Times – 12 May 2014
Posted on: Wed, 14 May 2014 02:35:52 +0000
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