Why is it difficult to regulate real estate intermediary services

2022-05-09 0 By

Ms. Li in Beijing is feeling down these days.Before the Spring Festival, she bought a second-hand house in Xicheng District through the intermediary service agency. Before the price negotiation with the landlord, the intermediary service staff introduced to her the historical transaction price of similar houses in the same community, and especially emphasized the transaction price of a house in a nearby location, which was 7.2 million yuan.7.2 million yuan this price has become Ms. Li on the periphery of the market to judge the most important basis, she finally looked at the second-hand house to 7.15 million yuan transaction.Can be in after signing a contract soon, Ms. Li discovers, just ten days ago, distance oneself buys this house to lie between only a unit, the one flatlet that has more reference contrast value clinchs a deal however with 7 million yuan.Ms. Li believes that because she did not obtain this transaction information, she did not have strong leverage when negotiating with the owner, which made her house more expensive.It is the duty of intermediary service personnel to introduce the surrounding market price to help customers judge the market situation. But they can only inform the one with the high transaction price and ignore the one with the low price. Is this intentionally driving up the house price?The agent responded that due to the delay in the internal system, they did not know the transaction status of the 7 million yuan house at that time.7 million yuan in the same real estate deal in this agency, such an answer is not convincing.Ms. Li was disappointed. She chose the agency with the largest number of stores, the highest market share and the highest agency service fee in Beijing, just thinking that big brands would provide high-quality service. Obviously, she was wrong.Like Ms. Li, in the process of second-hand housing buying and selling or renting, because of the intermediary’s non-standard behavior and the intermediary friction situation many people have encountered.It is undeniable that the intermediary service industry has made great progress in recent years, but generally speaking, there are still a large number of non-standard services in the intermediary industry, and the number of complaints from consumers to intermediary service agencies is always high.Releasing false housing information, eating the price difference, fabricating and spreading false information to disrupt the market order, driving up housing prices and other situations often make people very distressed.Standardizing intermediary services is the call of the majority of house buyers and renters for a long time, but it is still difficult to do.Industry insiders analysis, in China, the entry threshold of real estate agency industry is low, the average working life is only 8 months, many intermediary service agencies do not plan to develop long-term customers, a hammer sale makes the transaction directly into broken relations.Individual broker small half a year to facilitate a suite transaction, with a customer, they will try all kinds of ways to “make a fortune”, so all kinds of non-standard behavior.Some intermediary service organization is the most important work is not the market and related policies, and the deepening housing information, or to cultivate more professional agent, but through a large number of recruitment agencies salesman, hope that through Numbers profit, a handful of the salesman to clinch a deal, can cover a lot of labor costs.How does intermediary industry standardize development?At present, it is mainly through the regulatory rectification of administrative departments and the self-discipline of the industry.Regulatory consolidation is often a gust of wind, after the limelight, and then a comeback.Relevant departments and local governments are also working hard to strengthen the regulation. Starting from 2021, eight departments including the Ministry of Housing and Urban-Rural Development will continue to regulate and regulate the real estate order, aiming to achieve a marked improvement in the real estate order within about three years.Measures such as warning interviews, revocation of business licenses and qualification certificates, and suspension of business operations for rectification have been taken in accordance with the law to deter irregularities in the industry.On this basis, in the long run, the normative development of intermediary service industry calls for more active and effective measures.Ultimately, we should form stronger constraints on the development of the industry through legislation and improving the system and mechanism.To the real estate brokerage industry to implement special legislation higher voice.China’s existing “real estate brokerage management measures” is the main basis for regulating the development of the industry, but there are also many insiders believe that the legislative level of this management measures is not enough.Further legislation should be passed to clarify the rights and obligations, prohibited acts and legal responsibilities of brokers and practitioners.At the same time, we can learn from the advanced management experience of some countries to establish the real estate brokerage industry access system, so that brokers with certificates on the post.Just like we need to get a driver’s license for driving, pay a fine for violating traffic rules, and take a new test for serious violations.If the system is implemented, real estate agents need to have detailed professional knowledge. When they commit violations, they may be punished or even banned from holding the license for life.In addition, the unilateral agency system can also be promoted.At present what our country estate intermediary carries out is “bilateral agent”, namely estate intermediary serves both sides of buyer and seller, “one hand entrust two” should sell a house for the seller already high price, also should strive for the lowest price for the buyer.Bringing these two purposes together is in itself a contradiction.But the international common “unilateral agency”, the broker only serves the buying or selling party, helps the principal party to realize the maximum benefit.Under the bilateral agency mode, it is easy to cause brokers to forcibly promote the transaction and get commission even though they know there are defects in the transaction of buying or selling houses.Unilateral agency is a more scientific and reasonable model.(By Kang Shu, Economic Daily)