THE Law Society is moving to tackle the hot-button issues of touting in property deals and entrapment, even as lawyers say fees paid to agents have been going up.

The lawyers note that lawyers who pay such referral fees get a lucrative payoff. Their comments come in the wake of the suspension of three lawyers on Tuesday.

They had been caught offering referral fees to a private investigator pretending to be a property agent. The private eye was hired by unknown lawyers.

Under the law, lawyers are guilty of misconduct if they engage in touting practices and pay an agent to refer a client to them in return for a fee.

But lawyers told The Straits Times it is prevalent.

The going rate for such fees now is about $500 - from about $150 five years ago - for each conveyancing file which brings in about $2,000 per transaction to the lawyer.

A lawyer with 10 years' experience, said: 'Each property file is worth about $2,000 and if an agent can bring in 20 files a month, that's easily $30,000 - enough to cover rental and staff costs.

'The agents will tell you: 'I have a conveyancing case, how much will you pay me?',' he said.

There is thus significant money to be made, especially if the agent can bring in the cases in bulk.

Contacted, the Law Society said moves are already afoot to tackle touting.

A spokesman said the practice is difficult to detect, especially when there is 'an absence of evidence from the parties concerned'.

However, an ad-hoc committee had already been appointed to see if 'current detection and enforcement procedures could be streamlined and enhanced'.

The committee will also look into the issue of lawyers 'privately engaging investigators to detect suspected unethical conduct', the spokesman added.

Read the full story in Friday's edition of The Straits Times.

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