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Is property a better investment than shares or gold?
That's the type of question housing agents have to face in the realty exam... and the pass rate isn't very high
By Angela Seah
WHERE can I get a four-room flat for under $200K? What is the average valuation in this estate? Or, how far is it to the MRT station?
If you are a real estate agent, you should be able to answer questions like that.
But what if a client asks: Is it better to invest in property rather than in shares or gold?
If you are stumped, well, you'll probably fail this exam.
This is an example of the type of questions in the Common Exam for Housing Agents (CEHA).
And many agents have problems answering such a question.
In fact, they find the exam 'very difficult' to pass.
Agents are encouraged to take the exam for a solid foundation in real estate.
The pass rate varies. One lecturer said only 30 per cent make it.
But the Board of Examiners, appointed by the Inland Revenue Authority of Singapore (IRAS), said that on average, 40 per cent of those who take the exam pass.
Is this exam really that difficult?
Of the seven industry figures we contacted, four said it was, while three said 'not really'.
Said Miss Ivy Lee, 38, executive director of Ivy Lee Realty, where most of the 30-odd agents are CEHA-qualified: 'The exam is not that easy.
'You really have to study to pass. Especially the Law section - you have to memorise a lot of case studies to use in your answers.
'Not many people will be able to pass on their first try.'
Mr Davey Tan, 29, associate marketing director of ERA Realty, passed CEHA on his first attempt in 2000.
But he agreed that 'the exam is tough'.
He said: 'I had to sacrifice one-and-a-half months of working time just to study for it.'
However, Mr John Woo, 42, a real estate agent working at a small local real estate firm, insisted that CEHA is actually 'quite simple'.
He passed the exam only on his second attempt, in April 2002. But he says it 'shouldn't be a problem' if 'you study with the right notes'.
Mr Dillon Loi, a lecturer who conducts courses for agents attempting the exam, pointed out that the biggest problem may not lie with the exam itself, but with the candidates.
'The trend of testing nowadays has shifted to be more analytical and problem-solving, so it is harder now to pass,' he said.
'But the passing rate varies with each batch, so many of these candidates fail for other reasons.'
One of those reasons is that most agents have very little time.
'Many of them have to juggle work, family, and now exam preparations,' he explained. 'It is definitely not easy.'
Also, those who are not highly-educated find the exam difficult.
Many older agents have only O level qualifications at best.
Added Mr Tan, who did not find the 30 per cent figure surprising: 'Some agents completed their education in Chinese.
'But the CEHA is set entirely in English now. So there is a language problem there.'
Of the agents under him who have gone for the exam, seven in 10 would fail, he said.
Throw age into the equation, and many agents despair of ever passing.
It seems like being a housing agent is not such a breeze, after all. When we contacted the Board of Examiners, they had 'no comment' on the low pass rate, nor the exam's difficulty.
WHY ESTATE AGENTS SHOULD TAKE THIS EXAM
THE Common Exam for Housing Agents (CEHA) was introduced in 1996.
It is set by the Inland Revenue Authority of Singapore (IRAS).
CEHA consists of three papers: The law of real property real estate marketing and professional practice and management.
Agents must pass the exam to be admitted into an agency under the HDB's listed housing agents scheme, as well as to enjoy priority in the processing of HDB resale applications.
But CEHA is not compulsory for one to become an agent. You can be a property agent as long as you are attached to an IRAS-licensed housing agency.
Agencies generally do not stipulate minimum requirements for their agents, though those listed under the HDB need their agents to at least pass CEHA.
But they are encouraged to attempt CEHA because 'it is able to equip agents with extra, in-depth knowledge', said Mr Mark Teo, group director of ERA Realty.
According to Mr Davey Tan, ERA has incentives - 'monetary rewards' - to encourage agents to pass the CEHA.
Said Mr Anthony Chua, vice-president of the Institute of Estate Agents: 'Any kind of educational improvement is good. I would definitely encourage agents to go for CEHA.'
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